Streamlined Energy and Carbon Reporting (SECR)

Carbon compliance schemes, like the SECR, motivate organizations to adopt cleaner and sustainable practices. By offering a structured framework, these initiatives incentivize efforts to reduce emissions. Ultimately they are crucial in the collective battle against climate change, driving meaningful change across sectors. Embracing these schemes not only benefits the environment but also enhances organizational reputation and resilience.

What is SECR?

In 2019, the UK government introduced the Streamlined Energy and Carbon Reporting scheme, with the aim of encouraging organisations to become more energy efficient and less GHG emitting. This initiative is focused at promoting transparency around a company's energy consumption and carbon footprint reduction.

Who does SECR Apply To?

Streamlined Energy and Carbon Reporting (SECR), applies to certain businesses in the UK that meet at least two of the following criteria:
an annual turnover of £36 million or more.
a balance sheet total of £18 million or more.
250 employees or more.
This regulation aims to enhance transparency and encourage organizations to improve their energy efficiency and carbon management. Businesses that fit these criteria are required to report their energy use and associated greenhouse gas emissions annually. By complying with SECR, companies contribute to the UK's broader sustainability goals.
In addition, this requirements may extend to some unquoted companies and LLP's that meet the threshold. Organisations outside the these criteria, can voluntarily choose comply with SECR to showcase their commitment to sustainability and the 2050 net zero mandate.

What needs to be reported?

For companies that are required to comply with the SECR framework, yearly reports must include the following:
Total energy consumption which needs to be measured in kilowatt-hours (kWh), which would include energy used in operations, transportation and other business activities.
The disclosure of total GHG emissions in CO2e, covering scope 1 and 2 emissions. Scope 3 emissions are not compulsory at this time, but are encouraged to be disclosed.
Companies must outline steps taken to improve energy efficiency over a reporting period, such as energy - saving technologies or optimizing processes.
Companies must report and disclose on intensity metrics that are aligned with energy usage with a relevant business factor such as production volume or turnover.

Benefits of SECR

Firstly, it promotes enhanced transparency, allowing stakeholders to better understand your environmental impact.
Additionally, it can lead to significant cost savings through improved energy efficiency and resource management.
Furthermore, embracing SECR demonstrates corporate responsibility which enhances brand image and reputations with stakeholders, investors and customers.
Commitment to sustainable practices and compliance with SECR can prevent penalties and fines that could dent a company's standings with regulatory authorities.

How can we help?

At Energy Guardians, we recognize that SECR compliance can be challenging. Our dedicated team of experts are here to streamline the process for your organization. With our specialization in energy and carbon, we will assist you in data collection, emission calculations, and the creation of a precise and compliant report Trust us to help you navigate the complexities of compliance effortlessly.