Streamlined Energy and

Carbon Reporting

SECR Compliance

Since 1 April 2019, it has been mandatory for all qualifying businesses to report on their energy, transport and carbon generation every financial year. The Streamlined Energy and Carbon Reporting (SECR) framework was introduced to encourage more businesses to implement measures for both economic and environmental benefit. It also helps to capture links between environmental KPIs and financial performance. SECR will replace CRC. SECR will not charge for emissions like CRC did, instead the CCL levy has been increased to cover lost revenue.


Which companies need to comply with SECR?

SECR will apply to companies registered with Companies House meeting any two of the following three criteria:

  • 250 or more employees
  • Annual turnover of £36m or more
  • £18m or more in net asset value

Charities and Multi Academy Trusts (MATs) will need to comply with SECR. Businesses using 40Mwh or less in a year are exempt, but need to produce a statement confirming their energy use. Public sector organisations are exempt from SECR reporting requirements. 

How does a company become SECR compliant?

In order to comply with the new framework, companies need to record information on their business' total global emissions for energy and transport, with an intensity ratio, and the split between UK and offshore use, as well as any efficiency action taken. Unquoted companies and LLPs will need to report on UK energy use, with a minimum of electricity , gas and transport looking at Scope 1 and 2 greenhouse gas emissions. Emissions reporting for quoted companies will need to include Global GHG Protocol Scope 1 and 2 emissions. After the initial year, companies will need to report on the previous year's figures to achieve SECR compliance. The SECR report follows the company's financial year and needs to be lodged along with the AFS at Companies House.

What are the penalties for non-compliance?

SECR is enforced by the Conduct Committee of the Financial Reporting Council and they monitor the compliance of reports submitted to Companies House. Failure to comply will see annual reports rejected, which will then incur a late filing penalty under section 451 of the Companies Act 2006. This could then escalate to civil action taken against directors or members of an LLP under section 451 of the Act.

Longer term compliance planning

Companies need to comply with SECR every financial year, so putting a long-term plan in place can help make this process smoother and faster in years to come. Having a good data management plan in place is a significant part of the compliance workload. There is a link between ESOS and SECR. While SECR does not require formal audits, it does gather the required data needed for a large part of ESOS. SECR does not mandate you make carbon reduction changes but most want to do so if it makes commercial sense. These can be referenced in ESOS.

What are the benefits of reporting?

Measuring and reporting on environmental performance highlights opportunities to improve your business' energy efficiency and cut costs as well as carbon emissions. For advice on SECR for your business, complete the form above.

We were struggling to pull together everything we needed to build a comprehensive report to comply with SECR. Sustainable Advantage collated the data effortlessly and not only created a SECR report that produced a road map for how we could reduce our carbon emissions but also made significant cost savings for us."

Head of Communications