The UK has stepped forward with its draft sustainability and climate reporting standards, and while they mirror global frameworks, there’s a local flavor to how the UK is planning to roll things out.
On June 25, the UK government introduced:
- UK SRS S1: General sustainability-related financial disclosures
- UK SRS S2: Climate-related disclosures
These standards are based on IFRS S1 and S2 issued by the International Sustainability Standards Board (ISSB), but include some important changes tailored to UK businesses (Source: ESG Today).
What’s New in UK SRS S1 & S2?
One of the most notable changes is the “climate-first” relief — giving companies two extra years to implement climate-related disclosures under S2. That’s double the grace period provided under ISSB’s global standard.
Another key shift? The UK plans to remove the option for staggered reporting. In other words, companies will be required to publish their sustainability disclosures at the same time as their financial statements—ensuring greater transparency, integration, and connectivity across financial and sustainability reporting.
Public consultation on the drafts is open until September 17, 2025, with final standards expected by the end of the year.
Why This Matters (A Lot)
These draft standards show how the UK is striking a balance: aligning with global rules while giving businesses some breathing room on implementation.
By sticking close to IFRS S1/S2 and still tailoring rollout details, the UK is signaling its commitment to global consistency—without ignoring the practical realities on the ground.
And for companies that operate internationally or work with UK-based clients, this sets a precedent for the kind of disclosures and timelines you might be expected to follow down the line.
What’s the Bigger Picture?
The UK’s move reinforces the growing global momentum behind standardized, mandatory ESG disclosures.
We’re entering a new phase where ESG is not just a corporate responsibility measure—it’s a regulated, financial-grade reporting requirement. Companies that begin preparing now will not only be compliant; they’ll be more resilient.
Finally
Whether you operate in the UK or work with companies that do, these new standards are worth watching. They reflect the direction ESG reporting is heading—integrated, accountable, and aligned with business performance.
At EcoActive ESG, we stay on top of developments like UK SRS to help organizations align their ESG data, frameworks, and disclosures—clearly and confidently—across global regulations.
Click here to to access the new draft UK SRS.
