Streamlined Energy & Carbon Reporting (SECR) scheme

Meet your compliance obligations

• SECR requires organisations to reference energy and carbon emissions in their annual report
• Annual commentary on measures taken to increase energy efficiency annually is required
• Understand your obligations is important to ensure processes in place to report the necessary data

Who needs to comply with SECR?

The SECR will apply to all companies which meet two of the following criteria:

• over 250 employees
• annual turnover of more than £36m
• annual balance sheet of over £18m

In the UK, SECR applies regardless of whether an overseas parent company has published a similar report. Exemptions are in place for public sector organisations and private companies that use less than 40,000kWh in a year.

Reporting requirements:

• Companies listed on the stock exchange will continue to report their emissions under the mandatory greenhouse gas (GHG) scheme. They will also need to report global energy use and provide a metric to identify if annual changes are due to business growth or energy inefficiency.
• Large companies will need to report their UK energy use, the associated Scope 1 (direct emissions) and Scope 2 (indirect emissions) and an energy intensity metric, including electricity, gas and transport within their calculation.
• Scope 3 emissions, which comprise indirect emissions, will be voluntary.

How should reporting take place?

• Affected companies will need to review operational procedures and reporting mechanisms to ensure the correct data can be gathered.
• It will also be important to take action to improve energy efficiency, as appropriate, and to monitor the impact of these measures.
• Reporting under the new scheme will take place through each company’s annual reports, which means it is important to plan ahead regarding timing of data collection and analysis.

How we can help

As specialists in business energy management and compliance, we can help to ensure you meet the requirements of the SECR scheme. Please contact us to arrange an informal discussion with one of our energy experts.