UK SRS: What to Expect as Launch Nears

With the formal launch of the UK Sustainability Reporting Standards (UK SRS) expected this month (February), the conversation is shifting from “What might this look like?” to “Are we ready?”. The UK SRS will require companies to disclose sustainability-related financial information, marking a significant step towards more consistent and decision-useful reporting across the UK market.

At Sodali & Co, we participated in the UK Government consultations on UK SRS S1 and S2 last year and have been closely tracking regulatory intent and market sentiment. Our assessment is that the UK SRS will remain closely aligned with the International Financial Reporting Standards’ (IFRS) S1 (General Requirements) and IFRS S2 (Climate-related Disclosures), with only limited UK-specific adjustments. This reflects the UK’s ongoing commitment to global comparability, investor relevance and cost-efficient implementation. In practice, IFRS S1 and S2 should be treated as the practical baseline.

We also expect strong interoperability with the simplified European Sustainability Reporting Standards (ESRS), published by the European Financial Reporting Advisory Group (EFRAG)in December 2025 and awaiting European Commission approval. This alignment reduces the risk of parallel or duplicative reporting for UK and EU organizations. Companies that invest in shared data, controls and governance systems rather than siloed, framework-by-framework compliance will benefit most.

Alongside the UK SRS consultation, the government has also consulted publicly on the introduction of a formal oversight regime for sustainability assurance. With the consultation outcomes now published, the government has confirmed its intention to proceed with a voluntary UK sustainability assurance oversight framework, to be operated by the Financial Reporting Council (FRC). The FRC has been asked to put in place an interim, non-legislative regime by mid-2026. This initial phase will focus on increasing transparency around the sustainability assurance capabilities available in the market and ensuring the FRC has sufficient visibility to begin shaping future regulatory expectations for sustainability assurance.

In parallel, the Financial Conduct Authority (FCA) published, on 30 January, a consultation on proposed updates to the UK Listing Rules to incorporate references to the UK SRS. As part of this proposal, the FCA is consulting on a requirement for in-scope listed companies to disclose in their annual financial reports whether they have obtained third-party sustainability assurance over information reported in accordance with the UK SRS.

Taken together, these developments, alongside the FRC’s ongoing work to develop a UK-specific sustainability assurance standard, signal an increase in expectations around data quality, internal controls and supporting documentation. Assurance readiness will become a critical component of corporate reporting, shaped by investor scrutiny, board accountability and audit committee oversight.

What This Means for Companies

The UK SRS should be approached as a strategic preparation exercise, not a future compliance problem. Although parts of the standard may remain voluntary initially, organizations that act early can establish robust governance, strengthen internal controls, and build reporting processes that are resilient as timelines tighten.

With 36[1] jurisdictions already adopting IFRS Sustainability Disclosure Standards, the UK SRS reinforces a global shift towards interoperable reporting systems. Companies that integrate sustainability risks and opportunities into their wider enterprise risk frameworks, and foster close collaboration between finance and sustainability teams, are best placed to identify value drivers, manage transition risks and respond credibly to investor expectations.

Looking Ahead

As the UK SRS moves towards finalization, companies should focus on readiness: data, governance, controls and assurance. These foundations will matter as expectations rise across capital markets, and as sustainability information becomes increasingly integrated into mainstream financial decision-making.

At Sodali & Co, we will continue to share timely, practical insights as regulatory details evolve. Our goal is to help organizations navigate uncertainty and turn reporting readiness into strategic advantage. Wherever you are on your UK SRS journey, we can provide tailored guidance to keep you ahead of the curve.

Contact us at info@sodali.com