Streamlined Energy and Carbon Reporting (SECR)

What is SECR?

SECR is a mandatory reporting framework that applies to large businesses and includes reporting for Greenhouse Gas (GHG), Energy Saving Opportunity Scheme (ESOS), Climate Change Agreements (CCA) Scheme and the EU Emissions Trading Scheme. This was made regulation in April 2019 by the UK Government.

This regulation was designed to increase awareness of energy costs, provide data to inform the adoption of energy efficiency measures and help to reduce the impact on climate change. It provides a simplified reporting format to identify a business’s consumption of energy and carbon emissions and widens the scope of applicable businesses.

It is enforced by the Conduct Committee of the Financial Reporting Council who is responsible for checking the compliance of the provided information within your SECR report. Financial penalties for non-compliance are yet to be published but it is recommended SECR is carried out to avoid potential fines. Furthermore, this will provide key insight data to save on energy and reduce carbon footprint.

More information is available by speaking to Jason Thackray on 0333 9000 246 or email :

What do businesses need to disclose?

For obligated businesses, you must publish, as a minimum, the following:

  • Annual UK Energy Use (kWh) –

This must include the purchase and consumption of electricity, consumption of gas and consumption of transport fuel and associated greenhouse gas emissions (CO2e). The data collected to calculate these consumptions must be verifiable such as from an invoice or annual statement. Where verifiable data is unavailable, data should be taken as an estimate from other comparable periods.

  • Emissions Intensity Ratio –

The report requires at least one metric which can be used to express the business’ annual emissions. This metric must be used in future reports for comparability and is it recommended that businesses use the tones of CO2e per suitable business metric. Example, per site / employee / hotel accommodation etc.

  • Methodologies –

Businesses must disclose the methodology they have used to calculate the required information from their verified data. There are widely recognised independent standards available to use for calculating this information such as the Greenhouse Gas (GHG) Reporting Protocol. Such methodologies will be acceptable methods of calculation.

  • Narrative of Measures Taken –

The SECR report also required a narrative of the measures taken to increase energy efficiency in the reporting year. These are acts that have had a direct impact on energy efficiency and, if possible, provide the resulting energy savings. If no measures have been taken to improve energy efficiency this should be reported.

Who needs to report and where?

Businesses must disclose their accounts within 9 months of their 1st financial year after April 2019. In future reporting periods, the prior year’s figures will be required for comparison but are not applicable in the first year of reporting.

A business is legally obligated to report under SECR if they meet two or more of the following criteria:

  • Turnover (gross income) of £36 million or more
  • Balance sheet assets of £18 million or more
  • 250 employees or more

However, where the business does not consume more than 40,000 kWh of energy within a reporting period, it qualifies as a low energy user and is exempt from reporting under these regulations. This must be included as a statement in the business’s directors’ report. To assess the 40,000 kWh thresholds, businesses must consider all their energy consumed from gas, electric and transport fuel within the UK that they are directly responsible for, as a minimum.

The Department for Business, Energy and Industrial Strategy (BEIS) encourage voluntary reporting for those businesses that do not meet two or more of the criteria under the 2018 regulation.