UK: Government to consult shortly on UK Sustainability Reporting Standards to implement ISSB standards

UPDATE ADDED ON 25/06/25:  The government published three consultations on 25 June 2025: on transition plans, on the draft UK SRS and on sustainability assurance. See our blog post here. 

In the Industrial Strategy published on 23 June 2025, the UK government indicated that: 

• It will consult shortly on new UK Sustainability Reporting Standards (UK SRS), to implement the global sustainability disclosure standards developed by the ISSB - namely, IFRS S1 and IFRS S2. 
• Following that consultation, the government will take a final decision on whether to create UK SRSs for voluntary use.
• In due course, the government will also consult on whether to introduce mandatory reporting against these UK SRSs for economically significant entities. 
• The Financial Conduct Authority (FCA) will decide separately whether to update its rules for listed entities to require use of UK SRS. 
• The government also plans to consult shortly on a proposal for a voluntary registration regime for providers of assurance of sustainability-related financial disclosures to help companies identify credible assurance providers.  

And in the Clean Energy Industries Sector Plan, which was published alongside the Industrial Strategy, the government said that: 

"We will consult on transition plans and endorse the global corporate reporting baseline of IFRS Sustainability Disclosure Standards. In July, the Financial Services Growth and Competitiveness Strategy will set out additional steps that we are taking".

For background on the UK SRS, the ISSB standards and the current rules on climate disclosure in the UK under the Companies Act and the Listing Rules, see our previous article. 

We will be publishing a detailed article this week on current requirements for transition plans in the UK, which also explains what is required on transition plans in the TCFD, the ISSB's IFRS S2, and the EU's CSRD and CSDDD. 

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