UK Sustainability Reporting Standards (UK SRS) is the UK's sustainability reporting framework. It applies to UK-listed companies from 2027, with large private companies following in 2029.

How CSRD and UK SRS Affect Your Business

Q: Do I need to report under both CSRD and UK SRS?

Potentially yes, if you meet both scopes. For example, a UK-listed company with an EU subsidiary would have dual obligations.

A practical guide for UK companies navigating EU and UK sustainability reporting requirements.

Do You Need to Report Under CSRD?

UK companies can be affected by CSRD in three main ways. Answer these questions to understand your exposure.

🎯 The bottom line: If you have EU revenue, EU subsidiaries, or EU customers requesting ESG data, CSRD likely affects you. UK SRS applies to UK-listed companies from 2027.

1. Direct CSRD Scope

Do you have:

✓ >€150M EU revenue, OR
✓ An EU subsidiary/branch that meets local CSRD thresholds?

If YES: You're likely in CSRD scope and must report.

2. Supply Chain Pressure

Do you:

✓ Supply to large EU companies, OR
✓ Have EU customers asking for ESG data?

If YES: You need ESG reporting ready for supply chain requests.

3. UK SRS

Are you:

✓ A UK-listed company, OR
✓ A large UK private company?

If YES: UK SRS applies from 2027.

CSRD and UK Companies: The Details

Specific thresholds and timelines that apply to UK companies.

Who's In Scope?

UK companies can fall under CSRD if they meet these criteria:

Situation	CSRD Applies?	Timeline
UK company with €150M+ EU revenue	Yes	Wave 2 (2028 first report)
UK subsidiary of EU parent (meets EU thresholds)	Yes	Depends on parent scope
UK company with EU subsidiary (meets local thresholds)	For that subsidiary	Depends on subsidiary location
UK company supplying to CSRD companies (Scope 3)	Indirect (data requests)	Now (customers requesting)
UK-only company with no EU exposure	No CSRD	N/A

UK Sustainability Reporting Standards (UK SRS)

The UK's parallel sustainability reporting framework. Key differences from CSRD.

UK SRS Timeline

📅 2027: UK-listed companies required to report (S1 & S2)
📅 2028: First reports published (for FY 2027)
📅 2029: Large private companies + smaller listed companies in scope

Key Standards

S1 General Disclosures: Governance & strategy
S2 Climate: Climate-related emissions & risks

More standards coming (biodiversity, water, etc.)

Key Difference: Financial Materiality

UK SRS uses financial materiality (inside-out): what impacts your business. CSRD uses double materiality (inside-out + outside-in).

⚠️ Important: UK and EU standards converge but aren't identical. Companies reporting under both need both frameworks monitored.

CSRD Impact by Sector

Which UK industries are most affected by CSRD requirements.

Sector	Affected UK Companies	Primary Driver	Urgency
Manufacturing	~400+ companies	Scope 1-2 emissions, waste	High
Automotive (Tier 1-2)	~120+ suppliers	Customer ESG requests, emissions	Critical
Logistics & Transport	~280+ companies	Scope 3 (fuel, emissions)	High
Industrial Services	~200+ companies	Scope 1-2, worker safety	High
Food & Beverage	~180+ companies	Supply chain, water, waste	High
Construction & Materials	~150+ companies	Scope 3 sourcing, labor	Medium
Chemical & Pharma	~80+ companies	Emissions, supply chain	High

What UK Companies Should Do Now

A practical 5-step action plan for UK companies starting CSRD/UK SRS preparation.

Assess Your Exposure

Are you in CSRD scope? Do you have >€150M EU revenue? Any EU subsidiaries? Suppliers to CSRD companies? Take 30 minutes to determine your exposure level.

Evaluate ESG Readiness

Do you have existing ESG data? Emissions tracking? Sustainability policies? Assess what you have now vs. what CSRD requires. This is your baseline.

Conduct Gap Analysis

Identify specific gaps across governance, strategy, processes, data, systems, and assurance. Understand which gaps are quick wins vs. major efforts.

Build Your Roadmap

Create a 24-month implementation timeline. Prioritize based on regulatory deadlines and quick wins. Define resource requirements and budget.

Start Collecting Data

Begin emissions tracking, stakeholder mapping, and policy documentation now. The sooner you start collecting data, the more complete your first report will be.

UK Companies FAQ

Answers to the most common questions UK companies ask about CSRD and UK SRS.

Does CSRD apply to UK companies after Brexit? +

Yes, in specific situations. CSRD applies to UK companies if: (1) You have an EU subsidiary meeting local thresholds (then that subsidiary must report), (2) You have >€150M EU revenue, then you're in Wave 2 scope, (3) You supply CSRD-regulated EU companies, they'll request ESG data from you (Scope 3). However, a UK-only company with no EU exposure is not directly in CSRD scope. Brexit doesn't exempt you from CSRD if you have EU operations or EU customer relationships.

What is the UK SRS and when does it start? +

UK Sustainability Reporting Standards (UK SRS) is the UK's equivalent to CSRD. It starts with UK-listed companies in 2027 (first reports for FY 2027, published 2028). Large UK private companies and smaller listed companies follow in 2029. UK SRS covers S1 (general sustainability) and S2 (climate), with more standards coming. The key difference: UK SRS uses financial materiality (impact on your business), while CSRD uses double materiality (impact on your business AND impact on society/environment).

My EU customers are asking for ESG data. What do I do? +

Your EU customers are likely in CSRD scope and need to report on Scope 3 (supply chain) emissions. They're requesting ESG data from you to fulfill their CSRD obligation. This is indirect CSRD pressure. You should: (1) Document your emissions (at least energy use, fuel, waste), (2) Map your sustainability policies, (3) Respond to their questionnaires honestly, (4) Start building a sustainability data collection process. Don't ignore these requests — they're regulatory, not optional.

Do I need to report under both CSRD and UK SRS? +

Potentially yes, if your company meets both scopes. Example: You're a UK-listed company (UK SRS applies from 2027) AND you have an EU subsidiary meeting CSRD thresholds (that subsidiary reports under CSRD). In this case, you'd have dual reporting obligations. However, the frameworks are converging, so much of your ESG data collection will overlap. If you're preparing for CSRD, UK SRS preparation is relatively straightforward add-on work.

What are the penalties for non-compliance? +

CSRD enforcement is at member state level, so penalties vary by country. Generally: fines can reach up to 5% of annual net revenue (serious cases), directors can face personal liability, companies can be excluded from public procurement, stock exchanges can delist companies, reputational damage from non-compliance being public. UK SRS penalties (when announced) will be determined by UK regulators. The bottom line: non-compliance is costly, reputationally damaging, and increasingly monitored.

How much does CSRD compliance cost for a UK company? +

Costs vary widely: (1) Assessment: €5K-€15K with Verdiso, €50K-€200K+ with Big Four, (2) Platform/systems: €0-€50K+ depending on your current setup, (3) Personnel: 0.5-2 FTE depending on company size and complexity, (4) External support: €0 if you do it yourself, €50K-€200K+ if you hire advisors. Most UK mid-market companies budget €20K-€100K for the first year. You can do a free readiness assessment with us to estimate your specific costs.

Not Sure if CSRD Applies to You?

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