Preparing for UK Sustainability Reporting Standards (UK SRS): Practical Steps for Companies

The following is part 2 of our thought leadership series on the UK Sustainability Reporting Standards (UK SRS). This instalment covers how companies can prepare for UK SRS adoption. Read Part 1 to find out more about what the UK SRS Drafts include.

For UK companies already aligned with TCFD, the draft UK SRS represents an evolution, broadening mandatory climate disclosures into a more integrated sustainability reporting framework.

1. Set a Phased Reporting Roadmap

Leverage the voluntary UK SRS window to build gradually before compliance is necessary:

Year 1: Optimise your existing TCFD disclosures to meet UK SRS S2 expectations, with particular focus on bridging any gaps between the TCFD framework and the more prescriptive elements of ISSB S2.

Year 2: Expand metric coverage to Scope 3 and do an internal readiness test of your climate disclosures ahead of limited assurance requirements. Ensure your materiality assessment covers broader ESG risks beyond climate.

Year 3: Build readiness for broadened disclosures to include financially material ESG risks under S1, moving beyond climate to issues like social impacts, biodiversity, and governance.

A structured roadmap keeps teams aligned and ensures reporting capacity scales alongside regulatory expectations.

2. Reinforce Governance Structures

Companies need to demonstrate that sustainability governance must go beyond mere awareness. Ensure the board and executive leadership are not only informed but also accountable for sustainability oversight. Roles, responsibilities, and internal reporting lines should be clearly defined, with regular reviews and decision-making processes documented.

3. Refine Scope and Materiality Assessments

Refine your existing materiality process by ensuring it not only captures ESG topics (which most companies already do) but also applies a financial lens. Convene cross-functional teams, including finance, sustainability, and risk, to review which risks and opportunities could impact enterprise value, and how these should be disclosed under S1.

This is also the time to reassess reporting boundaries and consider how materiality is determined and revisited over time, including considerations of the most material parts of the value chain.

4. Advance ESG Data Infrastructure

Implement systems that help ensure traceability, timeliness, and assurance-readiness. While many firms still rely on spreadsheets, the shift toward scalable, cloud-based ESG platforms is accelerating. Choosing the right solution, ideally tech-driven and consultant-supported, can be a strategic decision. For insights on how to strike the right balance, see our blog post: High-Tech ESG Platforms or ESG Consultants? What Should Forward-Looking Companies Invest In?

5. Document Judgements and Assumptions

Carefully document your reporting processes and decisions. UK SRS emphasises transparency around decisions: how materiality was determined, why you selected or omitted specific standards (e.g., SASB), and what methodologies you used for emissions or classification. This audit trail is not just for compliance—it’s the backbone of investor confidence and trust for report users.

Acting Now Represents a Strategic Advantage

UK SRS compliance won’t be simple, but early action creates a strategic advantage. By aligning with the ISSB-based framework from which the UK SRS is derived, companies can boost investor confidence, streamline future compliance, and stay ahead of regulatory shifts. Early movers avoid last-minute reporting scrambles and seize the advantage of taking the time to plan, instead of rushing things when it becomes mandatory.

Get Ahead with Leaders Arena

At Leaders Arena, we have partnered with companies of all sizes to navigate ESG complexity with clarity and confidence. Whether it’s data, reporting, strategy, or implementation, we tailor every engagement to what truly matters for your business. Drawing on deep expertise, a broad partner network of sustainability-focused tech partners, and a responsive, hands-on approach, we deliver impactful and cost-effective support.

Unsure of your first steps to UK SRS compliance? Let’s talk. Get in touch with us at support@leadersarena.global to get ahead of the compliance curve.