Ask the Analyst: What Do Companies Need to Know About the UK Sustainability Reporting Standards?

G&A just released a resource paper on the UK’s new Sustainability Reporting Standards for businesses. To explain this new standard, we asked Alex Cohen, G&A Senior Vice President and author of the resource paper, to address some questions we’ve been receiving from our clients.

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The UK Sustainability Reporting Standards

What is the Context for the New Standards?

Global adoption of corporate sustainability standards is accelerating rapidly. Already, more than 40 countries have adopted the standards issued by the International Sustainability Standards Board (ISSB) as a requirement for their companies, and the UK recently joined their ranks.

The UK’s new Sustainability Reporting Standards (SRS) represents an important step towards making the UK country a global center for sustainable finance, one of the goals of the current government.

As global adoption advances, companies should note some key differences between the ISSB and its application in each jurisdiction where they operate. The SRS is broadly similar to the ISSB but with a number of key differences, largely around transition reliefs and permitting companies to use more UK-oriented information sources.

What is the UK’s SRS?

In the UK, listed companies have been required to report in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) since 2022, but in 2024 the TCFD was incorporated into the ISSB standards. The SRS aim to tailor the ISSB Standards for the UK and replace the TCFD Recommendations for required disclosures.

Similar to other countries adopting ISSB standards into national law, the UK SRS represent the UK’s versions of the two ISSB standards.

What is the Implementation Timeline?

The UK SRS was finalized in February 2026, and all companies can begin using the Standards on a voluntary basis beginning immediately.

In March 2026, the Financial Conduct Authority (FCA) concluded a consultation on making the SRS mandatory for listed companies. The FCA expects to publish final rules for mandatory UK SRS reporting by autumn 2026.

The rules would go into effect in 2027, with the first reports expected in 2028.

How Does the SRS Compare to Other Frameworks?

In keeping with the ISSB standards, the UK uses a financial materiality lens, setting the SRS apart from other major frameworks such as CSRD and GRI.

The SRS consists of two sets of standards that are broadly similar to the ISSB’s two standards – IFRS S1 and IFRS S2 – but with a number of key differences. The differences include permitting companies to use more UK-oriented information sources, as well as various transition reliefs for listed companies that may soon be required to report.

Which Companies are Impacted?

The current FCA proposal lays out the listing categories they want to include in the SRS proposal, the largest included categories being companies in the commercial companies, secondary listings, and depositary receipts listing categories.

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What Mandatory Rules are Proposed for Listed Companies?

The FCA proposes requiring companies to disclose on climate issues, with a “comply or explain” exception for Scope 3.

For non-climate reporting, companies will similarly need to “comply or explain” in their disclosures.

The FCA proposal also touches on climate transition plans, assurance requirements, and rules for international companies.

How Can Companies Get Ready?

Companies in scope for the UK SRS can prepare for potential mandatory reporting by mapping their current disclosures and governance structures against the new Standards. Companies should also prepare audit-ready documentation as part of their submission.

Companies can also get ready by implementing the existing, voluntary version of the SRS. Doing so will strengthen their ability to manage mandatory requirements, and get ahead of peers, while minimizing surprises along the way.

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Founded in 2006, Governance & Accountability Institute (G&A) is a New York–based sustainability consulting and research firm advising corporate leaders and investors at the intersection of strategy, governance, and regulation. For two decades, we have partnered with executive teams and boards to translate sustainability strategy into durable enterprise value — helping organizations navigate shifting market expectations, evolving policy landscapes, and increasing capital markets scrutiny. Set up a call to learn more about how we can help your company.

Alex Cohen

Senior Vice President, Sustainability Consulting

Alex Cohen is Senior Vice President of Sustainability Consulting at the Governance & Accountability Institute where he is passionate about helping clients set and achieve their sustainability goals. In this role he has supported clients in a dozen industries to publish annual sustainability reports, identify human rights risks in operations, improve their scores on annual surveys such as CDP and S&P’s Corporate Sustainability Assessment, and generally help clients to navigate the world of sustainability.