UK SRS S2 Climate Disclosures

Comprehensive guide to UK SRS S2 climate-related disclosuresunder the UK Sustainability Reporting Standards framework. Aligned with IFRS S2and TCFD recommendations, with UK-specific enhancements for scope 3 and transition planning.

Published February 2026 • Available for Implementation

Scope 1, 2 & 3

Full value chain emissions

Scenario Analysis

Climate risk modeling

Transition Planning

Decarbonization roadmap

Assurance Ready

ISAE 3410 prepared

UK SRS S2 Framework & Requirements

Climate-Related Disclosure Architecture

UK SRS S2builds upon IFRS S2 climate-related disclosureswhile incorporating UK-specific requirements including enhanced scope 3 reporting and alignment withUK Transition Plan Taskforce recommendations. The framework follows the four-pillar TCFD structurewith additional requirements for financial services financed emissions per PRA supervisory expectations.

Core TCFD Pillars

Governance: Board and management oversight of climate-related risks and opportunities
Strategy: Business model impacts and scenario analysis across multiple time horizons
Risk Management: Climate risk identification, assessment and integration processes
Metrics & Targets: GHG emissions, climate metrics and transition targets

UK-Specific Enhancements

Enhanced Scope 3: Detailed value chain emissions per GHG Protocol Scope 3 Standard
Transition Plans: Credible decarbonization pathways aligned with UK net zero commitments
Financed Emissions: Category 15 scope 3 for financial institutions and asset managers
Science-Based Targets: Alignment with SBTi methodologies and sectoral pathways

Greenhouse Gas Emissions Requirements

Scope 1 & 2 Direct Emissions

UK SRS S2 requires absolute emissions reporting following GHG Protocol Corporate Standardmethodologies with UK-specific emission factors from BEIS 2025 conversion factors. Companies must provide both location-based and market-based scope 2 calculations per GHG Protocol Scope 2 Guidance.

Scope 1 Requirements

Stationary Combustion: Natural gas, fuel oil, coal consumption in facilities
Mobile Combustion: Company-owned vehicles and machinery fuel use
Process Emissions: Chemical reactions and industrial process emissions
Fugitive Emissions: Refrigerants, methane leaks, and unintentional releases

Scope 2 Requirements

Location-Based: Grid average emission factors for purchased electricity
Market-Based: Contractual instruments and renewable energy certificates
Heat & Steam: Purchased heating, cooling, and steam from third parties
Quality Hierarchy: Supplier-specific > Residual mix > Grid average factors

Assurance Requirements

UK SRS S2 proposes mandatory reasonable assurance for scope 1 and 2 emissions followingISAE 3410 assurance standards, with limited assurance acceptable for first year implementation.

Scope 3 Value Chain Emissions

Enhanced scope 3 requirements under UK SRS S2 follow GHG Protocol Scope 3 Standardwith materiality-based reporting covering 15 categories. Financial institutions must report Category 15 financed emissionsusing PCAF methodologies for investment and lending portfolios.

Upstream (Categories 1-8)

• Purchased goods and services
• Capital goods and assets
• Fuel and energy activities
• Transportation and distribution
• Waste generated in operations
• Business travel and commuting
• Leased assets (upstream)

Downstream (Categories 9-15)

• Transportation and distribution
• Processing of sold products
• Use of sold products
• End-of-life treatment
• Leased assets (downstream)
• Franchises and investments
• Financed emissions (financial)

Calculation Methods

• Supplier-specific data (Tier 1)
• Product-level averages (Tier 2)
• Industry averages (Tier 3)
• Economic input-output models
• UK government factors

Climate Scenario Analysis Requirements

TCFD-Aligned Scenario Modeling

UK SRS S2 requires climate scenario analysis following TCFD technical supplementguidance with minimum 1.5°C and 2°C pathways using IPCC AR6 scenarios. Analysis must cover physical and transition risks across short, medium, and long-term horizons with quantified financial impacts where material perIFRS S2 paragraphs 15-24.

Required Scenarios

1.5°C Scenario: Paris Agreement aligned pathway with rapid decarbonization
2°C Scenario: Moderate transition with delayed policy action
Physical Risk Scenario: High physical impact pathway (RCP 4.5 or 8.5)
Business-as-Usual: Current policies scenario for comparative analysis

Analysis Components

Financial Impact: Quantified effects on revenues, costs, assets, and liabilities
Business Model Impact: Strategic implications across value chain
Time Horizons: Short (0-5 years), medium (5-15), long-term (15+ years)
Geographic Scope: Location-specific physical risk assessment

Sector-Specific Scenarios

Companies should utilize IEA Net Zero by 2050sectoral pathways and NGFS climate scenariosfor sector-relevant assumptions on carbon pricing, technology deployment, and policy implementation timelines.

Transition Planning Framework

UK TPT-Aligned Transition Plans

UK SRS S2 incorporates UK Transition Plan Taskforce frameworkrequirements for credible, comprehensive transition planning. Plans must demonstrate alignment with UK net zero commitments andscience-based target methodologieswith sector-specific decarbonization pathways per IEA Net Zero roadmaps.

Foundation Elements

Objectives: Clear, quantifiable decarbonization targets with interim milestones
Baseline: Comprehensive emissions inventory and business model assessment
Timeline: Phased implementation with 5-year review cycles
Governance: Executive accountability and board oversight structure