UK Sustainability Reporting Standards (UK SRS): what they mean for your business

This week, the UK government published the final UK Sustainability Reporting Standards (UK SRS). They mark a significant shift in how businesses are expected to report on sustainability and climate, and they will shape corporate reporting in the UK for years to come.

So, what are they, why do they matter, and what should you be doing now?

What are the UK Sustainability Reporting Standards?
UK SRS are a new set of standards designed to help UK companies report clearly and consistently on material sustainability and climate-related risks and opportunities.

There are two core standards:

1. UK SRS S1: general requirements for sustainability-related financial disclosures
2. UK SRS S2: climate-related financial disclosures They are closely aligned to the global standards developed by the International Sustainability Standards Board (ISSB), known as IFRS S1 and S2. In practice, this means UK businesses will be reporting in a way that is comparable with peers around the world and meaningful to investors, lenders and other decision-makers.

S1 covers all sustainability issues that could reasonably affect your business’s cash flow, access to finance or cost of capital over the short, medium or long term. It’s not just about climate.

S2 goes deeper on climate specifically, including expectations around scenario analysis and forward-looking assessments of how resilient your business is in a low-carbon transition.

Both standards are built around the four familiar TCFD pillars: governance, strategy, risk management, and metrics and targets.