The first two UK Sustainability Reporting Standards establish a voluntary framework for sustainability-related financial disclosures in the UK. They are the UK-endorsed versions of the International Sustainability Standards Board’s (ISSB) IFRS Sustainability Disclosure Standards, providing a foundation for consistent and comparable reporting.
The development of UK SRS
UK SRS form part of the government’s wider ambition to develop a UK disclosure and assurance framework for sustainability-related financial disclosures and establish the UK as a global centre for sustainability finance.
Published by the UK Government on 26 February, UK SRS incorporate the requirements of the ISSB Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. They are closely aligned with the ISSB Standards and support the objective of establishing a global baseline for sustainability-related disclosures.
The journey towards UK SRS began with the government’s creation of the UK Sustainability Disclosure Technical Advisory Committee (TAC), which was tasked with conducting a technical assessment of the two ISSB Standards. The Committee’s endorsement assessment concluded that adopting the standards would serve the long-term public interest in the UK, while recommending that certain minor modifications should be made to reflect the UK context.
An advisory committee, the UK Sustainability Disclosure Policy and Implementation Committee (PIC),was also established. The PIC coordinates the implementation of UK SRS by the UK Government and the Financial Conduct Authority (FCA). It is also an information-sharing forum for UK Government, UK financial regulators and standard setters to share information regarding their engagement and influencing work with the ISSB.
UK SRS S1 General requirements for disclosure of sustainability-related financial information and UK SRS S2 Climate-related disclosures are now available for voluntary application. The UK standards are closely aligned to the ISSB’s Standards but include targeted amendments to reflect the UK context, including differences in transitional relief, the effective date, the role of the SASB Standards, and the requirements around financed emissions for financial institutions.
FCA Listing Rules – mandatory reporting on the horizon
In early 2026, the FCA consulted on proposals to introduce mandatory sustainability reporting for in scope listed companies. Under the proposals, the current requirement for TCFD-aligned disclosures would be replaced with a requirement to report in accordance with the UK Sustainability Reporting Standards (UK SRS), with the FCA introducing additional flexibility in their application.
Interaction with existing reporting requirements
The introduction of UK SRS raises important questions about how these new disclosures may interact with existing UK reporting obligations. While the government has indicated that it intends to undertake a more comprehensive review of the overall reporting framework, it has already begun taking some steps to reduce duplication across existing requirements.
To streamline reporting, the government has confirmed that companies applying UK SRS S2—whether voluntarily or under any future changes to the FCA Listing Rules—may use those disclosures to meet their obligations under the Climate related Financial Disclosure Regulations 2022, provided they also satisfy the requirements for the non financial and sustainability information statement (CA 2006 s414CB(1)–(5)) and clearly state that UK SRS S2 has been applied.
However, companies within the scope of the Streamlined Energy and Carbon Reporting (SECR) regulations must continue to provide the disclosures required under that framework. This means some duplication will remain for now. The Department for Energy Security and Net Zero has signalled its intention to review how UK SRS interacts with SECR in the future, with the aim of reducing overlap where possible.
Key differences between UK SRS and the ISSB Standards
UK SRS remain closely aligned with their international counterparts, IFRS S1 and IFRS S2, but include several targeted amendments to reflect the UK’s regulatory context and policy priorities.
Strengthened integration with financial reporting
One notable change is the removal of the IFRS S1 transitional relief that allowed sustainability disclosures to be published after the financial statements in the first year of adoption. This aligns with the existing approach in the Climate-related Financial Disclosure Regulations 2022, which already require sustainability and financial information to be reported simultaneously. Retaining the relief would therefore have represented a step backwards and its removal reinforces its expectation that financial and sustainability reporting should be closely connected from the outset.
No specified effective date
To avoid confusion with any potential future regulatory requirements, UK SRS do not specify an effective date. Instead, they are available for voluntary use immediately, with any mandatory application to be introduced later through legislation or regulation – such as future updates to the FCA Listing Rules.
Removal of time limits for certain transitional reliefs
Two key reliefs – the reporting of Scope 3 emissions and the disclosure of sustainability-related information under UK SRS S1 beyond climate-related matters – no longer carry fixed time limits. Voluntary users may apply them indefinitely, with UK regulators then being able to decide their duration under any legislation or regulations that mandate reporting.
To provide certainty, the government has confirmed that entities may still claim compliance with UK SRS S2 while using these reliefs, provided they disclose that they have done so. However, entities reporting solely on climate matters cannot claim compliance with UK SRS S1.
New relief for financial institutions
Recognising the particular challenges faced by financial institutions, the UK has introduced an additional mechanism to allow these institutions to explain why they have not yet been able to comply with the financed emissions disclosure requirements in paragraph B59 of UK SRS S2. This includes outlining their approach to measuring financed emissions – such as using prior-year balance sheet data – and setting out how they plan to meet the full requirements over time.
Optional consideration of SASB Standards and S2 Industry-based Guidance
The UK framework also offers greater flexibility by making it optional, rather than mandatory, for preparers to consider the SASB sector-based standards and the ISSB’s S2 Industry-based Guidance. Entities may still draw on these materials where useful but are not required to do so.
Incorporation of recent ISSB amendments
UK SRS S2 incorporates the ISSB’s recent targeted amendments to IFRS S2, issued in December 2025, bringing the UK standard fully up to date with the latest from the international standard setter. Among the changes are:
- greater flexibility for entities to use classification systems beyond the Global Industry Classification Standard (GICS) when reporting financed emissions;
- the removal of certain Scope 3 categories – such as those linked to derivatives, facilitated emissions and insurance-related activities; and
- a broader suite of jurisdictional reliefs, including the option to apply alternative Global Warming Potential values or methodologies other than the GHG Protocol in specific circumstances.
The only element not carried across relates to effective dates and transition, given the UK standards do not contain a specific effective date.
Assurance requirements in the UK
No decisions have been taken on whether assurance will be required on sustainability disclosures. Mandatory assurance will only be introduced following consultation.
To support assurance providers undertaking sustainability assurance engagements, the Financial Reporting Council (FRC) has issued International Standard on Sustainability Assurance (UK) 5000 General Requirements for Sustainability Assurance Engagements. This is the UK version of the IAASB’s global baseline standard for sustainability assurance and is intended for voluntary use by UK assurance providers, maintaining alignment with the international framework.