What UK SRS S1 and S2 are
The UK Sustainability Reporting Standards (UK SRS) are the UK’s adoption of the IFRS sustainability disclosure standards.
UK SRS S1 and S2 were published by the Department for Business and Trade on 25 February 20261.
S1 covers general sustainability-related financial disclosures; S2 covers climate-related disclosures.
They are based on the IFRS S1 and S2 baseline with six UK-specific amendments, and are currently voluntary — ahead of the FCA’s proposed mandatory rules1.
The proposed timeline
The FCA consultation CP26/5 was published on 30 January 2026, with the consultation closing on 20 March 2026 and a Policy Statement expected in autumn 20262.
| Requirement | Proposed basis | From |
|---|---|---|
| UK SRS S2 (climate) | Mandatory for in-scope listed companies | Accounting periods on/after 1 Jan 2027 |
| UK SRS S2 — Scope 3 | Comply or explain | 1 Jan 2028 |
| UK SRS S1 (general) | Comply or explain | 1 Jan 2029 |
These dates are proposals in CP26/5 and remain subject to the FCA Policy Statement expected in autumn 20262.
Who is in scope
CP26/5 proposes that mandatory UK SRS S2 apply to in-scope listed companies in the UK Listing Rules categories 6, 14, 15, 16 and 222.
As with the timeline, the precise scope is a proposal and will be confirmed in the FCA Policy Statement2.
Companies outside the listed perimeter may still adopt UK SRS voluntarily.
The four pillars
UK SRS S2 keeps the four pillars that have structured climate disclosure since the TCFD recommendations, alongside single (enterprise value) materiality1.
| Pillar | What it asks |
|---|---|
| Governance | Board and management oversight of climate risk |
| Strategy | Climate risks, opportunities and resilience of the business model |
| Risk Management | How climate risks are identified, assessed and managed |
| Metrics & Targets | Emissions, intensity and targets used to measure performance |
The Metrics & Targets pillar is where the Scope 1, 2 and 3 figures from your emissions inventory land, calculated on the GHG Protocol3.
TCFD → UK SRS transition
The Task Force on Climate-related Financial Disclosures published its final recommendations in October 2017 and was disbanded in October 2023, with its monitoring passing to the IFRS Foundation1.
Because UK SRS S2 carries the TCFD structure forward, a company with mature TCFD reporting already holds much of what UK SRS expects — the transition is one of deepening and formalising, not starting again.
Readiness & gap analysis
Carbon Legal runs a UK SRS readiness assessment that maps your current climate reporting against UK SRS S1 and S2 and the proposed FCA timeline1.
We identify the gaps in governance, data and disclosure, then produce a prioritised roadmap to close them ahead of the proposed 1 January 2027 date2.
The same emissions data also supports SECR.
Carbon Legal is a carbon compliance consultancy, not a law firm, and does not provide legal advice.
Frequently asked questions
What are UK SRS S1 and S2?
UK SRS S1 and S2 are the UK Sustainability Reporting Standards, published by the Department for Business and Trade on 25 February 2026. S1 covers general sustainability-related financial disclosures and S2 covers climate-related disclosures. They are based on the IFRS S1 and S2 baseline, with six UK-specific amendments, and are currently voluntary. For comprehensive guidance on UK SRS implementation, visit the dedicated resource at https://uksrs.org.uk.
When does UK SRS become mandatory?
Under FCA consultation CP26/5, UK SRS S2 is proposed to become mandatory for in-scope listed companies for accounting periods beginning on or after 1 January 2027. Scope 3 disclosures would be comply-or-explain from 1 January 2028, and UK SRS S1 comply-or-explain from 1 January 2029. The FCA Policy Statement is expected in autumn 2026.
Who is in scope for mandatory UK SRS S2?
CP26/5 proposes that UK SRS S2 apply to in-scope listed companies in UK Listing Rules categories 6, 14, 15, 16 and 22. The proposal is subject to the FCA Policy Statement expected in autumn 2026.
How does UK SRS relate to TCFD?
UK SRS S2 carries forward the four TCFD pillars — Governance, Strategy, Risk Management, and Metrics & Targets — and single (enterprise value) materiality. The TCFD was disbanded in October 2023 and its monitoring passed to the IFRS Foundation, so a company with mature TCFD reporting already holds much of the structure UK SRS S2 expects.
What does a UK SRS readiness assessment involve?
A readiness or gap assessment maps a company’s current climate reporting against UK SRS S1 and S2 and the FCA’s proposed timeline, identifies the gaps in governance, data and disclosure, and produces a prioritised roadmap to close them ahead of the proposed 2027 mandatory date.
Sources
Authority sources
Continue reading