Short answer
The answer, before the reasoning
UK SRS S2 already incorporates the December 2025 IFRS S2 greenhouse-gas amendments from its first publication in February 2026. Preparers applying UK SRS S2 therefore do not add a later “amendment overlay”: the amended GWP relief, part-of-entity jurisdictional measurement relief, Category 15 limitation and derivative exclusion, and alternative industry-classification provisions are already embedded in the UK text.
The IFRS amendment effective-date and transition provisions were not carried into UK SRS S2 because the UK Standard was issued after the amendments. UK SRS S2 paragraph B59A, dealing with different-period financed-emissions data, is a separate UK addition rather than one of the four ISSB amendments.
The four targeted IFRS S2 amendments are embedded in the first UK SRS S2 publication; B59A is separate.
At a glance
1. The UK Standard starts from the amended IFRS S2 text
The ISSB issued targeted amendments to IFRS S2 in December 2025. The UK government finalised UK SRS S2 in February 2026 and incorporated the substantive amendments from the first UK publication. As a result, an entity using UK SRS S2 reads and applies the amended provisions directly. It does not need to apply the June 2023 IFRS S2 text and then bolt the December 2025 amendments onto it.
2. Amendment 1: jurisdictional GWP values can apply to the affected part
UK SRS S2 generally requires the latest IPCC 100-year GWP values available at the reporting date. The incorporated amendment clarifies that if a jurisdictional authority or exchange requires a different GWP value, the entity may use that required value for the entity as a whole or for the part affected by the requirement and for the duration of that requirement. The practical change is a scoped exception, not an unrestricted choice of GWP table.
Identify the legal or exchange requirement and the affected entities, operations or gases.
Record the required GWP source, effective period and comparison with the group method.
Explain the affected part and avoid applying the exception to unaffected operations.
Control changes when the jurisdictional requirement ends or is amended.
3. Amendment 2: a required alternative measurement method can apply to part of the entity
The default remains the GHG Protocol Corporate Standard. The amended text clarifies that an alternative method required by a jurisdictional authority or exchange can be used for the entity or the affected part. A multinational can therefore maintain a group method while applying a mandatory local method to a defined operation—provided the boundary, mapping, reconciliation and disclosure are controlled.
4. Amendment 3: Category 15 can be limited to financed emissions
UK SRS S2 paragraph 29A permits an entity to limit Scope 3 Category 15 to financed emissions—emissions attributed to specified loans and investments. It also permits exclusion of emissions attributable to derivatives for this limitation. Paragraph 29B requires the entity to explain what it treated as a derivative and describe financial activities excluded. Paragraph 29C requires the total Category 15 amount and the financed-emissions subtotal when Category 15 is included.
5. Amendment 4: an alternative industry-classification system can be used
The amended provisions replace a fixed dependence on the Global Industry Classification Standard with a principle-based selection. For commercial banking and insurance disaggregation, the entity selects a system that produces useful information about transition-risk exposure. A commonly used system is prioritised when it provides equally useful information because it supports comparability. The system and the reason it meets the requirement are disclosed.
This is not an invitation to create an opaque entity-specific taxonomy for convenience. The decision record should compare candidate systems, data availability, transition-risk usefulness, peer use, mapping stability and the treatment of counterparties with multiple activities.
6. What was not carried into UK SRS S2
The December 2025 IFRS S2 amendments have their own IFRS effective date and transition provisions. UK SRS S2 did not reproduce those amendment-specific provisions because the UK Standard was first issued after the amendments and includes the amended wording from inception. UK SRS S2 has its own application and relief provisions in Appendix C.
7. B59A is a separate UK addition
UK paragraph B59A addresses cases in which it is impracticable to reliably estimate financed emissions for the same reporting period as the entity’s general purpose financial reports. It requires an explanation of the period used and relevant events or changes. The UK government response identifies B59A as an additional UK provision. It should not be presented as one of the four December 2025 ISSB amendments.
The amendments change controlled decisions in five connected implementation workstreams.
8. Implementation impact assessment
Update the source and paragraph map so teams use the February 2026 UK text.
Review all GWP exceptions and jurisdictional measurement requirements by legal entity and operation.
Redesign the Category 15 register to identify financed emissions, derivatives and excluded financial activities.
Approve the industry-classification system and mapping rules for financed-emissions disaggregation.
Update methodology notes, data dictionaries, calculation models and disclosure templates.
Reconcile UK SRS S2 with any parallel IFRS S2 compliance objective; UK-specific reliefs or additions can affect dual claims.
Train reviewers to distinguish the four ISSB amendments, the UK B59A addition and UK Appendix C reliefs.
9. Hypothetical banking-group example
10. Common mistakes
Applying the original June 2023 IFRS S2 wording and treating the UK amendments as optional.
