In short: UK SRS S1 and S2 are the UK-endorsed versions of the ISSB's IFRS S1 and S2, published in final form on 25 February 2026. They are voluntary for most companies today, but under FCA Policy Statement PS26/19 UK listed companies must apply them, on a comply or explain basis, for accounting periods beginning on or after 1 January 2027, replacing the TCFD-based rules. TaxDigit's sustainability team runs the gap analysis, sets up the data, drafts the disclosures and links them to your financial statements, for UK reporters and for groups also reporting under IFRS S1 and S2 elsewhere.
What UK SRS and IFRS S1 and S2 ask for
IFRS S1 sets the general requirements: disclose sustainability-related risks and opportunities that could reasonably be expected to affect your cash flows, access to finance or cost of capital over the short, medium or long term. IFRS S2 adds the climate detail: governance, strategy including climate resilience and scenario analysis, risk management, and metrics and targets including Scope 1, 2 and 3 greenhouse gas emissions. The structure follows the four TCFD pillars, so companies already reporting under TCFD have a starting point.
The UK versions make a small number of changes. References to the SASB Standards and the industry-based guidance are optional rather than mandatory, time limits on the transitional reliefs have been removed, and the ISSB's December 2025 amendments to IFRS S2 (including limiting Scope 3 Category 15 to financed emissions) are carried across. The effective date for each company is set by the rules that require it to report, not by the standard itself.
- UK listed companiesMoving from TCFD to UK SRS for periods from 1 January 2027.
- Large private groupsPreparing for the government's decision on which other companies must report.
- Groups reporting in several countriesAligning UK SRS with IFRS S1 and S2 as adopted in other jurisdictions.
- Companies asked by investors and lendersUsing the standards voluntarily to answer investor and bank requests.
Led by Dr Attieh Moezoddin, Head of Sustainability & ESG Advisory (PhD, Built Environment)Reviewed by Amir Rafiei, ACCA Certificate in Sustainability for FinanceLast reviewed
What we do
UK SRS readiness review
We compare your current TCFD or voluntary reporting with every UK SRS S1 and S2 requirement and give you a prioritised list of gaps, owners and dates.
Identifying what to disclose
We run a structured assessment of sustainability-related risks and opportunities that could affect your prospects, using financial materiality as the standards require, and document the judgements.
UK SRS S2 disclosures
Governance, strategy, climate resilience and scenario analysis, risk management, cross-industry metrics and targets, built from your existing risk and planning processes.
Scope 1, 2 and 3
GHG Protocol inventories, use of the measurement and Scope 3 reliefs where appropriate, and a clear basis of preparation. See carbon accounting.
Linking to the accounts
We check that assumptions used in the disclosures agree with those in the financial statements, such as impairment, useful lives and provisions. See climate risk in financial statements.
Comply or explain wording
We help you decide where you comply, where you use a relief and where you explain, and draft the statement of compliance accordingly.
UK SRS timeline and reliefs
| Item | What it means | Date or status |
|---|---|---|
| UK SRS S1 and S2 published | Final UK-endorsed versions of IFRS S1 and S2, available for voluntary use | 25 February 2026 |
| FCA PS26/19 | UK SRS on a comply or explain basis for listed companies, replacing TCFD-based rules | Accounting periods beginning on or after 1 January 2027 |
| Transition plans | Listed companies state whether they have published a climate transition plan and where, or explain why not | Same periods as above |
| Climate-first relief | Report on climate only in the first period, with other sustainability topics later | Available; time limit removed in UK SRS |
| Scope 3 relief | Scope 3 emissions need not be disclosed in the first period | Available; time limit removed in UK SRS |
| Companies Act CFD rules | Climate-related financial disclosure duties for large companies; UK SRS S2 reporting can meet them | In force; under review |
| Wider scope | Government consultation on modernising corporate reporting, including which companies should report | Consultation closes 30 November 2026 |
How a UK SRS engagement runs
Confirm the reporting entity, period and which reliefs you intend to use.
Materiality assessment and gap analysis against UK SRS S1 and S2.
Data processes, emissions inventory, scenario analysis and draft disclosures.
Board review, compliance statement, and readiness for any assurance.
A dedicated sustainability and ESG team
TaxDigit has a dedicated sustainability and ESG team, led by Dr Attieh Moezoddin, Head of Sustainability & ESG Advisory. Attieh holds a PhD in the Built Environment from the University of Salford and is a sustainable development researcher whose doctoral work built a framework for sustainable urban development using expert panels and multi-criteria analysis (fuzzy Delphi, fuzzy AHP and fuzzy TOPSIS) across social, environmental, economic and cultural pillars.
Finance, reporting and tax quality is reviewed by Amir Rafiei, Senior Manager for Global Tax Strategy, Transfer Pricing and Sustainability, who holds the 
ACCA Certificate in Sustainability for Finance. The team works side by side with our accounts, tax, payroll and international specialists, so your sustainability disclosures, financial statements and tax returns rest on one set of facts. Statutory audit is carried out separately by our alliance firm Jelveh Audit & Assurance.
- PhD, Built Environment
- Sustainable development research
- Materiality and expert panels
- SDGs and impact
- Climate risk and reporting
- ESG metrics and analytics
- IFRS S1, S2 and UK SRS
- CSRD and ESRS
- CBAM and green taxes
All sustainability and ESG services
See the full overview on our sustainability and ESG services page, or go straight to a related service. Large groups may also need our large and multinational group tax support.
Official sources
Rules, thresholds and dates on this page were checked against these sources on 14 November 2026. We re-check them whenever they change.
Frequently asked questions
What is the difference between UK SRS and IFRS S1 and S2?
UK SRS S1 and S2 are the UK-endorsed versions of IFRS S1 and S2 with minor amendments: SASB references are optional, time limits on transitional reliefs are removed, and the effective date is left to the rules that require reporting.
When do UK listed companies have to use UK SRS?
Under FCA PS26/19, for accounting periods beginning on or after 1 January 2027, on a comply or explain basis. Before then, companies may continue with TCFD-aligned reporting or adopt UK SRS early.
Is UK SRS mandatory for private companies?
Not at present. The government is consulting on which companies should report, with the consultation closing on 30 November 2026. Many private groups use the standards voluntarily for investors and lenders.
Do we have to report Scope 3 emissions?
UK SRS S2 requires Scope 3, but a relief allows it to be omitted in the first period of reporting, and the FCA rules are comply or explain. Most companies start collecting Scope 3 data early because suppliers and customers need time.
Can we report on climate only at first?
Yes. UK SRS S1 includes a climate-first relief. If you use it you cannot assert full compliance with UK SRS S1 in that period, but you can still assert compliance with UK SRS S2 if you disclose the reliefs used.
Do UK SRS disclosures need assurance?
The FCA rules do not require assurance. Many companies obtain limited assurance voluntarily, and the government is setting up an oversight regime for sustainability assurance providers. We get your data ready for it. See assurance readiness.
We already report under TCFD. How much more work is UK SRS?
The four pillars are the same, but UK SRS asks for more specific metrics, connected financial information, scenario analysis of climate resilience and, under S1, other sustainability topics. A gap analysis shows the real distance.
Can you help an overseas parent reporting under IFRS S1 and S2?
Yes. We prepare UK entity data for group reports and align UK SRS reporting with IFRS S1 and S2 as adopted in other jurisdictions.
Who leads and reviews the work?
Engagements are led by Dr Attieh Moezoddin, Head of Sustainability & ESG Advisory, and reviewed by Amir Rafiei, who holds the ACCA Certificate in Sustainability for Finance, with our accounts specialists checking the connection to the financial statements.