UK Sustainability Reporting Standards (UK SRS)
As the UK continues transforming its corporate sustainability reporting landscape, the UK Sustainability Reporting Standards (UK SRS) are expected to play a central role in the future development of mandatory environmental, social, and governance (ESG) disclosure requirements in the UK.
In this article ESG experts, Gyles Scott-Hayward from WSP and Alejandra Verlade from Ricardo, explain what the UK SRS require companies to disclose, how they align with global standards, who must comply, and when they come into force - critical information for ESG and sustainability managers.
What are the UK Sustainability Reporting Standards (UK SRS)?
The UK SRS are a new set of sustainability reporting standards designed to guide how organisations disclose material sustainability-related financial information and climate-related risks and opportunities.
They will form part of the UK’s broader Sustainability Disclosure Requirements (SDR) regime, a UK Government initiative to strengthen corporate ESG transparency, improve comparability of disclosures, and minimise greenwashing.
At their core, UK SRS bring the UK in line with globally recognised reporting frameworks by building on two principal international standards:
- UK SRS S1 - based on IFRS S1 (General Requirements for Sustainability-related Financial Disclosures)
- UK SRS S2 - based on IFRS S2 (Climate-related Disclosures).
These standards are grounded in a financial materiality, ensuring companies report on how sustainability issues materially affect enterprise value, investor decisions, and financial performance, making them especially relevant for finance, governance, and sustainability teams alike.
Who is expected to be impacted by UK SRS?
While UK SRS are still being finalised and their rollout is expected to be phased, initial application is anticipated to focus on:
UK-listed companies
Companies listed on UK regulated markets are expected to be among the first entities consulted on mandatory application of UK SRS.
Large UK companies
Large UK incorporated entities may fall within the scope of UK SRS reporting in future phases of implementation. However, the final criteria, including any size or economic thresholds, are still subject to regulatory development and consultation.
Multinationals with UK reporting responsibilities
Multinational organisations with UK domiciled entities or UK reporting requirements are likely to need to consider UK SRS as part of their group wide sustainability and financial reporting processes.
Finance and audit functions
Finance, audit, and sustainability teams are expected to work together to integrate UK SRS related data into financial reporting cycles and establish processes to support robust disclosure, verification, and governance.
At first, UK SRS adoption will be voluntary, but regulators, including the Financial Conduct Authority (FCA), plan to consult on mandatory application and listing rule changes to bring sustainability reporting into mainstream corporate disclosure practices.
What to expect from UK SRS reporting
UK SRS reporting will centre on decision-useful sustainability information that is reliable, consistent, and comparable across organisations and sectors.
Key disclosure topics will include:
Material sustainability risks and opportunities
Organisations are expected to identify and disclose sustainability related risks and opportunities that could reasonably be expected to affect enterprise value over the short, medium, or long term. This may include information relating to governance, strategy, risk management, as well as relevant metrics and targets.
Information is deemed material if omitting, misstating, or obscuring information could reasonably be expected to influence the decisions of primary users of general purpose financial statements.
Climate- first disclosure
The IFRS Sustainability Standards and UK SRS both prioritise climate-related disclosures, driven by the immediate and urgent need to address the climate crisis.
This means companies will first be required to disclose under UK SRS S2 - a more detailed, quantitative standard replacing the Task Force for Climate-related financial disclosures (TCFD) – rather than UK SRS S1. As such, UK SRS S2 adoption is likely to enhance or replace existing UK Climate-related Financial Disclosure (CFD) regulations, which are currently based on TCFD recommendations.
UK SRS S2 sets out the requirements for entities to disclose information about climate impacts. These disclosures will include:
- Governance, strategy and oversight of climate-related risks and opportunities
- Assessing resilience analysis using forward-looking climate scenarios
- Emissions reporting, including scope 1, 2 and 3
- Transition planning and targets to manage climate-related impacts.
Integration with financial reporting
Sustainability disclosures are expected to be published alongside financial statements within ordinary reporting cycles. This approach is intended to highlight the financial relevance of sustainability related information and support greater connectivity between financial and non-financial reporting.
Assurance and data integrity (future phases)
In the initial stages of UK SRS adoption, external assurance of sustainability disclosures is not expected to be mandatory. However, regulators have indicated that frameworks for independent assurance and enhanced data integrity may be introduced in future phases.
UK SRS timeline
The following timeline reflects current policy signalling and consultation milestones and remains subject to change.
The UK SRS are continuing to evolve, with policymakers indicating that their introduction will be phased over time. While indicative milestones have been signalled, the timing and scope of implementation remain subject to further consultation and regulatory decisions:
| June 2025 | Exposure drafts of UK SRS S1 & S2 published for consultation. |
| September 2025 | Consultation period closed; feedback analysis. |
| February 2026 | Final UK SRS standards are expected to be published, with voluntary application anticipated. |
| Throughout 2026 | FCA and legislative consultations and updates on implementation rules and listing rules are expected. |
| 2026–27 | UK SRS reporting is expected to operate on a voluntary basis, allowing organisations to begin aligning sustainability disclosures with the new standards and regulators to assess market readiness. |
| Beyond 2027 | Subject to further consultation, legislative change, and regulatory decisions, UK SRS may be incorporated into mandatory reporting requirements for certain listed and economically significant entities. |
Early voluntary adoption can position sustainability leaders ahead of compliance deadlines.
Why does UK SRS matter for ESG and sustainability leaders?
UK SRS is more than a reporting framework, it represents a strategic shift with businesses assessing financially material sustainability-related risks and opportunities and integrating the management of these into financial planning, risk management and wider corporate narratives.
UK SRS:
- Aligns UK disclosures with global standards, reducing fragmentation in ESG reporting.
- Improves transparency and investor confidence by producing comparable, decision-useful disclosures.
- Elevates ESG data quality through integration with financial reporting.
- Supports long-term value creation by embedding sustainability into corporate strategy.
How should you prepare for the UK SRS?
Early voluntary adoption, or detailed preparation for adoption, of the UK SRS, can position companies as sustainability leaders ahead of compliance deadlines.
Sustainability and ESG managers should consider:
- Conducting UK SRS readiness assessments
- Building detailed implementation roadmaps, focusing on resource requirements and no-regrets actions
- Aligning internal data systems with requirements under S1 and S2
- Building governance and cross-functional reporting processes
- Engaging auditors and finance teams on assurance readiness
Support from Ricardo (Member of WSP)
Understanding the application of the UK SRS, and translating the Standards into practical actions and corporate disclosures, can be complex. Ricardo’s and WSP’s sustainability and ESG specialists have deep expertise in UK Sustainability regulation and reporting strategies, as well as the technical expertise to implement the requirements of the Standards.
We can help you to:
- Assess your current readiness against UK SRS expectations and plan for compliance
- Complete scope 1-3 greenhouse gas footprinting
- Complete best-practice materiality assessments
- Assess physical and transition risks and opportunities using scenario analysis
- Quantify risks and opportunities for integration with financial planning and reporting
- Prepare topic specific disclosures for UK SRS S1
- Build robust ESG reporting frameworks and controls
- Prepare for assurance and compliance requirements
Get in touch to start a conversation about support with UK SRS and your ESG journey
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