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Streamlined Energy and Carbon Reporting (SECR) Explained

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Streamlined Energy And Carbon Reporting (secr) Explained

Since April 2019, a number of UK businesses have had to comply with the Government’s Streamlined Energy and Carbon Reporting framework – SECR for short. Broadly speaking, it means you need to report on your emissions and energy use in line with the new guidelines.

With failure to comply potentially resulting in a fine from Companies House, it’s well worth digging a little deeper to find out what it means, whether it applies to your business and what exactly you need to report…

SECR explained

SECR was introduced on 1st April 2019, essentially replacing the Carbon Reduction Commitment, which came to an end a day earlier. The overall aim is to get more businesses reporting their carbon emissions and energy use, in turn encouraging them to become more energy efficient.

Participating organisations need to include the additional information in their annual Directors’ Report, which is filed at the end of each financial year.

Who does it apply to?

It’s estimated that SECR applied to almost 12,000 companies in the UK. This includes all quoted companies – those whose shares are traded on stock exchange. However, it also comprises unquoted companies and Limited Liability Partnerships (LLPs) if they are classed as ‘large’, meeting at least two of the following criteria:

  • Annual turnover or gross income of £36 million or more
  • Balance sheet assets exceeding £18 million
  • 250+ employees

What do you need to report?

In line with the SECR framework, participating companies and LLPs will need to report their energy use, including electricity, gas and transport fuel – plus the greenhouse gas emissions related to this energy use.

Transport fuel refers to any transport where fuel is paid for by the company – including company car use or reimbursement for mileage claims. However, it doesn’t concern ‘indirect’ fuel use, such as taxis, air travel or public transport.

Energy use and emissions will need to be accompanied by at least one intensity metric – a way of defining that energy use relative to customers, revenue or floor space, for example. Companies will also need to describe the measures they’ve taken to improve energy efficiency for the most recent financial year.

In addition to data for the financial year that has just passed, businesses are required to report energy use, greenhouse gas emissions and one or more intensity metrics for previous financial years. That includes reporting that no measures have been taken if applicable.

Finally, you’ll need to list any methodology used to calculate energy use and emissions. The Government specifies that “robust and accepted methods” must be used.

Need a hand with SECR?

The Streamlined Energy and Carbon Reporting framework can seem overwhelming, especially if you haven’t had to monitor, calculate and report on energy use and emissions before. Fortunately, you don’t have to tackle it alone.

At Volta Compliance, we offer specialist SECR services for businesses in a wide range of sectors. With our bespoke monitoring and reporting solutions, you can stay complaint, reduce consumption and save money in the long run. To find out more, give us a call on 0113 397 1361.

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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.