Did you know that SECR is going to be replaced by UK SRS in 2026/2027 reporting? Are you prepared?
The UK is moving from SECR (Streamlined Energy & Carbon Reporting) to the new UK Sustainability Reporting Standards (UK SRS) — aligned with ISSB (IFRS S1 & S2). This isn’t just a reporting tweak; it’s a step-change in how companies manage sustainability and climate risk.
As of January 2026, the final UK Sustainability Reporting Standards (UK SRS) are expected to be published by the Department for Business and Trade (DBT) in February 2026.
Expected Timeline
- February 2026: Target date for the publication of final UK SRS S1 and S2.
- Voluntary Use: Following publication, the standards will be available for companies to use on a voluntary basis immediately.
- Mandatory Reporting: Mandatory reporting for in-scope entities is expected to begin for financial years starting on or after January 1, 2026, meaning the first reports would be published in 2027.
What to Expect in the Final Standards
The UK SRS will largely align with the International Sustainability Standards Board (ISSB) but will include specific UK adjustments:
- Climate-First Approach: Entities may be allowed to focus solely on climate-related disclosures (S2) for the first two years, with broader sustainability topics (S1) required from the third year.
- Scope 3 Relief: A one-year exemption is expected for reporting Scope 3 emissions, delaying this requirement until the second year of mandatory reporting.
- Replacement of SECR: The UK SRS is eventually intended to replace the existing Streamlined Energy and Carbon Reporting (SECR) framework.
What companies should do now to stay ahead
Gap-assess SECR vs UK SRS
SECR data ≠ UK SRS-ready. Identify gaps in governance, risk management, and strategy.
Upgrade data & controls
UK SRS requires audit-ready, decision-useful data — not just emissions totals.
Embed climate into strategy
Transition risk, physical risk, and resilience planning are no longer optional.
Align finance & sustainability teams
UK SRS sits firmly at the intersection of finance, risk, and ESG.
Don’t wait for “mandatory”
Investors, lenders, and customers already expect ISSB-aligned disclosures.
Bottom line:
SECR was about reporting what you emit.
UK SRS is about proving you understand how sustainability affects your business value.
The companies that act early won’t just comply — they’ll compete better.
Who should know:
- Directors & Board Members
- Finance Directors & CFOs
- Sustainability & ESG Managers
- Facilities & Operations Managers
How can AvISO help:
1. Gap Analysis and Readiness Assessments
- SECR vs. UK SRS Mapping: Consultants identify deficiencies in current SECR reports, which focus on historical Scope 1 and 2 energy data, and compare them against the broader UK SRS requirements for forward-looking risk management and governance.
2. Enhanced Data Collection and Scope 3 Mapping
- Expanded Reporting: While SECR only recommends Scope 3, UK SRS requires it. AvISO can assist in mapping Scope 3 emissions across supply chains, business travel, and product lifecycles.
- Data Quality Systems: AvISO can help building robust internal controls to ensure activity data meets the same "audit-ready" standards as financial data.
3. Transition Plan Development
- Strategic Roadmaps: AvISO can guide companies in creating credible climate transition plans that outline how they will reach net-zero targets, a key focus for 2026 reporting cycles.
- Scenario Planning: AvISO provides expertise in climate-related risk assessment and scenario analysis, embedding these into a company's core business decision-making.
4. Navigating Regulatory Phasing and Reliefs
- Phased Implementation Advice: AvISO can advise on available transitional reliefs, such as focusing solely on climate-related disclosures for the first two years of UK SRS before broadening to other ESG topics.
- Voluntary Reporting Support: For companies not yet mandated, AvISO manage voluntary reporting starting in early 2026 to refine processes before mandatory deadlines in 2027.
5. Assurance Preparedness
- Audit Readiness: With the UK government exploring mandated assurance for sustainability disclosures, AvISO helps supports companies with independent verification.
