SECR

SECR Reporting Requirements & Compliance: A Guide for UK Companies

Learn how the Streamlined Energy & Carbon Reporting (SECR) framework works, which companies must comply and what must be disclosed in the Directors’ Report.

Our SECR compliance support provides organisations with guidance and end-to-end support in preparing accurate and compliant SECR disclosures.

What is SECR Reporting?

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.

Who Needs to Comply with SECR?

The Streamlined Energy & Carbon Reporting (SECR) reporting framework applies 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.

What Must Be Reported Under SECR Reporting Requirements?

The Streamlined Energy & Carbon Reporting (SECR) requirements set out what qualifying UK companies must disclose in their annual Directors’ Report.

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.
at least one intensity ratio
energy efficiency actions taken
methodology used for calculations

Unquoted companies can go beyond this minimum by including scope 3 emissions that are particularly material in the company’s operations.

SECR Intensity Ratios

Under the Streamlined Energy & Carbon Reporting (SECR) framework, organisations must include at least one intensity ratio to show how energy use or emissions relate to business activity.

An intensity ratio helps stakeholders understand emissions in context rather than as absolute figures.

Common examples include:

Tonnes of CO₂e per employee
Tonnes of CO₂e per £ million of revenue
Energy consumption per square metre of floor area
Emissions per unit of production

The most appropriate ratio depends on the nature of the organisation’s activities. Companies should choose a metric that provides a meaningful comparison of performance over time.

SECR FAQ Section

What emissions are in the scope of SECR?

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.

When does SECR come into force?

Who does SECR apply to?

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.

What is the SECR qualifying criteria?

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.

How will SECR be reported?

Number of companies affected?

How will the UK government recoup revenue they have lost from the sale of CRC allowances?

Final thoughts

Understanding the SECR framework is essential for qualifying UK companies. Ensuring accurate energy consumption data, emissions calculations and appropriate intensity ratios are reported helps organisations remain compliant with UK regulations.

Many organisations require support gathering energy data, calculating emissions and preparing compliant SECR disclosures for their Directors’ Report. Smart GreenTech Solutions provides specialist support through our SECR reporting services to help businesses meet their reporting obligations.

Get Support With Your SECR Reporting

If your organisation requires assistance with Streamlined Energy & Carbon Reporting (SECR), our consultants can support you with energy data collection, emissions calculations and SECR report preparation.

Call us: +44 (0) 3300 881451

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