Seeking Sustainability: SRS Among Trio of UK Government Consultations
June 26, 2025
The UK’s Labour government has launched three new consultations to support the country’s sustainability reporting and transition planning efforts, including the long-awaited Sustainability Reporting Standards (SRS).
Launched during London Climate week, the consultations respectively focused on the UK SRS, the buildout of a voluntary registration regime for sustainability reporting assurance providers and how to drive the government’s transition planning commitment forward.
The three consultations opened on June 25 and are due to close on September 17, 2025. The consultations form part of a plan that aims to “unlock billions in clean energy investment” and “transform” the UK’s financial services sector into a “global hub for green investment” according to Energy Secretary Ed Miliband.
The UK government intends for SRS to serve as the foundation for a “world-leading sustainable finance framework that delivers credible and decision-useful sustainability-related financial information to the financial markets”. This intention was set out as part of the November 2024 Mansion House package.
The government stated that the SRS will provide investors “clear” and “comparable” information on sustainability-related financial risks and opportunities to help support “informed investment decisions”.
The UK SRS consultation seeks views on an exposure draft of the standards. These are based on the International Sustainability Standards Board’s IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.
The government intends to analyse responses to the consultation as part of a final decision on whether to endorse the drafts of UK SRS S1 and UK SRS S2 for use in the UK and make final versions available for any entity to use on a voluntary basis. If endorsed, the government aims to publish the final UK SRS S1 and UK SRS S2 in autumn 2025.
The government has proposed six amendments to the IFRS standards to be applied in a UK context and is seeking feedback on the changes through the consultation.
James Alexander, CEO of UK Sustainable Investment and Finance Association, described further dialogue between the government and industry on the UK SRS as “very encouraging”.
Earlier this year, Andrew Death, Deputy Director of Corporate Reporting, Assurance and Governance at the UK Department for Business and Trade noted that international comparability of sustainability reporting was key in the development of the UK SRS.
In the consultation, the government stated that the use of the UK SRS is anticipated to make reporting more consistent for reporting entities. “Rather than using multiple frameworks for reporting on climate or sustainability-related matters, entities will be able to use one comprehensive set of standards that has been developed to meet investor needs,” it read.
As of this month, 36 countries – including the UK – have decided to use or are taking steps to introduce ISSB Standards in their legal or regulatory frameworks. This marks an increase from the “more than 20” jurisdiction the ISSB had highlighted in May 2024.
The UK is additionally consulting on the development of a voluntary registration regime for the providers of assurance of sustainability reporting. The central aim of this consultation is seeking opinions on a proposal for the long-mooted Audit, Reporting and Governance Authority (ARGA). The authority would be given the responsibility of creating a voluntary registration regime for entities that offer third-party assurance services for sustainability-related disclosures.
It is also consulting on how the government should take forward climate-related transition plan requirements to arm the market with “credible and decision-useful” information. This includes seeking feedback to ensure the requirements support an “orderly transition” in line with global climate goals, enhances transparency for investors and promotes efficient capital allocation.
“I am delighted to see the UK take this vital step to regain its leadership role as global centre for green finance,” said Faith Ward, Chief Responsible Investment Officer at Brunel Pension Partnership. “Investors want to allocate capital to growing businesses that are taking action to address climate and sustainability risks – and that are looking to business opportunities so that they deliver financially over the long term. They need globally consistent reporting on climate and sustainability actions, alongside critical insights into corporate plans for the transition.”
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Last Updated: 26 June 2025