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Streamlined Energy and Carbon Reporting (SECR) FAQs

Here is everything you need to know about the Streamlined Energy and Carbon Reporting legislation

Streamlined Energy and Carbon Reporting (SECR) came into place on 1 April 2019 and affects an undertaking’s financial accounting period commencing on or after this date. Below is everything you need to know about SECR compliance and the questions are designed to address who is obligated by SECR requirements, as well as how to ensure compliance.

When did SECR come into force and when do you need to start reporting?

  • SECR was implemented on 1 April 2019
  • Businesses in scope need to comply for financial years starting on or after 1 April 2019

Why was SECR introduced?

  • Provides transparency for investors
  • Encourages monitoring of energy use within businesses
  • Encourages energy efficiency within businesses
  • Brings both economic and environmental benefits
  • Helps companies identify areas where cost savings might be made
  • Can help companies improve productivity
  • Can help companies reduce their emissions

Who is obligated under SECR?

  • Regulations require approximately 11,900 UK companies to report emissions
  • Quoted companies
  • Large unquoted companies
  • Large limited liability partnerships

What are the thresholds for unquoted companies/LLPs?

At least two of the following:

  • Turnover of £36 million or above
  • Balance sheet of £18 million or above
  • 250 employees or more

Are there any exemptions?

Businesses who have a low energy use of 40MWh (40,000kWh) or less per year are not required to meet SECR requirements, even if they do meet 2 of the aforementioned thresholds. 

How does SECR work for parent companies or subsidiaries?

  • A group report is required for a parent group and any subsidiaries
  • There is the option to exclude subsidiaries which would not be required to report in their own right

Does SECR replace existing reporting requirements?

SECR builds on but does not replace other reporting regulations e.g. GHG reporting, ESOS, CCA and ETS.

What is the difference from other reporting schemes?

SECR extends the requirements for quoted companies and now mandates large unquoted companies and limited liability partnerships.

What are quoted companies required to do?

  • Report global scope 1 and 2 GHG emissions
  • Report underlying global energy use
  • Provide split between UK and offshore energy use

What are unquoted companies and LLPs required to do?

Report UK energy use from electricity, gas and transport fuel and associated GHG emissions.

What are all obligated companies required to do?

  • Report energy use and GHG emissions
  • Report at least one emissions intensity metric
  • Report measures taken to improve efficiency
  • Report energy savings from actions
  • Report the methodology used
  • Voluntarily include scope 3 emissions or others outside the boundaries

What is an intensity ratio?

Compare emissions data with an appropriate business metric or financial indicator e.g. tonnes of co2e/£m sales revenue, tonnes of co2e/square metres.

Which greenhouse gases (GHG) are included?

  • Carbon dioxide
  • Methane
  • Hydrofluorocarbons
  • Nitrous oxide
  • Perfluorocarbons
  • Sulphur hexafluoride
  • Nitrogen Trifluoride
  • All reported in CO2 equivalent

What are the different scopes?

  • Scope 1: Direct emissions from activities owned/controlled by the company
  • Scope 2: Indirect emissions from purchased electricity, heating, steam and cooling
  • Scope 3: Indirect emissions as a consequence of actions but not in scope 2

What should be included in transport data?

  • Company car business fuel use
  • Fleet vehicle business fuel use
  • Personal/hire car business use
  • Onsite transport e.g. forklift trucks
  • Fuel used in private jets, fleet aircraft, trains, ships, drilling platform operated by the business

Who regulates SECR?

  • The Financial Reporting Council and Companies House
  • Penalties are not yet published

Where is data reported?

  • Quoted and unquoted companies include in Directors report in Company Accounts
  • LLPs include in an Energy and Carbon report

How can Comply Direct help?

  • Help calculate energy use and quantify emissions using GHG Protocol
  • Help compile an evidence pack
  • Can do all data collection and calculation

What should I do if my SECR question has not been answered here?

Please contact our carbon experts at Comply Direct on 01756 794 951 or by email to info@complydirect.com and we will be only too happy to help with your query.