UK SRS · Finance
Financial sustainability reporting, for banks, insurers and asset managers
UKSRS Finance is an independent reference on financial sustainability reporting in the UK: UK SRS, IFRS S1 and S2, and the financed emissions behind them.
UK SRS is a voluntary standard; the FCA’s final rules in PS26/19, following CP26/5, require listed companies in scope to report against it on a comply-or-explain basis from 1 January 2027.
Some climate reporting already binds financial firms, and this site keeps the two apart.
Start here
Start with the question you came for
Each page is written for a finance reader, and each cites the instrument’s owner.
The PCAF Standard
Parts A, B and C, the ten asset classes, and where UK SRS S2 fits.
Financed emissions reporting
Scope 3 Category 15 for finance: what the FCA already requires, and what UK SRS S2 asks.
How financed emissions are calculated
The attribution factor, EVIC and the other denominators, with a calculator.
PCAF data quality scores
The 1–5 scale, where 1 is best, and the score weighted by outstanding amount.
IFRS sustainability reporting
UK SRS is the UK endorsement of IFRS S1 and S2 — the disclosure backbone, and the move on from TCFD.
UK SRS for financial services
Banks, insurers, asset managers and pension schemes: who would be in scope, and when.
UK SRS for banks
Financed and facilitated emissions, and the listed-company timeline.
UK SRS for insurers
Investment portfolios, underwriting and the PRA’s SS5/25.
UK SRS for asset managers
TCFD product reports today, and UK SRS S2 ¶B61.
UK SRS for pension schemes
The separate DWP regime for trust-based schemes, and where UK SRS does not reach.
FCA SDR investment labels
The four sustainability labels, and the rule that forbids using them without qualifying.
The FCA anti-greenwashing rule
What the rule asks of every FCA-authorised firm’s sustainability claims.
Status
Voluntary standards, comply or explain from 2027
UK SRS S1 and S2 were published by the Department for Business and Trade on 25 February 2026 as the UK endorsements of the ISSB’s IFRS S1 and IFRS S2.
The standards are voluntary in themselves.
The FCA’s final rules in PS26/19, published on 30 September 2026, require listed companies in scope to report against UK SRS on a comply-or-explain basis for accounting periods beginning on or after 1 January 2027.
The consultation had proposed mandatory UK SRS S2, and estimated that around 600 listed companies would be affected; the final rules put all of UK SRS on comply or explain instead.
Scope 3 — which, for a financial institution, includes its financed emissions — carries a one-year relief, during which a company only states that it is using it, and is comply-or-explain after that.
The sequence
- 25 Feb 2026UK SRS S1 and S2 published
Department for Business and Trade. Voluntary for any UK entity.
- 30 Sep 2026FCA PS26/19: final rules
UK SRS on a comply-or-explain basis for listed companies in scope.
- 1 Jan 2027Rules apply to listed companies
Accounting periods beginning on or after this date; first reports in 2028.
- 1 Jan 2028Scope 3 relief ends
After a one-year relief; financed emissions are Scope 3.
Sources: DBT; FCA PS26/19 ¶¶3.12, 3.14
Already in force
What already binds financial firms
Separate from UK SRS, four instruments already bear on climate reporting by UK financial institutions.
| Instrument | Who | What it asks |
|---|---|---|
| FCA ESG 2.3.9R | In-scope asset managers and asset owners with £5bn or more of relevant assets | TCFD product reports with Scope 1 and 2, Scope 3, total carbon emissions, total carbon footprint and weighted average carbon intensity |
| Companies Act 2006 s.414CB | Companies within the scope set by s.414CA | Climate-related financial disclosures in the strategic report; UK SRS S2 is recognised as a national reporting framework for s.414CB(6) |
| PRA SS5/25 | PRA-regulated banks and insurers | Supervisory expectations on managing climate-related risk, in force since 3 December 2025; not a disclosure rule |
| SI 2021/839 | Trustees of occupational pension schemes above its asset thresholds, and authorised master trusts | Climate governance and reporting, including an absolute emissions metric, under a DWP regime enforced by The Pensions Regulator |
The FCA’s sustainability labels and naming rules sit in ESG 4, which is drafted as a prohibition on using any of the four labels without qualifying.
None of these instruments names PCAF, and none of them is UK SRS.
How they combine for each kind of firm is on UK SRS for financial services.
Financed emissions
The number that defines finance-sector disclosure
Financed emissions are Scope 3 Category 15 of the GHG Protocol’s Scope 3 Standard: the emissions of what an institution lends to and invests in.
UK SRS S2 asks an entity with asset management, commercial banking or insurance activities for additional financed emissions information under ¶¶B59–B63A.
Its ¶29A, from the ISSB’s December 2025 amendments, lets an entity limit Category 15 to financed emissions, leaving out facilitated and insurance-associated emissions and derivatives.
The UK’s own addition, ¶B59A, is recorded in Annex A of the government’s response.
The figures themselves are usually calculated with the PCAF Standard, set out on the PCAF Standard and financed emissions reporting.
It is the one place UK SRS S2 goes further than IFRS S2.
