NEWS & INSIGHTS

What to Include in the SECR’s Energy Efficiency Action Section

Streamlined Energy and Carbon Reporting (SECR) is a UK regulatory requirement that necessitates qualifying companies to disclose energy and carbon information within their Directors’ Reports.

Central to the SECR is the “Energy Efficiency Action” section, which provides a narrative account of the principal measures taken by the company over the financial year to enhance energy efficiency.

In this blog, we will outline exactly what you need to include in the ‘Energy Efficiency Action’, including real-world examples and advice on services that provide SECR reporting.

Is SECR Reporting Obligatory for my Company?

The SECR framework applies to large UK companies, LLPs, and qualifying groups. Specifically, these are companies that meet at least two of the following criteria in a financial year: over £36 million annual turnover, over £18 million balance sheet total, or more than 250 employees.

These companies must include a detailed Energy Efficiency Action section in their annual reports.

Read our blog here for an in-depth look at SECR reporting.

What is the ‘Energy Efficiency Action’ Section of an SECR report?

The “Energy Efficiency Action” in the Streamlined Energy and Carbon Reporting (SECR) framework is a specific section of a company’s annual report. It describes the principal measures taken during the financial year to improve energy efficiency.

This section is essential for organisations subject to SECR, as it provides a narrative on how they are actively working to reduce energy consumption and carbon emissions.

The aim is to create transparency around the company’s efforts to improve energy efficiency and to inform stakeholders—including investors, customers, and regulatory bodies—about the progress and impacts of these initiatives.

What Do I Need to Include in the Energy Efficiency Action Section?

The Energy Efficiency Action section should detail measures that directly impact energy efficiency. Companies should describe the actions taken and, where feasible, quantify the resulting energy savings. Here’s what typically needs to be included in the Energy Efficiency Action section:

  • Description of Actions: The report must narrate the key measures undertaken to enhance energy efficiency. These could range from technological upgrades, changes in operational processes, to behavioural adjustments within the organisation.
  • Impact of Actions: Where possible, the report should also document the outcomes or benefits of these actions, such as reductions in energy consumption or carbon emissions. Quantifying the impact can provide clear insights into the effectiveness of the measures taken.
  • Omissions: If no energy efficiency actions were taken during the reporting period, this must be explicitly stated in the section.

Examples of such measures include:

  • Upgrading Equipment: Replacing outdated machinery or systems, such as boilers, with energy-efficient alternatives.
  • Smart Metering: Installing smart meters across facilities to better monitor and manage energy usage.
  • Sustainable Transport Solutions: Transitioning to electric vehicles and minimising business travel through virtual meetings.
  • Energy-Saving Projects: Implementing cost-effective investments like efficient lighting, pumps, and motors.
  • Behavioural Changes: Initiating programmes to alter staff habits towards more energy-conscious practices.

 

Utilising ESOS, ISO 50001, and Display Energy Certificates

One common way of aiming to enhance your company’s energy efficiency is by utilising frameworks such as the Energy Savings Opportunity Scheme (ESOS), ISO 50001 standards, and Display Energy Certificates.

ESOS is a mandatory energy assessment scheme in the UK which compels large enterprises to undertake comprehensive energy audits every four years. ISO 50001 is a globally recognised framework that helps organisations establish, implement, maintain, and improve energy management systems. By aligning with these standards, businesses can not only reduce their environmental impact but also lower their bills.

Additionally, Display Energy Certificates (DECs) provide a visible rating of a building’s energy performance, encouraging transparency and ongoing improvements. Together, these tools enable companies to demonstrate a strong commitment to sustainable practices, meeting regulatory requirements while fostering an environment of continuous energy performance enhancement. By integrating these frameworks into their operations, businesses can optimise energy usage, reduce carbon footprints, and showcase leadership in energy management.

Real-World Examples

For a practical understanding, consider how companies like Insignis Academy Trust have reported their energy actions. The Trust has implemented a range of measures, such as:

  • Upgrading to more efficient gas boilers and air source heat pumps.
  • Installing energy management systems for better consumption tracking.
  • Switching to LED lighting and planning for solar panel installations.
  • Encouraging behaviour changes and gas usage reductions during low-demand periods.

Insignis Academy Trust worked closely with ClearVUE.Business, a hardware and software solution that measures energy in real-time. In this way, they were able to create their SECR report in seconds, quickly accessing data easily creating their report.

Getting Started Easily

Effectively managing and reporting energy efficiency actions not only complies with regulatory requirements but also significantly enhances a company’s sustainability profile. To streamline this process, using dedicated SECR software can be incredibly beneficial.

ClearVUE.Business offers a comprehensive solution with its ClearVUE.Zero energy management system, designed to ease the complexities of SECR reporting.

Explore how ClearVUE can assist your organisation by watching the video below.


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