UK Sustainability Reporting Standards (UK SRS)

Important, UK SRS replaces TCFD: The UK Sustainability Reporting Standards supersede the Task Force on Climate-related Financial Disclosures (TCFD) framework as the primary climate disclosure requirement for UK organisations. If your organisation has previously reported under TCFD, UK SRS is your onward obligation. The two frameworks share similar principles but UK SRS is broader in scope, more prescriptive in structure, and legally mandated on a phased timeline. This page explains what changes, when, and how Impact supports your transition.

The UK Sustainability Reporting Standards (UK SRS) are the UK government's adoption of the International Sustainability Standards Board (ISSB) standards, IFRS S1 and IFRS S2, adapted for the UK regulatory context. They establish a consistent, internationally aligned framework for sustainability and climate-related financial disclosures, and will become mandatory for large UK companies on a phased timetable running from FY 2027 onwards.

This page provides platform-level guidance to help you understand UK SRS obligations and configure Impact to support your reporting. It is not legal or financial advice. Consult your legal team, auditors, or sustainability advisors for guidance specific to your organisation.

UK SRS vs TCFD, what changed and why it matters

TCFD (Task Force on Climate-related Financial Disclosures) was introduced as a voluntary framework in 2017 and became mandatory for certain UK entities from 2022. It focused specifically on climate-related risks and opportunities across four pillars: Governance, Strategy, Risk Management, and Metrics & Targets.

UK SRS retains the spirit of TCFD but significantly expands the requirements in three ways:

Area	TCFD	UK SRS (IFRS S1 + S2)

Area	TCFD	UK SRS (IFRS S1 + S2)
Scope	Climate-related risks and opportunities only	S2 covers climate (equivalent to TCFD); S1 extends to all material sustainability-related risks and opportunities
Emissions coverage	Scope 1 and 2 required; Scope 3 encouraged	Scope 1 and 2 mandatory; Scope 3 on a comply or explain basis from FY 2028
Legal status	Mandatory for listed companies, large private companies, and LLPs from 2022	Phased mandatory rollout from FY 2027, supersedes TCFD for in-scope organisations
Structure	Four pillars: Governance, Strategy, Risk Management, Metrics & Targets	Same four pillars, with more prescriptive disclosure requirements and quantitative metrics
International alignment	Voluntary framework; varied global adoption	Based on IFRS S1/S2, aligned with EU CSRD, Australia, Canada, and other major economies

If you have been reporting under TCFD, your existing disclosures will provide a strong foundation for UK SRS. The core structure is familiar, but UK SRS requires more granular quantitative data, a broader sustainability lens under S1, and formal Scope 3 reporting from FY 2028.

Who does UK SRS apply to?

The UK government has proposed a phased implementation approach. The standards are expected to apply to UK-listed companies and large private companies, with thresholds broadly consistent with existing TCFD and SECR obligations. Final eligibility criteria are subject to FCA and government confirmation, check with your auditors or legal team for the most current position.

Implementation timeline

Financial year	UK SRS S2 (climate)	Scope 3 emissions	UK SRS S1 (general sustainability)

Financial year	UK SRS S2 (climate)	Scope 3 emissions	UK SRS S1 (general sustainability)
FY 2026	Voluntary adoption	Voluntary adoption	Voluntary adoption
FY 2027	Mandatory, full S2 climate disclosures required	Voluntary adoption	Voluntary adoption
FY 2028	Mandatory, full S2 climate disclosures required	Comply or explain, 1-year transitional relief expires	Voluntary adoption
FY 2029	Mandatory, full S2 climate disclosures required	Comply or explain, second year of inclusion	Comply or explain, 2-year transitional relief expires

What UK SRS S2 requires

UK SRS S2 (mandatory from FY 2027) covers climate-related financial disclosures across four areas, which will be familiar if you have reported under TCFD:

Governance, how your board and management oversee climate-related risks and opportunities.
Strategy, the climate-related risks and opportunities that could affect your business model, strategy, and financial planning, including scenario analysis.
Risk management, how you identify, assess, and manage climate-related risks and how this integrates with your overall risk management.
Metrics and targets, quantitative data on Scope 1, 2, and (from FY 2028 on a comply or explain basis) Scope 3 emissions, cross-industry climate metrics, and progress against any climate targets you have set.

What UK SRS S1 requires

UK SRS S1 (comply or explain from FY 2029) goes beyond climate to cover all material sustainability-related risks and opportunities, including nature, biodiversity, social value, workforce, and supply chain. It applies the same four-pillar structure as S2 but across your full sustainability footprint.

This is where Impact's social value reporting becomes directly relevant to UK SRS compliance, the platform's activity logging, beneficiary tracking, goals, and MSVR data provide exactly the kind of quantitative social outcome evidence that S1 requires under its social and community metrics.

How Impact supports UK SRS compliance

UK SRS requirement	How Impact supports it

UK SRS requirement	How Impact supports it
Scope 1 and 2 emissions metrics (S2, mandatory FY 2027)	Capture Scope 1 and 2 data through activities and conversions using DEFRA emission factors. Generate SECR-aligned infographics and reports. See SECR, Streamlined Energy & Carbon Reporting for setup guidance.
Scope 3 emissions (comply or explain from FY 2028)	Set up Scope 3 categories as activities with appropriate DEFRA conversion factors. Log business travel, supply chain spend, waste, and other value chain emissions. See the Scope 3 section of the SECR page for setup guidance.
Climate targets and progress (S2)	Use Goals & Targets to set emissions reduction targets with defined baselines and track progress over time. Monetary and numeric goal types both supported.
Social and community outcomes (S1, from FY 2029)	Activity logging, beneficiary tracking, MSVR, and Classifications provide the quantitative social outcome data needed for S1 social metrics. Existing social value reporting in Impact maps directly to S1 disclosure requirements.
Workforce and supply chain metrics (S1, from FY 2029)	OPIs (Operational Performance Indicators) and Classifications can be configured to capture workforce and supply chain data. Contact support@impactreporting.co.uk to discuss configuration for S1 readiness.

Getting ahead of the timeline

With UK SRS S2 mandatory from FY 2027, organisations that are in scope should not wait until the deadline. The data collection, systems, and internal processes needed to produce compliant disclosures take time to establish. Starting now, even on a voluntary basis, will significantly reduce the burden when reporting becomes legally required.

Recommended actions now:

Set up Scope 1 and 2 emissions activities and start logging data, this creates your historical baseline for S2 prior year comparisons.
Begin capturing Scope 3 categories voluntarily so you have data in place before the FY 2028 comply or explain deadline.
Set emissions reduction goals in Impact so you can demonstrate target-setting and progress tracking from day one.
Review your social value data capture against the S1 disclosure categories now, most organisations with mature social value reporting in Impact will find they already have much of what S1 requires.
Contact support@impactreporting.co.uk if you would like help configuring your account for UK SRS readiness.