What is SECR? 

The Streamlined Energy and Carbon Reporting (SECR) regulation is a crucial element of the UK’s ambitious climate strategy. Introduced on 1st April 2019, it aims to improve energy efficiency and reduce carbon emissions across large businesses.

Achieving the UK’s climate goals requires a robust regulatory framework and effective enforcement. The SECR is instrumental in advancing the UK’s Net Zero plan by encouraging businesses to implement energy-saving measures which directly contribute to the overall reduction of emissions in the business sector.

Who is affected by the SECR?

The SECR applies to all large UK-incorporated companies, including LLPs, that meet at least two of the following criteria:
• Turnover of £36 million or more.
• Balance sheet total of £18 million or more.
• 250 employees or more.

What are you expected to report?

Businesses who meet the above requirements must publish the following information alongside their annual reporting:
• Annual energy use in kWh relating to electricity consumption, gas combustion and transport.
• Associated Greenhouse gas emissions from the above (total UK energy use from electricity, gas and transport), expressed in tonnes of CO2e (carbon dioxide equivalent).
• At least one intensity ratio to allow comparison over time.
• The methodology used to calculate the required information.
• A narrative of the measures taken to improve energy efficiency in the relevant year.
• Equivalent figures from the prior year to enable comparison.

Why is this relevant?

SECR has played a crucial role in tracking emissions from the business sector in the UK, impacting approximately 11,900 companies and covering about 42 million tonnes of CO2e (12% of the UK’s total emissions).

Its implementation has helped increase awareness of energy costs within organisations and has led to significant energy efficiency improvements. Furthermore, reporting companies have reported substantial cost savings from energy use reductions.

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