UK SRS FAQ

The UK SRS are sustainability disclosure standards developed for UK markets, aligned with the ISSB global baseline standards (IFRS S1 and S2). They require companies to disclose information about sustainability-related risks and opportunities that could affect their financial performance.

UK SRS are specifically designed for UK markets and aligned with ISSB standards. Unlike voluntary frameworks like GRI or SASB, UK SRS will be mandatory for listed companies and focus on financially material sustainability information.

UK SRS S1: General requirements for sustainability-related financial disclosures
UK SRS S2: Climate-related disclosures (including governance, strategy, risk management, and metrics)

UK SRS reporting is expected to become mandatory for premium listed companies from accounting periods beginning on or after 1 January 2026. The FCA is expected to publish final rules in 2025.

• Assess current sustainability data collection capabilities
• Review governance structures for sustainability oversight
• Begin measuring Scope 1, 2, and 3 emissions if not already doing so
• Conduct climate scenario analysis
• Engage with stakeholders on material sustainability topics

The FCA is considering a phased approach, potentially starting with premium listed companies and later extending to standard listed companies. Certain disclosure requirements may also be phased in gradually.

Initially, UK SRS will apply to companies with securities admitted to trading on UK regulated markets (primarily premium listed companies on the London Stock Exchange). The scope may later be extended to other market segments.

Initially, no. UK SRS requirements will first apply to listed companies. However, private companies may choose to adopt UK SRS voluntarily, especially if they are considering future listing or have stakeholder pressure.

Listed companies will need to report on sustainability matters across their entire group, including subsidiaries. This means subsidiaries will need to provide data and information to support their parent company's UK SRS disclosures.

UK SRS disclosures will likely be included in annual reports, alongside financial statements. Companies may also publish sustainability information in separate reports, but key disclosures will need to be in the annual report.

Assurance requirements are still being determined. The FCA is considering requirements for limited assurance on sustainability disclosures, potentially progressing to reasonable assurance over time.

Specific penalties have not yet been announced. However, as UK SRS will be part of listing rules, non-compliance could result in FCA enforcement action, including public censure and financial penalties.