You may have heard of the UK Sustainability Reporting Standards (SRS), which form a part of modernising UK’s framework for corporate reporting. But what are they and what does their introduction mean for corporate compliance?
We are expecting some announcements about the UK SRS soon, which means now is the perfect time to familiarise ourselves with the term. Let’s go over the timeline so far, where we are now and what can we expect next.
What is the context?
To talk about UK SRS, we must first discuss a couple of other acronyms; the ISSB and the IFRS.
The creation of the International Sustainability Standards Board (ISSB) was announced at COP26 in 2021 to create a global baseline for sustainability reporting. In June 2023, ISSB published its first two standards:
- IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information.
- IFRS S2: Climate-related Disclosures.
The ISSB’s standards build upon existing reporting, as they are structured according to the Task Force on Climate-related Financial Disclosure (TCFD) ‘pillars’: governance, strategy, risk management and metrics and targets.
TCFD-aligned requirements (for climate-related reporting) are already in force in the UK, for listed companies via the FCA’s listing rules and for the largest private companies and limited liability partnerships via the Companies Act 2006.
In November 2024, the UK government set out the steps to establish a world-leading sustainable finance framework to deliver credible and decision-useful sustainability-related financial information to the financial markets.
In 2025, this led to a government consultation on exposure drafts of UK versions of the two ISSB standards – called UK Sustainability Reporting Standards (SRS) S1 and UK SRS S2 respectively. The UK SRS will serve as the foundation for this finance framework.
What is the UK SRS?
The UK SRS will serve as the foundation for the UK’s future sustainability disclosures regime – mandating disclosure on governance, strategy, risk management and metrics related to sustainability and climate.
- UK SRS S1: This Standard requires an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect its cash flows, access to finance or cost of capital over the short, medium or long term.
- UK SRS S2: This Standard requires an entity to disclose information about climate-related risks and opportunities that could reasonably be expected to affect its cash flows, access to finance or cost of capital over the short, medium or long term.
The government aims to publish finalised versions of UK SRS S1 and UK SRS S2 for voluntary use in early 2026.
What happens next?
The final UK SRS are expected to be published in February 2026. Meanwhile, the Financial Conduct Authority (FCA) has launched a consultation on adopting UK SRS for listed companies.
What does the UK SRS mean for me?
The UK SRS is expected to be initially voluntary, but today’s voluntary reporting is the mandatory reporting of tomorrow. Mandatory requirements for some companies can be reasonably expected to follow the publication of final standards and the outcome of the FCA consultation.
However, the practicalities around implementing and reporting towards the UK SRS will only be known for certain once the finalised standards are published.
In the meantime, the UK government’s consultation document highlighted how many companies are already reporting emissions-related information through current reporting such as TFCD-aligned and Streamlined Energy and Carbon Reporting (SECR) requirements.
Whether UK SRS does replace existing schemes is to be confirmed, but continuing SECR compliance and TCFD-aligned reporting can help support future UK SRS reporting with robust greenhouse gas emissions reporting data for the time being.
How can Inspired help?
Any new compliance reporting can seem like a momentous task and low on the priority list. Nevertheless, making arrangements towards your reporting now helps your organisation remain ahead of the curve when the UK SRS reporting becomes compulsory.
Regardless of what lies ahead, an expert partner can help you remain compliant in the continuously evolving regulatory space. Inspired can assist you with all elements of your reporting – from data collation to final presentation.
If you would like to discuss how we can best support your organisation, please email us at [email protected]
