09/09/2026
The UK is preparing a significant overhaul of corporate sustainability/ESG reporting, although the final legal requirements are not yet set. The direction is not simply “more ESG reporting.” The FRC is simultaneously trying to make corporate reporting more proportionate, focused and less burdensome, including streamlined reporting under the 2026 Stewardship Code.
Key points in the impending overhaul include:
- Modernising Corporate Reporting: The UK Government announced an expanded review in October 2025 covering the annual report and accounts, with a consultation expected later this year. Sustainability reporting is part of that wider reform.
- UK Sustainability Reporting Standards (UK SRS): These are now available, based on the ISSB's IFRS S1/S2 standards, but are currently voluntary. The Government is considering whether to make them mandatory through future legislation.
- Listed companies: The FCA is proposing to move companies currently subject to TCFD requirements toward UK SRS-based disclosures. Proposals include climate-risk reporting, transition-plan information and a “comply or explain” approach to Scope 3 and certain non-climate sustainability disclosures. The proposed start date is 1 January 2027, subject to final rules.
- Assurance is also developing: The FRC's 2026–27 programme includes establishing a voluntary Sustainability Assurance Provider Registration regime.
The bottom line
The UK appears to be moving toward a more standardised, ISSB-aligned ESG regime, particularly for listed companies, while trying to avoid the reporting overload associated with some other regimes. The key milestones to watch are the Government's 2026 MCR consultation and the FCA's expected final sustainability-disclosure rules in autumn 2026.
To find out more, including which UK companies are likely to be caught, what they may have to report from 2027, and how we can help you prepare for these challenges, chat with us today: hello@blackandcallow.com
Other recent news
