UK SRS S2 — Climate-related Disclosures
Climate-specific. UK SRS S2 is the UK-endorsed version of IFRS S2 — Scope 1, 2 and 3 greenhouse gas emissions, climate scenario analysis and transition plan disclosure across the four TCFD pillars. Voluntary today; proposed mandatory for ~515 listed companies from 1 January 2027 under FCA CP26/5.
UK SRS S2 is the UK's climate disclosure standard — the companion to UK SRS S1 (general sustainability). It adopts the ISSB's IFRS S2 with UK-specific amendments and requires Scope 1, 2 and 3 GHG emissions, climate scenario analysis and transition plan disclosure. The FCA proposes mandatory application for in-scope listed companies from 1 January 2027, with Scope 3 on comply-or-explain from 2028.
S1 and S2 explained for beginners · Full implementation timeline · Who is in scope · Carbon accounting for UK SRS
What is UK SRS S2?
UK SRS S2 is the UK-endorsed version of the ISSB's IFRS S2 — the climate half of the UK Sustainability Reporting Standards.
The UK's climate disclosure standard
UK SRS S2 — sometimes written "UK SRS 2" — is one of the two UK Sustainability Reporting Standards published by the Department for Business and Trade on 25 February 2026 for voluntary use by any UK entity.
It adopts the ISSB's IFRS S2 Climate-related Disclosures with UK-specific amendments, so UK disclosures stay internationally comparable while fitting the UK Strategic Report framework.
Under FCA CP26/5, roughly 515 in-scope listed companies would apply it mandatorily for accounting periods beginning on or after 1 January 2027 — subject to the Policy Statement expected autumn 2026.
This page is the deep technical reference for UK SRS S2 itself — what it requires on greenhouse gas emissions, scenario analysis and transition plans, how it differs from the international baseline, and when the proposed FCA dates bite. The final standard text is published on GOV.UK's UK Sustainability Reporting Standards page, and the international baseline it adopts is the IFRS S2 standard on ifrs.org.
If you are new to the framework, start with the beginner overview at what is UK SRS — S1 and S2 explained. For the ISSB standard itself, independent of the UK adoption, see the dedicated IFRS S2 page.
Voluntary now, proposed mandatory from 2027
Available for voluntary adoption today. The FCA's CP26/5 proposes mandatory application for in-scope listed issuers from 1 January 2027 — subject to the autumn 2026 Policy Statement.
The FCA proposes to delete the TCFD-aligned listing rules and replace them with mandatory UK SRS S2 disclosure — a shift from framework-based to standard-based climate reporting.
FCA CP26/5 proposals, January 2026
From TCFD to IFRS S2 to UK SRS S2
UK SRS S2 is the third generation of the same climate disclosure architecture — TCFD's four pillars, globalised by the ISSB, endorsed for the UK by DBT.
Companies that already report against the TCFD recommendations — as UK premium-listed companies have since 2021 — are not starting from zero. UK SRS S2 keeps the same four-pillar spine but raises the bar: quantified financial effects, full Scope 3 disclosure, and explicit linkage to the financial statements. The FRC's Sustainability Reporting Developments FAQ tracks how the regime pieces fit together.
The pillar-by-pillar mapping from existing TCFD reports to UK SRS S2 disclosures is covered in the TCFD to UK SRS migration guide.
Governance · Strategy · Risk · Metrics & targets
UK SRS S2 applies the four-pillar architecture to climate — the same spine UK SRS S1 uses for every other sustainability topic.
The four pillars are inherited from the TCFD via IFRS S2 and are identical in structure to the pillars UK SRS S1 applies to non-climate topics. That is deliberate: S2 cannot be applied in substance without S1's architectural concepts — materiality, connectivity to the financial statements, and value-chain scope — even though only S2 is proposed mandatory in 2027.
Scope 1, 2 and 3 GHG emissions under UK SRS S2
Emissions must be measured under the GHG Protocol Corporate Standard. Scope 3 spans 15 value-chain categories, with a one-year relief before comply-or-explain from 2028.
GHG Protocol-based emissions disclosure
UK SRS S2 requires greenhouse gas emissions to be measured in accordance with the GHG Protocol Corporate Standard.
Scope 1 covers direct emissions from owned or controlled sources.
Scope 2 covers indirect emissions from purchased electricity, steam, heating and cooling.
Scope 3 covers value-chain emissions across the 15 categories of the GHG Protocol Corporate Value Chain (Scope 3) Standard, where material.
Under the FCA's CP26/5 proposals, Scope 3 is excluded in the first mandatory year (2027) and moves to a comply-or-explain basis from 1 January 2028.
The required methodology is the GHG Protocol Corporate Accounting and Reporting Standard for Scopes 1 and 2, and the Corporate Value Chain (Scope 3) Standard for the 15 value-chain categories 5. UK preparers typically pair these with the DESNZ conversion factors — the practical measurement workflow is covered in carbon accounting for UK SRS.
