Understanding SECR (Streamlined Energy and Carbon Reporting)

Understanding SECR (Streamlined Energy and Carbon Reporting)
With the media drawing attention to net zero, your organisation is more than likely aware of carbon reporting to ensure emissions within your organisation are being monitored and lowered. SECR can help your business with that. This blog will help your business understand if they qualify for SECR reporting and how it can benefit you…

What is SECR?
SECR, which came into place in April 2019, replaced the Carbon Reduction Commitment (CRC) scheme, simplifying reporting requirements and drawing in an additional 8,000 businesses into mandatory carbon reporting. SECR extends the reporting requirements for quoted companies and mandates new annual disclosures for large unquoted and limited liability partnerships (LLPs).

Who needs to comply with SECR?
SECR applies to all UK quoted companies and UK registered businesses that meet two or more of the following criteria in the financial year that they are reporting in:

  • More than 250 employees
  • A turnover of £36m or more
  • A balance sheet total of more than £18m

The following companies are exempt from reporting SECR:

  • Charities and public sector organisations.
  • UK Subsidiaries, who meet the eligibility criteria, but are covered by obligations that are already met by parent group.
  • Companies that use less than 40,000 kWh during the reporting year.

Why is SECR important?
The mandatory reporting 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.

What are you required to do to comply with SECR?

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

  • Scope 1 & 2 Greenhouse gas (GHG) emissions: Any Scope 1 and 2 emissions including electricity, natural gas, other fuels used at your sites and in your vehicles, including fugitive emissions from refrigerant leaks/maintenance must be reported in SECR.
  • Anything your organisation did to reduce its energy consumption: This is anything you did as an organisation to reduce your consumption, from switching to LED lights to implementing energy efficiency programmes.

Companies are encouraged to go beyond the minimum requirements and voluntarily include any other material source of energy use or carbon emissions outside these boundaries and report on Scope 3 emissions.

How can Beond help?
At Beond, we will review your energy consumption profile and identify opportunities where we can implement innovative solutions. As part of the wider eEnergy group, we can offer you end-to-end energy-saving solutions, from reporting to the implementation of energy-saving projects. If your organisation would like our support, please contact Beond on 0208 634 7533 or email us at info@beondgroup.com