In today’s drive toward sustainability, organisations are increasingly focusing on reducing their environmental impact. Two important terms often arise in this context: SECR (Streamlined Energy and Carbon Reporting) and carbon footprint footprinting.

While both relate to energy and emissions, they serve distinct purposes. This guide will delve into the key differences between SECR and carbon footprint reporting and how businesses can leverage both to drive sustainability.

What is SECR?

Streamlined Energy and Carbon Reporting (SECR), is a UK government framework designed to improve transparency around energy use and carbon emissions. Introduced in 2019, it applies to large UK-incorporated companies, including:

• Quoted companies.
• Large unquoted companies meeting at least two of the following criteria:
  • Annual turnover ≥50 million.
  • Balance sheet total ≥25 million.
  • 250 or more employees.
• Large Limited Liability Partnerships (LLPs).

Key requirements of SECR

Under SECR, organisations that meet the criteria must include the following information in their annual reports:

• Energy consumption: Covering electricity, gas, and transport fuel.
• Greenhouse gas emissions (GHG): Including Scope 1 (direct emissions) and Scope 2 (indirect emissions from purchased energy).
• Energy efficiency measures: Actions taken during the reporting year to improve energy efficiency.
• Intensity ratios: Metrics comparing emissions to business activity (e.g., emissions per square meter of floor space).

Zenergi’s SECR service

At Zenergi, our specialist Sustainability team ensures compliance with SECR regulations to help you avoid penalties. We evaluate your consumption data, conduct required audits and prepare comprehensive reports for timely submissions. Beyond compliance, we focus on identifying energy efficiency improvements that can deliver significant cost savings, such as:

• Upgrading lighting systems, achieving savings of 40-50%.
• Optimising building management systems (BMS) to reduce gas consumption by up to 25%.

For organisations that don’t need to comply with SECR (such as schools or SMEs), Zenergi also offers voluntary carbon reporting services to help them understand their emissions and take actionable steps toward sustainability.

What is a carbon footprint?

A carbon footprint measures the total greenhouse gas emissions caused by an organisation, individual, event, or product. Unlike SECR, which has specific reporting requirements, a carbon footprint provides a broader and more flexible assessment of emissions across the value chain.

Components of a carbon footprint

• Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion).
• Scope 2: Indirect emissions from purchased electricity, heat, or steam.
• Scope 3: Other indirect emissions occurring throughout the supply chain, including business travel, waste and purchased goods and services.

Measuring your carbon footprint is essential for identifying areas where emissions can be reduced, setting sustainability targets, and demonstrating environmental responsibility.

How can we support?

In addition to compliance-based frameworks like SECR, Zenergi provides a suite of services to support organisations at any stage of their sustainability journey:

• Greenhouse Gas (GHG) Reporting for Scopes 1, 2, and 3.
• GHG Inventory Assurance to verify and enhance reporting accuracy.
• GHG Monitoring and Targeting, helping track progress over time.
• Net Zero Strategies and Management Plans tailored to your needs.
• Carbon and Energy Dashboards.
• Science-Based Target Validation Support, aligning with global frameworks.
• Net Zero Stakeholder Awareness and Engagement Training to ensure internal alignment.

Key differences between SECR and carbon footprint reporting

While SECR and carbon footprint reporting share common goals, they differ in scope and application:

Even if SECR compliance is not mandatory for your organisation, carbon footprint reporting offers valuable insights for understanding and reducing your emissions. Schools and SMEs, for instance, can use these tools to drive progress toward sustainability and position themselves as leaders in environmental responsibility.

Why both matter for sustainability

SECR: A compliance-driven approach

For large companies, SECR ensures compliance with regulations while promoting energy efficiency. By reporting previous year’s figures for energy use and GHG emissions, businesses can:

• Benchmark performance.
• Identify areas for energy savings.
• Demonstrate accountability to stakeholders.

Carbon footprint: A holistic view

Calculating your carbon footprint provides a deeper understanding of your organisation’s overall environmental impact. It enables businesses to:

• Set ambitious carbon reduction targets.
• Address Scope 3 emissions, often the largest portion of a company’s footprint.
• Align with global sustainability frameworks, such as the Science-Based Targets initiative (SBTi).

By combining SECR compliance with carbon footprint analysis, organisations can achieve both regulatory compliance and meaningful progress toward sustainability goals.

How to get started

1. Understand your obligations: Zenergi’s experts can determine whether SECR applies to your organisation.
2. Collect data: We will help you gather all the required data on energy use and emissions.
3. Leverage expertise: Our team streamlines reporting and analysis, ensuring accuracy and compliance.
4. Take action: Implement cost-saving energy efficiency measures guided by Zenergi’s insights.
5. Communicate results: Showcase your progress through transparent reporting and stakeholder engagement.

Conclusion

Understanding the differences between SECR and carbon footprint reporting is crucial for businesses aiming to improve sustainability. While SECR ensures compliance and transparency, a comprehensive carbon footprint analysis provides the insights needed to drive meaningful change.

Zenergi’s net zero solutions provide a holistic pathway to sustainability, helping organisations reduce emissions, cut costs, and achieve their environmental goals. Whether you’re mandated to comply with SECR or looking to voluntarily assess your carbon footprint, we’re here to support every step of your journey.

Ready to take the next step? Contact Zenergi today to explore how we can help your business reduce its environmental impact and drive sustainability.