UK Sustainability Reporting Standards (UK SRS) are the UK’s proposed sustainability reporting standards, currently under consultation.
Based on the global baseline standards developed by the International Sustainability Standards Board (ISSB), UK SRS is intended to set out how organisations disclose sustainability-related financial information, including climate-related risks and opportunities. The draft standards align with existing international frameworks and focus on how sustainability considerations are reflected across governance, strategy, risk management, and performance metrics.
While the final scope and timing of UK SRS have yet to be confirmed, industry commentary suggests the standards are likely to be introduced first for larger UK entities, particularly those already within the scope of existing sustainability reporting regimes. As expectations develop, organisations are being encouraged to understand how UK SRS may affect future reporting requirements.
This below outlines the key facts about UK SRS, who it is expected to apply to, and what organisations should consider next.
WHAT IS IT?
UK Sustainability Reporting Standards (UK SRS) are the UK’s proposed sustainability reporting standards.
UK SRS is the UK’s adaptation of the global baseline standards developed by the International Sustainability Standards Board (ISSB), specifically IFRS S1 and IFRS S2.
The draft UK SRS set out sustainability-related financial disclosure requirements, including climate-related risks and opportunities, aligned with the IFRS S1/S2 structure. Reporting must cover governance, strategy, risk management, and metrics on material sustainability issues, aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework.
WHO WILL THIS APPLY TO?
The scope of UK SRS remains subject to future regulatory decisions and further consultation.
Industry commentary suggests that UK SRS is likely to be introduced first for larger UK entities, particularly those already within scope of existing climate and sustainability reporting regimes such as SECR.
This is expected to include UK-listed companies, large private companies, and Limited Liability Partnerships (LLPs), with thresholds broadly aligned to existing reporting requirements.
Organisations currently in scope of SECR should pay close attention to developments around UK SRS as the standards are finalised and implemented.
WHAT DOES THIS MEAN FOR BUSINESS?
UK SRS moves sustainability reporting beyond energy and carbon metrics.
The draft standards would expect organisations to explain how sustainability risks and opportunities are considered in governance, strategy, risk management, and financial decision‑making.
Reporting under UK SRS is intended to extend beyond climate to other material sustainability topics, where relevant.
Sustainability information will be integrated into annual financial reports, providing investors and stakeholders with a clearer view of long-term enterprise value.
WHAT IS THE IMPACT AND WHAT HAPPENS NEXT?
UK SRS represents a clear step up from SECR-style reporting.
Organisations should expect increased reporting requirements, including greater use of forward-looking disclosures, Scope 3 emissions where material, and stronger expectations around data quality and governance.
UK SRS is still under consultation. Organisations are encouraged to begin assessing gaps between current reporting and future UK SRS requirements.