SECR Reporting in 2026: What Businesses Need to Know as UK SRS Is Introduced

Introduction

SECR reporting is changing in 2026, and is currently under review, with significant changes or replacement on the cards. This is as UK government is planning to introduce a new, more comprehensive reporting framework, reshaping the way businesses approach and disclose their environmental impact. These changes are being reviewed in line with International Sustainability Standards Board (ISSB) standards.

In this guide, we take you through everything you need to know about SECR reporting in 2026, how the introduction of UK Sustainability Reporting Standards (UK SRS) could affect you, and what steps your business can take now to stay compliant and prepared in the new year.

What is SECR and SRS Reporting?

Streamlined Energy and Carbon Reporting (SECR) was introduced in 2019 and is a government reporting framework that requires eligible large companies to disclose their energy use, energy efficiency actions, and greenhouse gas emissions within their annual reports. It was designed to improve transparency around how businesses use energy and manage carbon emissions, helping organisations understand their environmental impact while supporting the UK’s wider net zero and climate targets.

However, in 2026, SECR is being reviewed and new Sustainability Reporting Standards (SRS) are expected to be  implemented. Unlike SECR, which focuses mainly on energy use and Scope 1 and 2 emissions, SRS will cover a wider range of environmental, social, and governance (ESG) factors.

This includes broader greenhouse gas reporting (including Scope 3 emissions), and sustainability governance and strategy. The introduction of SRS is a shift towards more detailed and standardised sustainability reporting, helping businesses provide stakeholders with a clearer picture of their long-term environmental and social impact.

This comes alongside shifting perceptions of sustainability and greater importance being placed on combating climate change, as well as investors calling for more detailed and comparable sustainability information about businesses to help them make better-informed decisions.

What Are the New SRS Requirements Likely to Be?

The new SRS requirements will be made up of four main reporting categories:

Governance

How the company’s senior leadership oversee and approach both sustainability shortcomings and opportunities.

Strategy

What is the company’s approach to managing these shortcomings, including impacts on business models and value chains.

Risk management

What strategies the company has in place to identify, assess and combat sustainability-related risks and take advantage of opportunities.

Metrics and targets

Data on the company’s performance and progress towards targets and specific climate metrics like GHG emissions (Scope 1, 2, & 3).

Currently, SECR requires all eligible companies to include specific information within their annual reports. The core SECR reporting requirements are:

• Energy use: Total energy consumption broken down into electricity, gas, and fuel used for transport.
• Greenhouse gas emissions: Disclosure of Scope 1 (direct) and Scope 2 (indirect) emissions.
• Emissions intensity ratio: At least one metric e.g. emissions per £m turnover or per employee to help contextualise emissions.
• Energy efficiency actions: A record of any measures taken during the reporting year to improve energy efficiency.
• Methodology and disclosures: Details on how the data was collected and calculated.

SRS and Scope 3

In October 2023 the government launched a ‘Call for Evidence on Scope 3 Emissions in the UK Reporting Landscape’, which acknowledged the need for greater emphasis and action on Scope 3 emissions.

SECR doesn’t currently make it mandatory to report on Scope 3 emissions, with only limited emissions such as Scope 3 business travel being required, which only makes up a small section of wider Scope 3 emissions. The requirements also differ for quoted and unquoted companies, with quoted companies not being required to report on any Scope 3 emissions.

Key Points from Scope 3 Consultation:

• Scope 3 was emphasised as important part of disclosures, with reporting standards risking being misleading or incomplete without it.
• Many stakeholders support broader mandatory Scope 3 reporting, with the need to have consistent, comparable data across all who participate.
• Multiple challenges were identified, from the complexity of Scope 3 data to the risk of double-counting and increasing costs for collection and analysis.
• Suggestions of a tiered approach in which larger companies begin proceedings with strict government guidelines to stick to, also having flexibility with the 15 material categories.
• Organisations are encouraged to complete voluntary reporting to begin with, before it becomes mandatory.

This consultation has a number of implications for UK Policy:

• UK Government is likely to expand Scope 3 reporting requirements as part of upcoming Sustainability Reporting Standards.
• Mandatory disclosure for large companies post-2026 is expected.
• Alignment with ISSB standards will ensure international compatibility
• Businesses should begin preparing by mapping out Scope 3 categories, engaging suppliers and improving data collection systems.

Why International Standards Matter: ISSB and IFRS

The driver behind the Scope 3 consultation is the work of the International Sustainability Standards Board (ISSB). The ISSB was created to bring clarity and consistency to sustainability reporting across global markets.

