Get ready for Streamlined Energy and Carbon Reporting (SECR)

New carbon reporting regulations are coming. The government recently announced its plans for new carbon reporting, starting in April 2019. The Streamlined Energy and Carbon Reporting (SECR) regulations require carbon & energy information to be included in the company’s Annual Report.

SECR applies to quoted and large unquoted companies registered in the UK (as defined by the Companies Act 2006 and fulfilling at least 2 of the following conditions in the financial year: >250 employees, annual turnover >£36m, annual balance sheet >£18m).

The following information needs to be included in the Annual Report for that year:

  • Greenhouse gas emissions – Scope 1 and 2 emissions arising from energy use in buildings & transport, including electricity, gas, vehicles & refrigerants (scope 3 remain voluntary).
    Large companies should report on UK activities; quoted companies will continue to be required to report on global energy use and carbon emissions.
  • Details of the methodology for calculating emissions and a suitable carbon intensity metric are also needed.
  • Energy consumption data – All UK electricity, gas and transport energy use.
  • Details of energy efficiency activities undertaken.

Companies with low consumption (<40,000 kWh) will be exempt, also unquoted companies where ‘it is not practical to obtain information’.

What you need to do now

  • Firstly understand the scope of your business / group to determine if you meet the requirements.
  • Put in place processes for collecting data. Scope 1 emissions cover gas and other fuels (including diesel, biomass & LPG) used in transport & buildings. Scope 2 covers electricity & steam.
  • Collect & validate the data – a good data management system is useful but not essential.
  • Calculate the carbon emissions (make sure you calculation methodology is accurate & up to date).

The new mandatory reporting framework will replace the CRC Energy Efficiency Scheme and expand upon the existing Mandatory Carbon Reporting regulations. It’s likely to affect over 10,000 organisations, up from approximately 1,600 required to report under mandatory carbon reporting.

It does not replace ESOS (the Energy Savings Opportunity Scheme), though the work done for it can contribute.

With the CRC ending, the government needs to recoup its lost revenue so will increase the CCL Climate Change Levy, applied directly to energy bills. See my blog for more details.

Sounds complicated? There are a load of energy & carbon-related regulations – I can help you meet all your compliance obligations.




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