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Latest: UK SRS S1 and S2 published 25 February 2026
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UK SRSSustainability Reporting Standards

Readiness Assessment Framework

UK SRS Readiness Assessment Framework — Comprehensive Capability Evaluation Approach

Framework. A practical structure for evaluating your organisation's readiness to implement UK SRS S1 and S2 — voluntary today, proposed mandatory for UK-listed companies from 1 January 2027 under FCA CP26/5.

Four capability domains. Governance, data systems, analytical capabilities and disclosure processes — the same four pillars used by ICAEW, FRC and FRC-aligned assurance providers.

Use it now. The maturity gap takes 12–18 months to close for most listed groups; the FCA Policy Statement is expected autumn 2026.

Assessment Framework

Assessment Overview

UK SRS readiness assessment evaluates organisational capability across four domains critical for successful implementation following comprehensive implementation planning requirements.

Use this framework to identify capability gaps and prioritise development areas ahead of 3 FCA mandatory implementation from January 2027.

Assessment framework aligns with regulatory timeline expectations and supports our complete sustainability reporting overview for comprehensive readiness planning.

Quick Check
Am I in scope?
Use our interactive decision tree to determine if UK SRS applies to your company.

Assessment Domains

The readiness assessment evaluates capability across four interconnected domains essential for 1 DBT UK SRS S1 and S2 compliance.

These domains align with 2 ISSB baseline standards adapted for UK market implementation, connecting with UK-specific provisions and regulatory requirements.

Assessment structure supports systematic capability development across general requirements and climate-specific disclosures.

4

Core Assessment Domains

Governance, Data & Systems, Analysis & Strategy, Disclosure & Communication — each scored 1-10 scale

UK SRS Readiness Framework

Domain 1: Governance & Oversight

Board oversight

Sustainability committee establishment and terms of reference

Management structure

Executive accountability and cross-functional coordination

Policy framework

Materiality assessment, risk integration, disclosure controls

Skills & competencies

Board and management sustainability expertise

Domain 2: Data & Systems

Emissions measurement

Scope 1, 2, and 3 data collection and validation

Sustainability metrics

Non-climate sustainability data systems

Data governance

Quality assurance, validation, and external verification

System integration

Sustainability and financial data connectivity

Domain 3: Analysis & Strategy

Scenario analysis

Climate scenario modelling and quantification capabilities

Materiality assessment

Systematic identification of material sustainability topics

Strategic integration

Sustainability embedded in business strategy and planning

Target setting

Science-based targets and performance objective establishment

Domain 4: Disclosure & Communication

Disclosure preparation

UK SRS compliant disclosure drafting capabilities

Financial integration

Connectivity between sustainability and financial disclosures

Stakeholder communication

Investor and market communication on sustainability

Assurance readiness

External assurance and verification preparation

Gap Analysis
TCFD Baseline vs UK SRS Target
8-axis capability assessment. Click dimensions for detailed requirements.
GovernanceStrategyRisk MgmtMetricsData SystemsScope 3ScenariosAssurance
TCFD Baseline (typical current state)
UK SRS Target (required capability)
Capability Gap
Governance+5
Strategy+3
Risk Mgmt+3
Metrics+3
Data Systems+5
Scope 3+5
Scenarios+4
Assurance+4

Scoring Framework

Each domain evaluated on 10-point scale representing capability maturity from basic awareness through advanced implementation following 4 ICAEW professional guidance.

Assessment scores should inform your UK SRS implementation roadmap and identify areas requiring professional support for climate disclosure requirements.

Scoring framework enables targeted capability development and resource allocation for January 2027 compliance readiness.

Scoring Guide

1-3: Foundational

Basic awareness, limited systematic approach

4-6: Developing

Some systems and processes in place, gaps remain

7-8: Advanced

Comprehensive capabilities, minor enhancements needed

9-10: Leading Practice

Sophisticated capabilities exceeding minimum requirements

Key Assessment Questions

Use these assessment questions to evaluate your organisation's readiness across the four core capability domains following systematic evaluation methodology.

Each question targets critical capabilities required for successful UK SRS implementation, developed based on 5 ACCA sustainability guidance and FRC assurance readiness requirements.

Assessment questions align with phase-by-phase implementation expectations and enhanced TCFD framework requirements, including assurance readiness considerations.

Does the board have designated sustainability oversight responsibility?

Key governance indicator for UK SRS readiness.

Board oversight demonstrates leadership commitment to sustainability reporting and strategic integration of climate risks and opportunities.

Is there clear executive accountability for sustainability reporting?

Executive accountability ensures operational capability for UK SRS implementation.

Clear ownership of sustainability reporting processes is essential for comprehensive disclosure preparation.

