Preparing for UK SRS: What Property & FM Leaders Need to Know About Climate Disclosure

From 2026, the UK will begin implementing mandatory climate-related financial disclosures under the UK Sustainability Reporting Standards (UK SRS). These standards are part of the UK Government’s broader Sustainability Disclosure Requirements (SDR) framework and are designed to bring greater transparency, consistency, and credibility to corporate sustainability reporting. This marks a significant shift in how environmental risks and opportunities must be assessed and communicated.

Alignment with Global Standards: IFRS and ISSB

The UK SRS is closely aligned with the global International Sustainability Standards Board (ISSB) framework, specifically IFRS S1 and IFRS S2. These have been adopted in the UK as UK SRS S1 and S2, with minor proposed adjustments to reflect the UK context. This alignment is aimed to ensure UK businesses are reporting in a way that is globally consistent and decision-useful for investors, regulators, and other stakeholders.

UK SRS S1 provides the overarching framework for sustainability-related disclosures. It requires organisations to report on all material sustainability risks and opportunities which may reasonably impact enterprise value over the short, medium, and long term. This includes governance structures, strategic responses, risk management processes, and performance metrics. For companies, this could mean disclosing how climate risks affect asset management, energy efficiency strategies, and long-term maintenance planning.

UK SRS S2 builds on S1 but focuses specifically on climate-related disclosures. It is aligned with the Task Force on Climate-related Financial Disclosures (TCFD) and requires organisations to report on climate governance, strategy, risk management, and metrics, including greenhouse gas emissions across Scopes 1, 2, and 3. This may involve reporting emissions from building operations, supply chains, and client activities, as well as outlining transition plans to reduce carbon footprints.

Key Proposed Amendments and Transition Considerations

The recent public consultation on the UK SRS includes six key proposed amendments to the IFRS S1 and S2. Notably, the initial transition relief allowing a delay in reporting has been removed and organisations may be expected to publish UK SRS-aligned disclosures alongside financial statements from the first reporting year. However, entities may be able to focus solely on climate-related disclosures for the first two years, with broader sustainability topics introduced from Year 3. This phased approach offers companies a manageable entry point into the new reporting regime.

Another important proposed amendment is the removal of the requirement to use the Global Industry Classification Standard (GICS). Organisations could choose the most appropriate classification system for their sector, which is particularly helpful for companies operating across diverse property types and service models. Additionally, the use of SASB standards for industry-specific disclosures may now be voluntary, allowing flexibility in how companies tailor their reporting.

Implementation Timeline and Early Adoption Opportunities

The UK Government has not yet prescribed a mandatory effective date for the UK SRS, but the standards will be available for voluntary use upon endorsement. This gives companies an opportunity to familiarise themselves with the framework and begin aligning internal processes ahead of formal requirements. Early adoption will help build investor confidence and demonstrate proactive climate leadership.

Reporting in line with UK SRS offers several strategic benefits. It enables companies to benchmark their performance against global peers, improve internal risk management, and identify opportunities for operational efficiency and innovation. It also supports long-term value creation by embedding sustainability into core business strategy and decision-making.

Building Stakeholder Confidence Through Credible Reporting
 
Moreover, transparent, and credible reporting builds trust with stakeholders, from investors and regulators to service providers. ISS, alongside their trusted partner Anthesis, can play a key role in helping organisations navigate these evolving requirements, providing the expertise and support needed to deliver high-quality, compliant disclosures that reinforce stakeholder confidence.

Finally, leveraging digital platforms to manage UK SRS disclosures can enhance data accuracy, streamline reporting workflows, and unlock real-time insights. For complex portfolios and operational data, a robust software solution can be a game-changer - enabling better decisions, faster responses, and stronger sustainability outcomes.

The ISS Perspective

The UK SRS is a pivotal opportunity for companies to embed sustainability into their core operations. Through our unique partnership with Anthesis, ISS is ideally positioned to help organisations interpret these requirements and translate them into practical, value-adding actions. Combining Anthesis's technical expertise in climate disclosure with ISS's operational reach, we’re able guide clients from understanding built environment data and integrating it into double materiality assessments, to building systems that accurately capture Scope 1, 2, and 3 emissions. 

Richard Crawshaw, Director of Sustainability at ISS UK & Ireland, adds, “Our approach goes beyond compliance, developing actionable transition plans and scenario analyses that drive portfolio decarbonisation, team upskilling, and seamless sustainability integration into daily decisions, with early adopters benefiting from cleaner data, faster insights, and compelling narratives for investors and regulators.

"Together, ISS and Anthesis deliver strategic guidance and on-the-ground execution, empowering organisations to transform UK SRS from a reporting obligation into a catalyst for long-term value and climate leadership.” 

This overview has been written by Anthesis, trusted partners to ISS. For more information, please visit www.anthesisgroup.com.