UK SRS S1 · UK SRS S2
UK SRS standards: S1 and S2, section by section
The UK SRS standards are two documents: UK SRS S1, the general requirements, and UK SRS S2, the climate-related disclosures, published on 25 February 2026.
They are the UK versions of the ISSB’s IFRS S1 and IFRS S2, and since the FCA’s PS26/19 of 30 September 2026, listed companies report against them on a comply-or-explain basis from 2027.
Overview
Two standards that work as one
UK SRS S1 establishes the foundation for sustainability-related financial disclosures, and applies to every sustainability matter that is material to the entity.
UK SRS S2 applies that foundation to climate.
UK SRS S1 ¶E2 requires the two to be applied at the same time, and ¶E3 lets an entity report on climate alone.
The family’s reference hub for UK SRS carries the published texts in full.
This page explains what each standard asks for, and how the UK versions differ from the ISSB’s.
| UK SRS S1 | UK SRS S2 | |
|---|---|---|
| Full title | General Requirements for Disclosure of Sustainability-related Financial Information | Climate-related Disclosures |
| Covers | Every sustainability-related risk and opportunity | Climate-related risks and opportunities |
| Structure | Core content ¶25; governance ¶¶26–27; strategy ¶¶28–42; risk ¶¶43–44; metrics ¶¶45–53 | Governance ¶¶5–7; strategy ¶¶8–23; risk ¶¶24–26; metrics and targets ¶¶27–37 |
| Closing appendix | E — Application and transition (E1–E5) | C — Application and transition (C1–C6) |
UK SRS S1
UK SRS S1: the general requirements
UK SRS S1 requires an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect its cash flows, its access to finance or its cost of capital over the short, medium or long term (¶3).
Information is material if omitting, misstating or obscuring it could reasonably be expected to influence the decisions of primary users of general purpose financial reports (¶18), and the standard sets no numerical threshold (¶B19).
The disclosures are for the same reporting entity as the financial statements (¶20).
Connected information (¶¶21–24) requires the links between risks, between disclosures and between sustainability data and the financial statements to be visible, with consistent data and assumptions.
Location, timing and the statement of compliance follow at ¶¶60–73B: the disclosures sit in the general purpose financial reports, are published with the financial statements, and close with an explicit and unreserved statement of compliance.
The qualitative characteristics, Appendix D
| Kind | Characteristics |
|---|---|
| Fundamental | Relevance · faithful representation |
| Enhancing | Comparability · verifiability · timeliness · understandability |
Source: UK SRS S1 Appendix D, an integral part of the Standard
Core content
The four disclosure areas in UK SRS S1 ¶25
1 · Governance (¶¶26–27)
Board oversight, management's role, the skills and competencies of the governance body, how often it is informed, and how the risks are weighed in strategy and major decisions.
2 · Strategy (¶¶28–42)
The risks and opportunities; their effects on the business model and value chain; on strategy and decision-making; on financial position, performance and cash flows; and the resilience of the strategy.
3 · Risk management (¶¶43–44)
The processes used to identify, assess, prioritise and monitor risks and opportunities, and how they are integrated into the entity's overall risk management.
4 · Metrics and targets (¶¶45–53)
Metrics required by a UK SRS standard, metrics the entity uses itself, and targets set or required by law, with progress against them.
UK SRS S2
UK SRS S2: the climate requirements
UK SRS S2 keeps the same four areas and fills each with climate-specific requirements, taken from IFRS S2 as the ISSB amended it in December 2025.
| Area | What UK SRS S2 requires |
|---|---|
| Risks and opportunities (¶10) | Describe each climate-related risk and opportunity; class each risk as physical or transition; say over which time horizon it could bite; and explain how the entity defines short, medium and long term and links them to its planning horizons. |
| Physical risks | Acute, event-driven risks such as floods and storms, and chronic risks from longer-term shifts such as rising temperatures and sea levels. |
| Transition risks | Policy, legal, technological, market and reputational risks from the move to a lower-carbon economy. |
| Climate resilience (¶22) | Scenario analysis "commensurate with the entity's circumstances", with the inputs, key assumptions and the period in which it was done disclosed. |
| Cross-industry metrics (¶29) | Seven categories: greenhouse gases (gross Scope 1, 2 and 3), transition risks, physical risks, opportunities, capital deployment, internal carbon prices and remuneration. |
| Industry-based metrics (¶32) | Metrics for the entity's industry; the entity "may" refer to the industry-based guidance. |
| Targets (¶¶33–37) | Climate targets, including greenhouse gas targets, with any planned use of carbon credits. |
Emissions are measured under the GHG Protocol Corporate Standard, unless a jurisdictional authority or exchange requires otherwise.
The scenario requirement is the one most often misstated: UK SRS S2 names no scenario, and asks the entity to disclose whether its analysis is aligned with the latest international agreement on climate change.
