Utilising Ecometrica Sustainability for the new Streamlined Energy and Carbon Reporting requirements couldn’t be easier. Ecometrica Sustainability allows you to easily collect, calculate and report your energy use and carbon emissions in compliance with the new framework.
For many companies, SECR will be the first time they have to collect and report on energy and carbon data. Using Ecometrica Sustainability removes the worry about not collecting or reporting the correct information.
What is SECR?
The new SECR regulations are replacing the Carbon Reduction Commitment (CRC) scheme from 1st April 2019 in an attempt to simplify reporting requirements while bringing almost 8,000 more businesses into the UK’s mandatory carbon reporting. The reporting requirement of energy and carbon for all large organisations in the UK (except for some exemptions, see below) is in line with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations.
SECR aims to:
- Increase awareness around energy costs within organisations
- Level the reporting burden between quoted and unquoted organisations
- Provide organisations with the right data to inform energy efficiency measures and opportunities to reduce their impact on climate change
- To provide greater transparency for investors and other stakeholders.
Who has to report under SECR, and where?
For financial years starting on or after 1st April 2019, the new Streamlined Energy and Carbon Reporting (SECR) regulations will affect:
- Quoted companies;
- Large* unquoted companies;
- Large* Limited Liability Partnerships (LLP)
Organisations exempt from the full SECR disclosure include those that can confirm they have used 40,000 kWh of energy or less over the reporting period, where the directors consider the disclosure of the energy and carbon information would be seriously prejudicial to the interests of the organisation, and where it is not practical to obtain the information requested in the disclosure.
Companies in scope of the legislation will need to include their energy and carbon information in their Directors’ Report as part of their annual filing obligations. Full SECR reporting guidance is published in full by the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS).
What needs to be reported?
Apart from an increase in the number of organisations that are required to report compared to the outgoing Mandatory Greenhouse Gas requirements, SECR includes both carbon and energy reporting. There are different reporting requirements whether you are reporting as a quoted company, or either as large unquoted company or LLP.
*Large companies are defined by the Companies Act 2006 as those which have two or more of the following criteria for the reporting period:
- More than 250 employees
- An annual turnover greater than £36m
- An annual balance sheet greater than £18m
- Annual greenhouse gas 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 us
- Underlying global energy use
- Previous year’s figures for energy use and greenhouse gas emissions
- At least one intensity ratio
- Energy efficiency action taken
- Methodology used
Large unquoted companies and LLPs
UK energy use (as a minimum gas, electricity and transport, including UK offshore area)
Associated greenhouse gas emissions
Previous year’s figures for energy use and greenhouse gas emissions
At least one intensity ratio
Energy efficiency action taken