SECR Explained
Introduced in April 2019, the Streamlined Energy and Carbon Reporting (SECR) was created to further develop the efforts of the Carbon Reduction Commitment (CRC). Essentially both schemes were designed to hold business accountable for their carbon emissions. However, under the SECR a larger number of corporations are required to act than under the CRC.
The SECR builds on existing environmental requirements that many companies face including mandatory greenhouse gas (GHG) reporting, the Energy Saving Opportunity Scheme (ESOS), Climate Change Agreements (CCA) Scheme and the EU Emissions Trading Scheme (ETS). The SECR scheme updates the requirements for reporting, placing additional responsibility on organisations on how they measure and report their carbon emissions.
What are the benefits of SECR?
SECR and its predecessor aim to encourage businesses to implement energy efficiency measures, with both environmental and economic benefits. This is achieved through carbon and energy reporting, which aims to help companies with:
- Identifying areas where better energy efficiency can be achieved
- Tracking and keeping record of key environmental KPIs
- Bringing awareness to volatile energy prices and the associated risks
- Acquiring green and sustainability credentials
Is my business affected?
Over 11,900 businesses in the UK need to comply with SECR regulations. The new regulations apply to three groups of businesses, which fall under the following definitions:
- Quoted companies of any size that are already required to report under mandatory greenhouse gas reporting regulations
- Both registered and unregistered unquoted companies incorporated in the UK that meet the definition of ‘large’ will now have reporting obligations.
- ‘Large’ Limited Liability Partnerships (LLPs) will need to prepare and file an ‘Energy and Carbon Report’
‘Large’ companies are defined as those that meet two or more of the following:
- Over 250 employees
- Annual turnover greater than £36 million
- Annual balance sheet greater than £18 million
What are the SECR reporting requirements?
Streamlined Energy and Carbon Reporting (SECR) requirements differ according to whichever category the business falls under:
UK incorporated quoted companies
- Are required to report on the annual quantity of greenhouse gas (GHG) emissions and energy consumed from their purchase of gas and electricity for their own use
- Should state what proportion of energy consumed relates to emissions in the UK and UK offshore areas
- Need to describe the principal measures taken to increase their energy efficiency
Large UK incorporated unquoted companies
- Are required to report on the annual quantity of GHG emissions and energy consumed in the UK arising from their activities relating to the combustion of fuel for transport or the combustion of gas
- Are also required to report on the purchase of electricity for their own use
- Should describe actions taken to increase energy efficiency
Large UK incorporated LLPs
- Are required to prepare a report equivalent to the directors’ report for each financial year, including figure on energy consumption and energy efficiency measures
Are there any exemptions?
‘Large’ quoted companies who can demonstrate a low energy use, 40MWh or less over the reporting period, may be exempt. Such businesses will need to include a statement in their report confirming that they are a low energy user.
How can Eneco Consulting help?
At Eneco we provide end to end assistance with your SECR obligations. We help take care of all of your SECR responsibilities, including emissions calculations and managing SECR documentation.
Get in touch today to speak to one of our energy advisors.
Additional Resources:
For more information: Streamlined Energy and Carbon Reporting (SECR)
Carbon Trust: SECR explained: Streamlined Energy & Carbon Reporting framework for UK business
