Streamlined Energy and Carbon Reporting Framework (SECR) | Low Energy Consultancy

Streamlined Energy and Carbon Reporting Framework (SECR)

About SECR

SECR has now replaced the previous CRC Energy Efficiency Scheme and it will affect nearly 12,000 UK businesses ranging from high street stores to large manufacturers.

Starting from when?

Starting from 1st April 2019, businesses that fall within threshold will need to report annually on energy use and carbon emissions alongside the Director’s report filed with Companies House.

Who needs to comply?

There are four types of companies that fall within threshold:

1. Quoted companies as defined in section 385 of the Companies Act 2006.  Companies registered in the UK with equity share capital officially listed on the Main Market of the London Stock Exchange or in an EEA State, or admitted to dealing on either the New York Stock Exchange or Nasdaq. 

2. UK registered, unquoted large companies as defined in the Companies Act 2006 (not the same as within ESOS Regulations). Referring to companies that meet TWO of the following conditions in the financial year for which they are reporting:

  • At least 250 employees
  • An annual turnover greater than £36m and/or
  • An annual balance sheet total greater than £18m

3. Large Limited Liability Partnerships (LLPs) already obligated to carry out energy audits under the requirements of ESOS Regulations 2013 and were also likely to have been required to report under CRC.  This applies to approx. 230 large LLPs.

4. Large unregistered companies that operate for gain and currently have to produce director’s reports under the Unregistered Companies Regulations 2009 with those reports needing to comply with the Large and Medium-sized Companies and Groups (Accounts & Reports) Regulations 2008.  (Estimated to apply to fewer than 50 unregistered companies)

Who falls under Exemption?

There are some companies that fall under exemption from this requirement, if any company meets one of more of the following exemptions:

  • Very low energy users who can confirm and prove an energy usage of 40,000kWh or less in a  12 month period
  • Unquoted companies not registered within the UK, however any qualifying UK registered subsidiaries under these parent groups will need to report in their own right.
  • Where companies believe that publication of energy usage could be detrimental to the future of the business and seen as commercially sensitive.  This can be used in certain circumstances.

What needs to be reported?

SECR is a board level issue that involves input from other areas of the business such as facility managers, operations, energy management and external stakeholders. 

All UK registered, quoted companies:

  • Report on the annual quantity of Greenhouse gas (GHG) emissions and energy consumed from utilities (electricity, gas etc) for their own use
  • Previous year’s figures
  • What proportion of their energy consumption and emissions related to the UK
  • A narrative commentary on any energy efficiency action taken in the last year

UK registered, unquoted large companies/Large LLP’s/Large unregistered companies:

  • Report on the annual quantity of Greenhouse gas (GHG) emissions and energy consumed in the UK from their activities relating to combustion of fuel for transport or the combustion of gas.
  • Report on the purchase of electricity for their own use
  • A narrative commentary on any energy efficiency action taken in the last year

When does this need to be reported by?

The earliest reporting date will be 1st April 2020, however this depends on how the company’s financial year runs.  The reports are expected to be published alongside financial data in Annual Reports.

Standard reporting year

First annual SECR reporting deadline

April to 31 March

1 April 2020 (for 1 April 2019 to 31 March 2020)

1 January to 31 December

1 January 2021 (for 1 January 2020 to 31 December 2021)

What do you need to do?

If you are already reporting under Mandatory Carbon Reporting there is very little change, apart from the addition of energy use and energy efficiency measures.

If you are reporting and purchasing credits in the CRC EES then SECR will replace these.

If you do not fall into either scheme above most companies that are required to submit an Energy Savings Opportunity Scheme (ESOS) report will also be required to report under the new scheme.  

Low Energy Consultancy are here to assist you with the reporting of both SECR and ESOS, we can take the pressure from you as a business and take the lead to advise and assist with ensuring business compliance.

Call us today on 020 3859 4100 to discuss your requirements.

Foer more information on SECR please visit:  https://www.gov.uk/government/publications/environmental-reporting-guidelines-including-mandatory-greenhouse-gas-emissions-reporting-guidance