Streamlined Energy & Carbon Reporting (SECR)

Monitoring, analysing, understanding and controlling your energy consumption and carbon emissions

Streamlined Energy & Carbon Reporting background

Streamlined Energy & Carbon Reporting (SECR)

The UK government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1st April 2019, when the Companies (Director’s Report) and Limited Liabilities Partnerships (Energy and Carbon Reporting) Regulations 2018 came into force.

Businesses in scope need to comply for financial years starting on or after 1 April 2019 and therefore need to understand their requirements under SECR.  SECR builds on, it does not replace the existing requirements that companies may face, such as mandatory greenhouse gas (GHG) reporting, the Energy Saving Opportunity Scheme (ESOS), Climate Change Agreements (CCA) Scheme, and the EU Emissions Trading Scheme (ETS).  SECR extends the reporting requirements for companies and mandates new annual disclosures for large unquoted and limited liability partnerships (LLPs).

Why SECR has been implemented?

SECR aims to bring the benefits of carbon and energy reporting to more businesses. The reporting framework is intended to encourage the implementation of energy efficiency measures, with both economic and environmental benefits, supporting companies in cutting costs and improving productivity at the same time as reducing carbon emissions.

Pro Enviro Services information

The team at Pro Enviro includes specialists in the monitoring and management of carbon emissions and also includes qualified accountants, making us the ideal partner to help you meet your SECR obligations and create opportunities to reduce your energy consumption.
Having defined the scope of the requirement for your business we will:

  • Collect and review all energy consumption data within the business
  • Prepare a summary report of energy use and GHG emissions using the appropriate conversion factors
  • Agree the most appropriate emissions intensity metrics and report on this for all sites
  • Prepare analysis of improvement activities undertaken and report energy and GHG savings from actions taken. This is important for businesses who want to verify that improvements are being achieved and what actions / investments might be required to achieve any further improvements
  • Confirm and verify the methodology used to assess savings and GHG emissions
  • Establish what actions will be taken with regard to the reporting of scope 3 emissions

Our report will be in a format suitable for inclusion in the company’s annual report and all source documentation and assessments will be provided for inclusion in the company’s statutory audit file.

Who needs to comply with the SECR framework?

Three groups of businesses are affected by the new regulations. Companies that fall within the following definitions must comply unless they meet certain exemption criteria:

  • Quoted companies of any size that are already obliged to report under mandatory greenhouse gas reporting regulations.
  • Unquoted companies incorporated in the UK that meet the definition of ‘large’ under the Companies Act 2006 will have new reporting obligations. This applies to registered and unregistered companies. Note that the criteria for ‘large’ differs from the ESOS Regulations.
  • ‘Large’ Limited Liability Partnerships (LLPs) will be required to prepare and file a ‘Energy and Carbon Report.’

Unquoted companies or LLPs are defined as ‘large’ if they meet at least two of the following three criteria in a reporting year:

  • a turnover of £36 million or more
  • a balance sheet of £18 million or more
  • 250 employees or more

To read the full government response and the final Impact Assessment follow the link: