Streamlined Energy and Carbon Reporting - SECR Regulations guidance & compliance
Why do clients choose Smart GreenTech Solutions for guidance on compliance with the Streamlined Energy and Carbon Reporting - SECR and related energy and carbon reporting Regulations in the UK?
We love what we do and are passionate about ensuring that building owners, asset managers, operators and tenants are provided with the relevant guidance and support to ensure compliance with the Streamlined Energy and Carbon Reporting - SECR and related energy and carbon reporting Regulations in the UK.
What is the SECR Regulations?
SECR replaces the CRC Energy Efficiency Scheme and Mandatory Greenhouse Gas Reporting for UK quoted companies. In addition to quoted companies the Streamlined Energy and Carbon Reporting extends reporting requirements to qualifying unquoted companies and Limited Liability Partnerships.
SECR legal obligations
The Companies Directors report and Limited Liability Partnerships Energy and Carbon report Regulations 2018 implement the UK governments policy on Streamlined Energy and Carbon Reporting, and in-scope businesses across the UK need to comply with their legal obligations which came into force on 1 April 2019.
Please visit our Streamlined Energy and Carbon Reporting page for a more detailed overview of SECR.
What emissions are in the scope of SECR?
UK quoted companies registered in the UK should;
• continue to be required, where practical, to disclose scope 1&2 greenhouse gas emissions (scope 3 will remain voluntary) and an intensity metric in their annual reports and;
• Should additionally be required, where practical, to report on global energy use.
Unquoted companies and LLP's will be required, where practical, to report their UK energy use and associated scope 1 and 2 emissions and an intensity metric.
Further, energy use in scope for unquoted companies and LLP's to be calculated and reported should as a minimum include electricity, gas and transport, with transport defined as road, rail, air and shipping (and the associated scope 1&2 emissions).
Unquoted companies and LLP's can go beyond this minimum by for example including scope 3 emissions or other energy sources that are particularly material in the company’s operations.
SECR qualifying criteria
The Government has decided that the new SECR reporting framework will continue to apply to all quoted companies and apply to large UK incorporated unquoted companies and LLP’s fulfilling at least two of the following conditions in the financial year;
with at least 250 employees or;
an annual turnover greater than £36m or;
an annual balance sheet total greater than £18m.
Reporting and data collection periods
For companies and LLP's with a usual reporting year of 1 January to 31 December, the first financial year for which the relevant report must comply with the SECR Regulations and be included in the annual accounts are 1 January 2020 to 31 December 2020. The first publication of SECR reports which comply with the 2018 Regulations must be filed with Companies House within 9 months from the accounting reference period for private companies i.e. 30 September 2021.
For companies and LLP's with a usual reporting year of 1 April to 31 March, the first financial year for which the relevant report must comply with the SECR Regulations are 1 April 2019 to 31 March 2020. The first publication of SECR reports which comply with the 2018 Regulations must be filed with Companies House within 9 months from the accounting reference period for private companies i.e. 31 December 2020.
The approach to group reporting under SECR is different to ESOS, where a smaller subsidiary of a parent company is not exempt, even where on its own, it would not meet ESOS eligibility criteria.
If you are reporting SECR at a group level, you must take into account not only your own information but also the information of any subsidiaries included in the consolidation.
However, you have the option to exclude from your report any energy and carbon information relating to a subsidiary which the subsidiary would not itself be obliged to include if reporting on its own i.e. where a subsidiary on its own does not meet the SECR qualifying criteria.
A subsidiary is not obliged to report their energy and carbon information if they are included in a group report of a parent undertaking or where they do not meet the SECR qualification criteria.
How can we help you?
If you need some assistance with SECR, then we would welcome the opportunity to discuss this and how we can support you to achieve compiance with the Streamlined Energy and Carbon Reporting Regulations.
Please feel free to contact us on 03300 881451 to discuss your specific SECR requirements.
Alternatively, feel free to leave your details on our contact form and we will get straight back to you.