The depth of the analysis scales with the entity’s circumstances (¶B8), but the obligation to do it does not disappear for smaller reporters.
How these requirements turn into a report is covered in our UK SRS reporting guidance.
UK versus ISSB
What the UK changed, and what it did not
Annex A of the government response lists every difference between UK SRS and IFRS S1 and S2.
The effective dates were removed, so the standards apply only where UK law, the FCA or the entity itself applies them.
References to the SASB Standards and the industry-based guidance became “may” rather than “shall” at UK SRS S1 ¶¶55(a) and 58(a) and UK SRS S2 ¶¶12, 23 and 32.
The climate-first relief (UK SRS S1 ¶E3) and the Scope 3 relief (UK SRS S2 ¶C4) lost their time limits, so law or regulation now sets how long they last; the GHG Protocol methodology relief (UK SRS S2 ¶C3) keeps its first-year limit.
The government explained that change in a letter to the FCA of 5 January 2026, before the standards were published.
UK SRS S1 ¶73A says a climate-only reporter may not assert compliance with UK SRS S1, and ¶73B subjects the standard to UK law and FCA rules.
UK SRS S2 ¶B59A is the one change that adds a duty: where financed emissions cannot be estimated for the same period as the financial statements, the entity must explain why.
The appendices were renumbered, so a bare “¶C4” is ambiguous: in UK SRS S2 it is the untimed Scope 3 relief, and in IFRS S2 it is a paragraph time-limited to the first year.
“Six UK amendments” is the number the government proposed in June 2025.
One was withdrawn, one was replaced and several provisions were added, so no count describes the final text.
How they were made
From the ISSB to UK SRS: the endorsement
The ISSB issued IFRS S1 and IFRS S2 in June 2023.
The UK assessed them through two committees under a framework published by DBT: a Technical Advisory Committee on the technical case, and a Policy and Implementation Committee on policy.
The TAC’s final recommendations were agreed on 5 December 2024 and published by the FRC, as its secretariat, on 18 December 2024.
The government then consulted on exposure drafts from 25 June to 17 September 2025 and received 209 responses.
Of those answering the question, 68% (125 of 184) agreed with the four amendments the TAC had recommended.
The final standards followed on 25 February 2026, and the FCA’s final listing rules on 30 September 2026.
CP26/5, the consultation behind those rules, described the reliefs as they stood in the exposure drafts; the final standards and PS26/19 supersede it.
- 3 Nov 2021ISSB formed
Announced by the IFRS Foundation trustees at COP26.
- Jun 2023IFRS S1 and S2 issued
Effective 1 January 2024 for IFRS — never for UK SRS.
- 18 Dec 2024TAC recommendations published
Agreed at a public meeting on 5 December 2024.
- 25 Jun – 17 Sep 2025Exposure-draft consultation
209 responses.
- 25 Feb 2026UK SRS S1 and S2 published
With the government response and Annex A.
- 30 Sep 2026FCA PS26/19
Listed companies: comply or explain from 2027.
Sources: IFRS Foundation · FRC · DBT · FCA
Comparison
UK SRS against the ISSB and the EU’s CSRD
| UK SRS | ISSB (IFRS S1 and S2) | EU CSRD / ESRS | |
|---|---|---|---|
| Alignment | IFRS S1 and S2 with the Annex A differences | The global baseline | Separate EU standards; interoperable with the ISSB in part |
| Who applies it | Voluntary for any UK entity; listed companies in scope on comply or explain from 2027 | Whoever a jurisdiction requires, or chooses | EU undertakings above 1,000 employees and €450m net turnover, after Omnibus I |
| Materiality | Single (financial) | Single (financial) | Double: impact and financial |
| Effective date | None in the text | 1 January 2024 | Set by the Accounting Directive |
| Assurance | Not required; ISSA (UK) 5000 available for voluntary use | The ISSB sets no assurance rule | Limited assurance required |
A company that complies with UK SRS has not automatically complied with the ISSB standards, because the UK text differs in the places Annex A lists.
For how listed companies meet the new rules, see our UK SRS compliance page, and for the wider guide, sustainability reporting standards in the UK.
If it would help to talk through how S1 and S2 apply to your organisation, you can book a free 15-minute call, or go back to the SRS Report home page.
Frequently asked
Questions people ask
What are the UK SRS standards?
The UK SRS standards are UK SRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, and UK SRS S2, Climate-related Disclosures. The Department for Business and Trade published both on 25 February 2026. They are the UK's endorsed versions of the ISSB's IFRS S1 and IFRS S2.
What is the difference between UK SRS S1 and UK SRS S2?
UK SRS S1 sets the general requirements that apply to every sustainability-related disclosure: materiality, the reporting entity, connected information, the four-part core content, location, timing and the statement of compliance. UK SRS S2 applies that framework to climate, setting out the specific governance, strategy, risk management, and metrics and targets disclosures for climate-related risks and opportunities. UK SRS S1 paragraph E2 requires the two to be applied together.
