What is SECR?
The defined meaning of SECR is ‘Streamlined Energy and Carbon Reporting’. SECR is a reporting framework that aims to bring the benefits of carbon and energy reporting to more businesses. The reporting framework is intended to encourage the implementation of energy efficiency measures.
What are the SECR Guidelines?
The guidelines of SECR are clear, and those that must participate are outlined as:
- Quoted companies of any size that are already obliged to report under mandatory greenhouse gas reporting regulations.
- Unquoted companies incorporated in the UK that meet the definition of ‘large’ under the Companies Act 2006 will have new reporting obligations. This applies to registered and unregistered companies. Note that the criteria for ‘large’ differs from the ESOS Regulations.
- ‘Large’ Limited Liability Partnerships (LLPs) will be required to prepare and file a ‘Energy and Carbon Report’.
What is the SECR Criteria and Legislation?
The Streamlined Energy and Carbon Reporting (SECR) regulations require large companies to report on their energy use, carbon emissions, and energy efficiency actions. The criteria for SECR compliance are as follows:
- Employee Count: Companies with 250 or more employees.
- Turnover: Companies with an annual turnover of £36 million or more.
- Balance Sheet: Companies with an annual balance sheet total of £18 million or more .
These companies must collect and publish their greenhouse gas emissions, energy consumption (including transport fuel), and energy efficiency actions taken. This information must be included in the Directors’ Report and signed off by auditors. For Limited Liability Partnerships (LLPs), the report needs to be presented by a named member and lodged with Companies House.
Are there any exemptions for organisations to report on SECR?
Some organisations may not need to comply with SECR, examples include:
- Energy Consumption: Organisations that consume less than 40,000 kWh of energy during the reporting period are exempt from SECR .
- Subsidiaries: If you are reporting at a group level and a subsidiary would not fall under SECR if reporting on its own, you can choose to exclude the energy and carbon information related to that subsidiary.
What is the SECR Deadline?
The deadline for submitting your Streamlined Energy and Carbon Reporting (SECR) is within three months of the end of your organisation’s financial year. This means that the SECR report should be included with your annual accounts submitted to Companies House .
For example, if your financial year ends on 31st March, your SECR report would be due by 30th June. Missing this deadline may result in penalties, so it’s important to ensure timely submission.