SECR aims to harmonise reporting, covering energy and carbon reporting and taxation. This legislation replaces the Mandatory Greenhouse Gas Reporting (MGHG) which has now become obsolete. With pressures on the UK to meet climate change targets, this legislation launched to ensure all large UK companies report their carbon emission and energy usage on an annual basis, coming into force 1 April 2019.
SECR applies to all quoted companies, large limited partnerships (LLP) and large UK incorporated unquoted companies*. A company is considered large and must comply if it meets two of the following criteria within a year:
- 250 or more employees
- Turnover in excess of £36 million
- Balance sheet in excess of £18 million
Organisations using less than 40,000 kWh per annum will not be required to report.
*Quoted companies are listed on the London Stock Exchange, whilst unquoted companies are not.
We have provided a flowchart here to help you determine if your company is obligated, however, do note that you can carry out SECR even if you are not obligated as a company - this is encouraged.
The process and requirements for complying with SECR are different for quoted and unquoted companies. Unquoted companies are now required to disclose the following information in the Director’s Reports within Company Accounts, or in an Energy and Carbon for LLPs:
- UK energy use: electricity, gas and transport (as a minimum)
- Associated GHG emissions
- At least one emissions intensity metric (e.g. tCO2e / £ turnover)
- Emissions over time; with the exception of the first mandatory reporting year, emissions data must be shown from the previous year
- A narrative on energy efficiency actions undertaken
- Information on the methodology used to calculate the above
Quoted companies have been reporting global emissions and an intensity metric since 2013 under Mandatory GHG Reporting. Quoted companies continue to be required to report their global GHG emissions. However, in line with large unquoted companies there is now an additional requirement to report on total global energy use, energy efficiency actions and the methodology used to calculate the data.
A summary of the above reporting requirements for both quoted and unquoted companies are displayed in the table below:
At Comply Direct we have a dedicated sustainability team who can assist in calculating your energy use and quantifying emissions in line with the Greenhouse Gas Protocol, an established and globally respected method. We will also help you to compile an evidence pack, to verify your reporting. In addition, we can provide training on carbon reporting, including the requirements and process. We have enabled many obligated companies to achieve SECR compliance; delivering a high quality, hassle-free support service which we have received excellent customer feedback for, as you'll see below…
“The report and support from Comply Direct was excellent; always returned calls and happy to be of assistance at all times. Overall, Comply Direct were very helpful, efficient, and delivered everything in a timely professional manner, and at a reasonable cost!” - Princebuild Limited
It is important to note that The Energy Savings Opportunity Scheme (ESOS) is somewhat separate from SECR; ESOS stemming from EU legislation and only requires reporting once every 4 years. For more information on ESOS click here, as it is possible for companies to be obligated for both.
If you believe your company may be affected by SECR and you’d like to find out more about how we can support you to ensure compliance, please don’t hesitate to contact our sustainability experts – email firstname.lastname@example.org or call 01756 794 951