PS26/19: Aligning listed issuers' sustainability disclosures with international standards

Read PS26/19 (PDF)[2]

Why we are making changes

We are replacing the existing climate-reporting rules for listed issuers with requirements aligned with the UK-endorsed International Sustainability Standards Board (ISSB) standards. The changes aim to support well-functioning markets by giving investors consistent, decision-useful sustainability information.

Our final rules apply a comply-or-explain approach across the UK Sustainability Reporting Standards (UK SRS) framework, promoting international alignment and comparability while allowing companies to explain how their circumstances affect their reporting.

Who this is for 

Companies with shares listed in the:  

• commercial companies category
• transition category
• non-equity shares or non-voting equity shares category
• secondary listing or depositary receipts category 

Next steps

The new rules apply to accounting periods starting on or after 1 January 2027, with first reporting in 2028. Companies can use transitional reliefs: 1 year for Scope 3 emissions disclosures, and 2 years for wider sustainability disclosures under UK SRS S1.

We are also consulting on a Technical Note[3] to help companies apply the comply or explain approach in a proportionate way. We welcome feedback on this by 28 October 2026.

We will run activities to help companies and investors understand the new standards and will publish additional information about our supervisory approach to these rules in the second half of 2027, ahead of the first reporting season.

Background

Climate and sustainability disclosures play a vital role in supporting well-functioning capital markets by enabling investors and issuers to assess relevant climate and sustainability risks and opportunities. High-quality disclosures help investors make informed capital allocation decisions, support more accurate market pricing, and assist issuers in strengthening strategic planning and operational resilience.

We introduced rules for listed companies’ climate disclosures in 2021, these were aligned with the Task Force on Climate-related Financial Disclosures (TCFD), a framework set up in 2015 and disbanded in 2023. The International Sustainability Standards Board (ISSB) was established in 2021 to bring together fragmented climate and wider sustainability reporting standards, including the TCFD. To promote international alignment and comparability, the Government has introduced the UK Sustainability Reporting Standards (UK SRS), which are the UK-endorsed version of the ISSB standards.

We consulted on replacing our current TCFD-aligned listing rules with requirements for in-scope listed companies to report against these UK SRS in CP26/5 (PDF)[5]. Following consultation, we have decided to apply on a comply and explain approach to in-scope issuers. This work supports well-functioning capital markets – helping investors make informed decisions and helping listed companies strengthen their own strategic planning.