The UK Government has published its first Sustainability Reporting Standards (SRS), aimed at improving the consistency and comparability of corporate sustainability disclosures for investors and the wider market.
The new standards — UK SRS S1 and UK SRS S2 — are aligned with the International Sustainability Standards Board (ISSB) baseline and correspond to IFRS S1 and IFRS S2.
UK SRS S1 sets out general requirements for sustainability-related financial disclosures, requiring companies to report on risks and opportunities that could affect cash flows, access to finance or cost of capital over the short, medium and long term.
UK SRS S2 focuses on climate-related disclosures, including physical risks such as extreme weather, transition risks linked to decarbonisation, and climate-related opportunities.
Companies adopting the standards must disclose information across four areas: governance, strategy, risk management, and metrics and targets. Sustainability information must be published alongside financial statements and cover the same reporting period. The emphasis is on material information that could influence investor decisions.
The framework is designed to be interoperable with international standards, making it easier for companies operating across multiple jurisdictions to align reporting and reduce duplication.
The standards are currently voluntary. However, the Financial Conduct Authority (FCA) is consulting on proposals to require UK-listed companies to report in line with the new SRS, replacing existing TCFD-aligned rules. The consultation runs until 20 March 2026. The Government has also indicated that it may extend the standards to large private companies.
Industry bodies welcomed the move as a step forward for UK corporate reporting, while some called for broader adoption of a “double materiality” approach and greater clarity on reliefs related to non-climate and Scope 3 greenhouse gas reporting.
