What Is SRS and How Will It Affect UK SMEs?

Sustainability Reporting Standards (SRS) are expected to introduce new sustainability and reporting expectations for many UK businesses. For small and mid-sized enterprises (SMEs), this can feel confusing, especially when guidance is often written for large corporations.

In simple terms, SRS refers to a set of standards designed to improve how businesses report on sustainability-related topics such as environmental impact, governance, and social responsibility. While not all SMEs will be required to comply immediately, many will be affected indirectly through customers, lenders, or supply chains.

Why SRS matters for SMEs

Even if your business is not legally required to report under SRS, you may be asked to provide sustainability information by:

• Larger clients

• Investors or lenders

• Public sector organisations

• Supply chain partners

This means SMEs may need to start collecting and organising sustainability data earlier than expected.

What should SMEs do now?

SMEs can take practical steps to prepare, including:

• Understanding what sustainability data you already collect

• Identifying gaps in environmental or governance information

• Speaking with a specialist consultant if requirements are unclear

Preparing early can reduce last-minute pressure and help your business respond confidently to new reporting expectations.

Getting support

Many SMEs choose to work with specialist sustainability or reporting consultants to understand what applies to their business and what actions to take.

SME Reporting Hub helps connect UK SMEs with consultants who support sustainability reporting and related requirements.