The UK Sustainability Reporting Standards Explained

Sustainability reporting in the UK is undergoing significant changes. The government’s new UK Sustainability Reporting Standards (UK SRS) will reshape how organisations disclose climate and sustainability information, replacing fragmented rules with a single, globally aligned framework. For companies already navigating pressure from external stakeholders, this marks a shift from compliance-driven reporting to decision-ready data. The new standards aim to make sustainability reporting part of how businesses plan, operate, and communicate their performance.

In this article, we’ll break down what the UK SRS are, how they fit into the wider global landscape, what will happen to existing UK climate reporting policies, and what practical steps your organisation can take to prepare.

What are the UK Sustainability Reporting Standards?

The UK SRS are draft standards developed by the UK government to guide how companies disclose sustainability-related financial information and climate-related risks and opportunities. They are based on two frameworks published by the International Sustainability Standards Board (ISSB) in 2023:

• IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS S2: Climate-related Disclosures

Why does the UK SRS matter for your organisation?

1. Aligns with investor and market expectations

UK SRS emphasises financial materiality – the way sustainability or climate issues affect an organisation’s cash flows, access to finance, cost of capital. Companies that implement robust processes now will be better equipped to meet these disclosure expectations.

2. Prepares you for upcoming regulation

Although not yet mandatory, the UK Government plans to legislate for entities to report using UK SRS. Establishing reliable data governance, emissions-measurement, and reporting systems now will prevent compliance challenges later.

3. Strengthen decision-making and risk management 

Reporting under UK SRS encourages internal accountability. Organisations must evaluate whether they understand their Scope 1, 2 and 3 emissions, assess climate-related risks and opportunities, and link emissions data to overall strategy and governance. These steps enhance operational resilience, cost efficiency, and competitive advantage.

4. Supports supply chain transparency

Supply-chain partners, investors, and customers increasingly demand credible emissions and climate-risk disclosures. Preparing for UK SRS helps companies respond effectively and meet expectations tied to procurement, net-zero commitments, and extended producer responsibility.

How do the UK SRS work?

The UK Sustainability Reporting Standards are comprised of two core standards:

• UK SRS S1 covers general sustainability-related financial disclosures, including environmental, social, and governance issues where financially material.
  
  
• UK SRS S2 focuses specifically on climate-related disclosures — including metrics and targets around greenhouse-gas (GHG) emissions, scenario analysis, and resilience in a low-carbon economy. 

Timeline

The UK Government’s consultation on exposure drafts closed on 17 September 2025. Once finalised and legislated, the UK SRS will apply from accounting periods starting on or after 1 January 2026.

Relationship to other frameworks

The UK Sustainability Reporting Standards aligns with ISSB’s IFRS standards, ensuring global consistency. Unlike the EU’s Corporate Sustainability Reporting Directive (CSRD), which uses a double-materiality approach (financial + impact materiality), the UK SRS focuses primarily on financial materiality.

They also build upon existing UK frameworks such as Streamlined Energy and Carbon Reporting (SECR) and Task Force on Climate-related Financial Disclosures (TCFD).

What are the key disclosure requirements?

Organisations will be required to disclose information under the following pillars:

• Governance: How the board and senior management oversee sustainability and climate.
• Strategy: How these issues influence strategy, business model and value-creation.
• Risk management: How the entity identifies, assesses and manages sustainability and climate-related risks.
• Metrics and targets: Including GHG emissions (Scopes 1, 2 and 3 where material), transition plans, KPIs, and scenario analysis for climate resilience. 

UK-specific modifications

The exposure drafts for the UK SRS propose minor amendments to adapt the ISSB standards for the UK context. These include the “climate-first” relief, allowing companies to phase in non-climate sustainability disclosures after climate-related ones a practical step to ease implementation.

What happens to SECR under the UK SRS?

At present, the Streamlined Energy and Carbon Reporting (SECR) policy remains the main framework requiring companies to disclose energy use and GHG emissions. However, SECR is expected to be phased out and replaced once the UK SRS becomes law. The Department for Business and Trade has confirmed that UK SRS will underpin future sustainability-disclosure requirements, aligning the UK with global ISSB standards. Government consultations are underway to determine which entities fall within scope, what level of assurance will be required, and how SECR will be integrated or retired.

How to prepare for the UK SRS

1. Map your current position

• Conduct a materiality assessment to identify which sustainability and climate issues could affect your financial performance.
• Evaluate the accuracy of existing emissions data, ensuring clear coverage across Scopes 1, 2, and 3.
• Review governance and reporting structures: Determine if you have board-level oversight, defined accountability, and clear audit trails for data collection and verification.

2. Strengthen data and governance

• Invest in reliable tools for measuring and managing emissions. 
• Align your methodologies with recognised standards such as ISO 14067 (product carbon footprint), PAS 2060 (carbon neutrality) and SBTi for science-based target setting.

3. Align strategy and risk management

• Use the UK SRS pillars (governance, strategy, risk management, metrics and targets) to integrate sustainability into your business model.
• Apply scenario analysis and transition planning to test resilience.
• Begin voluntary disclosure ahead of mandatory requirements to demonstrate leadership and readiness.

4. Prepare for assurance and comparability

• Expect third-party assurance requirements following implementation. Ensure your processes are audit-ready, with clear documentation, data controls, and traceability.
• Benchmark disclosures against peers to ensure they are consistent, comparable, and investor-ready.

5. Communicate progress clearly 

• Present sustainability information in a way that is accessible, accurate, and relevant to stakeholders.
• Use your disclosures to tell a coherent narrative of progress – how you measure, manage, and reduce emissions while delivering long-term value.

Next steps 

The UK Sustainability Reporting Standards will unify and modernise corporate sustainability disclosure, ultimately replacing SECR from 2026. These standards establish a consistent, ISSB-aligned framework linking sustainability information and financial performance. Organisations that act now by improving emissions measurement, strengthening governance, and preparing for assurance will gain a clear advantage and build lasting stakeholder trust. 

Speak with our team to learn how Zevero can help your organisation prepare for the UK SRS.