Introduction: The Next Step in UK Sustainability Transparency 

In June 2025, the UK government released draft standards for sustainability reporting, known as the UK Sustainability Reporting Standards (UK SRS), based closely on the global frameworks developed by the International Sustainability Standards Board (ISSB). Consultations closed on 17 September 2025, and the final standards (S1 and S2) are now expected in late 2025 – marking a major step forward in the UK’s journey toward comprehensive sustainability transparency. 

Given their alignment with international standards, particularly the European Union’s Corporate Sustainability Reporting Directive (CSRD), UK companies have an opportunity to prepare proactively and benefit from lessons learned in Europe. 

Understanding UK SRS: A Closer Look 

The UK SRS comprises two key draft standards: 

• UK SRS S1 (General Sustainability Disclosures): Covers broad sustainability-related financial disclosures, including governance processes, risks, and strategic implications. 
• UK SRS S2 (Climate Disclosures): Focuses on climate-related risks and opportunities, including reporting greenhouse gas emissions (Scopes 1, 2, and 3). 

Side-by-Side: How UK SRS Compares to the EU’s CSRD 

Reporting Aspect	UK SRS	EU CSRD
Primary framework basis	ISSB’s IFRS S1/S2	EFRAG Sustainability Reporting Standards (ESRS)
Mandatory reporting entities	Publicly listed & economically significant UK entities	Large EU companies (250+ employees) & listed EU SMEs
Scope of disclosures	Financial materiality (investor-focused)	Double materiality (financial + impact on people/environment)
Reporting areas	Climate-first approach (initially climate disclosures, expanding ESG later)	Broad ESG from outset: climate, social, governance, biodiversity, human rights
Timeline	Phased implementation from Jan 2026 (expected)	Phased implementation beginning from Jan 2024 (for certain entities)
Emissions Reporting (GHG)	Scope 1 & 2 initially; Scope 3 phased in	Mandatory reporting of Scope 1, 2, and 3 from start (where material)
Data verification	Likely external assurance	Mandatory external assurance
Digitization requirement	Digital reporting likely but details pending	Mandatory digital tagging (ESEF/XBRL format)

This comparison shows how businesses preparing for the UK SRS can draw valuable lessons from the CSRD experience in Europe, especially when it comes to building reliable climate and emissions reporting processes.

Lessons from CSRD Implementation: What UK Businesses Can Learn 

Optima Packaging Group GmbH 

Optima needed to comply with overlapping ESG regulations, including CSRD and the German Supply Chain Due Diligence Act (LKSG). 

“When we were faced with the challenge of meeting the legal requirements, we wanted to use a tool that would support us. The CSRD and the LKSG are very important issues for us. osapiens offers very good solutions in this area.” – Dominik Meyer, Sustainability Manager 

Outcome: Optima consolidated its reporting processes into one system, reducing complexity and aligning with multiple frameworks simultaneously. 

hagebau Group 

With a complex supplier network, hagebau focused on efficient data centralization. 

“With the osapiens HUB, the hagebau group can centralize and efficiently manage its sustainability data. A key advantage is the multi-client system, which enables easy data sharing for shareholders and simplifies interactions with suppliers.” 

Outcome: hagebau built a scalable ESG data management process, positioning itself for future reporting under CSRD and other sustainability reporting schemes. 

Hirschvogel Automotive Group 

As a global automotive supplier, Hirschvogel needed a streamlined approach to handle complex sustainability reporting requirements across regions. 

“With osapiens, we can efficiently manage large volumes of supplier and sustainability data, ensuring transparency and building trust across our supply chain.” 

Outcome: Hirschvogel achieved automated reporting processes and improved data quality, supporting its sustainability strategy and readiness for evolving reporting standards worldwide. 

These cases highlight a consistent theme: early investment in digital sustainability reporting solutions reduces complexity, improves data quality, and builds strategic readiness for new standards like the UK SRS. 

How UK Businesses Can Prepare Now 

Drawing from the CSRD experience, UK companies should consider these steps: 

Conduct a materiality assessment 

Even though UK SRS currently emphasizes financial materiality, preparing for broader environmental and social disclosures early is future-proof. 

Establish robust ESG data infrastructure  

Companies with centralized systems can adapt faster to new frameworks, avoid duplicate work, and ensure reporting accuracy. 

Address Scope 3 emissions early  

Future UK SRS phases will include Scope 3 reporting; implementing processes now saves cost and time later. 

Integrate climate-specific analytics  

Climate reporting is at the core of UK SRS; focusing on greenhouse gas data and climate risk analysis now will prevent last-minute compliance stress. 

Tools and Best Practices That Deliver Business Benefits 

While every business will need to choose solutions based on its size and complexity, the best practice emerging from CSRD experience is to use integrated digital solutions: 

• Centralized sustainability data: Reduces manual reporting and ensures consistency across business units. 
• Automated carbon footprint calculation: Solutions like a corporate carbon footprint tool streamline Scope 1–3 data collection, delivering actionable insights on climate impact. 
• Forward-looking reporting integration: Having one system covering multiple regulations reduces costs and complexity as reporting requirements evolve. 

For UK businesses, adopting these practices means faster compliance readiness, improved investor trust, and better strategic decision-making based on robust ESG data. 

Why Start Now? 

With the UK SRS consultation now closed, the government is preparing to publish the final S1 and S2 standards for voluntary use in the coming months. Although formal reporting requirements will follow only after review by the government and the Financial Conduct Authority (FCA), companies that act early will be best positioned to adapt smoothly once adoption becomes mandatory.  

Starting now allows organisations to assess data gaps, strengthen internal reporting systems, and align existing ESG processes with the ISSB-based UK SRS framework. Businesses that have already navigated frameworks such as the CSRD can draw on those experiences and adopt integrated sustainability reporting practices: creating consistency, reducing duplication, and improving data quality across all disclosures. Those that move early can turn regulatory preparation into a strategic advantage, simplifying future compliance, improving data quality, and demonstrating credible leadership in sustainability transparency. 

How osapiens Can Help 

Preparing for new reporting standards can feel complex, but businesses don’t have to approach it alone. osapiens provides proven solutions that simplify sustainability reporting and deliver long-term value: 

Centralised Data Management 

The osapiens HUB unifies sustainability data from across the business, reducing manual effort and improving data quality. 

Accurate Carbon Footprint Calculations 

The Corporate Carbon Footprint (CCF) solution enables reliable Scope 1–3 emissions tracking, supporting climate-focused disclosures required by UK SRS S2. 

Future-Proof Reporting 

With our upcoming Reporting Cockpit, companies will have one platform for all sustainability reporting needs, ensuring flexibility for evolving regulations like UK SRS. 

Experience from CSRD Implementations  

Our expertise in guiding companies through complex sustainability reporting requirements such as CSRD means we can help UK businesses adopt best practices early, avoiding costly rework later.