Using any alternative GWP or measurement method without a jurisdictional or exchange requirement.
Calling every investment-related emission “financed emissions” without applying the definition and asset-class scope.
Excluding derivatives without defining them or describing the affected activities.
Changing industry classification without comparability analysis or disclosed rationale.
Calling B59A a December 2025 ISSB amendment.
Forgetting that UK Appendix C reliefs are separate from the incorporated amendments.
11. Amendment implementation checklist
UK SRS S2 February 2026 text used as the base source.
Affected-part GWP and measurement exceptions mapped to legal requirements.
Category 15 and financed-emissions scope approved.
Derivative definition and exclusion evidence controlled.
Category 15 total and financed subtotal logic tested.
Industry-classification system and rationale approved.
B59A timing disclosures separately assessed.
IFRS effective-date provisions not incorrectly imported into UK SRS S2.
Parallel IFRS S2 or UK regulatory claims gap-assessed.
Sources, status and limitation
The technical conclusions are based on UK SRS S2 as issued in February 2026, the ISSB’s December 2025 amendments and the UK government consultation response. Final mandatory UK rules and any later ISSB or UK implementation material should be monitored before publication or filing.
Editorial and technical production layer
Quick orientation
Quick orientation
- Applies to
- Teams comparing UK SRS S2 with original IFRS S2, transition projects and financial institutions.
- Primary decision
- Which December 2025 changes are already part of UK SRS S2 and what implementation records must change.
- Key sources
- UK SRS S2 paragraphs 29A-29C, B21-B25, B62A-B63A; IFRS S2 December 2025 amendments; UK government response.
- Common confusion
- Treating the amendments as a future UK update instead of embedded requirements, or attributing UK paragraph B59A to the ISSB amendments.
Caution
DO NOT CONFUSE
This enduring jurisdictional-method provision in paragraphs 29(a)(ii) and B23-B25 is different from the first-period transition relief in Appendix C3. C3 is based on the method used in the immediately preceding annual period and lasts only for the first UK SRS S2 reporting period.
In practice
Decision
| Decision | Required implementation evidence | Disclosure consequence |
|---|---|---|
| Limit Category 15 to financed emissions | Approved financial-activity inventory, asset-class scope and rationale. | Describe limitation and excluded financial activities. |
| Exclude derivatives | Controlled derivative definition aligned to applicable accounting basis; product inventory. | Explain what was treated as a derivative. |
| Include Category 15 | Category 15 calculation and financed-emissions tagging. | Report total Category 15 and financed-emissions subtotal. |
| Exclude other asset classes from financed-emissions calculation | Gross exposure and coverage register. | Explain exclusions and coverage as required by financed-emissions paragraphs. |
Hypothetical scenario
HYPOTHETICAL EXAMPLE
A banking group previously mapped financed emissions to GICS and calculated several derivative-related exposures within Category 15. Under UK SRS S2, it evaluates a nationally used industry system that better matches credit-risk sector data. It documents why the system produces decision-useful transition-risk information, maps prior-year sectors, identifies derivatives under its accounting basis, excludes qualifying derivative emissions under paragraph 29A and reports the total Category 15 amount with a financed-emissions subtotal. The group separately applies B59A to explain why certain counterparty emissions use a prior period. Illustrative scenario only.
Illustrative only. It shows how the decision is made, not wording that can be copied or relied on.
Technical status
PUBLISHING STATUS
This section is for LRA editorial, technical-review, CMS and AI/RAG workflows. The public article ends before this page.
Questions
Questions people ask
Are the December 2025 IFRS S2 amendments already in UK SRS S2?
UK SRS S2 already incorporates the December 2025 IFRS S2 greenhouse-gas amendments from its first publication in February 2026. Preparers applying UK SRS S2 therefore do not add a later “amendment overlay”: the amended GWP relief, part-of-entity jurisdictional measurement relief, Category 15 limitation and derivative exclusion, and alternative industry-classification provisions are already embedded in the UK text.
Can Category 15 be limited to financed emissions?
UK SRS S2 paragraph 29A permits an entity to limit Scope 3 Category 15 to financed emissions—emissions attributed to specified loans and investments. It also permits exclusion of emissions attributable to derivatives for this limitation.
Can an alternative classification system be used?
The amended provisions replace a fixed dependence on the Global Industry Classification Standard with a principle-based selection. For commercial banking and insurance disaggregation, the entity selects a system that produces useful information about transition-risk exposure. A commonly used system is prioritised when it provides equally useful information because it supports comparability.
Is B59A an ISSB amendment?
The UK government response identifies B59A as an additional UK provision. It should not be presented as one of the four December 2025 ISSB amendments.
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