UK Sustainability Reporting Standards (UK SRS): what they mean for your business

This week, the UK government published the final UK Sustainability Reporting Standards (UK SRS). They mark a significant shift in how businesses are expected to report on sustainability and climate, and they will shape corporate reporting in the UK for years to come.

So, what are they, why do they matter, and what should you be doing now?

What are the UK Sustainability Reporting Standards?

UK SRS are a new set of standards designed to help UK companies report clearly and consistently on material sustainability and climate-related risks and opportunities.

There are two core standards:

1. UK SRS S1: general requirements for sustainability-related financial disclosures
2. UK SRS S2: climate-related financial disclosures

They are closely aligned to the global standards developed by the International Sustainability Standards Board (ISSB), known as IFRS S1 and S2. In practice, this means UK businesses will be reporting in a way that is comparable with peers around the world and meaningful to investors, lenders and other decision-makers.

S1 covers all sustainability issues that could reasonably affect your business’s cash flow, access to finance or cost of capital over the short, medium or long term. It’s not just about climate.

S2 goes deeper on climate specifically, including expectations around scenario analysis and forward-looking assessments of how resilient your business is in a low-carbon transition.

Both standards are built around the four familiar TCFD pillars: governance, strategy, risk management, and metrics and targets.

Why UK SRS matter for UK businesses

This is not just a reporting exercise. UK SRS reflects a wider shift in expectations about how businesses manage risk, plan for the future and create long-term value.

At a practical level, organisations will be expected to:

• Identify and prioritise their most material sustainability and climate risks and opportunities,
• Integrate these into core business strategy and decision-making,
• Put robust systems in place to collect, manage and assure sustainability data, and
• Be able to evidence claims with reliable, auditable information.

For businesses already reporting under frameworks like TCFD and SECR, this will feel like a natural evolution, but UK SRS goes further, requiring more joined-up data, deeper analysis and stronger links to financial performance.

Sustainability reporting is moving from a compliance exercise to a core part of how business performance is understood.

What happens next: timelines and future mandatory requirements

For now, UK SRS is available for voluntary adoption, but the FCA has opened a consultation this year on making UK SRS mandatory for premium and standard listed companies subject to the FCA’s Listing Rules. In parallel, the government is expected to announce a further consultation considering whether to extend mandatory reporting to large companies through the Companies Act.

SMEs are not the main target initially, but they will feel the impact. If you sit in the supply chain of a large organisation, or are seeking investment, you will increasingly be asked for this information. Over time, sustainability reporting in line with UK SRS will become business as usual.

How we can support your UK SRS readiness

Our Sustainability and ESG team are hosting a webinar on UK SRS and what it means for your business on 18 March 2026 that aims to help you:

• Understand what the new standards actually require,
• See how they are likely to be implemented in the UK,
• Learn what ‘good’ looks like in practice, and
• Identify practical next steps for your organisation.

Whether you’re just getting started or already reporting, this session will give you clarity and confidence in a fast-moving space.

And if you want to go further, we can help you prepare early, build proportionate systems, and turn reporting from a cost into a strategic advantage. From governance and data to strategy and assurance, we work with organisations to make sustainability valuable, not just compliant.

If you want to get ahead of the curve, now is the moment. Please get in touch, or register for the webinar.