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SECR – 2023 Guide for Businesses

Posted in
Date
07/05/2023
secr – 2023 guide for businesses

With the world’s attention firmly on climate change, businesses are expected to be aware of their emissions. And it’s up to site owners and business managers to demonstrate that awareness. Alongside the Energy Savings Opportunity Scheme (ESOS), the UK government has put a program in place to collect data and make impactful changes – the Streamlined Energy and Carbon Reporting (SECR) framework.

In this post, we’ll outline what your business needs to do in 2023 to meet SECR requirements.

What is SECR?

Launched in 2019, SECR was developed to continue on from the Carbon Reduction Commitment (CRC). This scheme required eligible businesses to report their energy and carbon information within their directors’ reports. When it came to an end on 31st March 2019, the SECR framework replaced it.

The main aim of SECR is to make sure that businesses report their energy use and carbon emissions. The long-term hope is that emissions will reduce and companies will become much more energy efficient.

Existing requirements such as ESOS, the Climate Change Agreements (CCA) Scheme and mandatory Greenhouse Gas reporting will all remain in place. SECR has joined this group of reporting requirements and ensures that annual disclosures happen for eligible businesses. If companies don’t comply, they could face a fine of up to £40,000. So, it is essential these regulations are followed to avoid losing a huge chunk out of your finances.

SECR in 2023

Forming part of an important government directive, SECR’s goal is to improve energy efficiency by at least 20% by 2030. With 7 years to go, every UK organisation has been given the challenge to increase their efforts. By doing this, not only will it reduce carbon emissions, but investors will have clarity on the business’s future and hold decision-makers to account.

What exactly are businesses required to report?

  • Energy use – in relation to gas, electricity and transport.
  • Greenhouse gas emissions – the type and amount of carbon emissions created.
  • Emissions intensity metrics – for current and previous financial years.
  • Energy efficiency measures – a description of any measures that have been taken to improve the business’s energy efficiency.
  • Global total energy use – covering all international elements of the business and their energy use and emissions.

Is your business eligible?

According to the 2006 Companies Act, SECR is a mandatory requirement to “large or quoted companies.’” To determine whether your business is one of these companies, ask yourself the following questions:

  • Does your company have 250 or more employees?
  • Do you make £36 million or more in turnover?
  • Do you have £18 million or more in balance sheet assets?

If you answered “yes” to one or more of these questions, your business is eligible and you are required to record and report your energy use.

Businesses that are defined as being “unquoted” are those which don’t have shares available on the stock exchange. However, along with large Limited Liability Partnerships (LLPs), they also have to record any usage over 40MWh within the required reporting period.

Make SECR compliance simple with Volta Compliance

If you would like assistance with SECR in 2023, Volta Compliance is on hand to help. We can discuss the criteria with you and confirm what legal requirements you need to meet.

Our professional and friendly team uses cloud-based solutions, designed to collect the data needed for your business. You will then receive a detailed report on your energy usage and carbon emissions. We can advise on what areas to work on to improve your energy efficiency and save you money.

Ready to get started? Call our expert team on 0113 397 1361 or email [email protected]

 

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Richard Carr Volta Compliance
Richard Carr
Managing Director
Richard is the Director of Volta Compliance. He is a fully qualified approved electrician graded with the JIB. Richard has over 20 years electrical experience working on commercial and industrial installations.
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