The UK's new sustainability reporting standards (UK SRS) are mandatory from 2026. Don't get caught unprepared. Claritas ESG provides instant, AI-powered answers to navigate IFRS S1 & S2 alignment, tackle data challenges, and build your compliance roadmap.
of companies currently fail to comply with existing SECR requirements
Mandatory UK SRS implementation (no earlier than Jan 1)
Minor modifications from IFRS S1 & S2 standards
UK SRS are the new mandatory sustainability disclosure requirements based on internationally recognised IFRS S1 and S2 standards, following the proven TCFD framework.
Requires disclosure of material sustainability-related risks and opportunities that could affect your company's financial performance, position, or cash flows.
Follows the established TCFD framework with specific focus on climate-related risks, opportunities, and GHG emissions.
Board oversight and management role in assessing and managing climate risks
Climate risks and opportunities impact on business, strategy, and financial planning
Processes for identifying, assessing, and managing climate-related risks
Metrics and targets used to assess and manage climate risks and opportunities
“Explain how IFRS S1 and S2 apply to our specific industry and what our first steps should be for compliance preparation.”
29% of companies already fail basic SECR requirements. Enhanced enforcement powers and escalating penalties make early preparation essential.
Replacing FRC with unprecedented director accountability powers
Financial Penalties
Direct fines on company directors
Director Prohibitions
Bans from serving as directors
Public Censure
Reputational sanctions and naming
Anti-greenwashing rules with massive fine increases
“What are the potential penalties for our company size if we fail to comply with UK SRS, and what immediate steps should our board take?”
UK Sustainability Reporting Standards will be based directly on IFRS S1 and S2, with only six minor modifications for UK-specific requirements.
General Sustainability‑related Financial Disclosure
Requires entities to disclose material sustainability risks & opportunities that could affect financial performance, financial position or cash flows.
Climate‑related Disclosures
Follows TCFD four-pillar structure: governance, strategy, risk management, and metrics & targets – including mandatory GHG emissions reporting.
Mandatory 2026+Q4 2025
Voluntary Use
Final standards available for early adoption
Jan 2026+
Mandatory
No earlier than accounting periods starting Jan 1, 2026
2-Year
Transition
Climate-first reporting relief period
Phased
Rollout
Premium listed first, then other significant companies
“How do the UK modifications to IFRS S1 & S2 affect our specific industry and what should we prioritize in our preparation?”
UK SRS joins 30+ jurisdictions implementing ISSB standards while maintaining strategic domestic adaptations.
UK SRS joins 30+ jurisdictions implementing ISSB standards as a global baseline, creating international comparability for investors and multinational companies.
“How can we leverage global ISSB guidance while ensuring compliance with UK-specific modifications?”
Significant gaps in current sustainability reporting highlight the urgent need for preparation as more rigorous standards approach.
SECR (Streamlined Energy and Carbon Reporting) Failures:
Global CSRD Survey Findings (PwC 2024):
“What are the most effective strategies for improving data quality and completeness for Scope 3 emissions reporting in our industry?”
Immediate action is essential given current compliance gaps and the comprehensive scope of upcoming UK SRS obligations.
“Create a 12-month implementation roadmap for UK SRS compliance for a company in our sector with our current maturity level.”
Transform UK SRS compliance from a regulatory burden into a strategic advantage with Claritas ESG's AI-powered guidance.
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