The Streamlined Energy & Carbon Reporting (SECR) framework relating to public disclosure of carbon and energy use applies to quoted companies and large UK incorporated unquoted companies. SECR requires obligated companies to report on energy consumption and associated greenhouse gas emissions within financial reporting for Companies House.
SECR is a great opportunity to get clear visibility of your energy use and emissions and it provides you with the data to be able to adopt energy efficiency measures to reduce your impact on climate change.
Your business will need to report if:
- You are a UK quoted company listed on the main market of the London Stock Exchange; a European Economic Area; or is admitted to dealing on the New York Stock Exchange or NASDAQ
OR - You are a large UK company or large LLP as defined by the Companies Act 2006 (Turnover £36m or more, balance sheet £18m or more, number of employees 250 or more).
Key SECR Requirements
What does SECR reporting include?
Quoted companies:
- Report on your total annual global energy use and global emissions (Scope 1 & 2 emissions)
- Publish an intensity metric within your annual report
- Report on any energy efficiency measures put in place within the company
- Previous years energy use and GHG emissions (except in the first year)
- Methodologies used in calculation of disclosures.
Large UK companies and LLPs:
- Report on your total UK annual energy use and associated emissions (Scope 1, 2 & 3* emissions)
- Publish an intensity metric within the annual report
- Report on any energy efficiency measures put in place within the company
- Previous years energy use and GHG emissions (except in the first year)
- Methodologies used in calculation of disclosures.
Who is exempt from SECR?
- The introduction of a formal statutory de-minimis threshold set at 40,000 kWh per annum exempts companies with energy usage below the threshold from reporting.
- An exemption to SECR reporting would also apply to those unquoted companies where it would not be practical to obtain some or all the SECR information.
Is there a deadline?
- Businesses were required to implement SECR for financial years beginning on or after 1st April 2019.
Is the scheme enforced?
The Conduct Committee of the Financial Reporting Council is responsible for monitoring compliance of company reports and accounts with relevant reporting requirements. The Conduct Committee can:
- Enquire into cases where it appears that relevant disclosures have not been provided
- Apply to the court for a declaration that the annual report of accounts do not comply with the requirements.
*Scope 3 emissions associated to business travel in rental cars or employee-owned vehicles where they are responsible for purchasing fuel. Other Scope 3 emissions are voluntary.