SECR Reporting For UK Businesses

Is your business one of the 11,900 UK companies that need to comply with the Streamlined Energy and Carbon Reporting (SECR)? We are here to help.

SECR Reporting

What is SECR Reporting?

A Streamlined
Reporting Process

SECR Reporting refers to the Streamlined Energy
and Carbon Reporting Framework and is intended
to encourage organisations to implement energy
efficiency measures.

11,900 Companies are
Affected by SECR

Since it came into force on 1 April 2019, about
11,900 large companies in the UK were already
required to report on their energy use and carbon emissions as part of their annual reporting.

Extended Reporting
for Quoted Companies

The SECR extends the reporting requirements
for quoted companies, while mandating new
annual disclosures for large unquoted and
limited liability partnerships (LLPs).

SECR Benefits

What are the Benefits of
SECR Carbon Reporting?

Value Creation

Carbon reporting actually comes with
a variety of economic and environmental benefits for companies, e.g. reduction
of CO2 emissions, cost-cutting or improvement of productivity.

Reputation Management

Demonstrating sustainability commitment holds benefits for your brand and reputation and helps to develop stakeholder relations by demonstrating value to partners and investors.

Recruitment & Retention

Employees value sustainability: In the already existing war for talent, the question of whether your business takes care of our planet or not will impact your recruitment and retention of staff.

SECR Reporting

Who Needs to Report on SECR?

SECR applies to quoted companies of any size, large unquoted companies & large LLPs. Unquoted Companies and LLPs are considered large when they meet at least two of the following criteria:

250+ employees
£36m annual turnover
£18m balance sheet total

Companies using 40,000 kWh or less during 
the 12-month reporting period are exempt.

Reporting Requirements

What are the SECR Reporting Requirements?

While there is no set reporting template that businesses are required to use, the SECR scheme provides some reporting guidance that can be used as an example template.

SECR reports must contain:
Associated greenhouse
gas emissions
Figures from previous years of energy use
Information about energy efficiency measures
Calculation methods
such as ISO 14064-1

Does SECR Incude Scope 3 Emissions?

While companies are required to report on their Scope 1 and Scope 2 emissions, Scope 3 reporting remains voluntarily, but is strongly recommended.

SECR vs. ESOS

What is the Difference Between SECR and ESOS?

Streamlined Energy and Carbon Reporting (SECR)

Requires businesses to calculate and report on energy
usage and greenhouse gas emissions.

Mandatory for 3 types of organisations in the UK:

  • Quoted companies of any size, large unquoted companies 
& large LLPs.
  • Unquoted Companies and LLPs are considered large 
when they meet at least two of the following criteria:
250+ employees
£36m annual turnover
£18m balance sheet total

Applies only to businesses registered in the UK.

Requires businesses to report on what actions they have taken during the reporting year to cut energy use and emissions (it
does not require them to mention any planned future actions).

Requires businesses to include at least one energy intensity ratio
to compare emissions with other metrics (e.g. units of production).

  • Requires businesses to report annually.
  • Must be included in directors’ reports.
Energy Savings Opportunity Scheme (ESOS)

Requires businesses to calculate and report on energy 
usage but not on greenhouse gas emissions.

Mandatory for “large undertakings” in the UK.

  • Quoted companies of any size, large unquoted companies 
& large LLPs.
  • Unquoted Companies and LLPs are considered large 
when they meet at least two of the following criteria:
250+ employees
£50m annual turnover
£43m+ balance sheet total

Applies to overseas businesses with a UK entity
with 250+ employees.

Requires businesses to identify opportunities for improving 
their energy efficiency.

No requirement to include an energy intensity ratio.

  • Requires businesses to report in four-year cycles.
  • To be completed by a qualified ESOS Lead Assessor 
and submitted to an Environmental Agency.
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