Streamlined Energy and Carbon Reporting (SECR) is a mandatory reporting scheme that requires qualifying UK companies to prepare and file energy and carbon information in their Directors’ Report.
SECR came into effect in April 2019 under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 with the intention of streamlining, and as a result simplifying, emissions reporting requirements for qualifying organisations.
For a number of organisations, SECR replaces the Carbon Reduction Commitment (CRC). The scheme also replaces and extends Mandatory Greenhouse Gas Reporting (MGHG), which required quoted companies only to report their annual GHG emissions.
What must be disclosed under SECR?To comply with SECR, qualifying companies must disclose:
- Their energy use and greenhouse gas (GHG) emissions for their financial year reporting period
- At least one intensity ratio
- The energy efficiency actions taken
- The methodology used to calculate the required information
Who needs to comply with SECR?
You must comply with SECR if you are:
- A quoted company
- A “large” unquoted company or
- A Limited Liability Partnership (LLP)
- An annual turnover of £36 million or more
- A balance sheet total of £18 million or more
- 250 or more employees
Low energy users
Companies who fit the above criteria but who consume 40MWh or less during the reporting period are not required to disclose energy and carbon information, however they are required to state why it is not being disclosed.