A Detailed Look at the UK Sustainability Reporting Standards (UK SRS)

The UK government is set to implement the UK Sustainability Reporting Standards (UK SRS) by 2025. These standards will introduce a unified approach to how businesses report on environmental, social, and governance (ESG) issues, aimed to improve corporate transparency and accountability. This move is part of a broader effort to align the UK with global sustainability reporting frameworks, most notably those created by the International Sustainability Standards Board (ISSB).

Key standards:

1. IFRS S1 – General Sustainability Disclosures: This standard aims to provide stakeholders with comprehensive information on a company’s overall sustainability impacts. It will encompass all key sustainability factors, including social, environmental, and governance-related risks and opportunities.
2. IFRS S2 – Climate-Related Disclosures: Focusing specifically on climate-related data, this standard will require companies to disclose how climate change impacts their operations and financial performance. It also considers how organisations are mitigating climate risks and taking advantage of potential opportunities.

Why the change?

As global attention increasingly shifts towards sustainability, companies face growing pressure to demonstrate their commitment to sustainable practices. Investors, in particular, are calling for more comprehensive and comparable sustainability information to make better-informed decisions. The UK SRS will enable businesses to standardise their reporting and align with global benchmarks, thus improving transparency across sectors.

Regulatory impact

These standards are expected to apply to both listed and unlisted companies in the UK, impacting a broad range of businesses. The implementation will be phased in, with a focus on larger firms initially, followed by a gradual extension to other organisations. To guide the roll-out and ensure that the standards reflect technical requirements and broader policy goals, the UK government is working with advisory committees comprising industry experts and stakeholders.

Positive Planet’s role

Sustainability consultancies, such as Positive Planet, can play a crucial role in helping businesses navigate these new reporting standards. With expertise in ESG, carbon reduction, and sustainability strategies, Positive Planet can provide valuable guidance on aligning corporate practices with the new UK SRS requirements. By helping companies assess their sustainability risks and opportunities, design robust reporting systems, and ensure compliance with regulatory frameworks, Positive Planet ensures that organisations meet the new standards and integrate sustainability deeply into their business strategies.

Next steps for businesses

As the adoption date approaches, businesses should begin preparing by reviewing their current ESG reporting practices and identifying gaps where additional disclosures will be needed. It’s also crucial to stay informed about further updates to the standards, as the final details are still under development. The government plans to finalise the UK SRS in 2024, ahead of their expected endorsement and implementation in early 2025.

In conclusion, the introduction of the UK SRS marks a significant step forward in the country’s commitment to sustainability. It underscores the growing importance of integrating environmental and social considerations into business strategies, not just for regulatory compliance but also to meet investor and consumer demands for greater corporate responsibility.

For more details, visit the official UK government page.