What is the background to the UK SRS scheme?
The creation of the International Sustainability Standards Board (ISSB) under the IFRS Foundation marked a pivotal shift in global sustainability reporting and the ongoing development of an integrated reporting framework. Visit for more information SRS Financials
In June 2023, the ISSB published IFRS S1 (general sustainability disclosures) and IFRS S2 (climate-related disclosures), which are collectively referred to as IFRS sustainability disclosure standards, forming a global baseline for consistent and comparable sustainability information. IFRS S1 sets out general requirements for the disclosure of sustainability-related financial information, emphasizing transparency in disclosing sustainability-related risks and opportunities that impact an entity’s financial health and decision-making for users of financial reports. The standards will apply to annual reporting periods beginning on or after 1 January 2024, with earlier application permitted for companies that wish to adopt the standards before the official effective date.
Now, as of June 2025, the UK government has published exposure drafts of UK SRS S1 and S2, based on the ISSB’s standards. These drafts form part of a broader set of consultations on sustainability-related disclosures, including transition plan requirements and assurance frameworks.
The UK SRS drafts reflect recommendations from the UK Sustainability Disclosure Technical Advisory Committee (TAC) and include several key amendments that aim to make the standards more practical and proportionate for UK companies and investors. Finalised standards are expected to be released later in 2025.
What’s new in the UK SRS exposure drafts?
A “climate-first” relief period that gives companies up to two years to focus on climate disclosures before expanding to other sustainability areas (compared to one year in the original ISSB standards). These changes introduce new sustainability reporting requirements for UK companies, reflecting evolving reporting requirements in the sustainability space.
Removal of a relief that allowed companies to delay publication of sustainability-related disclosures relative to financial statements, reinforcing the importance of integrating ESG and financial data. This highlights the growing emphasis on non-financial reporting and the need to integrate non-financial and financial disclosures, particularly in the context of sustainability related financial disclosures.
The government has positioned this process as part of a wider ambition to support green growth, investor confidence, and responsible business conduct.
Which organizations will be impacted?
What are the expected SRS requirements?
The UK SRS will require companies to disclose:
In addition, the standards encourage organisations to identify their material sustainability risks, including those related to the environment, and consider sector-specific metrics to ensure disclosures are useful to investors. The environment and its protection are central to sustainability reporting, highlighting the importance of transparent disclosure of environmental impacts and resource management.
What is the implementation timeline?
As of June 2025:
The Financial Reporting Council will oversee the adoption and endorsement of these standards, ensuring alignment with regulatory requirements.
The UK government has also launched related consultations on mandating credible climate transition plans and developing a voluntary registration regime for sustainability assurance providers, with input from a dedicated task force guiding the development of these standards.
What is the difference between the UK SDS and SECR?
As UK businesses prepare for the arrival of the UK Sustainability Disclosure Standards (UK SDS), many are asking how these new requirements will compare to existing frameworks like Streamlined Energy and Carbon Reporting (SECR). While both aim to improve transparency around corporate climate impact, they differ significantly in scope, structure, and ambition. Below is a side-by-side comparison to help businesses understand where the overlap lies, and how they are expected to disclose information.
Preparing for the UK SRS will require high-quality data, internal coordination, and assurance-ready reporting. ESG tools can support this by:
Effective sustainability reporting can provide a competitive advantage by differentiating a company in the marketplace and enhancing its brand reputation. Improved sustainability disclosures can also enhance financial performance by supporting better risk management and long-term profitability, while facilitating access to capital markets through increased transparency and comparability for investors.
With increased scrutiny on the accuracy, consistency, and timeliness of sustainability disclosures, ESG platforms can help businesses meet both regulatory requirements and investor expectations.
A new chapter in corporate sustainability reporting
The UK’s move to adopt ISSB-aligned sustainability standards, marks a major step in its transition to a more accountable, transparent, and climate-aligned economy. For businesses, this is both a regulatory shift and a strategic opportunity.
Companies that begin preparing now, by engaging with the consultation process, strengthening internal data systems, and adopting ESG tools, will be better equipped to navigate the new reporting landscape and build trust with investors and stakeholders.
By embedding the UK SRS into their broader ESG strategies, organisations can lead with confidence and contribute meaningfully to the UK’s goals to address climate change.
The government has positioned this process as part of a wider ambition to support green growth, investor confidence, and responsible business conduct.
Which organizations will be impacted?
What are the expected SRS requirements?
The UK SRS will require companies to disclose:
In addition, the standards encourage organisations to identify their material sustainability risks, including those related to the environment, and consider sector-specific metrics to ensure disclosures are useful to investors. The environment and its protection are central to sustainability reporting, highlighting the importance of transparent disclosure of environmental impacts and resource management.
What is the implementation timeline?
As of June 2025:
The Financial Reporting Council will oversee the adoption and endorsement of these standards, ensuring alignment with regulatory requirements.
The UK government has also launched related consultations on mandating credible climate transition plans and developing a voluntary registration regime for sustainability assurance providers, with input from a dedicated task force guiding the development of these standards.
As UK businesses prepare for the arrival of the UK Sustainability Disclosure Standards (UK SDS), many are asking how these new requirements will compare to existing frameworks like Streamlined Energy and Carbon Reporting (SECR). While both aim to improve transparency around corporate climate impact, they differ significantly in scope, structure, and ambition. Below is a side-by-side comparison to help businesses understand where the overlap lies, and how they are expected to disclose information.
Preparing for the UK SRS will require high-q
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