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 refers to the Streamlined Energy
and Carbon Reporting Framework and is intended
to encourage organisations to implement energy
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.
The SECR extends the reporting requirements
for quoted companies, while mandating new
annual disclosures for large unquoted and
limited liability partnerships (LLPs).
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.
Demonstrating sustainability commitment holds benefits for your brand and reputation and helps to develop stakeholder relations by demonstrating value to partners and investors.
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 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:
Companies using 40,000 kWh or less during the 12-month reporting period are exempt.
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.
Requires businesses to calculate and report on energy
usage and greenhouse gas emissions.
Mandatory for 3 types of organisations in the UK:
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 calculate and report on energy usage but not on greenhouse gas emissions.
Mandatory for “large undertakings” in the UK.
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.