Poros Group · UK policy
UK SRS S1 and S2: the UK endorses the ISSB standards
Aakash Kapur
Fresh off the press! Almost every call we have with UK companies right now includes questions around when the UK SRS will see some updates.
Well, today the UK Government has issued the UK Sustainability Reporting Standards (SRS), in the form of the UK SRS S1 and UK SRS S2. See my initial highlights below…
Overview of the SRS
The UK SRS S1 sets out general requirements for disclosure of sustainability-related financial information, while UK SRS S2 focuses on climate-related disclosures. Together, they aim to strengthen the consistency, comparability and decision-usefulness of sustainability information for investors and the wider market.
“I see many SRS updates; what does this mean?”
This is the formal UK endorsement of ISSB standards. UK SRS S1 and S2 are based on IFRS S1 and S2, but now formally endorsed for UK use, providing clarity after the exposure draft phase along with an opportunity for voluntary early disclosure.
Transition from consultation to usable framework
Today’s publication replaces the 2025 exposure drafts. Companies now have a definitive reference point for voluntary adoption and implementation planning.
Broader sustainability scope (beyond climate)
S1 reinforces that reporting is not just about climate, but about sustainability-related risks and opportunities that affect enterprise value, opening the door for future regulatory precedent.
Alignment with global markets…
The UK and the UK SRS itself remain closely aligned with the ISSB baseline, supporting comparability for internationally active companies and investors.
Are existing rules for listed company climate disclosure being changed (i.e. TCFD)?
Change is on the way. The FCA is currently inviting consultation on whether and how to update its rules for listed entities to use UK SRS, with consultation open until 20 March 2026 here: CP26/5: Sustainability disclosures.
Helpful links
Related thoughts on LinkedIn: the post.