What are the UK Sustainability Reporting Standards (UK SRS)?
UK SRS S1 and UK SRS S2 are the United Kingdom's versions of the International Sustainability Standards Board standards. The Department for Business and Trade published them on 25 February 2026. S1 covers material sustainability-related financial risks and opportunities. S2 adds climate-specific requirements. The UK reporting guide explains how they sit beside current Companies Act, FCA and energy and carbon reporting duties.
Why do the UK Sustainability Reporting Standards matter to you?
An investor, lender, parent company or listed customer may ask whether your disclosures follow UK SRS. As of 19 August 2026, any entity may use them voluntarily, but they are not a general reporting duty for every UK company. A partial report can still create a problem: S1 paragraph 72 says you cannot claim compliance unless the disclosures meet all applicable UK SRS requirements.
How do the UK Sustainability Reporting Standards work?
Start with risks and opportunities that could reasonably affect cash flows, access to finance or cost of capital over the short, medium or long term. Information is material when omitting, misstating or obscuring it could reasonably influence an investor's or lender's decision. S1 paragraphs 17 to 20 require material information for the same reporting entity as the financial statements. Paragraph 25 organises the disclosures into governance, strategy, risk management, and metrics and targets. Paragraph 64 requires the disclosures to cover the same period and be reported at the same time as the related financial statements.
Apply S2 to climate-related risks and opportunities. Paragraph 29 requires gross Scope 1, Scope 2 and Scope 3 emissions in metric tonnes of CO2e. It also asks how much of the business is exposed to climate risks or aligned with climate opportunities, how much capital is deployed, whether an internal carbon price is used, and whether executive pay is linked to climate considerations.
A first-year relief is a temporary exception for an entity's first UK SRS reporting period. S1 Appendix E permits climate-only reporting and allows comparative information to be omitted in specified cases. S2 Appendix C allows specified reliefs for a prior emissions-measurement method and Scope 3 disclosure. Record each relief used and the paragraph that permits it.
What mistakes should you avoid?
- Calling UK SRS mandatory for every UK company when government guidance still describes voluntary use.
- Claiming compliance after selecting only convenient disclosures, contrary to S1 paragraph 72.
- Preparing S2 alone without applying the relevant S1 requirements, as required by S2 paragraph C2.
- Using a different entity or reporting period from the related financial statements, contrary to S1 paragraphs 20 and 64.
Are the UK Sustainability Reporting Standards mandatory?
Not generally as of 19 August 2026. The government and FCA are considering future requirements for certain UK entities. Check the law, listing rule, loan covenant, investor instruction or customer wording that applies to you before treating a UK SRS request as compulsory.
What do you report under UK SRS S1?
You report material sustainability-related financial risks and opportunities that could affect your prospects. For each material matter, connect board oversight, strategic response, identification and monitoring processes, and performance metrics or targets. Keep the reporting entity, period, data and assumptions consistent with the related financial statements.
What does UK SRS S2 add?
S2 applies the same four-part structure to climate. It asks how climate risks and opportunities affect your business model, strategy, financial position, performance and cash flows. It also requires climate metrics and targets, including the greenhouse gas disclosures in paragraph 29 and any first-year relief used.