In 2023, the ISSB published its first sustainability disclosure standards, known as the IFRS Sustainability Disclosure Standards. These standards help companies explain how sustainability and climate issues could affect their future financial performance.

The Two Key IFRS Sustainability Standards

• IFRS S1 – General Sustainability Disclosures

  Focuses on sustainability-related risks and opportunities that could affect a company’s financial outlook. This is primarily aimed at helping investors understand long-term value and resilience.

• IFRS S2 – Climate-related Disclosures

  Zooms in specifically on climate risks and opportunities, including greenhouse gas emissions (Scopes 1, 2, and 3), transition plans, and climate targets.

The Future of Sustainability Reporting

The UK Sustainability Reporting Standards (UK SRS) will not introduce an entirely new reporting scheme for businesses. Instead, they will act as a set of standards that existing and future sustainability reporting frameworks must align with, with implementation expected from around 2026.

UK SRS is likely to become mandatory for “economically significant” companies, while small and medium-sized enterprises (SMEs) are unlikely to be directly affected in the short term. Over time, this could lead to changes in existing frameworks such as SECR, either through tighter requirements or potentially through SECR being replaced by a new, UK SRS-aligned reporting approach.

Although we are yet to be given a definitive set of standards, it is clear that Scope 3 emissions will become a central part of future UK sustainability reporting, and organisations that prepare early will be best positioned to comply efficiently and credibly.

Progress toward implementation is already underway. The Department for Business and Trade (DBT) has formally written to the Financial Conduct Authority (FCA) to update it on the development and finalisation of the UK SRS. In response, the FCA is preparing a consultation on how UK SRS will be applied to listed companies, signalling that regulatory requirements are moving closer to implementation.

How to Prepare for SRS Reporting in 2026

The UK SRS won’t be a new scheme for businesses to comply with, but rather it will be a set of standards that all existing and future schemes have to align with, potentially in 2026.

This could mean changes to SECR in the future as requirements become more stringent, or it could mean that SECR gets scrapped completely and replaced with something different.

SRS is likely to place a stronger emphasis on:

• Standardised sustainability metrics and methodologies
• Improved data quality, transparency, and auditability
• Clear governance and accountability for sustainability reporting
• Broader coverage of environmental, social, and governance (ESG) factors

For many organisations, this will require more robust systems and processes than those currently used for SECR or voluntary reporting.

It is recommended that organisations start preparing well in advance of any upcoming mandatory changes. Preparing early will reduce disruption, spread implementation costs over time, and improve the credibility of sustainability disclosures. It also provides an opportunity to demonstrate leadership, improve stakeholder trust, and gain strategic insight from sustainability data before reporting becomes a regulatory requirement.

In order to adequately prepare, organisations should:

1. Review Current Reporting Practices
   Assess how your existing SECR, ESG, or voluntary sustainability reporting aligns with new SRS principles and identify gaps in data.
2. Improve Data Collection and Management
   Ensure energy, emissions, and wider sustainability data is accurate and consistently collected across the organisation.
3. Build Internal Capability
   Develop internal expertise around sustainability reporting standards and regulatory developments. Assign clear responsibility for sustainability data and reporting at a senior level within your team.
4. Integrate Sustainability into Business Strategy
   Go beyond compliance-focused reporting by incorporating sustainability considerations into decision-making, risk management, and long-term planning.
5. Start Reporting Early
   Voluntary reporting ahead of mandatory deadlines allows you to test processes, improve data quality, and reduce future compliance risk. By doing this early, you will be better positioned to confidently respond to regulatory changes when they arise.

Simplifying SECR with Consultus Sustainability

Changes to reporting can present organisations with additional complications and create the risk of falling short with compliance standards. Partnering with a consultant is a great way to protect your business and help you stay on top of any upcoming changes.

Consultus Sustainability can help simplify SECR reporting. Our team can provide tailored support for your business, and draw on our expertise in reporting to help you:

• Define your reporting requirements
• Collect and analyse your energy data across multiple sources
• Calculate your Scope 1, 2 and 3 emissions using recognised standards
• Create your energy and carbon report in line with requirements

Scope 3 emissions represent a significant and growing part of sustainability reporting and Consultus Sustainability can support you with data gathering, benchmarking and recommendations for reductions across your supply chain and upstream and downstream activities, assessing your environmental impact and offering advice as to how to begin to mitigate these emissions.

Beyond compliance, we use reporting insights to build a bespoke Net Zero Pathwayfor your organisation. This includes targeted advice on emissions reduction initiatives, complementary technologies, and energy management solutions, such as sub-metering, to give you greater visibility, control, and long-term progress against your sustainability goals.