What you need to know about UK SRS

UK SRS will serve as the UK’s framework for sustainability disclosures, closely aligned with the first two IFRS Sustainability Disclosure Standards from the International Sustainability Standard Board’s (ISSB), which establish a global baseline for sustainability reporting. This alignment ensures that UK organisations can maintain international comparability while addressing the specific needs and priorities of the UK market.

UK SRS build upon pre-existing foundations from the Taskforce on Climate Related Financial Disclosures (TCFD). 

UK SRS aim to strengthen sustainability reporting, providing investors and stakeholders with comparable, decision-useful information. Early implementation and preparation will help organisations better position themselves to meet stakeholder expectations and regulatory developments.

The Financial Conduct Authority (FCA) is consulting on incorporating UK SRS into listing rules. The FCA consultation closes on 20 March 2026.

Implications for businesses and assurance practitioners

UK entities that have disclosed against the TCFD would have learned several key lessons, including the importance of:

• clear governance structures, 
• strong board oversight, 
• integrating climate related risks into strategic and financial planning to strength decision making, and
• robust data systems and scenario analysis for producing meaningful disclosures. 

Building on these lessons, organisations preparing for UK SRS should engage early, aligning governance, data systems, and internal processes to meet disclosure requirements.

In July 2023 the Financial Stability Board announced that the work of the TCFD had been completed, with the ISSB Standards marking the “culmination of the work of the TCFD”. Having fulfilled its remit, TCFD disbanded in October 2023. 

While ISSB standards built on the TCFD’s core principles (governance, strategy, risk management, metrics, and target), and applied them to all sustainability related matters, including climate, they introduce more detailed disclosure requirements. 

Assurance providers should anticipate increasing demand for sustainability assurance of information disclosed as part of UK SRS, in accordance with ISSA (UK) 5000, which is effective for assurance engagements on sustainability information reported for periods beginning on or after December 15, 2026.

Benefits of voluntary implementation

Reacting to the publication of the standards, Ravi Abeywardana, Director of Sustainability Reporting and Assurance at ICAEW, said: “This marks the conclusion of the UK's endorsement process, which was supported by the UK's Technical Advisory Committee which gave the government robust and thorough advice on the operation of the standards in the UK context. 

“The true value to organisations will come from integration beyond compliance, embedding sustainability into governance, strategy, risk management, and operational decision-making.”

Organisations that voluntary implement UK SRS early can strengthen investor confidence, improve internal strategic insights, and demonstrate leadership in sustainability reporting. This strategic foresight will be crucial as regulatory expectations, and investor demands continue to evolve through 2026 and beyond.