The importance of carbon disclosure is increasing as efforts to reduce emissions continue. To reach its decarbonisation targets, the UK has introduced mandatory SECR reporting for qualifying businesses.
Table of Contents
What is Streamlined Energy and Carbon Reporting?
Streamlined Energy and Carbon Reporting (SECR) was introduced in April 2019 by the UK government to encourage carbon reduction and give organisations a clearer view of their energy usage. SECR requires businesses to report their energy and carbon emissions alongside their financial accounts, with a written description of their energy efficiency actions taken during the reporting period, at least one intensity ratio, and the methodology used to calculate the submitted information.
Compliance with the SECR scheme is mandatory for quoted companies, large unquoted companies, and Limited Liability Partnerships (LLP). A company is defined as an LLP if it meets two or more of the following requirements: annual turnover of £36 million or more, balance sheet total of £18 million or more, or 250 or more employees.
Why is SECR important?
Reporting energy and carbon records through SECR not only meets requirements but also has significant corporate reputational benefits. It allows organisations to disclose their sustainability goals and practices, provides evidence of their progress through consumption and emissions data, and attracts investments that drive future growth.
Transparent climate reporting can enhance corporate reputation, build consumer confidence, accelerate innovation, and improve financial risk management.
SECR templates and examples
In general, obligated companies must include in their SECR reports their energy consumption, the associated greenhouse gas emissions (using UK conversion factors), energy efficiency measures, emissions with reference to an intensity metric, and an energy efficiency action plan.
There are two SECR reporting templates, depending on your company type.
For both quoted and unquoted/LLP companies, the following information is mandatory for SECR filings:
|GHG protocol scope||Quoted companies||Large unquoted companies and large LLPs|
|Scope 1 (direct) GHG emissions||Global scope 1 emissions reporting||UK scope 1 emissions
(emissions related to UK energy use)
|Scope 2 (energy indirect) emissions||Global scope 2 emissions||UK scope 2 emissions
(emissions related to UK energy use)
|Scope 3 (other indirect) emissions||Energy use and related emissions from business
travel in rental cars or employee-owned vehicles
where they are responsible for purchasing fuel.
Other scope 3 emissions voluntary, but strongly encouraged
Example SECR requirements for quoted companies
Quoted companies must include global consumption and scope 1 and 2 emissions data for the current reporting year and a comparison reporting year (ideally a year that best exemplifies the typical energy consumption the company).
In the report, quoted companies must include an intensity ratio (tCO2e [gross Scope 1 + 2] / e.g. £100,000 revenue) and their calculation methodology, as these metrics provide crucial insights into a company’s carbon emissions and energy use.
A descriptive energy efficiency action plan must also be included. This is a narrative report explaining how the company intends to reduce energy consumption and GHG emissions. All these together help stakeholders understand the environmental impact of the business operations and make informed decisions about their investments.
Example SECR requirements for unquoted large companies and large LLPs
Unquoted large companies and large LLPs must include energy consumption and related scope 1 and 2 emissions from UK and offshore energy supply. It is optional to include global consumption and emissions data.
Companies in this category must include scope 3 emissions from business travel in rental cars or employee-owned vehicles (where company is responsible for purchasing the fuel). All other scope 3 category emissions data are optional.
SECR reports for large unquoted companies and LLPs must include intensity ratios, their calculation methodology, and a descriptive energy efficiency action plan.
Streamline SECR reporting for your business with ClearVUE.Zero
ClearVUE.Zero is a powerful tool that simplifies the process of gathering scope 1 and scope 2 emissions data along with energy consumption data for all business sites, providing up-to-date emissions factors for SECR reporting. Additionally, with just a few clicks, the system can generate a clean and presentable SECR report that includes all mandatory information regarding consumption, emissions, and intensity ratios, while allowing users to manually enter their energy efficiency action plan.
Furthermore, our team of energy and sustainability consultants provides full SECR reporting guidance to ClearVUE.Zero users.
Book a free demonstration of our platform and associated services today.