Streamlined Energy and Carbon Reporting (SECR)

This new mandatory reporting requirement is designed to increase awareness of energy costs within large organisations and provide greater transparency for investors, and other stakeholders, on business energy efficiency, vital to business productivity, the security of energy supplies, and supports the transition to a low-carbon economy.

Who qualifies for SECR?

If your organisation is a UK registered quoted company or large unquoted company or Limited Liability Partnership (LLP) then SECR will apply to you.

• All UK registered quoted companies will continue to report global GHG emissions and intensity metrics in their annual reports, as per Mandatory Greenhouse Gas Reporting. In addition, they will be required to report total energy use and energy efficiency actions taken.
• All ‘large’ unquoted companies or Limited Liability Partnerships (which meet at least 2 of the following criteria) will need to report:
• turnover (£36M+)
• balance sheet (£18M+)
• employees (250+)

Companies using 40,000 kWh or less of energy in the 12-month reporting period will be exempt, as will those unquoted companies where ‘it is not practical to obtain information’.

There is no impact on public organisations, charities or voluntary bodies unless they operate as companies or LLPs and are above the relevant reporting thresholds.

What will you need to report?

SECR requires the disclosure of the following key information as part of your annual reporting:

• Scope 1 & 2 Greenhouse Gas (GHG) Emissions reporting (including an intensity metric)

Mandatory reporting is required on all greenhouse gas emissions associated with energy use, categorised as Scope 1 & 2 emissions. This includes electricity, natural gas, and other fuels used at your sites and in your vehicles, and fugitive emissions from refrigerant leaks/maintenance.

GHG emissions must be normalised against an intensity metric (i.e. GHG emissions per £M turnover, per employee etc).

• Annual energy consumption from building/activities for which the company is responsible

Includes all utilities (electricity, gas, fuels, renewables) and transport assets in the UK and UK overseas territories, expressed in consumption units (i.e. kWh for electricity & gas, litres for other liquid fuels).

• Energy efficiency actions taken during the reporting year

Measures taken to improve the energy efficiency of your buildings and transport fleet during the reporting year have to be disclosed in a narrative format.

What does SECR mean for you?

The impacts of SECR vary depending on your current situation:

• If you already report under Mandatory GHG Reporting (MGHG) legislation or are already voluntarily disclosing your GHG emissions, then you will need to include energy use and energy efficiency measures as part of your disclosure;
• If you currently do not have a GHG reporting/disclosure process in place then you will need to complete annual assessments and disclose in your annual reports;
• It is likely that most organisations who have to report for SECR will also have to submit a notification for the Energy Efficiency Opportunities Scheme (ESOS).

How can GEP Environmental help you?

GEP Environmental can provide tailored support throughout the entire reporting process from understanding the legislation to collecting data to generating a compliant report submission. We are already supporting clients from a variety of sectors including: Real Estate, Manufacturing, Retail, Food & Beverage, IT, Hospitality, Leisure, Higher Education, Transport, Logistics and Public Sector.

• SECR Qualification

Support to help your organisation collect qualification data, generate a SECR Qualification Statement, and advise where the SECR Report should be published (i.e. Directors Report, Sustainability Report, Website, or other).

• Energy & Transport Data

Supporting the collection and verification of your organisation’s energy & transport data for use in SECR reporting

• Calculating your Emissions

Calculating your GHG emissions following international standards and best practise guidance such as the GHG Protocol and ISO 14064-1.

• SECR Reporting

Fully tailored SECR compliant reporting format which can be easily combined into your existing reports and/or be used as a standalone document.

• Independent Verification

Verification of your own GHG calculations to support your SECR disclosure following ISO14064-3, the international standard for GHG verification.

Contact us for further information on SECR and the support we can provide.