Are sustainability risks integrated into enterprise risk management?

Risk integration demonstrates systematic approach to sustainability management.

UK SRS requires disclosure of how sustainability risks are identified, assessed, and managed through existing processes.

Can you measure Scope 1 and 2 emissions using GHG Protocol Corporate Standard?

Foundation emissions measurement capability is mandatory for UK SRS S2 compliance.

Scope 1 and 2 emissions require limited assurance from January 2027 under proposed requirements.

Do you have visibility into Scope 3 emissions across value chain categories?

Scope 3 emissions disclosure is essential for comprehensive UK SRS S2 compliance.

While initially comply-or-explain, full implementation expected from 2028 with assurance requirements.

Can you conduct quantitative climate scenario analysis?

Climate scenario analysis is core requirement under UK SRS S2 Strategy pillar.

Quantitative analysis capability demonstrates advanced readiness for mandatory climate risk disclosure.

Can you prepare UK SRS compliant disclosures following TCFD four-pillar framework?

Disclosure preparation capability is the ultimate readiness test.

UK SRS S2 follows enhanced TCFD architecture requiring systematic disclosure across Governance, Strategy, Risk Management, and Metrics & Targets.

Emissions Readiness

Scope 3 Emissions Assessment Framework

Detailed assessment framework for Scope 3 emissions measurement readiness across all 15 categories, with prioritisation guidance for UK SRS implementation.

Materiality Assessment
Scope 3 Materiality Matrix
15 GHG Protocol categories across 9 major sectors. Click cells for detailed guidance.
Purchased Goods
Capital Goods
Energy Activities
Transport (Up)
Waste Operations
Business Travel
Commuting
Leased Assets (Up)
Transport (Down)
Processing
Use of Products
End-of-Life
Leased Assets (Down)
Franchises
Investments
Financial Services
1
2
2
1
1
2
2
3
1
0
1
0
2
1
5
Oil & Gas
4
4
5
3
2
3
2
4
4
2
5
3
3
2
3
Mining
4
5
4
4
3
3
2
4
3
1
3
4
2
1
2
Manufacturing
5
4
3
4
3
2
2
3
4
3
4
4
2
1
2
Technology
3
3
2
2
2
3
3
3
2
1
3
3
2
1
2
Retail
4
2
2
4
2
2
3
3
3
1
3
3
4
3
1
Healthcare
3
3
2
2
4
2
2
2
2
1
2
3
2
1
1
Utilities
2
4
5
2
3
1
2
4
2
0
1
2
2
0
2
Transport
3
3
4
5
2
3
2
3
2
0
2
2
3
2
1
Materiality Scale:
Not Material
1
2
3
4
Critical
12-18 Month Implementation Roadmap
UK SRS Readiness Planning
Gap Analysis (3 months)
Assess current TCFD disclosures against UK SRS S2 requirements
Critical
Governance Setup (4 months)
Board oversight, committee structure, and accountability frameworks
Critical
Data Infrastructure (8 months)
Scope 3 data collection, ESG data management, and financial connectivity
Critical
Scenario Analysis (6 months)
Climate scenario modeling and resilience assessment capabilities
High
Controls & Assurance (5 months)
Internal controls, audit readiness, and external assurance preparation
High
Disclosure Drafting (4 months)
Strategic report integration and disclosure document preparation
Medium

Gap Analysis and Action Planning

Use assessment results to prioritise capability development and resource allocation. Companies scoring below readiness thresholds often require specialized roles such as ESG reporting managers to coordinate compliance implementation:

Critical gaps (1-4 points)

Immediate attention required, consider external support

Development areas (5-6 points)

Systematic enhancement needed, 6-12 month programmes

Enhancement opportunities (7-8 points)

Fine-tuning and advanced capabilities

Leading practice (9-10 points)

Maintain capabilities, potential knowledge sharing

6+

Minimum Readiness

Target minimum 6 points across all domains for basic UK SRS readiness, with 7+ recommended for comprehensive compliance

Readiness assessment framework

Next Steps

Following completion of readiness assessment:

Gap prioritisation

Rank development needs by criticality and resource requirements

Implementation planning

Develop phased capability development programme

Resource allocation

Secure budget and expertise for priority development areas

Progress monitoring

Establish regular assessment updates to track improvement

Professional support

Engage advisory services for complex technical requirements

Continue reading

Related guides & references

Implementation

UK SRS Compliance Guide

Step-by-step implementation roadmap with phased approach

Implementation
Climate Standards

UK SRS S2 — Climate-Related Financial Disclosures

Enhanced TCFD framework with mandatory climate disclosures

Standards
Timeline

UK SRS Implementation Timeline

Complete regulatory timeline through 2029

Planning