This page was reviewed and updated on 10/07/25.
The Department for Business and Trade has launched a consultation on the UK Sustainability Reporting Standards (UK SRS), which are set to become the foundation of corporate climate disclosures in the UK.
The consultation invites feedback on a draft version of the standards that are based on the International Sustainability Standards Board (ISSB) frameworks – specifically, IFRS S1 and IFRS S2.
These standards are designed to provide consistent, decision-useful sustainability-related financial information for UK capital markets and form a key part of the government’s sustainable finance framework. The consultation is open until 17 September 2025.
Background
The UK government’s plan to implement the UK SRS was first outlined in the Mansion House reforms in November 2024. The aim is to strengthen corporate sustainability reporting and align the UK with international standards while maintaining flexibility to reflect national needs.
What is being consulted on – and will UK SRS reporting be mandatory?
The consultation sets out the government’s proposal to endorse the ISSB standards for use in the UK with six minor amendments. These changes are intended to tailor the standards and ensure they are fit for purpose in the UK context.
Feedback is also being sought on the costs and benefits of adopting the UK SRS. This will inform future policy decisions, including whether and how the standards should be made mandatory for UK entities.
- For companies regulated by the Financial Conduct Authority (FCA), it’s likely that UK SRS reporting will be mandatory. The FCA has independent decision-making powers – and will soon be consulting on proposals to implement the UK SRS.
- It’s also likely that UK SRS will be made mandatory for “economically significant” companies in the future – although this requires legislation changes before it can happen.
- It is unlikely that SMEs will be in scope, although the government is considering what support is needed for smaller firms who are requested to make disclosures by larger firms in their value chain.
Wider context
This development comes as the UK continues to transition from the Task Force on Climate-related Financial Disclosures (TCFD) towards a new reporting landscape shaped by ISSB standards. It also runs in parallel with regulatory changes in the EU under the Corporate Sustainability Reporting Directive (CSRD), which some UK-based organisations may still need to comply with.
Related consultations
This consultation forms part of the first phase of consultations to modernise the UK’s framework for corporate reporting. It is published alongside consultations on:
- the government’s transition plan manifesto commitment
- oversight of sustainability assurance providers
How to respond
The consultation is now open. Stakeholders are encouraged to review the draft standards and provide evidence or views by the deadline of 17 September 2025.
The outcome of this consultation is expected to shape the UK’s approach to sustainability reporting for years to come. If you’d like more information on the UK SRS and how you can start to prepare, get in touch with our ESG team at Sustainable Energy First via the form below.
