UK SRS: What the 25 February Release Means for Businesses

The UK Government has published the final UK Sustainability Reporting Standards (UK SRS) – S1 (general sustainability‑related disclosures) and S2 (climate‑related disclosures) – on 25 February 2026, making them available for voluntary use.

These standards endorse the ISSB’s IFRS S1 and S2 with only minor UK‑specific amendments and are expected to form the basis of future mandatory sustainability and climate reporting.

What the standards are and why they matter

UK SRS provides a consistent, investor‑focused framework for reporting sustainability‑related risks, opportunities, and climate impacts. The standards aim to improve transparency and comparability across UK organisations while aligning the UK with the global ISSB baseline. They also clarify how UK SRS S2 interacts with existing UK climate disclosure requirements, helping create a more coherent reporting landscape.

What organisations need for compliance

Entities adopting UK SRS must disclose:

Governance arrangements overseeing sustainability and climate issues
Strategy for managing material sustainability related and climate related risks and opportunities
Risk management processes for identifying and monitoring these issues
Metrics and targets, including emissions data and transition plans

These disclosures must be supported by reliable data and grounded in materiality.

Key next steps and timelines

UK SRS is currently available for voluntary adoption, but regulatory momentum is building. The FCA has launched a consultation on making UK SRS mandatory for premium and standard listed companies under the Listing Rules, signalling that listed entities are likely to be the first in scope. In parallel, the UK Government is preparing a further consultation on whether to extend mandatory reporting to large companies through the Companies Act, which would significantly broaden the reach of the regime.

While SMEs are not expected to be directly captured in the early phases, they will still feel the effects. Large companies and investors will increasingly require UK SRS‑aligned information from their supply chains and portfolio companies, meaning smaller organisations will face rising expectations even without a legal obligation. Over time, reporting in line with UK SRS is expected to become standard practice across the market.

How JTC can support you

JTC’s Sustainability Services team helps organisations understand their exposure, assess readiness, and build credible reporting aligned to UK SRS. We support materiality assessments, emissions calculations and the creation of clear, decision useful sustainability disclosures that meet evolving UK expectations.