Scope 3 is where most of the effort sits: supplier data, category screening, estimation methodologies and the comply-or-explain mechanics from 2028. The category-by-category breakdown, including financed emissions for financial-sector entities, is on the dedicated UK SRS Scope 3 reporting page.
Climate scenario analysis requirements
Resilience assessment is mandatory; specific scenarios are not. The approach must be commensurate with the entity's circumstances.
What the scenario analysis requirement asks
UK SRS S2 requires entities to assess the resilience of their strategy and business model using climate-related scenario analysis.
The standard does not mandate specific scenarios.
Entities must use an approach commensurate with their circumstances — common practice references the IEA Net Zero by 2050, NGFS and IPCC pathways, including at least one scenario consistent with limiting warming to a level requiring no significant overshoot.
Disclosure must cover the scenarios and time horizons used, the inputs, assumptions and methodologies, significant areas of uncertainty, and the entity's capacity to adjust its strategy.
The requirement is deliberately scalable. A first-time preparer can start with qualitative scenario narratives and mature towards quantified modelling; what matters is that the method is commensurate with the entity's exposure and capabilities, and that the uncertainties are disclosed honestly 3. Companies migrating from TCFD reporting will recognise the exercise — the delta is the expectation of quantified financial effects, covered in the TCFD to UK SRS migration guide.
An entity shall use climate-related scenario analysis to assess its climate resilience, using an approach that is commensurate with its circumstances.
UK SRS S2 / IFRS S2 strategy-resilience requirement
Transition plan disclosure — where one exists
UK SRS S2 does not mandate having a transition plan. It requires disclosing the one you have — and the TPT materials are the reference toolkit.
Disclose, don't (yet) mandate
The standard requires disclosure of climate transition plans where they exist. Whether plans themselves become mandatory is a live Government question, not an FCA one.
The transition plan position in one place
UK SRS S2 requires an entity that has a climate transition plan to disclose it — including the assumptions, dependencies and any planned use of carbon credits.
FCA CP26/5 adds a listing-rule layer: in-scope companies would disclose whether and where they have published a transition plan, or explain why not.
Mandating transition plans is a matter for Government.
DESNZ consulted in 2025 on transition plan requirements and is keeping its options open.
Preparers are pointed to the Transition Plan Taskforce (TPT) Disclosure Framework and the ISSB's transition plan guidance, both now hosted on the IFRS Foundation Knowledge Hub after the TPT's materials transferred in 2024 7. The five-element TPT structure — ambition, action, accountability plus engagement and governance detail — slots directly into the S2 strategy pillar.
The full UK position, including the DESNZ consultation and what a credible plan looks like in practice, is on the UK SRS transition plans page.
UK SRS S2 vs UK SRS S1 — side by side
Published together, sharing the same materiality basis and four-pillar spine. They differ in scope, mandatory date and the role of Scope 3.
Most readiness programmes work S2 first because it is proposed to apply two years earlier — but S2 leans on S1's materiality, connectivity and value-chain concepts, so the S1 architecture gets implemented in substance from day one. The deep S1 reference is at UK SRS S1; the full milestone view is on the UK SRS timeline.
The proposed FCA timeline for UK SRS S2
Every date after autumn 2026 is proposed, not confirmed — the Policy Statement decides.
- 30 JAN 2026FCA CP26/5 published
- 20 MAR 2026Consultation closed
- AUTUMN 2026Policy Statement expected
- 1 JAN 2027Rules proposed in force
- 2028First reports published
The FCA published CP26/5 on 30 January 2026 and closed the consultation on 20 March 2026 2. The Policy Statement is expected in autumn 2026, with the rules proposed to come into force on 1 January 2027 — meaning the first mandatory UK SRS S2 reports would be published in 2028, covering 2027 accounting periods. Scope 3 follows on comply-or-explain from 1 January 2028, and UK SRS S1 from 1 January 2029.
UK SRS S2 and SECR — duplication under review
SECR keeps running. The Government has said it will look at the overlap between the two regimes to reduce duplication.
Two emissions regimes, one review
SECR — Streamlined Energy and Carbon Reporting, in force since 1 April 2019 — already requires roughly 11,900 large UK companies and LLPs to report energy use and emissions in their annual reports.
UK SRS S2 does not replace SECR.
The Government has said it will consider the interaction between UK SRS and SECR to reduce duplication, and DBT's January 2026 letter to the FCA confirmed SECR continues alongside UK SRS in the meantime.
Companies in scope of both should plan to run SECR and UK SRS S2 disclosures in parallel for now, reusing the same underlying emissions data.
