Writing Your UK SRS S2 Climate Disclosure
Comprehensive guide to writing each section of your UK SRS S2 climate disclosure with worked examples and best practices. Covers governance, strategy, risk management, and metrics & targets with enhanced requirements beyond TCFD.
UK SRS S2 Climate Disclosure Enhanced TCFD Framework
UK SRS S2 climate-related disclosures become mandatory for listed companies with financial years beginning on or after 1 January 2027, following the four-pillar TCFD framework with enhanced requirements.
FCA · CP26/5 Sustainability Disclosure Requirements
UK SRS S2 follows the established TCFD four-pillar structure, requiring disclosures across governance oversight, strategic planning, risk management integration, and performance metrics with enhanced granularity.
UK SRS S2 · Climate-related Disclosures Standard
Companies must report Scope 3 emissions or explain why they cannot comply for 2027 financial years, with full compliance required from 2028. This affects most listed companies given typical 70-90% Scope 3 footprints.
UK SRS S2 · Enhanced Climate Disclosure Requirements
UK SRS S2 requires enhanced quantitative analysis including climate scenario financial impacts, science-based targets, transition plan milestones, and demonstrable board oversight evidence beyond current TCFD practice.
SRS Report · UK SRS S2 Implementation Analysis
The Four Pillars UK SRS S2 Climate Disclosure
Board Oversight and Climate Governance
Pillar 1: Governance
How your board oversees climate-related risks and opportunities, including governance processes, management responsibility, and evidence of oversight through decision-making, training, and strategic integration.
- • Board committee structure and climate expertise
- • Management roles and climate-related responsibilities
- • Board oversight evidence and meeting documentation
- • Climate governance integration with enterprise risk
- • Director training and competency development
Strategic Planning and Financial Impact
Pillar 2: Strategy
How climate-related risks and opportunities affect your business strategy, financial planning, and resilience across short, medium, and long-term time horizons with quantitative impact assessment.
- • Climate risk and opportunity identification
- • Business model and value chain impact assessment
- • Financial quantification of climate impacts
- • Strategic resilience and adaptation planning
- • Transition plan development and milestones
Climate Risk Integration and Management
Pillar 3: Risk Management
How you identify, assess, and manage climate-related risks, including integration with overall risk management and processes for prioritizing and monitoring climate risks alongside other business risks.
- • Climate risk identification and assessment processes
- • Integration with enterprise risk management framework
- • Risk prioritization and materiality assessment
- • Climate scenario analysis and stress testing
- • Risk monitoring and management effectiveness
Performance Measurement and Targets
Pillar 4: Metrics & Targets
Climate-related metrics used to assess and manage relevant risks and opportunities, including Scope 1, 2, and 3 emissions, science-based targets, and forward-looking performance indicators.
- • Scope 1, 2, and 3 greenhouse gas emissions
- • Climate-related financial metrics and KPIs
- • Science-based emissions reduction targets
- • Progress tracking and performance indicators
- • Third-party assurance and data quality controls
Pillar 1: Governance Disclosure
Describe your board's oversight of climate-related risks and opportunities. **Evidence of oversight** is key – not just policy statements, but demonstrable board engagement and decision-making.
🏢 Board Structure & Oversight
- • **Committee responsibility** for climate oversight (audit, risk, or dedicated sustainability committee)
- • **Director expertise** in climate risks and sustainability (background, training, external experience)
- • **Meeting frequency** and climate agenda items (quarterly climate dashboard reviews)
- • **Decision evidence** through meeting minutes, strategic approvals, and target setting
📊 Management Processes
- • **Management roles** responsible for assessing and managing climate risks (CFO, CRO, sustainability director)
- • **Reporting lines** from management to board on climate matters
- • **Performance linkage** to executive compensation and incentive structures
- • **Integration processes** with business strategy and risk management
📝 **Worked Example: Board Climate Oversight**
"The Audit Committee, comprising three independent non-executive directors with relevant financial and sustainability expertise, has oversight responsibility for climate-related risks. The Committee receives a quarterly climate risk dashboard covering physical and transition risk exposure, scenario analysis updates, and progress against science-based targets. In 2026, the Committee challenged management's climate scenario assumptions, resulting in enhanced physical risk assessment for our Manchester distribution centre and approval of £3.2m additional flood defenses."
Pillar 2: Strategy Disclosure
Describe climate-related risks and opportunities that could affect your business, strategy, and financial planning. **Quantitative impact assessment** and **scenario analysis** are essential.
⚡ Physical Risks
**Acute risks:** Extreme weather events affecting operations, supply chain, or customers. **Chronic risks:** Long-term climate pattern changes affecting business viability.
**Financial Impact:** Quantify potential revenue loss, increased costs, or capital expenditure across different climate scenarios and time horizons.
🔄 Transition Risks
**Policy & regulation:** Carbon pricing, emissions standards. **Technology:** Clean tech disruption. **Market:** Changing consumer preferences. **Reputation:** Stakeholder perceptions.
**Strategic Response:** Describe adaptation and mitigation strategies, including transition plan milestones and capital allocation.
✨ Climate Opportunities
**Products & services:** Climate solutions, energy efficiency. **Markets:** New geographic regions or customer segments. **Finance:** Green finance access.
**Value Creation:** Quantify potential revenue uplift, cost savings, or competitive advantages from climate opportunities.
Companies implementing UK SRS S2 must provide **quantitative scenario analysis** covering physical and transition risks. Climate scenario analysis guide provides detailed methodology for financial impact assessment.
Official UK SRS S2 Disclosure Resources
Essential guidance from regulatory authorities, standards bodies, and implementation frameworks supporting UK SRS S2 climate disclosure development and best practices.
Professional Climate Disclosure Development
Writing effective UK SRS S2 climate disclosures requires deep technical expertise across governance, strategy, risk management, and metrics. Our specialist team provides comprehensive support from gap assessment to final disclosure review.