Streamlined Energy and Carbon Reporting (SECR)

The Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April 2019, when the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 came into force, following the early closure of the CRC Energy Efficiency Scheme which closed on 31 March 2019. Businesses in scope need to comply for financial years starting on or after 1 April 2019.

SECR will retain the data lost from the CRC reporting, and will affect:

• Quoted companies;
• Large unquoted companies incorporated in the U.K. that meet the definition of ‘large’ under the Companies Act 2006;
• Large Limited Liability Partnerships (LLP).

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

It is important to note that SECR will extend mandatory carbon reporting requirements to an increased number of companies and organisations. Organisations can fall within these three categories even if not for profit or undertaking public activities e.g. universities or NHS Trusts which include companies.

Exemptions

• Companies incorporated outside of the U.K.
• Public sector organisations and,
• Private companies that can provide evidence that they use less than 40,000kWh in a year will not be required to comply.

Quoted companies of all sizes continue to be required to report their global greenhouse gas (GHG) emissions and an intensity ratio through their annual reports. Additionally, they are now required to report their total global energy use and information relating to energy efficiency action alongside the methodology used to calculate the new and existing disclosure requirements.

The new requirements, imposed by the 2018 Regulations on quoted
companies and on large unquoted companies and large LLPs apply to reports for financial years starting on or after 1 April 2019.  The first publication of reports which must comply with the 2018 Regulations is therefore expected to be filed with Companies House in 2020 (e.g. those which cover financial years to 31 March 2020).

You must state in your Directors’ Report, or Energy and Carbon
Report, the methodology or methodologies used.

(Contains public sector information published by the Department for Business, Energy & Industrial Strategy and licensed under the Open Government Licence).