Sustainability reporting · status in the UK

Is sustainability reporting mandatory in the UK?

For large companies, parts of it are: SECR energy and carbon reporting and climate-related financial disclosure are statutory.

The UK’s sustainability reporting standards, UK SRS S1 and S2, are voluntary.

From 1 January 2027, listed companies in five categories must report against them or explain why not.

Who must report Check six common claims

The standards

Are the UK’s sustainability reporting standards mandatory?

No. UK SRS is voluntary, and comply or explain for five listing categories from 2027.

The Department for Business and Trade published UK SRS S1 and S2 on 25 February 2026, for voluntary use by any entity.

They are the UK’s endorsed versions of the ISSB’s IFRS S1 and S2, and they ask about sustainability-related financial information: risks and opportunities that could affect a company’s cash flows, access to finance or cost of capital (UK SRS S1).

The FCA’s final rules in PS26/19 make them a comply-or-explain obligation for companies in five listing categories.

No law makes them mandatory for any other company; the full rule is on UK SRS reporting requirements.

A sustainability standard

UK SRS S1 and S2

Voluntary for any entity; comply or explain for UKLR 6, 14, 15, 16 and 22 from 2027.

DBT published them on 25 February 2026.

IFRS S1 and S2 (ISSB)

Not adopted directly in the UK; UK SRS is the UK’s endorsed version.

With UK amendments.

GRI, CDP, SASB

Voluntary.

Chosen by companies, often at investors’ or customers’ request.

DBT guidance · FCA PS26/19

Who must report

Which UK organisations must report on sustainability?

Large companies, the largest employers, big pension schemes and asset managers, each under a different instrument.

Social disclosures such as the modern slavery statement and gender pay gap reporting are also mandatory for their own populations; every regime is on sustainability reporting requirements in the UK.
Who	What is mandatory	Instrument
Quoted companies; unquoted companies and LLPs exceeding two of £36m, £18m and 250 staff	Energy use and greenhouse gas emissions (SECR)	SI 2008/410 Sch 7
Traded companies, banks, insurers, AIM companies and companies over £500m turnover, with more than 500 employees	Eight climate-related financial disclosures	CA 2006 ss.414CA–414CB
Companies in UKLR 6, 14, 15, 16 and 22	UK SRS S1 and S2, or an explanation, from 2027	FCA PS26/19
Occupational pension schemes with £1bn or more in assets, and authorised master trusts	A climate report	SI 2021/839
FCA-authorised asset managers and their labelled funds	Sustainability product and entity disclosures	FCA SDR
EU subsidiaries of UK groups above 1,000 employees and €450m turnover	An ESRS sustainability statement under CSRD	Directive (EU) 2026/470

Three organisations

What does this mean for three kinds of company?

A listed group, a large private company and a small supplier meet three different answers.

These are illustrations, not real organisations.

The private company is outside climate disclosure because it has fewer than 500 employees and turnover under £500m.

The small supplier is outside SECR’s scope because it meets all three of the “not more than” conditions.

What a customer may require from that supplier is on the ESG questionnaire guide.

1
A UKLR 6 listed group, 3,000 staff
SECR, climate disclosure, and UK SRS on comply or explain from 2027.
2
A private company, £80m turnover, 400 staff
SECR only among the climate duties; UK SRS voluntary.
3
A supplier, £8m turnover, 60 staff
No statutory sustainability reporting; customers may still ask.

Sch 7 ¶20B · s.414CA · PS26/19

When

When did sustainability reporting become mandatory?

In stages: SECR in 2019, climate disclosure in 2022, UK SRS comply or explain from 2027.

April 201901
SECR applies
Energy and carbon in the directors’ report for financial years from 1 April 2019.
SI 2008/410 Sch 7
April 202202
Climate-related financial disclosure applies
Eight disclosures for companies with more than 500 employees in named categories.
CA 2006 s.414CB
25 February 202603
UK SRS S1 and S2 published
For voluntary use by any entity.
DBT
30 September 202604
FCA publishes PS26/19
Comply or explain against UK SRS for five listing categories.
PS26/19
30 November 202605
Corporate reporting consultation closes
Proposals only; no law changes on this date.
DBT consultation
1 January 202706
UK SRS periods begin for in-scope listed companies
First reports follow in 2028.
PS26/19 ¶3.12

Check the claims

Which claims about mandatory reporting are true?

Six statements often repeated about UK sustainability reporting, checked against the instruments.

The false ones mostly turn a voluntary standard into a legal duty, or a consultation into law.

The true ones show where the duty actually runs: in the annual report, by size or listing.

The same question asked of ESG as a label is on is ESG mandatory in the UK.

Is sustainability reporting mandatory?

True or false

Every large UK company must publish a sustainability report.
UK SRS S1 and S2 are voluntary standards.
From 2027, every listed company must report against UK SRS S2 with no option to explain.
SECR energy and carbon reporting is mandatory for qualifying companies today.
A UK company that uses GRI is meeting a legal duty.
The 2026 corporate reporting consultation abolishes SECR.

0 of 6 answered.

Nothing you choose is stored or sent.

Who decides

Who decides what is mandatory?

Parliament, the FCA and the EU each set a different part.

A rule is mandatory only where an instrument makes it so, and the instrument decides who it reaches.

The government’s corporate reporting consultation, closing 30 November 2026, proposes to move SECR within the annual report and says it will consider how UK SRS should be reflected in the Companies Act; it changes no law yet.

What is in force today, and nothing else, is on current sustainability disclosure requirements.

Who sets the ruleExplore

Who sets the rule

Parliament and DBT

SECR and climate disclosure in company law; UK SRS published for voluntary use.

DBT

Parliament and DBT

SECR and climate disclosure in company law; UK SRS published for voluntary use.

DBT

Financial Conduct Authority

Listing rules for UK SRS on comply or explain; SDR for asset managers.

PS26/19

Department for Work and Pensions

Climate reporting for large occupational pension schemes.

SI 2021/839

European Union

CSRD for EU entities of UK groups above the Omnibus I thresholds.

Directive (EU) 2026/470

Sustainability reporting is mandatory where an instrument says so, and the standards themselves stay voluntary outside five listing categories.

Since April 2019
SECR is mandatory for quoted and large unquoted companies
Energy and emissions in the directors’ report.
More than 500 employees
Climate-related financial disclosure starts above this headcount
In named categories of company.
25 February 2026
UK SRS was published as a voluntary standard
For any entity.
1 January 2027
Five listing categories report against UK SRS or explain
Under the FCA’s PS26/19.

Check which duties reach your company