In the UK, SRS refers to the UK Sustainability Reporting Standards (UK SRS). While SECR remains mandatory, UK SRS marks a broader shift from limited, compliance-driven reporting towards consistent, regulated sustainability reporting that supports better business and investment decisions.
In this guide, we explain what UK Sustainability Reporting Standards are, which UK businesses they affect, and the practical steps you can take now to prepare for UK SRS requirements.
What is UK Sustainability Reporting Standards?
UK SRS are the UK’s version of global sustainability reporting standards, closely aligned to the ISSB standards (IFRS S1 and S2). The purpose is to create a single, comparable framework for reporting sustainability-related risks and opportunities, particularly those that affect financial performance.
Put simply, corporate sustainability is being treated with the same seriousness as financial reporting.
Who does this effect?
UK SRS will not apply to every business straight away. Compliance is being phased and targeted, but the scope is clear. Here’s who must comply:
- UK-listed companies: This includes premium and standard listed entities.
- Large UK companies: this is expected to include companies that meet two or more of the following: over £36 million turnover, over £18 million balance sheet total, or more than 250 employees.
Most SMEs will not be legally required to report under UK SRS in the early phases but will still be asked for more structured sustainability data, even without the legal requirement to report on it. Those who will feel the impact most will be those who:
- Supply large or listed companies
- Are part of regulated or international value chains
- Seek external investment, funding, or acquisition
- Work with customers subject to UK SRS, CSRD, or ISSB-aligned reporting
What do businesses need to report?
UK SRS focuses on financially material sustainability risks and opportunities, including:
- Greenhouse gas emissions across Scopes 1, 2, and 3, as well as other environmental impacts
- Strategy aligned with government sustainability targets, including ESG standards
- A focus on tracking sustainability performance against key metrics, alongside the progress against said targets
- Any climate-related risks and opportunities
- Global alignment that follows ISSB’s IFRS S1 and S2 standards with additional UK-specific requirements
- Your use of resources and resource management, showing how you report on responsible environmental practices
- Sustainability focused financial information
One thing that is clear, is the shift in focus towards transparency in reporting; this includes any environmental impacts or risks.
Why this matters for UK businesses
While UK Sustainability Reporting Standards applies to larger businesses, it’s important to recognise its importance and how it will shape expectations across the wider market. The introduction of SRS influences:
The expectations of investors
As sustainability data will now be more closely aligned to financial reporting, the rise in SRS will inform access to capital and cost of funding for potential stakeholders or investors. The accuracy and transparency of your data can inadvertently impact the confidence potential investors have in your business and your stance on sustainability.
A shift for non-mandated businesses
Even if you don’t currently meet the conditions to begin UK SRS reporting in this early phase, there will be new expectations on the data that you do report. Providing structured, comparable data, even if you aren’t submitting it, is the new expectation.
Operational data suddenly becomes reporting data
Payroll, expenses, travel, procurement, and supplier data all feed sustainability disclosures.
Delayed preparation can be costly
While UK Sustainability Reporting Standards may not be in force just yet, it is important to be proactive ahead of its arrival. If you wait until it becomes a compulsory reporting requirement, there’s a change that the data you provide will be rushed and of poor quality. All which can lead to costly compliance fines.
ESG tools can help support you as SRS comes into play, giving you access to high-quality, assurance-ready data that is already tied to your financial.
How does UK Sustainability Reporting Standards differ from SECR?
You might be wondering how this differs from the existing Streamlined Energy and Carbon Reporting framework already in place for many UK businesses. While they both aim to improve transparency around the climate impact of businesses, the scope they both cover differs. Here’s a side-by-side comparison that shows where the two overlap, and what new requirements are coming into place:
| Feature | SECR | SRS |
| Overview | Energy and carbon reporting scheme | Sustainability reporting standards |
| Status | Mandatory now | Being introduced |
| Applies to | Large UK-incorporated companies and LLPs |
UK-listed and large UK companies
|
| Scope and required disclosures | Energy use and carbon emissions (Scope 1 & 2) data, actions taken | Broader ESG and climate risks, strategy, governance, metrics |
| Financial link | Limited, not required in financial reports | Must be integrated into financial reporting |
| Forward looking | Not required | Transition plans, risk mitigation, and strategic targets are required |
| Use of ESG frameworks and tools | Optional | Encouraged to help with data collection and reporting |
| Audit readiness | Low | High |
What can you do now ?
Wondering what you can do now to anticipate SRS? Luckily for you, we’ve pulled together a practical list to get you started:
- Map where sustainability data already lives across your business, so you understand what is available today and where gaps exist.
- Improve consistency and audit trails by standardising how data is captured, approved, and stored. This reduces risk as reporting expectations increase.
- Reduce reliance on spreadsheets and disconnected tools, which make sustainability reporting harder to scale and harder to trust. Embracing carbon reporting tools can help to give visibility of your carbon spend and your actual spend.
- Align finance, payroll, HR, and spend data early, creating a clearer, more reliable picture of your organisation’s impact.
Get ready for UK Sustainability Reporting Standards
UK Sustainability Reporting Standards means sustainability reporting in the UK is becoming structured, regulated, and unavoidable. Even if you are not legally required to report yet, your customers, investors, or partners soon will be.
If you’re looking for advice on how to integrate sustainability into your financial reporting, book a demo to see how Capture Expense can help give you greater visibility and align environmental efforts with your expenses.
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