SECR
Guidance on how to comply with the SECR energy and carbon reporting framework for qualifying UK companies.
SECR energy and carbon reporting framework background.
The SECR energy and carbon reporting framework replaced the CRC Energy Efficiency Scheme.
The UK government recognised that the range of energy efficiency policies can create complexity and add burden to business consumers.
That is why in 2016 the UK government announced reforms to improve the tax and reporting regime.
Reporting has a valuable role to play, as what gets measured gets managed, and in 2019 the simplified energy and carbon reporting framework was introduced.
The SECR framework absorbed the price signal into the Climate Change Levy.
Visit our SECR page for more details.
What emissions are in the scope of SECR?
UK quoted companies registered in the UK should;
disclose scope 1&2 greenhouse gas emissions (scope 3 will remain voluntary) and an intensity metric in their annual reports and;
additionally be required, where practical, to report on global energy use.
Unquoted companies need to report their UK energy use, associated scope 1 and 2 emissions and an intensity metric.
As a minimum electricity, gas and transport energy consumption must be included and the associated scope 1&2 emissions.
Unquoted companies can go beyond this minimum by including scope 3 emissions that are particularly material in the company’s operations.
When did SECR come into force?
The new Streamlined Energy and Carbon Reporting framework came into force from April 2019.
Who does SECR apply to?
The Streamlined Energy and Carbon Reporting framework applies to all qualifying companies and LLP’s throughout the UK.
It also applies to qualifying UK registered subsidiaries of parent companies not registered in the UK, and public bodies which include limited company or LLP elements.
An UK wide approach is in line with other existing initiatives such as ESOS and Mandatory Greenhouse Gas Reporting.
Quoted companies registered in the UK should;
disclose scope 1&2 greenhouse gas emissions (scope 3 will remain voluntary) and an intensity metric in their annual reports and;
report on global energy use.
Unquoted companies need to report their UK energy use and associated scope 1 and 2 emissions and an intensity metric.
As a minimum include electricity, gas and transport energy consumption and the associated scope 1&2 emissions.
They can go beyond this minimum by including scope 3 emissions that are particularly material in the company’s operations.
The new Streamlined Energy and Carbon Reporting framework came into force from April 2019.
The Streamlined Energy and Carbon Reporting framework applies to all qualifying companies and LLP’s throughout the UK.
In also applies to qualifying UK registered subsidiaries of parent companies not registered in the UK, and public bodies which include limited company or LLP elements.
An UK wide approach is in line with other existing initiatives such as ESOS and Mandatory Greenhouse Gas Reporting.
The SECR reporting framework will apply to all quoted companies and qualifying large UK companies and LLP’s.
Qualification is based on 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.
To reduce the administrative burden on companies that qualify but are very low energy users the SECR includes a statutory de minimis.
Companies using 40,000 kWh or less in the 12-month period, will not be required to disclose their SECR information.
This aligns with the ESOS approach.
Reporting under the Streamlined Energy and Carbon Reporting framework will be the Director’s report in the annual accounts.
The current requirement for reporting on GHG emissions is for quoted companies only.
This would mean extending the number of companies that report the SECR information from around 1,200 to 11,900.
The Government has increased the rate of Climate Change Levy to recover the revenue from abolishing the CRC.