Earlier this week, the Financial Conduct Authority (FCA) launched its consultation on new sustainability reporting requirements for UK-listed companies, expected to take effect from 2027.
First announced during the Chancellor’s Mansion House speech in 2025, the proposed framework reflects the government’s ambition to “deliver a world-leading sustainable finance framework” and strengthen the quality and consistency of sustainability disclosures across UK markets.
The new UK Sustainability Reporting Standards (UK SRS) are based on the two International Sustainability Standards Board (ISSB) standards published in 2023. Together, they will enable UK companies to report sustainability-related financial information and climate-related risks in a more consistent, comparable and transparent way.
By aligning with the ISSB baseline, the UK joins around 40 other jurisdictions globally that have or are implementing similar sustainability reporting regimes.
Key Points from the Consultation
Under the FCA’s proposals, listed companies will be expected to begin reporting in phases:
- From 2027, companies will be required to report on Scope 1 and Scope 2 greenhouse gas emissions under UK SRS S2.
- From 2028, Scope 3 emissions reporting will commence under a “comply or explain” approach.
- Broader sustainability disclosures under UK SRS S1 are expected to come into force by 2028, also operating under a “comply or explain” regime.
While companies may not be mandated to report every element immediately, they will be expected to clearly explain any omissions from their disclosures.
Assurance and Transparency
To increase trust and credibility in sustainability reporting, businesses will also be required to disclose whether their sustainability report has been subject to third-party assurance.
Where assurance has been obtained, companies must include information, including:
- The name and details of the assurance provider
- The standard used to conduct the assurance
- The aspects of the disclosure that have been assured
What This Means for Business
For organisations already managing complex reporting obligations, the prospect of additional annual sustainability disclosures may feel increasingly burdensome – particularly in a challenging economic environment. However, the introduction of UK SRS also brings opportunities.
Preparing for these standards will require businesses to assess new reporting requirements, strengthen internal processes, and ensure access to reliable sustainability and climate data. In return, alignment with international frameworks can deliver significant benefits, including:
- Improvements in investor confidence
- Strengthened market competitiveness
- Open up access to sustainable finance
- Increase operational efficiencies
Importantly, greenhouse gas reductions are often linked with strong returns on investment, making sustainability performance a strategic advantage rather than simply a compliance exercise.
How Businesses Can Prepare Now
Although the consultation remains open, there are clear steps businesses can take today to build a strong foundation for future reporting. Three priority areas include:
- Horizon Scanning: Monitor consultations closely and stay informed on the finalised reporting requirements
- Gap Analysis: Once the standards are confirmed, assess where data gaps exist and identify areas requiring improvement before first-time reporting
- Stakeholder Engagement: Reporting often depends on input from multiple teams across an organisation. Identifying key stakeholders early and aligning on responsibilities will streamline future data collection.
Looking Ahead
After several years of playing catch-up, recent consultations and policy developments suggest the UK is moving quickly to evolve sustainability disclosure and supply chain due diligence frameworks in line with international partners.
UK businesses now have an opportunity to learn from the implementation challenges faced elsewhere and to build effective compliance strategies ahead of new legislative requirements. Those who start early are likely to benefit from:
- Lower long-term compliance costs
- Stronger returns on sustainability-related investment
- Improved readiness for global reporting expectations
How Achilles Can Help
Achilles supports organisations in strengthening sustainability reporting, emissions data collection, and value chain transparency – helping businesses meet new requirements efficiently and with confidence.
To learn more about how Achilles can support your sustainability reporting journey, contact us.