Streamlined Energy and Carbon Reporting (SECR)

What actions are you taking to reduce energy use and cut carbon emissions?

What is SECR?

  • SECR, or Streamlined Energy & Carbon Reporting, is designed to bring all UK companies under one reporting umbrella.

    An SECR is submitted to Companies House as part of the annual accounts. Businesses are required to report on what actions they have taken to reduce energy use and cut carbon emissions but not plans for the future.

  • SECR is mandatory requirement for reporting of global annual energy use, greenhouse gas emissions and related information by:

    • Companies listed on the stock Exchange

    • Unquoted Companies or organisations (including charities) that qualify as large under the Companies Act 2006 definition. Academy Trusts are included if they are in-scope.

    • Limited Liability Partnerships (LLPs) that qualify as large

    • It does not apply to organisations not registered in the UK

    • SECR responsibility for reporting applies to the energy user in a rented building, i.e. the tenant.

    • Organisations using total energy from gas, electricity, and transport less than 40,000 kWh threshold can be exempt.

    • Companies outside these definitions are encouraged to report voluntarily.

Benefits of SECR

  • We collate all your half hourly data and compare it year on year.

    This shows energy usage patterns over seasons and also overnight baseloads.

    Closer monitoring will show where energy wastage is happening. It provides an accurate assessment of how much PV will reduce your usage.

  • We develop savings ideas into a scoping study so that tender specifications can be achieved from renewables or technology providers. This will save your staff time and reduce the project risk.

  • It is an essential part of SECR and ESOS to raise the profile of investments required to reduce energy usage and future proof your business against rising energy costs and rising carbon taxes.

    Embodied carbon is not usually included in plans but needs to be calculated as far as possible to evaluate the real world carbon impact.

  • Understand how far you can go using verified available technologies. Avoid the temptation to rely on methods that have yet to be developed or verified by approving bodies - such as Direct Air Capture, Offsetting, conversion to hydrogen.

Different SECR approaches

GHG Reporting Protocol, ISO 1404-1 and Climate Disclosure Standards Board, Global Reporting Initiative (GRI) Sustainability Reporting Guidelines and the protocol must be stated.

  • Scope 1 and Scope 2 emissions are included but Scope 3 is voluntary

  • Reporting includes direct emissions and fugitive emissions (unintentional)

  • Note conversion factors are updated every year

  • Reporting can utilise information from other schemes such as ESOS, CCA, EU ETS

Streamlined Energy & Carbon Reporting can be offered for annual reporting of your organisation using the same approach as ESOS but applying the GHG Protocol Corporate Standard enabling direct (Scope 1 and Scope 2) emissions to be measured for the accounting period.

The first task is to decide on the best approach for inclusion of entities (either Equity based or Control based) then define the operational boundaries. It is important to align the GHG approach with the financial reporting approach.

  • From sources owned or controlled by the company such as from combustion, furnaces, vehicles or process equipment. Biomass combustion emissions are classified separately. Emissions not covered by the Kyoto Protocol (CFC’s, NOx) can still be accounted for outside Scope 1

  • This accounts for GHG emissions from the use of purchased electricity consumed by the company.

  • This is an optional reporting category for all other indirect emissions. These are as a consequence of the company emissions but not owned or controlled by the company. This may however be a significant factor in a company’s operations and therefore of interest to start understanding and reporting these emissions.

  • Defining a base year for benchmarking against. Develop a consistent approach to recalculating base year emissions with structural changes or outsourcing. A ‘significance threshold’ should be defined for establishing rules for recalculation.

    Using Key Performance Indicators such as Energy Intensity Ratios tCO2/£ turnover or unit of product produced to be reported in your company reports using a compliant methodology.

    Identifying all the sources for SCOPE1 and SCOPE2 emissions and any omissions or variations. Explaining changes that have impacted emissions.

    Report any progress towards business targets and setting GHG reduction targets. Defining meaningful programmes will enable organisations to deliver reductions managed by individual sites, although some set company wide targets without knowing how they are going to achieve the reductions.

    Offsets and sequestering carbon also need to be defined within the protocol.

    Data needs to be evidenced and verified.

    SECR includes a wider range of reporting requirements on waste, supply chain and environmental impact reporting. ISO14001 or ISO50001 can also assist with your compliance in these areas.

Delivering energy efficiency savings is an essential output of any audit. We offer a comprehensive appraisal of all the suitable options for your business.

ENERGY EFFICIENCY

Why use us?

We have experience across a range of organisations and are active in helping companies, schools and healthcare settings to deliver renewables’ programmes.

It is in all of our interest that carbon reports are more than a compliance tool and progress into action plans which reduce emissions.

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