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 are the SECR Requirements
The Streamlined Energy and Carbon Reporting (SECR) regulations require large companies to report on their energy use, carbon emissions, and energy efficiency actions.
Criteria and Legislation
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.
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Are there any Exemptions to SECR Reporting?
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.
How SECR can Benefit your Business
Get Ready for UK Sustainability Reporting Standards
The UK Sustainability Reporting Standards represent a significant step forward in the way organisations disclose their environmental, social, and governance (ESG) performance. In development to provide a consistent and transparent framework for sustainability reporting.
These new standards are expected to mirror international frameworks such as the ISSB (International Sustainability Standards Board) and complement existing UK regulations, creating a unified approach to sustainability reporting.
The UK government has released exposure drafts of UK versions of IFRS S1 and S2 (UK SRS S1 and S2) and is consulting on implementing them into law:
- IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information)
This standard sets out the overall framework for sustainability disclosures. It requires companies to report on all sustainability-related risks and opportunities that could reasonably affect their enterprise value. It’s broad and covers governance, strategy, risk management, and metrics/targets across ESG topics. - IFRS S2 (Climate-related Disclosures)
This standard focuses specifically on climate-related risks and opportunities. It aligns closely with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and requires detailed reporting on climate governance, strategy, scenario analysis, and emissions (Scope 1, 2, and 3).
UK SRS S1 and S2 are essentially the UK-adopted versions of these ISSB standards, forming the backbone of the UK Sustainability Reporting Standards.
They will become mandatory for certain UK companies starting from the 2026 financial year, with first reports expected in 2027.
In summary, UK SRS is intended to supersede SECR expanding its scope from energy and carbon to full climate and sustainability reporting and shifting from retrospective compliance to forward-looking disclosures and strategic integration.
Why act now?
Early preparation is essential. By embedding sustainability into your reporting processes today, you can:
- Ensure compliance readiness ahead of regulatory deadlines.
- Strengthen stakeholder confidence through transparent ESG disclosures.
- Integrate sustainability into strategic planning and risk management.
How we can help
Our experts can guide you through the transition to UK SRS, from gap analysis and data collection to carbon reporting strategy and assurance. Start building a robust sustainability framework that positions your organisation for long-term success.