The UK government has released exposure drafts of the new UK Sustainability Reporting Standards (UK SRS), aligned with the IFRS Foundation’s International Sustainability Standards Board (ISSB) standards, to establish a framework for delivering sustainability-related financial information to capital markets.

This release is part of a broader set of consultations on sustainability disclosures, including those focused on climate transition plans and assurance for sustainability reporting. The move comes as the government evaluates the potential implementation of mandatory sustainability reporting for certain companies, using these standards. As part of the consultation, stakeholders are invited to provide feedback on the costs and benefits of adopting the UK SRS.

The drafts include “UK SRS S1” and “UK SRS S2,” mirroring the ISSB’s sustainability (S1) and climate (S2) standards, but with specific UK-focused modifications. These were informed by recommendations from the UK Sustainability Disclosure Technical Advisory Committee (TAC).

Key proposed changes include a two-year “climate-first” relief period—longer than the one-year relief in the ISSB standards—allowing companies additional time to report on broader sustainability risks while initially prioritizing climate-related disclosures. Another amendment removes the ISSB’s allowance for delayed publication of sustainability information relative to financial statements in the first year, citing the need to maintain alignment and connectivity with financial reporting.

Final standards are expected to be published later in 2025. Alongside the UK SRS drafts, the government also opened consultations on mandatory transition plans for large companies and financial institutions, reaffirming its commitment to align with the Paris Agreement’s 1.5°C goal. A consultation has also been launched on creating a voluntary registration regime for sustainability reporting assurance providers.

All consultations are open for public feedback until September 17, 2025.