SECR

Implemented in April 2019, the Streamlined Energy and Carbon Reporting (SECR) places greater responsibility on organisations to choose how they measure and report their emissions. 

Unsure how it affects you? We’ll explain the SECR in more detail, talk through how to comply with it and look at whether or not you might be exempt from it.

• SECR explained
• How to know if your organisation needs to comply
• Exemptions from SECR
• More information

The SECR is a piece of legislation that makes it mandatory for large businesses, including charitable organisations, to report their energy and carbon emissions, along with efficiency measures taken throughout the year, on an annual basis.  

Why make these things mandatory? By doing so, the legislation highlights the benefits that carbon and energy reporting can bring to a larger number of businesses, benefits that include:

• Identifying low-cost or no-cost efficiency opportunities
• Increasing green and sustainability credentials
• Tracking environmental KPIs year on year
• Highlighting risks from volatile energy and commodity prices
• Delivering improved environmental disclosures

There are over 11,900 UK organisations that are required to comply with SECR regulations. These organisations fall within the following definitions:

• Quoted companies of any size that are obliged to report under mandatory greenhouse gas reporting regulations
• Unquoted companies incorporated in the UK, meeting the definition of ‘large’ under the Companies Act 2006, whether they’re registered and unregistered companies
• ‘Large’ Limited Liability Partnerships (LLPs)

How do you know whether your company qualifies as large? You will meet at least two of the following criteria:

• You have more than 250 employees
• You have a turnover greater than £36m
• Your balance sheet totals more than £18m

Public bodies do not fall under these regulations. However, they are subject to other legislation which requires carbon reporting. Charities, not-for-profit companies or other organisations undertaking public activities, such as universities, academies or NHS Trusts, will have to check whether they meet the above criteria.

Private sector organisations falling outside of the new regulations are encouraged to voluntarily report in a similar manner.

Quoted or large unquoted companies and LLPs that can confirm their energy use is 40MWh or less over the reporting period will have a statutory de minimis exemption applied to them. 

However, exempt companies will still need to include a statement in their report confirming that they’re a low energy user. When preparing this statement, the low energy threshold applies to the energy consumption of the parent group and its subsidiaries.

If you’re looking for more information on SECR, take a look at our SECR insights guide here.

You can find the UK Government’s full guidance on Environmental Reporting, including SECR here.