The UK Financial Conduct Authority (FCA) has finalized rules requiring in-scope listed companies to report against UK Sustainability Reporting Standards (UK SRS) on a comply-or-explain basis.
Published on September 30, 2026, Policy Statement PS26/19 replaces the existing TCFD-aligned disclosure rules with requirements aligned with the UK-endorsed ISSB standards.
The rules apply to accounting periods beginning on or after January 1, 2027, with first reporting in 2028.
What Are UK SRS S1 and S2?
The UK Sustainability Reporting Standards comprise two standards:
- UK SRS S1 — General Requirements for Disclosure of Sustainability-related Financial Information: addresses sustainability-related risks and opportunities relevant to investors.
- UK SRS S2 — Climate-related Disclosures: focuses specifically on climate-related risks and opportunities.
The government finalized the standards in February 2026. The FCA’s September announcement establishes their application through the listing rules.
Which Listed Companies Are Affected?
The final rules cover issuers in the following listing categories:
- commercial companies category
- transition category
- non-equity shares or non-voting equity shares category
- secondary listing or depositary receipts category
These requirements apply to specified listed issuers, rather than every UK business.
How Does Comply or Explain Apply?
The final policy statement applies a comply-or-explain approach across UK SRS disclosures, including climate disclosures and Scope 3 emissions.
Where issuers do not provide financially material information in accordance with the standards, explanations of their reasoning and judgment can provide useful information to investors.
What Transitional Reliefs Are Available?
The FCA provides:
- One year for Scope 3 emissions disclosures.
- Two years for UK SRS S1 non-climate sustainability disclosures.
The FCA is also consulting on supporting technical guidance, with comments due by October 28, 2026. This guidance remains proposed.
How EcoActive Supports Sustainability Reporting
The transition is relevant to teams managing sustainability information, disclosure preparation, and review.
EcoActive ESG Disclosure Management Platform is AI-native, with Agentic AI capabilities. It connects sustainability data, disclosures, supporting evidence, reviews, and approvals within a governed reporting process, with coverage that includes UK SRS and ISSB-aligned requirements.
Native AI supports analysis and insights, while Agentic AI supports workflow actions and repeatable reporting activities across validation and review. Interpretation and final approval remain under human control.
For reporting teams, this connected approach supports the management of information and evidence throughout disclosure preparation.
Explore EcoActive ESG Disclosure Management Platform to learn how teams can manage sustainability reporting with greater control, traceability, and human oversight.
For the full requirements, scope, and transitional provisions, read the FCA’s Policy Statement PS26/19 and final rules.
