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 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.
- 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.
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.
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
2024: UK SRS Standards Published
UK government releases final UK SRS S1 and S2 standards aligned with ISSB
2025: FCA Consultation
FCA consults on implementing UK SRS standards through Listing Rules
2026-27: Mandatory Reporting
UK SRS standards become mandatory for listed companies
UK SRS Standards vs Global Frameworks
| Aspect | UK SRS Standards | ISSB Standards | EU CSRD |
|---|---|---|---|
| Alignment | Fully aligned with ISSB | Global baseline | More prescriptive |
| Scope | Listed companies initially | Voluntary adoption | Broader scope |
| Materiality | Financial materiality | Financial materiality | Double materiality |
| Assurance | Phased approach | Market-led | Mandatory |
Master UK SRS Standards Implementation
Get expert support to implement UK SRS standards. Our team helps you navigate S1 and S2 requirements for successful compliance.