SECR (Streamlined Energy and Carbon Reporting) is a UK framework requiring certain companies to disclose their energy use and greenhouse gas emissions within their annual reporting.
With businesses facing increasing pressure to understand and reduce their environmental impact, SECR provides a framework for measuring and reporting energy consumption and carbon emissions.
But what is SECR, and does your business need to complete a report?
What is SECR?
SECR is a UK reporting framework requiring certain companies to disclose information about their energy use and greenhouse gas emissions within their annual reporting.
A SECR report typically includes:
- Electricity, gas and fuel consumption
- Scope 1 and Scope 2 emissions · Relevant Scope 3 emissions, such as business travel
- Emissions intensity ratios
- Energy efficiency measures undertaken during the year
- The methodology and conversion factors used to calculate emissions
The aim is not simply to report emissions, but to encourage businesses to understand their energy use and identify opportunities to reduce both emissions and costs.
Who needs to complete a SECR report?
SECR generally applies where an organisation meets at least two of the following three criteria:
- More than 250 employees
- More than £36 million turnover
- More than £18 million balance sheet total
There is also a low-energy exemption for organisations whose total energy consumption does not exceed 40,000 kWh during the relevant reporting period.
Do you need to report if you’re below the thresholds?
You don’t need to be legally required to report to benefit from understanding your energy and emissions.
Even if your business falls below the SECR thresholds, voluntary reporting can still provide significant benefits:
- Understand your carbon footprint: Measuring your emissions gives you a clear baseline and helps identify your biggest sources of carbon.
- Reduce costs: Reviewing energy consumption can highlight opportunities to improve efficiency, reduce energy use and lower operating costs.
- Prepare for the future: Starting to collect reliable emissions data now means your business is better prepared for changing sustainability requirements.
- Meet customer expectations: Larger organisations are increasingly asking suppliers for environmental information. Having accurate emissions data can help when responding to tenders and customer sustainability questionnaires.
- Demonstrate your commitment: Voluntary reporting provides evidence of your sustainability efforts rather than relying on general environmental claims.
SECR should be more than a compliance exercise. Whether mandatory or voluntary, the reporting process can help businesses understand where their emissions come from, identify opportunities for improvement and create a clear starting point for a wider carbon reduction strategy.
FAQs
What does SECR stand for? Streamlined Energy and Carbon Reporting.
Who has to comply with SECR? Companies meeting at least two of: 250+ employees, £36m+ turnover, or £18m+ balance sheet total.
Is there a SECR exemption? Yes, a low-energy exemption applies if total energy consumption is 40,000 kWh or less in the reporting period.
