UK SRS vs SECR: What's the Difference?

Understanding the Transition from SECR to UK Sustainability Reporting Standards

⚠️ UK SRS S1 & S2 published February 2026 — Mandatory reporting begins for periods starting January 2027

Quick Comparison: SECR vs UK SRS

Aspect	SECR (Current)	UK SRS (From 2027)
Scope	Energy & carbon emissions only	Full sustainability: Environment, social, governance
Who Must Report	Large companies & LLPs (2+ criteria met)	Listed companies, large companies, financial institutions
Reporting Location	Directors' report	Separate sustainability report or integrated annual report
Standards	UK government guidance	ISSB-aligned (S1 General, S2 Climate)
Emissions Scope	Scope 1 & 2 mandatory, Scope 3 voluntary	Scope 1, 2 & 3 mandatory (with materiality)
Assurance	Not required	Limited assurance likely required (phased)
Transition Planning	Not required	Mandatory transition plans

Transition Timeline

Now - December 2026

SECR continues as mandatory requirement

Continue SECR reporting in annual reports

Voluntary early adoption encouraged

January 2027

UK SRS becomes mandatory for listed companies

April 2028

First UK SRS reports published

For companies with Dec 2027 year-ends

Phased expansion planned

2029-2030

Extended to large private companies

Key Differences Explained

Scope of Reporting

SECR (Current)

Energy consumption only
GHG emissions (Scope 1 & 2)
Energy efficiency actions

UK SRS (From 2027)

Full climate-related disclosures
Material sustainability topics
Governance & strategy
Risk management
Metrics & targets

Emissions Reporting

SECR Requirements

Scope 1:Direct emissions (mandatory)
Scope 2:Purchased energy (mandatory)
Scope 3:Optional disclosure

UK SRS Requirements

Scope 1:Direct emissions (mandatory)
Scope 2:Purchased energy (mandatory)
Scope 3:Material categories mandatory
Includes financed emissions for FIs

Reporting Format

SECR Format

Brief section in Directors' Report (typically 1-2 pages)

• Energy use & emissions data
• Intensity ratio
• Methodology statement

UK SRS Format

Comprehensive sustainability report (20-50+ pages)

• TCFD-aligned structure
• Scenario analysis
• Transition planning
• Cross-references to financials

Strategic Requirements

SECR Focus

Historical performance reporting

• Past year emissions
• Year-on-year comparison
• Energy efficiency actions taken

UK SRS Focus

Forward-looking strategy & resilience

• Climate scenario analysis
• Transition planning to net zero
• Physical & transition risks
• Strategic resilience testing

Who Is Affected by UK SRS?

Mandatory from 2027

Premium listed companies
Standard listed companies
Large banks & insurers
Asset managers (£5bn+ AUM)

Expected 2029-2030

Large private companies
AIM-listed companies
LLPs meeting size criteria
Smaller financial institutions

Continue SECR Only

SMEs (unless listed)
Charities
Public sector bodies
Partnerships (non-LLP)

Size Thresholds: Large = 2+ of: Turnover £36m+, Balance sheet £18m+, 250+ employees

What Companies Need to Do Now

Preparation Checklist for UK SRS

1. Gap Analysis (Q2 2026)

• Assess current SECR reporting against UK SRS requirements
• Identify data gaps, especially for Scope 3 emissions
• Review governance structures for sustainability oversight

2. Data Systems (Q3 2026)

• Implement carbon accounting software
• Establish Scope 3 data collection processes
• Set up internal controls and audit trails

3. Governance (Q4 2026)

• Appoint board-level sustainability committee
• Define roles and responsibilities
• Link executive remuneration to sustainability metrics

4. Strategy Development (Q1 2027)

• Conduct climate scenario analysis
• Develop transition plan to net zero
• Set science-based targets

5. First Report (Q1 2028)

• Draft UK SRS-compliant sustainability report
• Obtain limited assurance (if required)
• Publish alongside annual report

Benefits of Early UK SRS Preparation

Competitive Advantage

Early adopters attract ESG investors and win sustainability-focused contracts

Smoother Transition

Avoid last-minute rush and ensure high-quality first UK SRS report

Cost Efficiency

Build on existing SECR processes rather than starting from scratch in 2027

UK SRS vs SECR FAQs

Will SECR be abolished when UK SRS starts?

No, SECR will continue for companies not in scope of UK SRS. Companies subject to UK SRS will effectively incorporate and expand their SECR disclosures within their UK SRS reporting. The energy and carbon data required by SECR forms part of the broader UK SRS S2 climate disclosures.

Can we use the same data for both SECR and UK SRS?

Yes, your SECR data (Scope 1 & 2 emissions, energy consumption) directly feeds into UK SRS reporting. However, UK SRS requires additional data including Scope 3 emissions, climate risks, governance information, and forward-looking metrics that go beyond SECR requirements.

What happens if we don't comply with UK SRS?

UK SRS will be mandatory with enforcement by the FCA for listed companies and by Companies House for private companies in scope. Non-compliance could result in fines, delisting threats, reputational damage, and potential director liability. The FRC will also review UK SRS reports as part of corporate reporting reviews.

How much more work is UK SRS compared to SECR?

UK SRS is significantly more comprehensive. While SECR typically requires 40-80 hours of work annually, UK SRS preparation can require 500-1000+ hours in the first year, including data collection, scenario analysis, governance setup, and report preparation. Ongoing annual effort is typically 200-400 hours.

Need Help Transitioning from SECR to UK SRS?

Our experts can guide you through the transition with gap analysis, implementation roadmaps, and ongoing support

Get Transition Support UK SRS Compliance Guide