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Your pocket guide to SECR

Sustainability-related topics and requirements are climbing up the business agenda, and business leaders are beginning to see the value in carbon reporting. The Streamlined Energy and Carbon Reporting (SECR) framework is a compliance tool that could be used to bring a business closer to its overall sustainability goals. In this blog, we introduce what SECR is and why it’s crucial for businesses to comply and see the benefits of complying.

What is SECR?

Introduced in April 2019, SECR is a regulatory framework which mandates certain UK companies to report on their energy consumption and greenhouse gas emissions. It primarily aims to enhance transparency and encourage businesses to take proactive steps towards reducing their carbon footprint. Companies can choose to participate in SECR voluntarily, but if your business meets two or more of the criteria for a large company,  as defined in the 2006 Companies Act, it is mandatory to comply with SECR. The criteria that you should consider are listed below.

1) If you have a turnover (or gross income) of £36 million or more.

2) If you have a balance sheet assets of £18 million or more.

3) It also applies to companies with 250 employees or more.

It’s important to make sure you are up to date on your business’s compliance requirements. If you are unsure if your business is required to meet SECR, read our service page to find out more or reach out to speak with an expert here at Amber.

What is the aim of SECR?

The main aim of SECR is to encourage businesses to reduce their carbon footprint by reporting on a broad spectrum of energy data. The energy usage data is analysed to help businesses improve energy consumption and hopefully reduce unnecessary energy wastage. Large companies who are consuming less than 40,000 kWh of energy during the reporting period are exempt from SECR requirements.

How does the carbon reporting work?

All SECR reports are submitted and visible on Companies House and they must also be included in annual directors’ reports for both unquoted and quoted companies. For LLPs, it’s slightly different in that any energy and carbon reports need to be included in their final annual reports. As for any charities, carbon reporting related to SECR should be included in their combined directors and trustee annual reports. There isn’t any required reporting format, but they must all cover the key elements as well as Scope 1 and 2 emissions when applicable. The key elements that need to be included in the report are:

  • Annual energy use and greenhouse gas emissions
  • An emissions intensity ratio, utilising a metric chosen by the company
  • Methodologies employed for calculating the necessary information
  • A narrative detailing the company’s endeavours to enhance energy efficiency
  • Comparative figures from the previous year, if available

How can Amber’s team help?

Amber is here to provide leading SECR compliance services by helping you calculate emissions and raising internal awareness of your organisation’s energy consumption. We can help with creation of an evidence pack which will contain all the calculations you will need for your SECR requirements. Reach out if you have any questions about how Amber’s expert team can help.

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