What is SECR?

The Streamlined Energy & Carbon Reporting (SECR) scheme was first introduced in the UK in April 2019, and initiated changes to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations SI 2018/1155. The launch of SECR coincided with the closure of the Carbon Reduction Commitment, and was part of the UK government’s ongoing commitment “to help businesses to improve energy efficiency and reduce carbon emissions.”

SECR aims to build on other nationwide mandatory energy and carbon reporting schemes like Energy Saving Opportunities Scheme (ESOS) and Green House Gas reporting (GHG).

Quoted companies must report their global energy use (in kWh), in addition to their scope 1 & 2 emissions (in CO2), created from activities for which the company is responsible i.e. the operation of its facilities. This includes the annual emissions from the purchase of electricity, heat, steam or cooling for its own use. Scope 1 also includes any fugitive emissions e.g. from air conditioning units.

Large unquoted companies, as well as LLPs must report (as a minimum) their UK energy use (electricity, gas and transport in kWh) in addition to any associated greenhouse gas (GHG) emissions, in tonnes of CO2 only. Transport energy includes fuel directly used by the company, such as: onsite vehicles; company owned/leased vans and cars, including rental cars or employee-owned vehicles, where the organisation are responsible for purchasing the fuel. It does not include fuel associated with air, rail or taxi journeys that the company does not operate, or fuel for the transportation of goods contracted to a third party.