On 25 February 2026, the UK Government published its new Sustainability Reporting Standards (SRS), marking a significant step in the UK’s approach to mandatory sustainability disclosures. Climate sits at the heart of the framework, with a focus on climate risk and GHG reporting. Companies can adopt it voluntarily now, ahead of mandatory requirements. This article unpacks the UK’s new SRS, from what they cover and who is affected, to what they mean for organisations in practice.
Two layers, one direction
The SRS are structured across two tiers, with the first focusing on climate. It is expected that from January 2027, listed companies must publicly disclose how climate change affects their operations, covering physical risks such as flooding, extreme heat, and severe weather; risks from the transition to a low-carbon economy; and greenhouse gas emissions across the full value chain. The second layer is broader, capturing all material sustainability risks, including governance, workforce, biodiversity, and supply chain impacts.
The timeline at a glance
Based on consultation with the Financial Conduct Authority (FCA), the indicative implementation schedule is:
→ FY2027: Climate risk disclosures become mandatory for listed companies
→ FY2028: Supply chain emissions reporting on a “comply or explain” basis
→ FY2029: Broader sustainability disclosures on a “comply or explain” basis
Who is in scope
Listed companies are first, with large private companies expected to follow. Organisations sitting anywhere in the supply chain of either should expect data requests to arrive earlier than anticipated.
Where the opportunity lies
The timeline is moving, so if your organisation hasn’t started yet, now is the moment to act. Despite the Task Force on Climate-related Financial Disclosures (TCFD) being the legacy for climate risk reporting, and the UK being in a mature position, learnings can be taken from previous disclosure rounds, such as ESRS climate risk disclosures from EU’s Corporate Sustainability Reporting Directive (CSRD).
Organisations that have treated climate risk assessments as actual risk mitigation tools, rather than a reporting cost centre, are now reaping the benefits: greater resilience to climate shocks and a stronger return on investment on their efforts.
Want to get started or get further?
At Nordic Sustainability, we work across the full suite of climate risk and reporting regulations, including TCFD, CFD, and CSRD. Reach out to Ottilly Mould, Senior Manager, Head of Service Innovation & AI and Climate Risk Lead at omo@nordicsustainability.com, and Freddie Baker, Senior Consultant at frb@nordicsustainability.com, to get started.
Read more
- How to drive long-term business success in the face of increasing climate risks
- A webinar on leveraging climate risk for competitive advantage
- What the amended ESRS mean for your company
- 7 steps to develop a robust Climate Transition Plan
- A webinar on how to deliver on climate transition plans
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Sustainability reporting is evolving beyond compliance, especially as CSRD scope narrows. Read our companion article on the value of sustainability reporting to understand why many companies continue reporting — and what they gain from it.
Author details
Ottilly Mould
Senior Manager, Head of Service Innovation & AI
Freddie Baker
Senior Consultant
