ESG standards — UK regulatory landscape
The UK ESG standards landscape in 2026: UK SRS S1 and S2 (the emerging mandatory baseline), SECR (mandatory since 2019), SI 2022/31 (TCFD-aligned mandatory since 2022), FCA SDR (fund-product disclosure), FRC Corporate Governance Code (governance pillar), and the new ESG Ratings Order 2025 bringing ratings under FCA.
The UK ESG standards stack
The UK has built a three-layer ESG regulation stack: corporate disclosure (UK SRS, SECR, SI 2022/31, TCFD), fund-product disclosure (FCA SDR), and the regulated ESG ratings market from 2028.
Each UK ESG standard in detail
The six UK ESG regimes UK preparers need to understand — what they cover, who is in scope, when they apply, where the disclosure sits.
- UK SRS S1 and S2 DBT · Proposed mandatory 2027
- UK SRS S1 (general sustainability) and UK SRS S2 (climate) issued by DBT on 25 February 2026. Investor-focused, financial materiality, built on IFRS S1/S2. Proposed mandatory under FCA CP26/5 for ~500 listed companies from accounting periods starting on or after 1 January 2027.
- SECR (Streamlined Energy and Carbon Reporting) DBT · Mandatory since 2019
- Mandatory energy and Scope 1/2 carbon disclosure for ~11,900 UK entities. Statutory basis: Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. Disclosure in directors’ report. See SECR reporting guide.
- SI 2022/31 DBT · Mandatory since 2022
- Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 — mandatory TCFD-aligned climate disclosure for ~2,500 large UK companies and LLPs with 500+ employees. Disclosure in the Non-Financial and Sustainability Information Statement (NFSIS). See TCFD UK requirements.
- FCA Listing Rules UKLR 6.6.6R(8) FCA · Mandatory since 2021
- TCFD-aligned comply-or-explain disclosure for premium and standard listed companies (~1,200 issuers). FCA Primary Market Technical Note TN/802.2 sets out detailed expectations. Proposed deletion from 1 January 2027 under FCA CP26/5, replaced by mandatory UK SRS S2.
- FCA SDR FCA · In force
- Sustainability Disclosure Requirements and investment label regime governing UK retail investment products. Four labels: Sustainability Focus, Sustainability Improvers, Sustainability Impact, Sustainability Mixed Goals. Backed by anti-greenwashing rule applying to all FCA-authorised firms. See FCA SDR & anti-greenwashing.
- FRC Corporate Governance Code FRC · Comply-or-explain
- Governance standard applying to premium-listed companies on comply-or-explain basis. Five sections: Board Leadership and Company Purpose; Division of Responsibilities; Composition, Succession and Evaluation; Audit, Risk and Internal Control; Remuneration. Core to the Governance pillar of ESG.
- ESG Ratings Order 2025 HMT · Effective 2028
- Financial Services and Markets Act 2000 (Regulated Activities) (ESG Ratings) Order 2025, signed 15 December 2025. Brings ESG ratings providers within FCA regulatory perimeter by 29 June 2028. Sets standards on methodology transparency, governance and conflict-of-interest management.
- Modern Slavery Act 2015 Home Office · Mandatory
- Section 54 requires commercial organisations with turnover above £36m and operating in the UK to publish an annual modern slavery statement. Core to the Social pillar of ESG. Increasingly investor-scrutinised; planned strengthening under successive Home Office reviews.
From SECR (2019) to UK SRS (2027)
Eight years of UK ESG standard-setting from the first mandatory regime to the unified UK SRS baseline.
- APR 2019SECR becomes mandatory for large companies
- DEC 2020FCA PS20/17 — TCFD Listing Rules for premium listed
- APR 2022SI 2022/31 mandatory climate-related disclosure for 500+ employee companies
- DEC 2023FCA SDR Policy Statement issued
- 15 DEC 2025ESG Ratings Order 2025 signed
- 25 FEB 2026DBT publishes UK SRS S1 and S2
- AUTUMN 2026FCA Policy Statement on CP26/5 expected
- 1 JAN 2027UK SRS S2 proposed mandatory for listed (replaces TCFD LRs)
- 29 JUN 2028ESG ratings providers require FCA authorisation
- 1 JAN 2029UK SRS S1 broader sustainability proposed comply-or-explain
International standards UK companies encounter
UK preparers also face IFRS S1 and S2 (the basis for UK SRS), EU ESRS / CSRD (for EU subsidiaries), and US SEC climate rules for US-listed groups.
The international stack UK preparers navigate
IFRS S1 and S2 (ISSB) is the global baseline UK SRS is built on — UK SRS = IFRS S1/S2 + six UK amendments.
EU ESRS under CSRD covers ~50,000 EU companies with phased-in mandatory application, including UK companies with material EU subsidiaries (mandatory disclosure under ESRS by 2025-2028 depending on category).
US SEC climate disclosure rules apply to US-listed groups, including UK companies with US listings.
Global comparability is increasing through these regimes' shared TCFD foundation.
ESG standards — frequently asked
The main UK ESG standards, UK SRS as standard vs framework, mandatory status, and the difference between standards and frameworks.
What are the main ESG standards in the UK?
UK SRS S1 and S2 (DBT, February 2026; mandatory from 2027 proposed under FCA CP26/5); SECR (mandatory since 2019); SI 2022/31 TCFD-aligned regulations (mandatory since 2022); FCA SDR Sustainability Disclosure Requirements (in force); FRC Corporate Governance Code (governance pillar); plus the ESG Ratings Order 2025 bringing ratings providers under FCA authorisation by 2028.
Is UK SRS a standard or a framework?
UK SRS is a set of standards.
UK SRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and UK SRS S2 (Climate-related Disclosures) are technical disclosure standards built on the ISSB's IFRS S1 and S2 with six UK-specific amendments.
They set out specific disclosure requirements rather than principles-based guidance.
Which UK ESG standards are mandatory?
Currently mandatory: SECR (since 2019, ~11,900 entities); SI 2022/31 climate-related disclosure (since 2022, ~2,500 large companies and LLPs); FCA Listing Rules TCFD requirement UKLR 6.6.6R(8) (since 2021/2022, ~1,200 listed companies); FCA SDR product labelling and anti-greenwashing rule.
Proposed mandatory from 1 January 2027: UK SRS S2 for ~500 listed companies under FCA CP26/5.
What is the difference between a standard and a framework?
A standard sets specific, mandatory or comply-or-explain disclosure requirements with detailed measurement and presentation rules.
UK SRS, ISSB IFRS S1/S2, ESRS are standards.
A framework provides principles, structure and recommendations for organising disclosure but with more flexibility.
TCFD (until disbanded), the original framework concept, was principles-based.
SASB sits in between — industry-specific standards within a framework.
The ESG guide set
From standards, continue to criteria, practical reporting, software and strategy.
What is ESG?
Definition, history, three pillars, UK frameworks.
ArchitectureThe three ESG pillars
Environmental, Social, Governance — what each covers.
FrameworksESG frameworks — UK comparison
UK SRS, GRI, SASB, TCFD, CDP, ESRS compared.
CriteriaESG criteria
Practical criteria per pillar.
HubESG reporting — UK hub
Three-layer UK system; UK SRS backbone.
RegulatorFCA CP26/5
The consultation deleting TCFD-aligned Listing Rules from 2027.
Related guides & references
Primary references
DBT, FCA, FRC, HMT and statutory instruments anchoring every claim on this page.