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UK SRS Compliance · S1 & S2 Requirements

UK SRS Compliance Framework

Complete UK SRS compliance guide covering FCA CP26/5 framework, S1 & S2 standards, implementation requirements, and mandatory compliance obligations for UK listed companies.

For comprehensive scope analysis, see our main UK SRS page, or engage specialist UK SRS consultants for readiness and S1/S2 disclosure drafting.

Last updated 15 May 2026 · Independent analysis
Compliance OverviewS1 & S2 StandardsCompliance ChecklistImplementation

Compliance overview

FCA · CP26/5 Scope
515companies
UK listed companies estimated to be required to comply under CP26/5

FCA analysis under CP26/5 identifies around 600 listed companies across UK Listing Rules categories 6, 14, 15, 16 and 22, of which 515 (categories 6, 16 and 22) would be required to comply with mandatory UK SRS S2 climate reporting; the remaining 89 (categories 14 and 15) would make a signposting statement instead.

FCA · CP26/5

Companies in scope
515of ~600
Listed companies that would be required to comply, of around 600 affected

On the FCA’s own cost-benefit analysis, around 600 listed companies are affected; 515 of them — UKLR categories 6, 16 and 22 — would be required to comply. The other 89, in categories 14 and 15, would make a signposting statement instead.

FCA · CP26/5 cost-benefit analysis

Proposed Start Date
1 Jan2027
Proposed mandatory application date for UK SRS compliance

FCA proposal for in-scope UK-listed companies to begin mandatory UK SRS reporting for financial years starting January 2027.

FCA · Implementation Timeline

Implementation Period
10months
From the 25 February 2026 publication to the proposed 1 January 2027 commencement

The interval between the two published dates. It is not a published estimate of how long the work takes — no such figure exists, because no UK entity has yet been required to produce a UK SRS report.

DBT publication date · FCA CP26/5 proposed commencement

Assurance Requirements
Limitedinitially
Expected initial assurance requirement for UK SRS disclosures

Limited assurance likely required initially, with reasonable assurance expected for certain metrics in subsequent years.

FRC · Assurance Framework

Scope 3 Transition
1 Yearrelief
Proposed transitional relief period for Scope 3 emissions reporting

One-year comply-or-explain relief for Scope 3 emissions, with mandatory comprehensive reporting from 2028.

UK SRS S2 · Transitional Provisions

S1 & S2 requirements

S1

UK SRS S1 - General Requirements

Fundamental sustainability disclosure requirements

Core framework for UK SRS sustainability-related financial disclosures covering governance, strategy, risk management, and metrics across all material sustainability matters.

Key Requirements:

  • • Board oversight and governance processes
  • • Strategy integration and business model impacts
  • • Risk identification and management processes
  • • Performance metrics and target setting
  • • Materiality assessment and disclosure
S2

UK SRS S2 - Climate Disclosures

Climate-related financial disclosure requirements

Comprehensive climate-related disclosures covering GHG emissions, transition risks, physical risks, opportunities, and climate resilience planning.

Key Requirements:

  • • Scope 1, 2, and 3 GHG emissions reporting
  • • Climate risk assessment and disclosure
  • • Scenario analysis and stress testing
  • • Transition planning and net-zero commitments
  • • Climate-related financial impact quantification

Compliance checklist

🏛️ Governance & Strategy

Board-level oversight and strategic integration requirements

Board sustainability expertise established
Sustainability committee formed with clear mandate
Climate strategy integrated into business model
Materiality assessment completed and documented
Risk management framework updated for climate risks
Executive remuneration linked to sustainability performance

📊 Data & Reporting Systems

Technical infrastructure and data collection capabilities

GHG emissions data collection system implemented
Scope 3 emissions assessment and tracking established
Climate scenario analysis capabilities developed
Internal controls and verification processes documented
Data quality assurance frameworks operational
External assurance arrangements established

👥 Capabilities & Skills

Internal expertise and capability development

Sustainability reporting expertise recruited/developed
Climate risk assessment capabilities established
Data analysis and verification skills developed
Stakeholder engagement processes designed
Project management capabilities for implementation
Legal and regulatory expertise available

⚖️ Legal & Regulatory

Regulatory compliance and legal framework alignment

FCA CP26/5 final requirements understood and mapped
UK SRS S1 and S2 standards compliance assessed
Legal entity scope and consolidation determined
Disclosure timing and publication processes established
Liability and insurance considerations addressed
International reporting alignment assessed (ISSB/EU)

Implementation roadmap

Phase 1
Q2-Q3 2026
Foundation Building
  • • Governance setup
  • • Initial capability assessment
  • • FCA final rules analysis
Phase 2
Q4 2026
System Implementation
  • • Data collection systems
  • • Process establishment
  • • Staff training
Phase 3
Q1 2027
Testing & Refinement
  • • Pilot disclosures
  • • Process testing
  • • Final preparations
Phase 4
2027+
Ongoing Compliance
  • • Annual reporting
  • • Continuous improvement
  • • Regulatory engagement
Implementation Recommendation

Begin compliance preparation immediately, even before final FCA rules are published.

Early implementation reduces compliance risk if the FCA confirms its CP26/5 proposal, under which UK SRS S2 would apply to accounting periods beginning on or after 1 January 2027. The Policy Statement is expected in autumn 2026 and has not been published.

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