What is SECR? | Mitigating potential Net Zero blind spots
Streamlined Energy and Carbon Reporting (SECR) is a mandatory sustainability reporting framework for large organisations in the UK.
Streamlined Energy and Carbon Reporting (SECR) is a mandatory sustainability reporting framework for large organisations in the UK.
SECR, or any form of carbon reporting, offers organisations important insights into their existing carbon emissions performance. However, when organisations report only the minimum SECR reporting requirements, they usually obtain an incomplete picture of the business’s overall environmental impact.
Enhancing reporting through improvements, including additional voluntary elements (e.g., Scope 1 fugitive emissions), can mitigate the chances of missing the complete picture. By doing so, organisations gain a more comprehensive view of their carbon performance, allowing them to set ambitious but realistic Net Zero carbon targets.
Energy efficiency reporting is now becoming increasingly essential for organisations. There is a need to pay close attention to how energy is used and how much it costs. Several interconnected factors drive the focus of energy management; these include rising costs, carbon reduction, establishing an effective energy strategy, and compliance requirements.
As energy prices continue to skyrocket, more businesses face financial pressure. Companies need to pay closer attention to where they procure their energy and how much it costs. Energy efficiency measures help protect against escalating costs. Organisations can mitigate the impact of rising energy costs on their bottom line by measuring and optimising their energy usage.
Reducing energy consumption almost always leads to a corresponding decrease in carbon emissions. As companies strive to meet carbon reduction targets and contribute to environmental sustainability, energy efficiency becomes a critical pathway.
Accurate reporting and management of energy efficiency are critical, and organisations should track the success of their energy-saving projects. Doing so gives them confidence in expanding their efforts and decision-making, ensuring that resources are allocated effectively, which means there is less/no leakage. Compliance schemes now also require organisations to report on achieved energy savings, making it easier to monitor energy-saving efforts as we advance.
SECR connects compliance requirements with sustainability and Net Zero goals, particularly through annual reporting. SECR mandates that large companies report their energy consumption, carbon emissions, and energy-saving measures in their annual reports, ensuring transparency and accountability.
The transparency associated with SECR reporting is advantageous for businesses aiming to advance their sustainability initiatives. This publicly available data enables organisations to compare their efforts with those of others in the same sector. By benchmarking against competitors, companies can identify areas for improvement and learn from best practices.
SECR focuses on an intensity metric, specifically the ratio of Greenhouse Gas (GHG) emissions to an appropriate metric. Tracking this intensity ratio allows companies to assess their performance against any Net Zero targets the business has set. This gives the industry a clear picture of its journey to Net Zero and areas needing more attention.
SECR enables stakeholders (including customers, investors, and the public) to hold businesses accountable for their sustainability goals. Transparent reporting builds trust and ensures companies address sustainability and Net Zero challenges actively.
Our team can provide SECR guidance and support your business on its journey to compliance. All you need to do is contact Pro Enviro and we will help you.