Streamlined Energy and Carbon Reporting (SECR)

What is SECR? 

Streamlined Energy and Carbon Reporting (SECR) is a mandatory UK government framework that has replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme in April 2019.  The aim is to simplify the reporting process for companies and reduce emissions from business and industry by 80% by 2050. 

What must companies do to comply with SECR?  

From 1^st April 2019, companies must report on their scope 1 and 2 emissions, energy use from electricity, gas and transport, and provide narrative commentary on any energy efficiency action undertaken in the past 12 month reporting period. Eligible companies must include SECR in their directors report, or similar section, in their annual report for all financial years starting on or after the 1^st April 2019. E.g. If your financial reporting year is 6^th April – 5^th April, you will need to start gathering data from 6^th April 2019 ready to include SECR in the 2019/2020 Annual Report.

Due to the time and complexity of the work involved, many seek out the services of specialist consultancy companies, which we encourage you to do at the earliest opportunity.  You can contact our experienced team of consultants by following the link below or using the contact details at the bottom of the page

CONTACT THE TEAM >

Which companies are eligible for SECR? 

The eligibility criteria for SECR is broader than the Energy Savings Opportunities Scheme (ESOS) and is expected to apply to around 11,900 companies across the UK. For comparison, only 4,000 companies had to comply with the previous CRC scheme. Companies already reporting on their energy use through ESOS and CRC can expect to be affected, however, SECR will also apply to:

1. Quoted companies as defined in section 385 of the Companies Act 2006. 
2. UK large, unquoted, registered companies, as defined in Companies Act 2006 – meeting at least two of the three following criteria in the financial year for which you are reporting:
   
   • At least 250 employees.
   • Annual turnover greater than £36m.
   • Annual balance sheet total in excess of £18m.
3. Large Limited Liability Partnerships (LLP) that are already obligated to carry out audits under ESOS and have been required to report under the CRC.
4. Large, unregistered companies operating for gain and who have reported under the Unregistered Companies Regulations 2009, with those reports needing to comply with the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. 

There are some exemptions, which our consultants will be happy to advise you of.