UK SRS Standards: S1 & S2 Framework
Complete guide to UK SRS standards.
Master the UK S1 general requirements and UK S2 climate-related disclosures.
Understand how UK SRS standards align with the global ISSB framework.
UK SRS Standards Overview
UK SRS S1: General Requirements
UK SRS S1 standard establishes the foundation for sustainability-related financial disclosures.
It sets out general requirements for reporting on all sustainability matters material to the entity. The cluster reference hub for UK SRS carries the published standard texts in full.
- Governance arrangements and controls
- Strategy for managing sustainability risks
- Risk management processes
- Metrics and targets framework
UK SRS S2: Climate Disclosures
UK SRS S2 standard requires specific climate-related disclosures.
It builds on TCFD recommendations with enhanced requirements for climate risks, opportunities, and emissions reporting.
- Climate-related physical and transition risks
- Scope 1, 2, and 3 GHG emissions
- Climate scenario analysis (including 1.5°C)
- Transition planning and targets
UK SRS S1 Standard: Deep Dive
Core Objectives
UK SRS S1 standard requires entities to disclose information about sustainability-related risks and opportunities that could affect their cash flows, access to finance, or cost of capital.
UK SRS S1 and S2 were published by the Department for Business and Trade on 25 February 2026, for voluntary use.
Key Principles:
- • Relevance and faithful representation
- • Comparability and verifiability
- • Timeliness and understandability
- • Connected information across reports
Disclosure Requirements
1. Governance
Board oversight, management's role, skills and competencies, frequency of oversight, integration with strategy
2. Strategy
Sustainability risks and opportunities, effects on business model, strategy resilience, trade-offs considered
3. Risk Management
Processes for identifying and assessing risks, managing opportunities, integration with enterprise risk management
4. Metrics & Targets
Cross-industry metrics, industry-specific metrics, targets set and progress against them
UK SRS S2 Standard: Climate Requirements
UK SRS S2: Enhanced Climate Disclosures
UK SRS S2 standard requires comprehensive climate-related financial disclosures that go beyond TCFD recommendations.
UK SRS standards mandate quantitative analysis and forward-looking assessments.
The FCA's CP26/5 consultation proposes mandatory UK SRS S2 climate reporting for in-scope listed companies for accounting periods beginning on or after 1 January 2027.
Physical Risks
- • Acute risks (floods, storms)
- • Chronic risks (sea level rise)
- • Location-specific assessments
- • Financial impact quantification
Transition Risks
- • Policy and legal changes
- • Technology shifts
- • Market changes
- • Reputation considerations
GHG Emissions
- • Scope 1 (direct emissions)
- • Scope 2 (purchased energy)
- • Scope 3 (value chain)
- • Intensity metrics
Scenario Analysis Requirements
Mandatory Scenarios:
- •1.5°C aligned scenario (Paris Agreement)
- •Current policies scenario
- •High physical risk scenario (3°C+)
Analysis Components:
- •Strategy resilience testing
- •Financial impact modeling
- •Time horizons (2030, 2040, 2050)
UK SRS Standards: Implementation Timeline
February 2026: UK SRS Standards Published
UK government publishes the finalised UK SRS S1 and S2 standards (25 February 2026) for voluntary use, with UK-specific differences from the ISSB Standards set out in Annex A of the government response
January–March 2026: FCA Consultation (CP26/5)
FCA consults (30 January – 20 March 2026) on proposals to align Listing Rules with UK SRS; a policy statement is expected in autumn 2026, with no date yet confirmed
Proposed From 2027: Mandatory Reporting
If the FCA finalises its proposals, mandatory UK SRS S2 climate reporting would apply to certain listed companies from accounting periods beginning on or after 1 January 2027 — not yet in force
UK SRS Standards vs Global Frameworks
| Aspect | UK SRS Standards | ISSB Standards | EU CSRD |
|---|---|---|---|
| Alignment | Substantially aligned, with UK-specific differences (Annex A) | Global baseline | More prescriptive |
| Scope | Voluntary for all entities; mandatory reporting proposed for certain listed companies (not yet in force) | Voluntary adoption | Broader scope |
| Materiality | Financial materiality | Financial materiality | Double materiality |
| Assurance | Voluntary (ISSA (UK) 5000) | Market-led | Mandatory |
Want to Talk It Through?
If it would help to talk through how S1 and S2 apply to your organisation, we offer a free, no-obligation call.