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Streamlined Energy and Carbon Reporting (SECR): A Guide for Businesses

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Introduced in April 2019, Streamlined Energy and Carbon Reporting (SECR) aims to promote energy efficiency within organisations and reduce carbon emissions, supporting the UK's environmental goals.

The legislation mandates carbon and energy reporting for a wider range of organisations than ever before. It encourages qualifying businesses to implement energy efficiency measures that cut greenhouse gas emissions.

Who Needs to Comply with SECR?

  • Large companies meeting at least two of the following criteria:

    • Turnover exceeding £36 million

    • Balance sheet total surpassing £18 million

    • Employing 250 or more people

  • Quoted companies (listed on the London Stock Exchange, New York Stock Exchange, NASDAQ, or the European Economic Area State)

  • Large unquoted companies and large limited liability partnerships (LLPs) required to prepare a Directors' Report with mandatory greenhouse gas reporting under the 2018 Directors and LLP reporting regulations

Benefits of SECR Compliance

  • Identifying areas of high energy consumption allows you to take steps to reduce energy use and associated costs, acting as a springboard for net-zero planning.

  • Compliance with SECR demonstrates your commitment to environmental responsibility.

How to Comply with SECR

Qualifying organisations must disclose their energy consumption and emissions from electricity, gas, and fuel (company-operated and grey fleet vehicles) within the UK and offshore area, in their public Director's Report. Limited Liability Partnerships (LLPs) disclose the data in an Energy and Carbon Report.

SECR compliance can be an opportunity to improve energy efficiency, leading to significant cost savings on energy spend. By identifying areas of high energy use, you can implement measures to reduce consumption and associated costs. On average, organisations can achieve a 20% annual energy cost reduction through improved energy efficiency and management. These savings often don't require significant investments. Elemental Consulting Group has identified savings opportunities for clients with a fast return on investment, such as lighting upgrades (40-50% savings) and building management system (BMS) optimisation (25% gas consumption reduction).

SECR builds on existing mandatory greenhouse gas reporting schemes like the four-yearly Energy Savings Opportunity Scheme (ESOS). If your organisation falls under ESOS, you'll need to submit data under both regulations. SECR, ESOS, and net zero work together: SECR provides data collection, ESOS offers bespoke audits, and Elemental Consulting Group's Zen Zero solution helps you achieve a sustainable future.

Next Steps with Elemental Consulting Group

While SECR reporting can be complex, our sustainability specialists can handle it for you.

 

We can:

  • Evaluate your consumption data

  • Conduct required audits

  • Complete necessary reports

  • Submit data to meet your financial reporting deadline

  • Help you determine if SECR applies to your organisation

While we handle your SECR return, consider going beyond the minimum and starting your net-zero journey. The data collected can be your starting point.

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