Streamlined Energy and Carbon Reporting (SECR)
Streamlined Energy and Carbon Reporting
Does your organisation need to comply with Streamlined Energy and Carbon Reporting (SECR)?
Streamlined Energy and Carbon Reporting (SECR) was introduced by the government in April 2019. Its aim is to promote energy efficiency within organisations and thereby reduce carbon emissions, supporting the UK’s commitment to environmental targets.
The legislation introduces mandatory carbon and energy reporting for a larger number of organisations than ever before.
The legislation aims to encourage qualifying organisations to implement energy efficiency measures that reduce greenhouse gas emissions. Organisations that need to comply with the legislation need to calculate
and report on their annual energy consumption and carbon emissions for Scopes 1, 2 and 3.
What is the qualification criteria?
Large companies that meet the following criteria need to comply:
- Turnover is £36 million or more
- Balance sheet totals £18 million or more
- 250 or more employees
Quoted companies of any size that are required to prepare a Directors’ Report to include mandatory greenhouse gas reporting under the Directors and LLP reporting regulations that were updated in 2018, are required to comply with SECR. Quoted companies in this respect are those listed on the London Stock Exchange, the New York Stock Exchange or NASDAQ, or the European Economic Area State.
Large unquoted companies and large limited liability partnerships
Unquoted companies incorporated in the UK which are required to prepare a Directors’ Report to include mandatory greenhouse gas reporting under the Directors and LLP reporting regulations that were updated in 2018, and which are defined as “large” are required to comply with SECR.
How to comply
Qualifying organisations must disclose their energy consumption and emissions relating to their use of electricity, gas and fuel from company operated or grey fleet vehicles from the UK and offshore area, within their public Director’s Report.
Limited Liability Partnerships (LLPs) are required to disclose the data within an Energy and Carbon Report.
Who is exempt?
Low energy users are exempt from disclosing their detailed energy and carbon data. A low energy user is defined as an organisation that uses 40,000 kWh or less during the reporting period.
In addition, companies that are incorporated outside of the UK are not required to report on energy and carbon in their Directors report.
The support meant we didn’t have to worry about the complexity of the data gathering or understanding what needed to be included in the report.
The team was really easy to work with and took the pain away of needing to comply. For a large Trust like ours it is also really helpful to be able to turn to Briar for a joined up approach to all things energy from an organisation that has taken the time to understand us and our needs.”
Director of Finance & Business
The Constellation Trust
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Turning compliance into an opportunity
Looking beyond the compliance requirements can offer an opportunity to improve energy efficiency, allowing significant savings on energy spend.
By identifying how and where your organisation is using the most energy you can take steps to reduce your energy consumption and associated costs.
On average, an organisation can reduce its annual energy costs by 20% through improving energy efficiency and energy management. And the savings don’t always require a significant investment.
We have identified savings for our clients that offer a fast return on investment for a low spend, such as upgrading lighting to make savings of between 40% and 50%, or optimising building management systems (BMS) that can see reductions in gas consumption of as much as 25% through simple control system changes.
Organisations will still need to comply with ESOS
The legislation builds on existing mandatory reporting of greenhouse gas emissions, such as the four-yearly cycle of the Energy Savings Opportunity Scheme (ESOS), meaning that if ESOS applies to your organisation you will need to submit the required data under both legislations.
SECR, ESOS and net zero compliment one another, with SECR providing the data collection, ESOS completing bespoke audits, and our market-leading Zen Zero solution delivering a sustainable future.
Although SECR reporting can be complex, our specialist Sustainability team are ready to define and prepare your submission. We can evaluate your consumption data by carrying out the required audits, completing the necessary reports, and submitting the data to ensure you meet your financial reporting deadline.
If you are uncertain about whether the SECR guidelines apply to your organisation, contact one of our compliance consultants who can reviewyour company structure and recommend a programme for delivery.
Whilst our compliance consultants are completing your SECR return, why not consider going beyond the minimum by starting to plan for net zero. The data is already there for you to start your journey.