Green Element

Your Streamlined Energy and Carbon Reporting (SECR) Guide

Is Your Business Ready for SECR Compliance?

With over 11,900 UK organisations now required to report under SECR, it’s essential to ensure your business is compliant and prepared to meet the deadline.

Use the guide to get started, or reach out to us below for expert support tailored to your business.

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SECR is not just a compliance exercise; it’s an opportunity to:

Avoid penalties for non-compliance of up to £7,500

Energy Procurement. Carbon Footprint Benchmarking. Sustainability and Environmental Consultancy Services UK

Identify inefficiencies and reduce energy costs

Enhance your sustainability reputation

STEP 1: Confirm Your Eligibility

You need to comply with SECR if:

You are a UK-registered quoted company (listed on a stock exchange).

You need to comply with SECR if:

You are a large unquoted company or LLP meeting two or more of the following criteria: Over 250 employees, annual turnover exceeding £36 million, or a balance sheet total exceeding £18 million.

You may qualify for an exemption from SECR if:

Your annual energy use is less than 40,000 kWh, but must state this in your report.

Unsure whether your business needs to comply?

Our free SECR Eligibility Checker helps determine if your business needs to comply in just 2 minutes.

TAKE ELIGIBILITY SURVEY

STEP 2: Understand What Needs to be Reported

Energy Use

For unquoted companies and LLPs, report UK energy use. For quoted companies, report global energy use.*

Carbon Emissions

Scope 1 (direct emissions) and Scope 2 (indirect emissions). Scope 3 emissions (e.g., supply chain) are optional but encouraged.

Energy Efficiency Actions

Details of improvements made during the year, or a statement if none were implemented.

Intensity Ratios

Compare energy use or emissions to a business metric like revenue or employee numbers.

* For unquoted companies and LLPs, report UK energy use, specifically covering the minimum of: electricity, gas, and transport fuels.

For quoted companies, report global energy use, which includes all Scope 1 energy use. This includes:

STEP 3: Gather Accurate Energy Data

Electricity Consumption

Total kWh used across all sites

Gas Consumption

Include heating, industrial use, and other applications (in kWh)

Fuel Usage

For company vehicles, machinery, and on-site operations (e.g., diesel, petrol, or other fuels)

Other significant energy sources

Include renewable energy, district heating, or other unique energy sources used in your operations

Step 4: Track and measure your carbon footprint with our trusted Compare Your FootprintTM software

Our experts and trusted carbon accounting software, Compare Your Footprint, ensure precise calculations using the latest government conversion factors, so your SECR report meets all requirements.

See how your report will look below.

VIEW EXAMPLE SECR REPORT

Let us handle your carbon calculations and the entire SECR process for you.

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Step 5: Identify and Report Energy Efficiency Measures

As part of your SECR reporting, you must outline any actions taken during the financial year to improve energy efficiency.

Note! Even if no actions were taken, you are still required to state this in your report. 

Examples of Energy Efficiency Actions

Upgrading Systems

Replacing older equipment with energy-efficient alternatives, such as LED lighting, high-efficiency HVAC systems, or low-energy machinery.

Conducting Energy Audits

Assessing current energy use and identifying areas for improvement, including inefficiencies in buildings, processes, or equipment.

Policy Implementation

Introducing company-wide policies aimed at reducing energy consumption, such as promoting remote work or turning off non-essential equipment.

Renewable Energy

Installing on-site renewable energy sources like solar panels or purchasing green energy tariffs.

Step 6: Include Intensity Ratios

An intensity ratio links your energy consumption or carbon emissions to a specific business metric, making your performance measurable and comparable over time. It is a required element of SECR reporting and provides stakeholders with valuable insights into your company’s energy efficiency.

Examples of Intensity Ratios:

Pro Tip: Choose an intensity ratio that aligns closely with your industry and operational focus to provide meaningful insights. Maintain consistency in your chosen metrics to enable accurate comparisons.

 

Step 7: File Your SECR Report on Time

Filing your SECR report promptly and accurately is a critical step in ensuring compliance and avoiding penalties.

Key Filing Requirements:

1. Include SECR Data in Your Annual Financial Report:

2. Submit Financial Reports to Companies House:

Important! Late filing penalties can reach up to £7,500. Failure to comply may negatively impact stakeholder trust and your company’s sustainability credentials.

Step 8: Plan for Future Compliance

Set Goals for Reducing Energy Use and Emissions

Establish clear, measurable targets and track your progress.

Refine Data Collection Methods

Improve accuracy and efficiency with better energy monitoring tools and regular auditing.

Stay Informed About Regulatory Updates

Keep up with changes in SECR and other environmental regulations.

Apply SECR Work to Other Compliance

Energy Savings Opportunity Scheme (ESOS)

Use your SECR energy data and insights to meet ESOS audit requirements efficiently.
GET HELP WITH ESOS

Climate Change Agreements (CCA)

Align your SECR reporting with CCA commitments to maximise efficiency.
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Mandatory Greenhouse Gas Emissions Reporting

Apply your SECR calculations to fulfill mandatory GHG reporting obligations with ease.
GET HELP WITH REPORTING

Need Help with SECR? Contact Our Experts for Stress-Free Compliance!

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