Streamlined Energy and Carbon Reporting (SECR) Guidance

June 3, 2019 | Guidance

What is Streamlined Energy and Carbon Reporting?

Streamlined Energy and Carbon Reporting (SECR) is a mandatory reporting scheme that requires qualifying UK companies to prepare and file energy and carbon information in their Directors’ Report.

SECR was introduced by the UK Government in April 2019 under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 with the intention of streamlining, and as a result simplifying, emissions reporting requirements for qualifying organisations.

For a number of organisations, SECR replaces the Carbon Reduction Commitment (CRC). The scheme also replaces and extends Mandatory Greenhouse Gas Reporting (MGHG), which required quoted companies only to report their annual GHG emissions.

Do I need to comply with SECR? Diagram

Who Needs to Comply with SECR?

You must comply with SECR if you are:

  • A quoted company
  • A “large” unquoted company or
  • A Limited Liability Partnership (LLP)

Quoted companies are those whose shares can be bought or sold on the stock exchange. A “large” unquoted company is defined as one which satisfies two or more of the following requirements:

  • An annual turnover of £36 million or more
  • A balance sheet total of £18 million or more
  • 250 or more employees

Low Energy Users

Companies who fit the above criteria but who consume 40MWh or less during the reporting period are not required to disclose energy and carbon information, however, they are required to state why it is not being disclosed.

What Do You Need To Disclose Under SECR?

To comply with SECR, qualifying companies must disclose:

  • Their energy use and greenhouse gas (GHG) emissions for their financial year reporting period
  • At least one intensity ratio
  • The energy efficiency actions taken
  • The methodology used to calculate the required information

Why Anthesis?

We help our clients to understand what their data is telling them so that the information disclosed in corporate reports is meaningful, and motivational to staff, customers and other stakeholders.

We have been assisting clients for many years to realise the benefits of sustainable operations, and compliance just becomes a minor task within the wider approach. Our experienced team have a long history of delivering similar projects related to MGHG, CDP and support organisations looking to implement the recommendations of the Financial Stability Board’s TCFD.

SECR Update – COVID-19

If you are unable to meet your company accounts filing deadline due to COVID-19, you may apply for a 3-month extension. Please note that you must apply for the extension before the report is due. See Government guidance for more information.

As you don’t require a site visit for SECR, we can still support you to complete your SECR report on time. However, as the data collection required may take longer to complete in current conditions, and multiple companies seeking an extension may lead to an increase in demand for support, we recommend that you start the SECR process as soon as possible.

We would be delighted to discuss how we can support you to complete your SECR report.

Ben Lynch
Director, UK

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