Skip to content
ESG Now
Start free

ESG glossary

UK SRS

UK SRS are the UK Sustainability Reporting Standards, S1 (general sustainability) and S2 (climate), published by the government in February 2026. They are based on the ISSB's IFRS S1 and S2 and are expected to become mandatory for listed companies.

The Department for Business and Trade published UK SRS S1 and UK SRS S2 on 25 February 2026, after endorsing the International Sustainability Standards Board’s global standards with some UK amendments. They are available now for any company to use voluntarily. The standards are on GOV.UK.

What it means for a small business

There is no proposal to make UK SRS mandatory for SMEs or private companies. The Financial Conduct Authority is expected to require listed companies to use them for periods starting from 1 January 2027, subject to its final rules.

The impact on small businesses is indirect but real. UK SRS S2 asks companies to report their Scope 3 emissions, which include the emissions of their suppliers. So large customers will increasingly ask SME suppliers for:

  • Scope 1 and 2 emissions, ideally with a clear method
  • Energy use and any renewable electricity
  • Reduction targets or plans
  • Basic climate risk information

The more suppliers can provide real data, the less the customer has to rely on rough industry averages.

An example

A listed retailer preparing its first UK SRS report asks its 200 largest suppliers for their annual emissions. A small food producer replies with its Scope 1 and 2 figures, its reporting period and its method (GHG Protocol, UK government factors). The retailer can use those real figures instead of an estimate based on spend.

How ESG Now handles it

ESG Now produces the supplier-level figures large customers ask for: Scope 1, 2 and 3 emissions in tCO2e using the GHG Protocol and UK government factors, plus energy use and a record of your policies and targets. It is not a UK SRS report, which is designed for large companies. Read our guide to what UK SRS means for SME suppliers, or start your free report.

Guides that cover this