UK SRS: What the new standards mean for businesses and what’s next
UK Sustainability Reporting Standards (UK SRS) Introduced
On 25th February 2026, the UK Sustainability Reporting Standards (UK SRS) S1 and S2 were released for voluntary use, marking a significant step towards standardising sustainability-related disclosures in the UK. The UK SRS represent the UK’s endorsement of the International Financial Reporting Standards (IFRS) S1 and S2, and replace previous Environmental, Social, Governance (ESG) disclosures with a single, internationally aligned reporting framework.
Who is Impacted and What are the Key Requirements?
While the standards are currently voluntary, the Financial Conduct Authority (FCA) is consulting on mandatory reporting for listed companies, targeting 1st January 2027 as a start date. But the standards’ impact will extend beyond obligated organisations, with companies of all sizes set to face increasing demand for SRS-aligned data from large customers in their supply chain.
Reporting requirements focus on climate related risks and opportunities (such as how much of their business is exposed to transition or physical risks, and how much capital is being allocated to climate-related activities), strategy, and greenhouse gas emissions (Scope 1, 2 and 3).
Development and What Happens Next
Listed companies in the UK already report sustainability disclosures under a framework that, until 2023, was closely aligned with the Task Force on Climate Related Financial Disclosures (TCFD). Established in 2015, the TCFD played a central role in shaping corporate climate reporting before being disbanded in 2023.
During the 2021 UN Climate Change Conference in Glasgow (COP26), it was announced that the International Sustainability Standards Board (ISSB) would be established. The ISSB was developed to provide standards that deliver comparable and ‘decision-useful’ information for investors; creating a global baseline for corporate reporting and unifying fragmented frameworks, including the TCFD. On 26th June 2023, the ISSB published its first 2 standards – IFRS S1: General Requirements for Disclosure of Sustainability Related Financial Information (i.e. risks and opportunities across ESG factors), and IFRS S2: Climate Related Disclosures – forming the basis of the UK SRS.
An update is expected in Autumn 2026 regarding the outcome of the FCA’s consultation on mandatory reporting under UK SRS. If adopted, reporting under UK SRS (aligned with ISSB) will become mandatory for all listed businesses from 1st January 2027. Non-listed companies will have the option to voluntarily adopt the standards.
As organisations face rising regulatory and stakeholder demand for greater sustainability reporting and performance, Beyondly’s Sustainability Strategy service can empower you with the tools to ensure readiness and measurable impact; defining clear priorities and practical next steps to strengthen your environmental and business performance. We also help organisations go a step further, turning their sustainability strategy into practical action and implementing key standards and frameworks, through a range of expert services such as Carbon Management.
