What are the current ESG Regulations in the UK?

The Department for Business and Trade published the UK Sustainability Reporting Standards on 25 February 2026, and the Financial Conduct Authority wants to make part of them compulsory for around 515 listed companies from 2027. This guide explains what the rules mean and what governance professionals should do next.

What are the UK Sustainability Reporting Standards?

UK SRS are the UK’s own version of global sustainability reporting rules from the International Sustainability Standards Board, known as the ISSB. There are two parts.

UK SRS S1 covers general sustainability information such as governance, strategy, risk management, and metrics and targets.

UK SRS S2 covers climate information, including greenhouse gas emissions.

Both were published on 25 February 2026 and are based on the ISSB’s IFRS S1 and S2, first issued in June 2023. Using UK SRS is voluntary for every UK company right now.

Is UK SRS reporting mandatory yet?

No, not yet. The Financial Conduct Authority has proposed making UK SRS S2 climate reporting compulsory for around 515 listed companies, for accounting periods starting on or after 1 January 2027.

A further 89 companies with only a secondary UK listing would face lighter rules instead. Some parts of the new reporting can be delayed.

Scope 3 emissions reporting can move to a comply or explain basis from 1 January 2028, and wider non climate reporting from 1 January 2029. Comply or explain means a company must either report the information or explain why it has not.

The FCA plans to confirm its final rules in autumn 2026. The government may also extend the rules to private companies through a separate project called the Modernising Corporate Reporting programme, confirmed in October 2025.

What should governance professionals do now?

You can start by checking what sustainability data your company already collects and comparing it against UK SRS S1 and S2. Look at whether you already track Scope 1, Scope 2 and Scope 3 emissions.

You can also check that any climate transition plan is written down clearly, since the FCA proposal asks companies to say whether they have one and where to find it.

Keep a clear record of who reviewed and approved each disclosure, since UK SRS ties sustainability reporting closely to the financial statements. Company secretaries are well placed to lead this work, since they already manage board papers and the annual report.

Getting Ready for UK SRS

The FCA’s final rules are not yet confirmed, but the direction is clear. Starting to collect and check sustainability data now, well ahead of any deadline, gives your board more time and more control.

Frequently Asked Questions

Is UK SRS mandatory yet?

No. UK SRS is voluntary for all UK companies right now. The FCA wants to make part of it compulsory for around 515 listed companies from 1 January 2027, but this depends on its final rules, expected in autumn 2026.

How many companies will UK SRS affect first?

Around 515 companies with a main UK listing, plus a further 89 companies with only a secondary UK listing, which would face lighter rules.

What is the difference between UK SRS and TCFD?

UK SRS is meant to replace the FCA’s older TCFD aligned rules. TCFD, the Taskforce on Climate related Financial Disclosures, closed in October 2023. UK SRS builds on TCFD’s climate work and adds more detail, including Scope 3 emissions.