UK Government Issues Final UK Sustainability Reporting Standards (UK SRS)

On 25 February 2026, the UK Government endorsed the International Sustainability Standards Board's ("ISSB") sustainability reporting standards ("IFRS S1 and S2"), and issued final versions of the UK Sustainability Reporting Standards ("UK SRS"), UK SRS S1 and UK SRS S2 for voluntary use in the UK.

This came as part of the Government's response to the public consultation on the UK SRS which ran from June – September 2025. The UK SRS are based on the ISSB standards and the UK Government has stated its objective in endorsing IFRS S1 and S2 is to support high-quality, decision-useful sustainability-related information and to promote international consistency in disclosures. The final versions of the UK SRS S1 and S2 have been published online and are available for entities to use in whole or in part "as they see fit".

Key amendments to the UK SRS

The UK SRS incorporate only minor amendments from the text of the ISSB standards, to ensure the standards are fit for purpose in the UK context. The relevant amendments were considered against criteria in the "Framework and Terms of Reference for the Development of UK Sustainability Reporting Standards" supported by analysis from the UK Sustainability Disclosure Technical Advisory Committee ("TAC") and Policy and Implementation Committee ("PIC"). The Government notes that some amendments were developed after the consultation, reflecting consultation feedback, TAC recommendations, and issues raised in PIC discussions, as well as some amendments being made to reflect alignment with the latest version of IFRS S2, as amended in December 2025.

The amendments made to the UK SRS from the original ISSB standards include:

• Removal of timing for transitional reliefs: the UK SRS removes references to timing for transitional reliefs relating to methods for non-climate reporting and disclosing Scope 3 emissions. Additional timing restraints may be clarified once reporting becomes mandatory under the UK SRS. However, for the time being these reliefs are available indefinitely.
• Timing for sustainability and financial reports: the UK SRS do not include the option contained in the ISSB Standards which allows entities to publish their sustainability-related information after their financial statements in the first year of reporting.
• "Effective date" clauses removed: the "effective date" clauses from UK SRS have been removed to avoid confusion about when reporting requirements may be introduced. Any mandatory effective dates will be set by future regulation or legislation.
• SASB standards: the UK SRS do not include a requirement for companies to refer to and consider the SASB Standards as a source of guidance (however entities may voluntarily refer to the SASB Standards).
• Financed emissions: the UK SRS include a mechanism requiring financial institutions to explain where they have not been able to comply with the financed emissions disclosure requirements in the standards, if they have determined that it is impracticable to estimate reliably financed emissions for the same reporting period as the related financial statements. The explanation should detail the measurement approach taken and the plans to meet the full requirements in the future.
• Compliance statements: the UK SRS clarifies how entities may use statements of compliance with UK SRS S1 and S2. Namely, an entity may assert compliance in relation to UK SRS S2 provided it discloses its use of any transitional reliefs. However, an entity may not assert compliance with UK SRS S1, if it uses relief and therefore only discloses information regarding climate-related risks and opportunities.
• IFRS S2 amendments: the amendments made to IFRS S2 in December 2025 are also reflected in the UK SRS. These amendments related to the application of greenhouse gas emissions disclosure requirements, including availability of jurisdictional reliefs and the use of the Global Industry Classification Standards.

Next steps and timelines for mandatory reporting

While the UK SRS are currently available for voluntary use, the timing for any future mandatory reporting requirements has not yet been determined.

In January this year, the FCA published a consultation on aligning its climate-related reporting requirements for listed companies with the ISSB's standards (based on the draft versions of UK SRS S1 and UK SRS S2 contained in the Government's June 2025 consultation). This consultation, which closes on 20 March 2026, proposes a phased implementation approach taking effect from 1 January 2027. For more details on the FCA's proposals, see our blog post here and our Corporate Governance snapshot here.

The Government has said that the UK SRS will be considered further as part of its consultation on modernising corporate reporting, which was announced in October 2025. The consultation, which is expected later this year, will consider the need for provisions in the Companies Act to require private companies to report against the UK SRS.

In its consultation response, the Government has clarified that the UK SRS S2 qualifies as a national reporting framework for the purposes of section 414CB(6) of the Companies Act, and so companies reporting in accordance with UK SRS S2 do not need to duplicate their disclosures to meet their obligations under section 414CB(2A) of the Companies Act (which relate to climate-related financial disclosures), as long as the relevant requirements of section 414CB(1) to (5) are met and the company references the use of UK SRS S2 in its relevant statements.

UK businesses should continue to monitor and consider contributing to the FCA's January 2026 consultation, as well as keeping abreast of plans for the Government's consultation on modernising corporate reporting, which is expected to set out proposals for the wider implementation of the UK SRS.

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