Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

SECR (Streamlined Energy & Carbon Reporting) Scheme

Meet your compliance obligations

The SECR (Streamlined Energy and Carbon Reporting) scheme is a replacement for the Carbon Reduction Commitment (CRC) energy efficiency scheme and requires organisations to reference energy and carbon emissions in their annual report.

More businesses are required to participate in the SECR and take action which is ‘meaningful, informative and commensurate with the size and level of energy use’ in the business.

As well as reporting on energy use, there is a requirement to provide commentary on measures taken to increase energy efficiency each year, making the issue more transparent to your customers and other stakeholders. As a result, it is important to understand your obligations and to ensure you have the right systems and processes in place to report the required data.

Who needs to comply with SECR?

The SECR will apply to all companies which meet two of the following criteria:

  • over 250 employees
  • annual turnover of more than £36m
  • annual balance sheet of over £18m.

SECR applies regardless of whether an overseas parent company has published a similar report, though a group may exclude any energy and carbon information relating to subsidiaries which would not be obliged to report individually according to the thresholds. Exemptions are in place for public sector organisations and private companies that use less than 40,000kWh in a year.

Reporting requirements

Companies listed on the stock exchange will continue to report on their emissions under the mandatory greenhouse gas (GHG) scheme. On top of this, they will need to report their global energy use and provide a metric to demonstrate whether their use has changed year-on-year due to business growth or energy inefficiency.

Large companies will need to report their UK energy use, the associated Scope 1 (direct emissions) and Scope 2 (indirect emissions) and an energy intensity metric, including electricity, gas and transport within their calculation.

There must be an intensity metric for year-on-year and supporting commentary outlining energy efficiency measures implemented within the year. Scope 3 emissions, which comprise indirect emissions caused by activities such as staff commuting or waste disposal, will be voluntary. There will be no requirement for organisations to disclose their ESOS recommendations.

How should reporting take place?

Compliance with the requirements can be complex, especially for companies that have never been involved in energy reporting before. Affected companies will need to review operational procedures and reporting mechanisms to ensure the correct data can be gathered. It will also be important to take action to improve energy efficiency, as appropriate, and to monitor the impact of these measures.

Reporting under the new scheme will take place through each company’s annual reports which means it is important to plan ahead regarding timing of data collection and analysis.

How we can help

As specialists in business energy management and compliance, we can help to ensure you meet the requirements of the SECR. We can work alongside your team to ensure you meet the requirements of the legislation and undertake accurate, compliant reporting, safeguarding your reputation.

Please contact us to find out more.


Find out how much money we’ve saved for our clients, or to arrange an informal discussion with one of our energy experts, please call 01244 571830.
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