UK SRS Explained: The UK Sustainability Reporting Standards and Who Must Use Them
In brief
- The UK Sustainability Reporting Standards (UK SRS S1 and S2) were published on 25 February 2026. They are based on the ISSB’s IFRS S1 and S2, with small UK changes.
- The standards themselves are voluntary. The FCA’s final rules (PS26/19, September 2026) require UK-listed companies to report against them on a “comply or explain” basis.
- The FCA rules apply to accounting periods beginning on or after 1 January 2027, so first reports appear in 2028. Scope 3 can be deferred by one year.
- There is no UK SRS duty for private companies yet. The government is looking at it within its wider corporate reporting review.
UK SRS is now final, and the listing rules that use it are too. For most UK businesses, the direct effect is small. The indirect effect is not: listed companies reporting Scope 3 will ask their suppliers for emissions data. This guide explains what UK SRS is, who must use it, and what it means for the companies that supply them.
What are UK SRS S1 and S2?
| Standard | Covers |
|---|---|
| UK SRS S1 | General requirements: sustainability-related risks and opportunities that could affect the company’s prospects, reported with the financial statements |
| UK SRS S2 | Climate: governance, strategy, risk management, metrics and targets, including Scope 1, 2 and 3 greenhouse gas emissions |
UK SRS follows the ISSB approach: it reports how sustainability matters affect the company’s finances, not the company’s full impact on the world. That is different from the EU’s “double materiality” under the CSRD.
Who must report?
The FCA consulted in January 2026 (CP26/5) on making the climate standard mandatory for listed companies. After feedback about the cost for smaller listed companies, its final rules in PS26/19 put all UK SRS disclosures, including climate and Scope 3, on a comply or explain basis. Companies must report against UK SRS or explain why they have not. The rules replace the existing TCFD-based rules for listed companies and also cover companies with secondary listings and issuers of depositary receipts.
| Item | Date or relief |
|---|---|
| Rules apply to | Accounting periods beginning on or after 1 January 2027 |
| First reports | 2028 |
| Scope 3 emissions | May be deferred for one year |
| Non-climate S1 disclosures | May be deferred for two years |
What about private companies?
No UK SRS duty for private companies has been proposed yet. The government’s Modernising Corporate Reporting consultation, open until 30 November 2026, includes UK SRS. Today, large private companies report under SECR and, if they are big enough, the climate-related financial disclosure rules in the Companies Act.
What it means for suppliers
A listed company that reports Scope 3 under UK SRS needs data on its purchased goods and services, transport and other value-chain emissions. That data comes from suppliers. Expect more requests from listed customers from 2027 onwards, especially for Scope 1 and 2 figures and a credible reduction plan. A documented footprint and a Carbon Reduction Plan answer most of these requests. If your customers are in Europe too, a VSME report covers both.
Frequently asked questions
What is UK SRS?
The UK Sustainability Reporting Standards, S1 (general) and S2 (climate), published on 25 February 2026 and based on the ISSB’s IFRS S1 and S2.
Is UK SRS mandatory?
The standards are voluntary. UK-listed companies must report against them on a comply or explain basis for accounting periods from 1 January 2027, under the FCA’s rules in PS26/19.
Do private companies have to use UK SRS?
Not at present. The government is considering it in its Modernising Corporate Reporting consultation.
Is UK SRS the same as the CSRD?
No. UK SRS follows the ISSB and focuses on financial effects on the company. The CSRD uses the ESRS and double materiality, which also covers the company’s impacts.
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