Sustainability Support: UK Launches Long-awaited SRS
26 February 2026
The UK government has launched the long-awaited UK Sustainability Reporting Standards (SRS) with the objective of offering improving the clarity and comparability of information for investors on sustainability-related financial risks and opportunities. The finalised versions of UK SRS S1 and UK SRS S2 are now available for voluntary use by any entity that chooses to do so, with the government pressing ahead with the standards following “extensive feedback in favour”.
Minerva Analytics’ Perspective
“The UK Government’s final sustainability reporting standards mark a major step toward modernising corporate sustainability disclosure and improving the consistency and reliability of information available to investors,” said Thomas Bolger, Senior Stewardship Analyst at Minerva Analytics. “Based on the ISSB’s first two standards, the framework supports greater global alignment in sustainability reporting. While currently voluntary, the standards are widely expected to underpin future mandatory requirements as reflected in the FCA’s forthcoming consultation in this area.”
Striving for Sustainability
The UK SRS are based on the International Sustainability Standards Board’s (ISSB) IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. The government had proposed several amendments to the IFRS standards to be applied in a UK context. Of the respondents to the question concerning the amendments, 68% agreed with the 4 UK amendments recommended by the UK Sustainability Disclosure Technical Advisory Committee.
The standards are a key aspect of the government’s aim for the UK to be a “world leader for sustainable finance”, with the SRS helping to augment the availability of “high-quality, decision-useful information for investors”. The ISSB’s standards have been used as the basis for similar sustainability reporting standards in other jurisdictions, notably the European Sustainability Reporting Standards which were adopted in 2023.
Industry Insights
A consultation on the UK SRS was one of three consultations launched by the Labour government last June as part of an effort to support the country’s sustainability reporting and transition planning, as reported by Minerva Analytics. The consultation closed on 17 September and the government has since been reviewing the feedback.
The consultation received 209 responses to some or all of its 20 questions, comprising 199 replies from organisations and ten from individuals. The consultation’s specific question on whether the UK government should endorse the Sustainability Reporting Standards received 180 responses, 88% of which agreed that the government should endorse UK SRS S1 and UK SRS S2 while 4% disagreed.
FCA Outreach
The UK Financial Conduct Authority (FCA) last month launched a consultation on aligning listed issuers’ sustainability disclosures with international standards. It is consulting on “proportionate rules” including: aligning reporting with current international standards, with an implementation approach that reflects the readiness of listed companies; making sure investors can access clear, consistent and robust information about sustainability risks and opportunities; and supporting overseas companies to be more transparent about their sustainability reporting, while removing duplication.
The consultation is open until 20 March. The FCA will then review the feedback gleaned ahead of aiming to publish a Policy Statement in autumn 2026, subject to the final UK SRS, with the rules coming into force from 1 January 2027. The government has urged stakeholders to respond to the FCA’s consultation to support the authority’s decisions in finalising its rules.
Scope 3 Shift
In the final version of the UK SRS the government opted to make amendments to provide clarity on the application of the reliefs which relate to non-climate reporting and Scope 3 GHG emissions reporting. The government slashed specific time references within UK SRS S1 and UK SRS S2 and thus the standards no longer specify how long the reliefs for non-climate reporting and Scope 3 reporting may be applied. Scope 3 emissions are all indirect greenhouse gas emissions which occur across companies’ value chains outside of their direct operational control.
A key element of the FCA’s consultation is its proposals to introduce mandatory climate disclosures for Scope 1 and Scope 2 emission and a comply or explain approach for Scope 3 emissions, while non-climate sustainability disclosures would also be comply or explain. Scope 3 relief is still included within the Authority’s consultation, meaning the comply or explain reporting would kick in from 2028.
Augmenting Assurance
The UK government earlier this month published the results of its consultation on the creation of an oversight regime for assurance of sustainability-related financial disclosures which showed strong support for such a programme, as reported by Minerva Analytics. This consultation was one of those launched as the same day as the consultation on the UK SRS, with Minerva Analytics one of the almost 100 respondents.
Following the consultation, the UK government now intends to move forward with establishing a voluntary oversight regime and register for entities that offer third-party assurance services for sustainability-related disclosures. The voluntary regime aims to build trust in the UK sustainability assurance market and promote high standards and competition. Labour has additionally tasked the UK Financial Reporting Council with establishing an interim register by the middle of this year.
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Last Updated: 26 February 2026