Is UK SRS the same as IFRS S1 and S2?
Nearly. Annex A of the government's consultation response lists every difference and says that where a requirement is not in the table there is no difference. The main changes: effective dates removed, SASB and industry-based guidance softened from "shall" to "may", the climate-first and Scope 3 reliefs left untimed, new paragraphs 73A and 73B on compliance and UK law, and new paragraph B59A on financed emissions. Compliance with UK SRS is not automatically compliance with the ISSB standards.
How many UK-specific amendments are there?
There is no official count. The government consulted on six proposed amendments in June 2025, but one was withdrawn after the ISSB made the same change itself in December 2025, one was replaced by a broader change, and new provisions were added after the consultation. Annex A of the government response maps the final differences and carries no total.
Does UK SRS S2 require specific climate scenarios?
No. UK SRS S2 paragraph 22 requires climate-related scenario analysis using an approach commensurate with the entity's circumstances, and asks the entity to disclose which scenarios it used and whether they are aligned with the latest international agreement on climate change. The entity defines its own short, medium and long term and links them to its planning horizons.
When do the UK SRS standards take effect?
The standards have no effective date. Any entity may apply them voluntarily from 25 February 2026. For listed companies in scope, the FCA's PS26/19 applies them on a comply-or-explain basis to accounting periods beginning on or after 1 January 2027, with first reports in 2028.
Who endorsed UK SRS?
The Secretary of State for Business and Trade, on the recommendation of the UK Sustainability Disclosure Technical Advisory Committee, whose final recommendations were agreed on 5 December 2024 and published by the FRC as secretariat on 18 December 2024. A separate Policy and Implementation Committee advised on policy questions. The standards state that they have not been prepared or endorsed by the ISSB.
Does UK SRS use double materiality?
No. UK SRS, like the ISSB standards, uses single (financial) materiality: information is material if it could reasonably be expected to influence the decisions of primary users of general purpose financial reports, by reference to the entity's cash flows, access to finance or cost of capital. The EU's CSRD and ESRS use double materiality.
Sources
Primary sources
Every figure, date and status on this page traces to the instrument’s owner. Secondary commentary is never the source for a number.
- Department for Business and TradeUK Sustainability Reporting Standards: UK SRS S1 and UK SRS S2
The publication page, 25 February 2026.
- Department for Business and TradeUK SRS S1 General Requirements — structure ¶¶1–86, 73A–73B, Appendices A–E (PDF)
Materiality, connected information, core content, location, timing, compliance.
- Department for Business and TradeUK SRS S2 Climate-related Disclosures — ¶¶5–37, B59A, Appendix C (PDF)
The climate disclosures, financed emissions and the reliefs.
- Department for Business and TradeGovernment response to the UK SRS consultation (web version)
209 responses; 68% (125 of 184) agreed with the four TAC amendments (¶1.17).
- Department for Business and TradeConsultation response PDF, Annex A (pp. 29–34)
The authoritative map of UK differences, with no count.
- Department for Business and TradeExposure drafts: UK Sustainability Reporting Standards — consultation
Ran 25 June to 17 September 2025; "proposes 6 minor amendments".
- Department for Business and TradeLetter to the FCA on finalising UK SRS (5 January 2026, PDF)
Why the relief time limits were removed from the standards.
- Department for Business and TradeFramework and terms of reference for developing UK SRS
The TAC and PIC, and the Secretary of State's endorsement role.
- Financial Conduct AuthorityPS26/19: Aligning listed issuers' sustainability disclosures with international standards
Final rules, 30 September 2026: comply or explain from 2027.
- Financial Conduct AuthorityPS26/19 policy statement (PDF)
¶¶1.2, 1.7, 3.12–3.14.
- Financial Conduct AuthorityCP26/5 consultation paper (PDF)
The consultation the final rules replace; it described the exposure-draft reliefs.
- IFRS FoundationIFRS Sustainability Standards Navigator
IFRS S1 and IFRS S2, issued June 2023.
- IFRS FoundationIFRS S2 Climate-related Disclosures (December 2025 text)
¶¶10, 22, 29 and B8, carried into UK SRS S2.
- IFRS FoundationInternational Sustainability Standards Board
Formed 3 November 2021.
- IFRS FoundationSASB Standards
Which UK SRS says an entity "may" refer to and consider.
- GHG ProtocolCorporate Accounting and Reporting Standard
The emissions measurement basis in UK SRS S2 ¶29(a).
- Financial Reporting CouncilISSA (UK) 5000 (PDF)
Voluntary sustainability assurance standard, effective 15 December 2026.
- EUR-LexDirective 2013/34/EU as amended by Directive (EU) 2026/470 (consolidated 18 March 2026)
CSRD scope (1,000 employees and €450m) and limited assurance, for the comparison table.