The UK Sustainability Reporting Standard (SRS) is a new compliance reporting scheme based on The International Sustainability Standards Board (ISSB) IFRS S1/S2.
The aim of the standard is to replace the Streamlined Energy and Carbon Reporting (SECR) scheme, which it set to come into place for many UK organisations from 2026.

IFRS S1 and IFRS S2 are the first two international sustainability disclosure standards issued by the ISSB.

IFRS S1 sets out the key requirements for organisations to disclose sustainability-related financial information, covering governance, strategy, risk management, and performance metrics. It demonstrates how sustainability impacts the financial outcomes of a business.

These standards create a global baseline focused on investor-relevant sustainability reporting, replacing fragmented frameworks like Task Force on Climate-related Financial Disclosures (TCFD) and instead integrating with the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Climate Disclosure Standards Board (CDSB). To create a more cohesive reporting standard that can be understood on a global level.

What is UK SRS?
The UK Sustainability Reporting Standards (UK SRS) will bring together two key elements of current reporting standards to create a single framework that is globally recognised to support sustainability disclosure:

• Governance and Strategy (IFRS S1)
  Show how your business manages sustainability risks and opportunities, laying out who is accountable, and what plans are in place to meet targets.
• Metrics and Targets (IFRS S1)
  Report measurable goals and progress so stakeholders can see how you are performing against your sustainability commitments.
• Climate-Specific Disclosures (IFRS S2)
  Provide detailed climate related information, including greenhouse gas emissions, transition plans, and scenario analysis to demonstrate resilience.

UK SRS asks businesses to explain how they govern sustainability, what their goals are, and how they plan for climate challenges with transparent supporting data.

A phased approach for easier adoption
Using current IFRS S1 and S2 as its foundation, the new standards ensure consistent disclosures that are helpful in decision making and align with international best practice. Organisations will need to cover governance, metrics, and strategy under S1, plus climate-specific disclosures under S2. To make adoption easier, UK SRS allows an initial focus on climate related topics, with broader requirements phased in over time.

Where is UK SRS in the approval and implementation process?
The UK Sustainability Reporting Standards (UK SRS) are moving quickly through development. Here is the timeline so far:

November 2024 – Mansion House announcement confirmed UK SRS will replace SECR and TCFD disclosures
June 2025 – Exposure drafts published and the consultation ran until September 2025
Late 2025 – Final standards, FCA listing-rules update, legislation planning and assurance consultation
Financial Year 2026/27 – Mandatory reporting begins for large and listed UK companies.

Transitional Relief: Phase-in of Requirements

Year of Mandatory Reporting	Requirements
Year 1 (FY 2026/27)	Climate-only disclosures (no Scope 3)
Year 2 (FY 2027/28)	Full climate disclosures incl. Scope 3
Year 3 (FY 2028/29)	All sustainability topics required

 

What it means for your business
UK SRS will significantly change how sustainability reporting works in the UK, due to SECR’s narrow focus on energy and carbon, UK SRS will replace this with a comprehensive framework covering governance, climate risks, and forward-looking strategies. Businesses will need to track Scope 3 emissions, stress-test climate risks through scenario analysis, and strengthen governance processes.

Additionally, independent assurance is expected to become mandatory under future FCA and Companies Act updates, adding another layer of accountability.

How to prepare
Organisations that prepare sooner rather than later will be in a better position to ensure their data is accurate and they are able to report easily, before it becomes mandatory.

Here is what you can do to prepare for this new compliance requirement:

• Review the exposure drafts
  Familiarise yourself with the UK SRS consultation documents before the September 2025 deadline. TEAM Energy can guide you through the new UK Sustainability Reporting Standards process and explain what the upcoming changes mean for your business and how to prepare.
• Assess your current reporting
  Compare your SECR disclosures against UK SRS requirements and conduct a gap analysis. Our experts can help identify where these gaps lie and create a clear roadmap for compliance.
• Start collecting Scope 3 data
  Begin tracking your supply chain emissions and strengthen your organisation’s climate governance frameworks.
• Adopt tech-enabled tools
  Use platforms like our Carbon Reporting Software to streamline reporting and future-proof your processes.

Stay informed and ensure your compliance
Sign up for UK SRS alerts, and ensure you can stay up to date with the latest news to guarantee your compliance.