Designed to reduce and streamline the carbon and energy reporting landscape, Streamlined Energy and Carbon Reporting (SECR) is a government lead initiative which aims to help businesses reduce their carbon footprint and improve their energy efficient measures.
Introduced on 1 April 2019 and forming part of the government’s wider Clean Growth Strategy, SECR legislation requires businesses to report their carbon emissions and energy consumption. Intended to encourage the implementation of more energy efficient measures amongst businesses, the reporting framework is expected to have both economic and environmental benefits.
As a result of the legislation, businesses are required to publish their carbon emissions and energy efficiency measures. The impact this has on each business will vary and depends on the extent to which a business already has a handle on its energy management practices.
Companies that fall within the reporting range are fast approaching the end of the first financial year end (31 March 2020) at which point they must report their energy and carbon information – so it’s vital they’re well prepared.
Which businesses need to submit SECR information?
Almost 12,000 UK business are required to disclose their energy and carbon emissions in order to comply for SECR legislations. Businesses that fall into the reporting category would have been automatically entered into the SECR scheme in April 2019 but are still responsible for publishing their critical energy information. Businesses that fall within the scope include:
- All UK incorporated quoted companies that already report under mandatory greenhouse gas reporting regulations
- All ‘large’ unquoted companies incorporated in the UK*
- All ‘large’ Limited Liability Partnerships (LLPs) will be required to prepare and file a ‘Energy and Carbon Report’
- Companies in an Energy Saving Opportunities Scheme (ESOS).
Several companies will be exempt from SECR requirements, including those that use less than 40,000 kWh of energy over a 12-month reporting period, those whereby it is not practical to obtain such information and public bodies (although public bodies are subject to other carbon reporting legislation – it’s important to check what your responsibilities are).
What is the impact of SECR?
The latest stage in the UK’s transition to a low-carbon nation, SECR is expected to boost business and industry energy productivity. SECR presents a critical opportunity for businesses to address their energy usage and drive better energy efficient practices where possible.
The government has published guidance on SECR which can be accessed by clicking here. If you would like to discuss your reporting requirements more in depth, please get in touch with us today and one of our experts will be happy to help.
* 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; or 250 employees or more.