STREAMLINED ENERGY AND CARBON REPORTING

The Streamlined Energy and Carbon Reporting Framework, or SECR for short, is a piece of legislation from the UK Government which replaced the Carbon Reduction Commitment (CRC).

SECR came into place from 1st April 2019 and it is a legal requirement for all large UK companies.

For SECR compliance businesses need to include a detailed analysis of their energy consumption, greenhouse gas emissions and energy management projects in their annual published accounts.

The aim for SECR is to simplify carbon reporting while highlighting to companies where they could reduce energy costs, emissions, and fuel consumption. It is an opportunity to make energy policy and management decisions to benefit the company and the planet.

SECR has a degree of cross-over with the Energy Saving Opportunity Scheme (ESOS) scheme.

SECR does not charge for emissions like the CRC does; instead, the Climate Change Levy (CCL) has been increased to cover reduced tax revenue, from 0.583 p/kWh to 0.847 p/kWh.

International Associates is able to assist clients in meeting the compliance requirements on use a basic or full model of assistance:

• 100% legal compliance
• Fast and accurate reporting
• Increased stakeholder trust
• A full energy overview helping you target operational cost efficiencies
• Services tailored to your business

DOES MY COMPANY NEED TO COMPLY WITH SECR?

f your company is classed as “large” in accordance with the Companies Act 2006 you will need to carry out SECR compliance and provide a record in your end of year accounts.

“Large” companies are those that meet 2 out of the 3 following criteria you will need to do a SECR report:

• A turnover over £36m
• A balance sheet over £18m
• More than 250 employees

In addition, all UK quoted companies (MGHG) will need to submit an SECR report.

Businesses that use less than 40MWh over the reporting period are exempt, but a statement confirming your energy use at this level still needs to be included. Public sector organisations are exempt from having to submit SECR reports.

HOW DO QUOTED COMPANIES MEET SECR COMPLIANCE?

• Quoted Companies SECR
• Energy efficiency action taken
• At least one intensity ratio
• Detailed methodology used
• Previous year’s figures (Except for the first year)
• Underlying global energy use
• Annual Green House Gas (GHG) emissions from activities for which the company is responsible including combustion of fuel and operation of any facility; and the annual emissions from the purchase of electricity, heat, steam or cooling by the company for its own use.

HOW DO NON-QUOTED COMPANIES MEET SECR COMPLIANCE?

• Unquoted Companies and Limited Liability Partnerships (LLPs)
• Energy efficiency action taken
• At least one intensity ratio
• Detailed methodology used
• Previous year’s figures (Except for the first year)
• UK energy use (as a minimum gas, electricity, and transport, including UK offshore area)
• Associated greenhouse gas emissions

FURTHER GUIDANCE

Guidance on the regulations can be found Here

Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements can be found here.