SECR: Reducing potential Net Zero blind spots

What is SECR?

Streamlined Energy and Carbon Reporting (SECR) is a mandatory sustainability reporting framework for large organisations in the UK. It requires qualifying organisations to submit their energy consumption, associated carbon emissions and energy efficiency actions annually to Companies House.

If you are not sure if your business is required to report on SECR, read our SECR pocket guide for a full breakdown of the criteria.

How does carbon reporting create a picture for businesses?

SECR or any form of carbon reporting offers organisations valuable insights into their current carbon emissions performance. However, when organisations report only the minimum SECR reporting requirements, they obtain an incomplete picture of the business’s overall impact on the planet.

By enhancing reporting through improvements, such as including additional voluntary elements (e.g. Scope 1 fugitive emissions), you can mitigate the chances of missing the full picture. By doing so, organisations gain a more comprehensive view of their carbon performance, allowing them to set ambitious but realistic Net Zero carbon targets.

Why is energy efficiency becoming so essential and important to manage?

Energy efficiency has become increasingly essential for organisations and there is a need to pay close attention to how energy is used as well as how much it costs. There are several interconnected factors driving the focus of energy management; these include rising costs, carbon reduction, establishing an effective energy strategy and compliance requirements.  

As energy prices continue to climb, businesses face financial pressure and it’s understandable that there is a need to pay closer attention to where businesses are procuring their energy and how much it costs. Energy efficiency measures help protect against escalating costs. By optimising energy use, organisations can mitigate the impact of rising energy bills on their bottom line.

Reducing energy consumption almost always leads to a corresponding decrease in carbon emissions and, as companies strive to meet carbon reduction targets and contribute to environmental sustainability, energy efficiency becomes a critical pathway.

Accurate reporting and management of energy efficiency is crucial, and organisations should track the success of energy-saving projects. By doing so, they gain confidence in expanding their efforts and decision-making, ensuring that resources are allocated effectively. Compliance schemes now require organisations to report on achieved energy savings – making it easier to monitor energy-saving efforts going forwards.

How does SECR reporting connect compliance requirements with Net Zero goals?

SECR plays a crucial role in connecting compliance requirements with sustainability and Net Zero goals, particularly through annual reporting. SECR mandates that large companies report their energy consumption, carbon emissions, and energy-saving measures in their annual reports. This reporting requirement ensures transparency and accountability.

The transparency associated with SECR reporting is advantageous for businesses aiming to drive their sustainability initiatives forward, and as this data is publicly available it enables organisations to compare their efforts with others in the same sector. By benchmarking against competitors, companies can identify areas for improvement and learn from best practices.

SECR focuses on an intensity metric, specifically the ratio of Green House Gas (GHG) emissions to an appropriate metric. The nature of tracking this intensity ratio allows companies to assess their performance over time against any Net Zero targets the business has set. This offers the business a clear picture of how their journey to Net Zero is going and what areas may need more attention.

How does SECR reporting establish stakeholder accountability?

SECR enables stakeholders (including customers, investors and the public) to hold businesses accountable for their sustainability goals. Transparent reporting fosters trust and ensures that companies actively address sustainability and Net Zero challenges.

How can Amber help?

Our team can provide SECR guidance and support your business on its journey to compliance. Please get in touch to find out how we can support you.