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The final UK Sustainability Reporting Standards are here, voluntary for now, with mandatory reporting proposed from 2027. Below is a plain guide to UK SRS S1 and S2, who they apply to, and why now is the sensible time to prepare.
On 25 February 2026, the Department for Business and Trade published the final UK Sustainability Reporting Standards, known as UK SRS S1 and UK SRS S2. They are available for voluntary use straight away. The Financial Conduct Authority is expected to publish its Policy Statement this autumn, confirming how and when reporting becomes mandatory for listed companies, with rules proposed to apply from 1 January 2027.
The problem is the word voluntary. It sounds like optional, and for a lot of finance and sustainability teams UK SRS has quietly slipped down the to-do list. The standards are settled and the direction of travel is clear, so the companies that start preparing now will have a far easier time when the rules arrive than those that leave it late.
Key takeaways
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UK SRS S1 and S2 were published in final form on 25 February 2026 and can be used voluntarily now.
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They are the UK-endorsed versions of the ISSB's IFRS S1 (general sustainability) and IFRS S2 (climate) standards.
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The FCA has proposed mandatory reporting for in-scope listed companies from 1 January 2027, subject to its Policy Statement expected in autumn 2026.
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A separate government consultation is expected for larger private companies, and supply-chain and investor pressure will reach many businesses well before any mandate does.
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Preparing early, starting with a reporting gap assessment, usually costs less and causes less disruption than leaving it to the deadline.
What is UK SRS?
UK SRS stands for the UK Sustainability Reporting Standards. It is a single framework for disclosing sustainability and climate information in a way that investors and other users can compare and rely on.
It comes in two parts. UK SRS S1 covers general sustainability-related financial disclosures, the risks and opportunities across your business. UK SRS S2 covers climate specifically, including greenhouse gas emissions and climate-related risk. Both are based on the international ISSB standards, IFRS S1 and S2, with a small number of UK-specific amendments, so a UK report will be broadly comparable with reporting in other major markets.
Is UK SRS mandatory yet?
Not yet. Since 25 February 2026 the standards have been available for voluntary use. The route to mandatory reporting runs through the FCA, which consulted on aligning listed companies' disclosures with UK SRS (consultation paper CP26/5) between January and March 2026, and is expected to publish its final rules this autumn.
Under the current proposals, in-scope listed companies would report against UK SRS S2 (climate) for financial years beginning on or after 1 January 2027. Two transitional reliefs are proposed: Scope 3 emissions could be deferred by a year, and the broader UK SRS S1 disclosures by two years, on a disclose-or-explain basis.
The UK SRS timeline at a glance
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June 2023: the ISSB publishes IFRS S1 and S2, the global baseline UK SRS is built on.
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25 June to 17 September 2025: the government consults on the draft UK SRS (209 responses).
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25 February 2026: final UK SRS S1 and S2 published, and voluntary use begins.
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30 January to 20 March 2026: the FCA consults (CP26/5) on mandatory reporting for listed companies.
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Autumn 2026: the FCA Policy Statement is expected, confirming the final rules and timing.
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1 January 2027: proposed start of mandatory UK SRS S2 reporting for in-scope listed companies.
Who does UK SRS apply to?
In the first instance, UK SRS is aimed at listed companies, through the FCA's listing rules. But it reaches further than that.
The government has signalled a separate consultation on how larger, "economically significant" private companies will report, expected to follow as part of its wider corporate reporting reforms. And well before any of that becomes law, the pressure usually arrives through commercial channels first. Listed companies preparing for UK SRS S2 need Scope 3 emissions data, and Scope 3 is largely made up of suppliers. If you sell to a listed business, expect UK SRS-shaped questions in procurement and supplier assessments long before a mandate reaches your own desk.
The transformacy perspective
Most coverage of UK SRS is written for the CFO of a large listed company. That is a fair audience to write for, but it overlooks where the earliest pressure lands. The businesses that feel UK SRS first are often the small and mid-sized suppliers being asked for emissions data and climate risk information by larger customers who are themselves getting ready. For most of them the first real deadline is set by a customer, not a regulator, and it tends to arrive earlier than the legal one. Getting your carbon data and reporting foundations in order now protects those customer relationships as much as it prepares you for any future rules.
How is UK SRS different from TCFD and CSRD?
UK SRS is proposed to replace the previous TCFD-aligned listing rules rather than sit alongside them. If you already report against TCFD, you have a head start, but UK SRS goes further, asking for more detail and a tighter link to financial reporting.
It is also separate from the EU's CSRD, which some UK businesses with EU operations fall under. The two share common foundations but are not interchangeable, so a business caught by both needs to understand how they fit together.
How to close the gap before the rules tighten
The practical starting point is a reporting gap assessment: a clear look at what you already disclose, where your data comes from, who owns it, and how far it sits from what UK SRS expects.
After that, the priorities are usually the same: reliable greenhouse gas data with a credible plan for Scope 3, climate risk connected to financial planning rather than parked in a separate register, and governance that makes clear who owns the numbers.
None of this is urgent the way a filing deadline is, which is why it is easy to keep putting off. But getting emissions data, climate risk and governance to the standard UK SRS expects takes time, and doing it while reporting is still voluntary is the cheaper, calmer way through.
Webinar: preparing for UK SRS
We are running a webinar on what UK SRS means and the practical steps to get ready. Register your interest and we will let you know as soon as the date is confirmed.
Frequently asked questions about UK SRS
What does UK SRS stand for?
UK SRS stands for UK Sustainability Reporting Standards. They are the UK's framework for disclosing sustainability and climate-related financial information, made up of UK SRS S1 (general) and UK SRS S2 (climate).
When was UK SRS published?
The final UK SRS S1 and S2 were published by the Department for Business and Trade on 25 February 2026, and are available for voluntary use from that date.
When does UK SRS become mandatory?
It is not mandatory yet. The FCA has proposed mandatory reporting for in-scope listed companies for financial years beginning on or after 1 January 2027, subject to its Policy Statement expected in autumn 2026.
What is the difference between UK SRS S1 and S2?
UK SRS S1 covers general sustainability-related financial disclosures across the business. UK SRS S2 covers climate specifically, including greenhouse gas emissions and climate-related risks and opportunities.
Do private companies and SMEs have to comply with UK SRS?
Not under the current listed-company proposals. A separate government consultation is expected for larger private companies. In practice, many SMEs will encounter UK SRS sooner through supplier and procurement requests from larger customers preparing their own disclosures.
Is UK SRS the same as TCFD?
No. UK SRS is proposed to replace the previous TCFD-aligned listing rules. It builds on the same foundations but requires more detailed and more clearly financial disclosures.
