Behind the Numbers: UK SRS – What’s in It, and the FCA Consultation

Why It Matters

If adopted, the UK SRS will reshape corporate reporting by making sustainability impacts more directly relevant to financial analysis and capital allocation, increasing transparency for investors and raising compliance costs for companies—especially around scope 3 data. The outcome will influence market access, investor comparisons and future regulatory moves on assurance and enforcement.

Summary

The FCA is consulting on adopting the ISSB’s new international sustainability reporting standards (UK SRS) for UK listed companies, aiming to mainstream sustainability-related financial disclosures alongside traditional accounting. The proposals would require mandatory reporting of scope 1 and 2 emissions and introduce a ‘comply-or-explain’ approach for scope 3 and broader sustainability disclosures, while not yet mandating assurance. Regulators are weighing costs, benefits and the practicalities for preparers as they seek to reduce fragmentation and improve comparability for global investors. The UK process follows a review by the FRC and is intended to align domestic rules with investor demand for standardized, decision-useful sustainability data.

Original Description

UK Sustainability Reporting Standards (UK SRS) are bringing sustainability reporting in line with international standards. So who will be mandated to use them and how will they apply in practice?

The Financial Conduct Authority (FCA) is consulting on this at the moment. One of the people behind the international standards joins us and ICAEW’s Sustainability Reporting and Assurance Director to discuss the implications of this.

Links

UK Sustainability Reporting Standards - https://www.gov.uk/guidance/uk-sustainability-reporting-standards

FCA Consultation - https://www.fca.org.uk/publications/consultation-papers/cp26-5-sustainability-disclosures

IFRS Sustainability Disclosures navigator - https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/

ICAEW Government publishes UK SRS - https://www.icaew.com/insights/viewpoints-on-the-news/2026/feb-2026/government-publishes-uk-sustainability-reporting-standards

Host

Philippa Lamb

Guests

• Ravi Abeywardana, ICAEW's Director of Sustainability Reporting and Assurance

• Richard Barker, a member of the International Sustainability Standards Board

Producer 

Natalie Chisholm

Series Lead

Mark Rowland

Episode first published: 10 March

Podcast recorded: 9 February