An entity that cannot estimate financed emissions for the same period as its accounts must explain why and give its plan and timeline.
Elsewhere
Where else to read
This site goes deep on the financial-sector angle and does not repeat general definitions.
For those, the companion editorial site covers sustainability reporting standards more widely.
For the standards themselves, the UK SRS reference hub covers UK SRS S1 and UK SRS S2 clause by clause.
Both are published by the same company as this site, Fractional Quest Ltd.
To talk a question through, you can book a free 15-minute call; nothing on this site is financial, investment or legal advice.
Frequently asked
UKSRS Finance — frequently asked
What is UKSRS Finance?
UKSRS Finance is an independent reference on sustainability reporting for UK financial institutions: UK SRS and IFRS S1 and S2 for banks, insurers, asset managers and pension schemes, the PCAF Standard for financed emissions, and the FCA’s sustainability rules. It is published by Fractional Quest Ltd. It is not regulated and gives no financial, investment or legal advice.
What is financial sustainability reporting?
It is reporting on sustainability-related matters, such as climate, as they affect a company’s finances. UK SRS S1 and S2, the UK endorsements of IFRS S1 and S2, require information about sustainability-related and climate-related risks and opportunities that could reasonably be expected to affect an entity’s cash flows, its access to finance or its cost of capital.
Is UK SRS mandatory for banks and insurers?
Not mandatory. UK SRS S1 and S2 are voluntary standards. The FCA's final rules (PS26/19, 30 September 2026) require listed companies in scope, including listed banks and insurers in the relevant listing categories, to report against UK SRS on a comply-or-explain basis for accounting periods beginning on or after 1 January 2027. CP26/5, the consultation, had proposed mandatory UK SRS S2; the final rules did not adopt it.
What climate reporting already applies to UK financial institutions?
Several regimes are already in force. In-scope asset managers and asset owners with £5bn or more of relevant assets report emissions metrics in TCFD product reports under FCA ESG 2.3.9R. Companies within the scope of Companies Act 2006 section 414CA make climate-related financial disclosures under section 414CB. Trustees of large occupational pension schemes report under SI 2021/839. The PRA’s SS5/25 sets supervisory expectations on managing climate-related risk.
What does UK SRS S2 ask financial institutions about financed emissions?
An entity with asset management, commercial banking or insurance activities discloses additional information about its financed emissions under paragraphs B59 to B63A. The UK added paragraph B59A: where financed emissions cannot be reliably estimated for the same period as the financial statements, the entity explains why, how it estimated them, and its plan and timeline to align the periods.
Is PCAF required under UK SRS?
No. UK SRS S2 asks for financed emissions information and the method used, but does not name PCAF. PCAF is an industry-led method built to produce those figures, with more than 780 signatories as at 30 September 2026.
Sources
Primary sources
Every figure, date and status on this page traces to the instrument’s owner. Secondary commentary is never the source for a number.
- Department for Business and TradeUK Sustainability Reporting Standards: UK SRS S1 and UK SRS S2
Published 25 February 2026 for voluntary use.
- Department for Business and TradeUK SRS S2 Climate-related Disclosures, ¶¶29(a)(vi)(2), 29A, B59–B63A
Financed emissions for asset management, commercial banking and insurance.
- Department for Business and TradeUK SRS consultation response, Annex A and Chapter 3
¶B59A as the UK addition; UK SRS S2 as a national framework for s.414CB(6).
- Financial Conduct AuthorityPS26/19: Aligning listed issuers’ sustainability disclosures with international standards (30 September 2026)
The final rules: listed companies in scope report against UK SRS on a comply-or-explain basis for accounting periods starting on or after 1 January 2027, with first reporting in 2028.
- Financial Conduct AuthorityCP26/5 — Aligning listed issuers’ sustainability disclosures with international standards
The consultation PS26/19 finalises; it estimated that around 600 listed companies would be affected (Annex 2 ¶43).
- Financial Conduct AuthorityCP26/5 consultation page
Published 30 January 2026; what was proposed.
- Financial Conduct AuthorityFCA Handbook, ESG 2.3.9R — TCFD product report metrics
In force for in-scope asset managers and asset owners.
- Financial Conduct AuthorityFCA Handbook, ESG 4 — sustainability labels and naming and marketing
The four SDR labels.
- legislation.gov.ukCompanies Act 2006, section 414CB
The climate-related financial disclosure duty in the strategic report.
- Bank of EnglandPRA Supervisory Statement SS5/25
Replaced SS3/19 in its entirety on 3 December 2025.
- legislation.gov.ukSI 2021/839 — Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021
The separate DWP regime for trust-based schemes.
- IFRS FoundationIFRS S2 Climate-related Disclosures
The international baseline UK SRS S2 endorses.
- IFRS FoundationAmendments to Greenhouse Gas Emissions Disclosures (IFRS S2), December 2025
¶29A: Category 15 may be limited to financed emissions.
- PCAFThe Global GHG Accounting and Reporting Standard for the Financial Industry
Parts A, B and C.
- GHG ProtocolCorporate Value Chain (Scope 3) Standard
Category 15, Investments.