6 March, 2026

Nearly two years in the making, the UK Sustainability Reporting Standards (UK SRS) have officially landed. Currently voluntary, but don’t get too comfortable: mandatory reporting could kick in as early as January 2026 (though this seems unlikely), with the FCA proposing most requirements be in force from January 2027 (reporting in 2027 and 2028 respectively).  

Plenty of time, if you start now. 

The UK SRS closely mirror the ISSB’s IFRS S1 and S2 standards. IFRS S1 covers all sustainability-related risks and opportunities across environmental, social and governance topics, focused on what matters to investors and creditors. IFRS S2 goes deeper on climate, covering scenario analysis and resilience in a low-carbon transition. Both are built around the four TCFD pillars: governance, strategy, risk management, and metrics and targets. The UK adds some targeted upgrades: financed emissions disclosure requirements, and a comply-or-explain mechanism for Scope 3 – with a one-year grace period built in. Close to ISSB, but with a distinctly UK finish. 

For companies already deep in CSRD prep, the two frameworks are complementary but not identical. The key differences are materiality, scope and structure. CSRD uses double materiality (impact and financial). UK SRS uses single materiality (financial only, emphasising risk and opportunity to the business). CSRD spans 12+ standards in granular detail. UK SRS is leaner, with a sharper focus on climate-related financial risk. 

The plot thickens, as for many companies, first UK SRS-compliant reports will land in the same year as their first CSRD report. Demanding but very doable, with the right groundwork. If you’ve invested in CSRD preparation, that work becomes your foundation for UK SRS too. Given CSRD’s broader scope, the heavy lifting is likely largely done, and what remains is fine-tuning your materiality assessment and sharpening your climate-related disclosures. 

One more thing: the EU Omnibus recently removed mandatory climate transition plans under CSDDD. Before anyone exhales too loudly, UK SRS S2 keeps climate risk, scenario analysis and transition planning firmly on the agenda. Getting ahead of it now is still the smartest move. 

The timelines might be closer than we thought, but no need to face them alone – our reporting and climate experts are here to help. Reach out with any questions and we’ll be happy to demystify the work.  

By Mariana Garcia