The UK government is preparing to replace the current Streamlined Energy and Carbon Reporting (SECR) framework with the more comprehensive UK Sustainability Reporting Standards (UK SRS), a move that will reshape how businesses disclose their environmental and social impact.
This change, expected to become mandatory for some companies from 2026 onwards, will significantly raise the bar for sustainability reporting across the UK.
From SECR to UK SRS: What’s Changing?
SECR, introduced in 2019, requires qualifying companies to report on energy consumption, Scope 1 and 2 greenhouse gas emissions, and intensity metrics. While it allows voluntary inclusion of Scope 3 emissions, it largely focuses on historical data and basic compliance. Assurance is not required.
In contrast, UK SRS, based on the global IFRS S1 and S2 standards developed by the International Sustainability Standards Board (ISSB), introduces a more ambitious approach. It expands reporting to include climate and wider sustainability issues, with a strong emphasis on forward-looking disclosures. Companies will be expected to share transition plans, assess climate-related risks and opportunities, conduct scenario analysis, and outline governance and risk management frameworks. Over time, Scope 3 emissions and non-climate ESG issues will also become central.
While assurance is not yet mandatory under UK SRS, it is likely to become a future requirement.
Who will be impacted?
If your organisation currently reports under SECR, you may be affected sooner than expected, particularly if you’re a large private company, operate in a high-impact sector like energy or finance, or are part of a supply chain serving listed companies.
The government and the Financial Conduct Authority (FCA) are expected to integrate UK SRS into listing rules and the Companies Act, with legislation likely to take effect from Q3 or Q4 2025. Reporting would become mandatory for certain companies by the 2026 financial year, with first reports expected in 2027.
What SECR-Reporting companies should do now
Preparation is key to staying ahead. Between now and late 2025, companies should begin reviewing the draft UK SRS standards and conducting internal gap analyses to compare current SECR disclosures against the broader requirements of UK SRS.
This is the time to assess whether your business already has governance structures in place for climate risk, whether you track Scope 3 emissions, and how well you understand your exposure to climate-related risks. Scenario planning and early mapping of emissions beyond Scopes 1 and 2 are useful steps to take even before reporting becomes mandatory.
From January 2026, voluntary alignment with UK SRS begins. This presents an ideal window to test reporting frameworks, refine internal processes, and begin enhancing your sustainability narrative. Proactive companies will be better positioned when mandatory reporting begins and will benefit from a stronger sustainability reputation in the marketplace.
Key Dates to Remember
- Now to September 2025: Review the draft standards, run a gap analysis, and consider responding to the government consultation, which closes on 17 September 2025.
- Late 2025: Begin internal awareness-building. Companies should start introducing governance and risk disclosure elements aligned to UK SRS.
- January 2026: Voluntary reporting under UK SRS officially opens. Early adopters can use this phase to test new reporting strategies alongside their existing SECR processes.
- Mid to Late 2026: Keep a close eye on legal updates. If mandates are confirmed, reporting under UK SRS will likely apply to financial years starting in 2026.
- 2027 onwards: Companies captured by the legislation will need to integrate UK SRS disclosures into their annual financial reporting. Forward-looking disclosures and limited assurance may become necessary.
Why this transition is an opportunity
The move from SECR to UK SRS isn’t just a regulatory shift – it’s an opportunity to embed sustainability into your company’s core business strategy. Organisations that act early can gain a competitive advantage, improve investor confidence, and strengthen their ESG credentials.
Moreover, early action will ease the future compliance burden. Building internal capacity now means you won’t be scrambling to catch up later.
How Positive Planet can help
At Positive Planet, we work closely with companies that are preparing for this transition. Whether you’re looking to improve your existing SECR reporting, start mapping Scope 3 emissions, or develop your governance and scenario planning capabilities, our team can support you every step of the way.
From readiness assessments and strategy workshops to building out your climate disclosures, we help transform reporting obligations into business value.
Get in touch with us today to start your UK SRS journey with confidence.
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If you would like to know more about how Positive Planet can help your organisation please get in touch.