UK Sustainability Reporting Standards (SRS):
What They Mean for Companies Currently Reporting Under TCFD and CFD
The UK is moving towards adopting Sustainability Reporting Standards (SRS), which will replace the current Task Force on Climate-related Financial Disclosures (TCFD) framework. This shift will impact thousands of businesses, but the timeline and requirements will differ depending on whether you are a listed company or a large private company under the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (CFD).
What is UK SRS?
UK SRS is expected to align closely with the International Sustainability Standards Board (ISSB) framework. It will provide a consistent, comparable approach to sustainability reporting, covering climate and potentially broader ESG topics. The goal is to improve transparency and investor confidence.
Who Will Move First?
● Listed Companies
If you are listed on the London Stock Exchange, expect faster adoption. The Financial Conduct Authority (FCA) governs listing rules and can update them without waiting for Parliament. This means FCA-regulated firms could be required to align with SRS as early as 2026.
● Large Private Companies (CFD)
If you meet the CFD threshold (more than 500 employees and £500m turnover), your timeline will be slower. Moving from TCFD to SRS will require legislative changes, which means going through Parliament. This process takes longer, so implementation for CFD companies is likely after listed firms.
Let’s make sure your business is ready for UK SRS.
Why Does This Matter?
Compliance Planning
Listed companies should start preparing now. Review your current TCFD disclosures and identify gaps against ISSB standards.
Data and Systems
Both listed and private companies will need stronger data collection and governance processes. SRS will demand more detailed, auditable information.
Investor Expectations
Investors are already looking for ISSB-aligned reporting. Early adoption could improve access to capital and market reputation.
Key Actions for Companies
● Map your current TCFD disclosures against ISSB requirements.
● Engage with auditors and advisors to understand assurance implications.
● Build internal capability for sustainability data management.
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About the author
Award nominated for his work, Adam is a keen influencer who cultivates meaningful and long-lasting relationships with our customers and helps them see their potential for a positive impact on the environment.
