Streamlined Energy and Carbon Reporting SECR

What is Streamlined Energy and Carbon Reporting (SECR)?

The Streamlined Energy and Carbon Reporting (SECR) policy came into force on the 1st April 2019. All qualifying organisations within the scope need to comply starting on or after the 1st April 2019 with the first report due from 31st March 2020, or within the 12 months following to align with your organisation’s financial yearend.

SECR builds on existing requirements that companies may face, these include:

  • Greenhouse Gas Reporting (GHG)
  • Energy Savings Opportunity Scheme (ESOS)
  • Climate Change Agreements (CCA) Scheme
  • EU Emissions Trading Scheme (ETS)

SECR further extends the reporting requirements for companies and aims to bring benefits of carbon and energy reporting to more businesses.

Why has SECR been implemented?

SECR framework is intended to encourage companies to implement energy efficiency measures that have both economic and environmental benefits. Through the correct monitoring of energy usage, there will be long term savings in cost and carbon emissions. The requirement for companies to make annual disclosures on energy and carbon also falls in-line with the G20 Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures. The information provided will ultimately help investors and shareholders find a clearer path to sustainable low carbon energy resources.

Who should participate in SECR?

There are three groups of businesses that are affected by the new regulations. Companies that fall within the following definitions must comply (unless exempt under specific criteria):

  • Quoted companies of any size that already report under mandatory greenhouse gas reporting regulations.
  • Unquoted companies incorporated in the UK that already meet the definition of ‘large’ under the Companies Act 2006 will have new reporting obligations. This will apply to registered and unregistered companies.
  • ‘Large’ LLPs will also be required to prepare and file a ‘Energy and Carbon Report’.
  • Unquoted companies or LLPs are defined as ‘large’ if they meet two of the three criteria below within a reporting year:

 

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

Please contact us if you are unsure if you qualify and we can help to guide you.

Public bodies

Public bodies do not fall under the new regulation however they are expected to comply with other legislation on carbon reporting.

Charities, Non-Profit, Universities, Academies & Trusts

Charities, non-profit companies or other organisations such as universities and academies, or NHS trusts, will need to check if they meet the qualifying criteria mentioned above.

If the qualifying criteria are met, the following must be reported:

  • Annual UK energy use (in kWh), as a minimum relating to gas, purchased electricity and transport fuel and associated greenhouse gas emissions (in tonnes of carbon dioxide equivalent (CO2e)).
  • An emissions intensity ratio chosen by the academy trust.
  • The methodologies used to calculate the required information.
  • A narrative of measures taken to improve energy efficiency in the period of the report.

In future years, the prior year equivalent figures are also required to be disclosed for comparison, but this is not mandatory in the first year.

Other private sector organisations

Any private sector organisations that fall outside of the scope of SECR regulations are encouraged to voluntarily report using the SECR framework.

What needs to be reported?

Scope 1 – Direct GHG emissions

  • Emissions from combustion of gas and fuel for transport purposes within the UK.
  • Includes emissions from activities owned and controlled by the company/trust that release omissions into the atmosphere.
  • Examples include vehicles and controlled boilers.

Scope 2 – Indirect energy emissions

  • Emissions from purchased electricity.
  • Includes emissions from own consumption of purchased electricity, heat, steam and cooling.
  • These are a consequence of the company/trust’s activities but are from sources not owned/controlled.

Scope 3 – Other indirect emissions

  • Emissions from business travel in rental or employee-owned vehicles where the company/trust is responsible for purchasing the fuel.
  • Emissions that are as a consequence of the company/trusts actions but the source is not owned/controlled.
  • Examples include business travel in private cars.

SECR and Powerful Allies

Here at Powerful Allies, we take a holistic approach to energy and environmental compliance and fully tailor our service specific to our clients and their needs. We can align the data and metrics established in SECR with ESOS Phase 3, to optimise your consumption, carbon emissions and cost savings. We provide specialist knowledge and technical support to assist in meeting your goals through identifying opportunities for improvement and energy efficiency. We can advise on low carbon technologies, energy saving lighting, and assist with the procurement of renewable energy to reduce the impacts of climate change.

Powerful Allies can provide a full SECR reporting service including:

  • Confirm whether your organisation is required to participate in SECR
  • Collate all required Energy data for reporting
  • Identify reporting Scope 1-3 entities from the data
  • Converting the data to compliant reporting methodology
  • Identify and advise on suitable metrics for reporting purposes
  • Provide a detailed and compliant SECR report
  • Assist in improving Energy data collection
  • Advice on Carbon Reduction projects related to your SECR reporting
  • Use the SECR report to streamline the ESOS Phase III auditing process (where required)

Contact one of our SECR consultants




    Are you looking for more information?

    The Powerful Allies team are here to help, please get in touch or call us on 01380 860196.