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New government requirement around carbon reporting for large UK businesses

19th July 2018

Cherry Whittaker

Yesterday (18 July) the government announced that all large UK businesses will be obligated to report on company carbon emissions and energy use; in effect from April 2019

This statement comes as part of the government response to the streamlined energy and carbon reporting consultation released at the start of 2018. Read our news story here from January this year for full details about the consultation content and the reasoning behind it.

In brief, a consultation in 2016 concluded that the current energy and carbon policy landscape was complex and required simplification. Therefore, this new consultation on a simplified energy and carbon reporting framework was announced in January this year. Government research indicates that over £2 million of savings could be achieved annually on business energy bills through implementing cost-effective energy efficiency measures. The full government response document released on 18 July is available here

Who is affected?

In terms of thresholds, carbon reporting will have to be carried out from April 2019 by all businesses in the UK who have ONE of the following:

  • 250 or more employees OR
  • Annual turnover in excess of £36 million and balance sheet total greater than £18 million 

Companies that meet the aforementioned thresholds will be obligated to report on their carbon and energy use since 2013.

The reasoning for this requirement and the ultimate benefit is that the new Streamlined Energy and Carbon Reporting (SECR) should allow achievement of a 20% energy efficiency increase by 2030.

Policy Lead, Nick Blythe from The Institute of Environmental Management and Assessment (IEMA) said: “We are very pleased to see some of our central recommendations adopted. The government’s commitment towards a reporting requirement for all large businesses is a significant step forward...Mandatory reporting will support improved energy management and provide a helpful level playing field for businesses.”

In addition, the Department for Business, Energy and Industrial Strategy (BEIS) have confirmed that the new framework will replace the current CRC Energy Efficiency Scheme. Therefore, the CRC scheme will end in the 2018/2019 compliance year.


We can help

If your company meets one of the above thresholds, or if you know you are already obligated for ESOS (Energy Savings Opportunity Scheme) then it is likely you will need to comply with these new reporting standards from April next year. 

Comply Direct provide a full consultancy service for ensuring companies report correctly in line with government requirements, including assistance with collecting data, calculations and analysis. We also offer this as part of our ESOS compliance service for the companies who meet the ESOS thresholds. Click here to read more about ESOS and to see if you're obligated.