The good news is data reuse: both regimes accept GHG Protocol-based measurement, so a single emissions inventory can feed the SECR energy-and-carbon statement and the UK SRS S2 metrics pillar. The scoping differs — SECR catches large companies generally, while the proposed UK SRS S2 mandate initially catches listed issuers only.
UK SRS S2 — frequently asked questions
Every answer links to a primary source or the dedicated internal page. Re-verify the dates after the FCA Policy Statement expected autumn 2026.
What does UK SRS S2 cover?
UK SRS S2 covers climate-related risks and opportunities only — physical risks, transition risks and climate opportunities — disclosed across the four TCFD pillars of governance, strategy, risk management, and metrics and targets.
It requires Scope 1, 2 and 3 greenhouse gas emissions measured under the GHG Protocol Corporate Standard 4, climate scenario analysis, and disclosure of a climate transition plan where the entity has one. Every other sustainability topic sits in UK SRS S1, the general standard.
Is UK SRS S2 mandatory?
Not yet. UK SRS S2 was published by DBT on 25 February 2026 for voluntary use by any UK entity 1.
Under FCA CP26/5 2, mandatory application is proposed for roughly 515 in-scope listed companies for accounting periods beginning on or after 1 January 2027 — subject to the FCA Policy Statement expected autumn 2026. Scope 3 emissions get a one-year transitional relief, moving to comply-or-explain from 1 January 2028. Check UK SRS thresholds to see whether your company is caught.
What GHG emissions does UK SRS S2 require?
Scope 1 (direct) and Scope 2 (purchased energy) emissions are required, measured under the GHG Protocol Corporate Standard 4. Scope 3 value-chain emissions are required across the 15 categories of the GHG Protocol Corporate Value Chain (Scope 3) Standard 5 where material.
Under the FCA's proposals, Scope 3 is excluded in the first mandatory year (2027) and applies on a comply-or-explain basis from 1 January 2028. The category-by-category detail is on the UK SRS Scope 3 reporting page.
Does UK SRS S2 require scenario analysis?
Yes. UK SRS S2 requires entities to use climate-related scenario analysis to assess the resilience of their strategy and business model 3.
No specific scenarios are mandated — entities must use an approach commensurate with their circumstances, and common practice references IEA, NGFS or IPCC pathways, including at least one scenario consistent with limiting warming to a level requiring no significant overshoot. Entities must disclose the inputs, assumptions, significant uncertainties and their capacity to adjust strategy.
Does UK SRS S2 require a transition plan?
UK SRS S2 does not force an entity to have a transition plan — it requires disclosure of the plan where one exists, and preparers are encouraged to use the ISSB and Transition Plan Taskforce (TPT) materials now hosted by the IFRS Foundation 7.
Separately, FCA CP26/5 proposes that in-scope listed companies disclose whether and where they have published a transition plan, or explain why not. Whether transition plans become mandatory is a decision for Government, which consulted on the question in 2025. See UK SRS transition plans for the full position.
How is UK SRS S2 different from IFRS S2?
UK SRS S2 is the UK Government's endorsed version of the ISSB's IFRS S2, adopted with six UK-specific amendments: UK effective dates replace ISSB references, transitional reliefs are reworked for the UK's climate-first 2027/2029 phasing, SASB industry-metric references are softened from "shall" to "may", the mandatory GICS classification reference is removed, and connectivity to the financial statements is clarified for the UK Strategic Report framework.
The substantive climate disclosure content is the same. The full annotated list is on the UK SRS amendments page.
What is the difference between UK SRS S1 and UK SRS S2?
S2 is the climate-specific standard; S1 is the general standard covering every other material sustainability topic. Under FCA CP26/5, S2 is proposed to become mandatory for in-scope listed issuers from 1 January 2027 (Scope 3 excluded in year one), while S1 follows on comply-or-explain from 1 January 2029.
Both were published together on 25 February 2026 and share the four-pillar structure and single (financial) materiality basis. The side-by-side comparison is in the section above on this page.
How does UK SRS S2 interact with SECR?
For now, both regimes continue in parallel. SECR (Streamlined Energy and Carbon Reporting, in force since 1 April 2019) already requires energy and emissions disclosures from around 11,900 large UK entities, and it is unchanged by UK SRS.
The Government has said it will consider the interaction between UK SRS and SECR to reduce duplication, and DBT confirmed in its January 2026 letter to the FCA that SECR continues alongside UK SRS while that review happens 1.
Related guides & references
UK SRS S1 — General Sustainability Disclosures
The companion general standard covering every material sustainability topic except climate. Proposed comply-or-explain from 1 January 2029.
UK SRS Scope 3 Reporting
The 15 GHG Protocol value-chain categories, the one-year transitional relief, and the comply-or-explain mechanics from 1 January 2028.
UK SRS Implementation Timeline
Every UK SRS milestone from voluntary 2026 through S2 mandatory 2027 to S1 comply-or-explain 2029.