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UK SRS S2ClimateDisclosures

Climate reporting expected to align with IFRS S2.

UK SRS S2 is expected to mirror IFRS S2, setting climate-related disclosure requirements for governance, strategy, risk management, and metrics and targets. This page summarises required metrics, targets, and Scope 3 considerations.

Sustainability illustration

UK SRS S2 overview:

  1. 01
    What is UK SRS S2?
  2. 02
    Why climate disclosures matter
  3. 03
    Required metrics and targets
  4. 04
    Scope 3 and relief
  5. 05
    FAQs

What is UK SRS S2?

UK SRS S2 focuses on climate-related disclosures. It builds on TCFD and is expected to require scenario analysis, transition planning, and GHG emissions reporting alongside governance, strategy, risk management, and metrics and targets.

S2
Climate-specific

Covers physical and transition climate risks and opportunities.

TCFD
TCFD-aligned

Uses the four pillars for governance, strategy, risk management, and metrics.

GHG
Scope 1-3

Expected to require Scope 1 and 2, plus relevant Scope 3 disclosures.

Key UK SRS S2 focus areas

 

Governance. Describe board and management oversight of climate risks.

 

Strategy and resilience. Explain how climate scenarios affect your business model.

 

Risk management. Show how climate risks integrate with enterprise risk processes.

 

Metrics and targets. Report emissions, targets, baselines, and progress.

Why it matters

Why UK SRS S2 raises the bar on climate disclosure

Climate specificity. S2 goes deeper than general disclosures with climate-only detail.

Scenario analysis. Organisations are expected to explain how climate scenarios affect resilience.

Investor focus. Markets want clear metrics on emissions and transition plans.

Cross-team data. Finance, risk, and operations need a shared climate data model.

Metrics

What climate metrics and targets are expected

  1. Emissions. Report Scope 1 and 2, plus material Scope 3 categories.
  2. Targets and baselines. Disclose targets, baselines, and progress against them.
  3. Transition planning. Explain how strategy and capital allocation support the plan.
  4. Resilience. Summarise scenario analysis and financial impacts. See IFRS S2 for baseline detail.

Scope 3

Does UK SRS require Scope 3?

  1. Expected requirement. UK SRS S2 is expected to require Scope 3 where it is material.
  2. Relief possibilities. ISSB offers transition relief for Scope 3 in the first reporting year, and the UK may adopt similar relief.
  3. Explain coverage. Be clear about which categories are included, excluded, and why.
  4. Prepare early. Supplier data and estimation methods take time to mature.

Kick-start UK SRS S2 readiness

 

Inventory emissions. Map Scope 1, 2, and relevant Scope 3 data sources.

 

Align transition planning. Connect targets, actions, and capital allocation.

 

Integrate with finance. Tie climate metrics to financial impacts and risk reporting.

Glossary snapshot

UK SRS S2 glossary snapshot

Scope 1, 2, 3. Direct emissions, purchased energy emissions, and value chain emissions.

Transition plan. Strategy and actions to move toward a lower-carbon business model.

Scenario analysis. Testing resilience of strategy under different climate futures.

FAQs

UK SRS S2 explained FAQs

What is UK SRS S2?

UK SRS S2 is the proposed UK climate disclosure standard aligned to IFRS S2.

Does UK SRS require Scope 3?

UK SRS S2 is expected to require Scope 3 where it is material, with possible transition relief in early years.

What climate metrics and targets are required?

Organisations are expected to disclose emissions, targets and baselines, transition plans, and scenario analysis outcomes.

How does UK SRS S2 relate to UK SRS S1?

S2 adds climate-specific detail to the general requirements set out in S1.

Keep UK SRS preparation, approvals, and disclosures aligned across finance, risk, and sustainability teams.

Explore the Drova RunSure platform for UK SRS compliance

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UK SRS hub

Explore UK SRS topics

UK Sustainability Reporting Standards overview

Start with what UK SRS is and how the standards are structured.

UK SRS S1: General disclosures

Understand the UK SRS S1 baseline for sustainability-related financial information.

UK SRS S2: Climate disclosures

Explore the climate-focused requirements expected in UK SRS S2.

Who must comply with UK SRS?

Check likely in-scope companies and FCA considerations.

UK SRS timeline and roadmap

Track expected milestones and phased implementation.

UK SRS materiality

See how the financial materiality lens works in UK SRS.