What are the UK Sustainability Reporting Standards?
The UK Sustainability Reporting Standards, often referred to as UK SRS, are designed to create a clearer framework for sustainability-related financial disclosures.
They are based on the global IFRS Sustainability Disclosure Standards and aim to make sustainability and climate-related reporting more consistent. As a result, businesses may need to explain sustainability-related information in a way that is easier to compare, review and connect to wider business performance.
UK SRS is made up of two standards: UK SRS S1 and UK SRS S2. S1 focuses on sustainability-related risks and opportunities, while S2 focuses specifically on climate-related risks and opportunities.
Together, these standards show how sustainability reporting is becoming more closely linked to financial reporting, governance and risk management.
Why the UK SRS matter for business reporting
UK SRS matters because sustainability reporting is becoming more consistent and comparable. Businesses may increasingly need to show how climate and sustainability-related risks could affect performance, strategy and long-term resilience.
This is especially relevant for organisations already reporting on carbon emissions or wider ESG performance. Although UK SRS is currently available for voluntary use, it gives businesses a useful indication of where sustainability and climate reporting is heading.
What are UK SRS S1 and UK SRS S2?
UK SRS is made up of two standards: UK SRS S1 and UK SRS S2. Together, they set out how businesses can disclose sustainability and climate-related information in a more consistent way.
UK SRS S1 provides the general framework for reporting sustainability-related risks and opportunities. This includes how those issues could affect a business’s prospects, financial performance or access to capital.
UK SRS S2 focuses specifically on climate-related risks and opportunities. It covers areas such as governance, strategy, risk management, metrics and targets, helping businesses explain how climate issues are being assessed and managed.
Together, S1 and S2 show how the UK SRS links sustainability reporting more closely with business decision-making and financial risk.
What data businesses may need to prepare
Preparing for UK SRS will depend on the size, structure and reporting needs of each business. However, organisations may need to review whether their current data can support clearer sustainability and climate-related disclosures.
Energy and carbon emissions data
Energy and carbon emissions data can help businesses understand the environmental impact of their operations. This may include energy consumption, fuel use and emissions linked to purchased electricity.
Having reliable data is important because it can support more consistent reporting and help businesses explain how emissions are changing over time.
Climate-related risk information
Businesses may also need to consider how climate-related risks could affect their operations. This could include physical risks, such as extreme weather, as well as transition risks linked to regulation, market change or customer expectations.
The aim is to understand how these risks could influence business performance and long-term resilience.
Governance and strategy information
UK SRS may also require businesses to explain how sustainability and climate-related issues are managed internally. This could include who is responsible for oversight, how decisions are made and how sustainability is considered within business strategy.
Clear governance information can help show that reporting is supported by internal processes, rather than being treated as a separate annual task.
Metrics, targets and transition planning
Businesses may need to prepare information on the metrics and targets they use to track progress. This can include emissions reduction targets, energy performance measures or climate-related commitments.
Where relevant, businesses may also need to explain how they plan to move towards those targets over time. This makes transition planning an important part of UK SRS readiness.
How businesses can prepare for UK SRS
Businesses do not need to wait until UK SRS becomes mandatory to start preparing. Early action can help teams understand what information they already have and where reporting processes may need to improve.
Review current sustainability reporting processes
Businesses should start by reviewing how sustainability information is currently collected, checked and reported. This can help identify whether existing processes are strong enough to support future UK SRS disclosures. It may also show where reporting is too fragmented across different teams or systems.
Improve energy and carbon data quality
Reliable energy and carbon data will be important for climate-related reporting. Businesses should check whether their data is accurate, consistent and easy to explain.
This is especially useful for organisations with multiple sites, complex energy use or separate systems for emissions reporting.
Identify gaps in climate-related disclosures
Businesses should review whether they already report on climate-related risks, governance, strategy, metrics and targets. Where information is missing, teams can begin building a clearer evidence base. This can make future reporting easier to manage and reduce the risk of last-minute data issues.
Align internal teams around reporting responsibilities
UK SRS readiness may involve several teams, including sustainability, finance, operations and leadership. Businesses should make sure responsibilities are clear so that reporting is supported by the right people.
Clear ownership can help sustainability reporting become part of wider business planning, rather than a separate task managed once a year.
How carbon accounting software can support UK SRS readiness
Carbon accounting software can help businesses prepare for UK SRS by making sustainability and emissions data easier to manage. This is particularly useful where information is spread across different sites, departments or reporting systems.
A strong platform can support better data collection, clearer emissions tracking and more consistent reporting. It can also help businesses identify gaps in their current data before they become a reporting challenge.
For businesses preparing for UK SRS, the key benefit is visibility. With more reliable energy and carbon data, teams can better understand their current position and prepare stronger sustainability and climate-related disclosures.
Frequently Asked Questions (FAQ)
What is the UK SRS?
UK SRS stands for the UK Sustainability Reporting Standards. The standards provide a framework for reporting sustainability-related financial information in a clearer and more consistent way.
Is the UK SRS mandatory?
UK SRS is currently available for voluntary use. However, businesses may choose to prepare early as sustainability and climate-related reporting becomes more closely connected to financial reporting.
What are UK SRS S1 and UK SRS S2?
UK SRS S1 covers sustainability-related risks and opportunities that could affect a business. UK SRS S2 focuses specifically on climate-related issues and how they may influence future performance.
What information may businesses need for UK SRS reporting?
Businesses may need reliable energy and carbon data alongside information about climate-related risks. They may also need to explain how sustainability issues are managed within the organisation.
How can businesses prepare for UK SRS?
Businesses can start by reviewing how sustainability information is currently collected and checked. This can help teams identify missing data and improve their reporting processes before new requirements apply.
Why is UK SRS relevant to business planning?
UK SRS encourages businesses to consider how sustainability-related issues could affect financial performance and long-term resilience. This helps connect climate reporting with wider business decisions.
How can carbon accounting software support UK SRS readiness?
Carbon accounting software can bring energy and emissions information together in one place. This can make data easier to review and help businesses prepare clearer climate-related disclosures.
