UK Releases Draft Sustainability Reporting Standards Based on ISSB with Local Amendments

The UK government has published exposure drafts of UK Sustainability Reporting Standards, based closely on the IFRS Foundation's ISSB S1 and S2 standards, alongside consultations on climate transition plan requirements and sustainability reporting assurance. The drafts propose several amendments from the ISSB originals, including an extended two-year climate-first relief period and removal of a delayed publication relief for sustainability disclosures.

The two draft standards — UK SRS S1 covering sustainability-related disclosures and UK SRS S2 covering climate-related disclosures — were developed based on recommendations by the UK Sustainability Disclosure Technical Advisory Committee. Key amendments include an extended two-year climate-first relief allowing companies to prioritise climate reporting before addressing broader sustainability disclosures, compared to one year in the IFRS original, and the removal of a first-year relief that previously permitted companies to publish sustainability disclosures later than financial statements, which the UK document states 'compromises the principle of connectivity with the financial statements.'

The release of the draft standards is part of a broader consultation package that includes proposals to mandate large companies and financial institutions to develop and implement credible climate transition plans aligned with the 1.5°C Paris Agreement goal. The government is also consulting on a voluntary registration regime for sustainability reporting assurance providers, reflecting the growing importance of external assurance for the credibility of ESG disclosures. The government aims to finalise the standards later in 2025 as it considers whether to mandate sustainability reporting for certain categories of UK companies.

The three consultations run until September 17, 2025, providing stakeholders, including those with UK operations or investment exposures, with a window to shape the final requirements. For Indian companies listed or operating in the UK, the new standards will determine the sustainability reporting framework they will be expected to comply with, building on their existing BRSR and ISSB-aligned disclosures. The UK's adoption of ISSB-based standards with local modifications mirrors approaches taken by several other major jurisdictions, reinforcing ISSB's role as the global baseline for sustainability reporting.

Key figure — September 17, 2025 — consultation deadline for UK SRS, transition plans and assurance