On 25 February 2026, the government published the finalised UK Sustainability Reporting Standards (UK SRS) – based on the international standards developed by the International Sustainability Standards Board (ISSB).
These standards aim to create a common, investor-focused framework for ESG reporting, replacing fragmented requirements and helping businesses communicate sustainability in a way that matters to investors.
What are the Sustainability Reporting Standards (SRS)?
- SRS 1 – General Sustainability Disclosures: Identify sustainability risks and opportunities that could impact financial performance, link these to governance, strategy, risk management, and metrics.
- SRS 2 – Climate-related Disclosures: Assess climate risks, conduct scenario analysis, and report greenhouse gas emissions across Scopes 1, 2, and material Scope 3.
Why this matters:
- Provides clearer, comparable sustainability information for investors.
- Encourages integration of sustainability into financial reporting, not as a separate add-on.
- Moves from historical reporting to forward-looking assessments of how sustainability risks and opportunities affect your business.
Who will this apply to?
While adoption is voluntary for now, early preparation will position your business ahead of potential mandatory requirements from 1 January 2027. This could apply to:
- Listed companies – the Financial Conduct Authority is currently consulting on replacing the TCFD framework with phased implementation.
- Large private companies – Similarly, the UK government is consulting on the mandatory reporting for large UK organisations
If you’re starting to explore what this means for your business, now is a great time to build your understanding. Getting ahead of the changes early can make future reporting far simpler and more effective.