UK Sustainability Reporting Standards: consultation opens on draft UK SRS S1 and S2
On 25 June 2025, the UK Government launched a consultation on the draft UK Sustainability Reporting Standards (UK SRS S1 and S2), marking a significant step towards a UK-specific sustainability disclosure regime. These standards are based on the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2, with targeted amendments to reflect the UK context.
UK SRS S1 sets out general requirements for disclosing sustainability-related financial information, while UK SRS S2 focuses specifically on climate-related disclosures. The proposed amendments aim to ensure international alignment while addressing domestic legal, regulatory and market considerations.
Key amendments include:
- Removal of the transition relief allowing delayed reporting in year one (S1).
- Extension of the ‘climate-first’ transition relief to two years (S1).
- Removal of the mandatory use of the Global Industry Classification Standard (GICS) for financed emissions (S2).
- Clarification that references to SASB materials are optional, not mandatory (S1 and S2).
- Linking transition reliefs to the commencement of mandatory reporting, rather than voluntary adoption (S1 and S2).
The consultation also explores the legal implications of forward-looking disclosures, the role of carbon credits, and the potential for streamlining existing non-financial reporting obligations under the Companies Act 2006.
This is a pivotal moment to shape the UK’s sustainability disclosure landscape. The consultation is open until 17 September 2025.
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