In March 2018, the UK government’s Department for Business, Energy and Industrial Strategy (BEIS) published the Streamlined Energy and Carbon Reporting (SECR) regulations, which took effect on 1 April 2019.
The new mandatory reporting framework replaces the CRC Energy Efficiency Scheme (CRC EES) and extends the scope of the Mandatory Greenhouse Gas Reporting (MGHG) regulations from only listed companies to all large*1 organisations. This is both quoted companies and large unquoted companies (including charitable companies and large Limited Liability Partnerships (LLPs)).
Organisations exempt from the full SECR disclosure include those that can confirm they have used 40,000 kWh of energy or less over the reporting period; where the directors consider the disclosure of the energy and carbon information would be seriously prejudicial to the interests of the organisation; and where it is not practical to obtain the information requested in the disclosure.
The new requirements, imposed by the 2018 Regulations on quoted companies and unquoted large companies, apply to reports for financial years starting on or after 1 April 2019. Companies in scope of the legislation will need to include their energy and carbon information in their Directors’ Report as part of their annual filing obligations.
Much like the outgoing Mandatory Greenhouse Gas (MGHG) reporting requirements, quoted companies will be required to report their global greenhouse emissions and an intensity ratio through their annual reports. Additionally, quoted companies are required to report their total global energy use and information relating to energy efficiency actions, alongside the methodology used to calculate the data.
To comply with SECR, large unquoted companies and LLPs are required to report their UK energy use and associated greenhouse gas emissions relating to gas, electricity and transport, as well as an intensity ratio and information relating to energy efficiency actions.
For many organisations it will be the first time they have had to capture, calculate and report on the energy use and carbon emissions from their operations. It is understood that the majority of organisations will already have all the data but will need assistance with calculating energy use and carbon emissions from this raw data. The UK government provides carbon reporting guidance but there are tools available on the market to make the process simpler and quicker than doing it in house. For more information, full SECR reporting guidance can be found on the BEIS website.
CBI members Ecometrica, Award-winning Sustainability Reporting Software firm, have developed a fully compliant and audit ready SECR Reporting Software tool. This allows companies to easily collect, calculate, and report to the new requirements. If you are one of the approximately 11,000 companies within the scope of the new regulations, Ecometrica’s SECR compliance tool will help your company meet the requirements of the new regulations.
To get in touch with one of Ecometrica’s sustainability experts, to see how they can help you, click here.
*1 Large companies are defined by the Companies Act 2006 as those which have two or more of the following criteria for the reporting period:
- More than 250 employees
- An annual turnover greater than £36m
- An annual balance sheet greater than £18m