Since its introduction in 2019, the UK’s Streamlined Energy and Carbon Reporting (SECR) framework has transformed how businesses approach energy efficiency and carbon transparency.
In this blog, we’ll review SECR’s key achievements and look ahead to the upcoming UK Sustainability Reporting Standards (UK SRS), which promise to raise the bar for accountability and climate action.
What has SECR achieved since 2019?
By embedding reporting into mainstream practice, SECR has driven thousands of organisations to measure, disclose, and reduce their environmental impact, laying the foundation for a more sustainable economy. Some of the notable outcomes and developments include:
Greater Transparency and Board-level Engagement
By mandating disclosure from thousands of organisations, SECR has bought corporate energy use into sharper focus. Companies must now collect and publish data on electricity, gas, and fuel consumption, information that, in many cases, was not previously consolidated at group level. This shift has raised awareness of energy costs and carbon intensity among senior management.
Many firms have established internal processes or adopted software to gather accurate energy data across their operations, often for the first time on an annual cycle, giving executives and investors greater visibility into these metrics.
Some businesses have used their SECR report as an opportunity to announce new energy-saving investments or carbon targets, signalling that the exercise is influencing strategic thinking. The UK government was clear: to give organisations the data needed to adopt energy efficiency measures and reduce climate impact. In practice, many companies have reported that compliance has helped uncover inefficiencies (like machinery left running or poorly insulated buildings) that they could then address.
A Level Playing Field in Carbon Reporting
Before SECR, only listed companies had to disclose their greenhouse gas emissions (and CRC participants had to account for carbon credits). Now, large private companies and LLPs are equally accountable for their climate impacts. This levels the playing field, for example, a large privately owned retailer must report on emissions just as a publicly listed one does, making sustainability performance easier to compare across ownership types.
Around 12,000 companies now publish their CO₂ emissions each year, creating a valuable dataset on corporate energy. This transparency encourages healthy competition: businesses know their figures are visible and open to scrutiny. This can motivate improvements and help investors and lenders assess climate performance even for private companies, since the data is in the public domain via Companies House filings.
Streamlined Compliance (Reduced Burden vs. Previous Schemes)
SECR “streamlines” reporting by consolidating requirements into existing annual reports, replacing the more complex CRC scheme with a simpler, disclosure only approach. Because there’s no carbon trading or separate reporting portal, the administrative burden per company is lower even though more organisations are covered. The government’s goal was to keep compliance “proportionate and aligned to the existing business reporting framework,” and using familiar channels and standardised metrics has largely achieved that. Many companies can reuse data they already collect for ESOS or internal ESG reporting, though smaller firms without sustainability staff have sometimes needed external support.
Overall, SECR is widely seen as a better balance between accountability and administrative effort than the CRC.
Public Reporting of Carbon Data as the Norm
For many directors in 2019, putting emissions figures in their annual report was a new and perhaps uncomfortable experience. Now, after several cycles, climate reporting is standard practice. This normalisation means discussions of energy efficiency and carbon reduction are routine in annual disclosures. Over time, more companies have started to set formal emissions reduction targets (like science-based targets or net-zero pledges) and use their SECR reports to track progress.
The FRC’s 2021 review noted some emerging best practice: some companies voluntarily disclosed Scope 3 emissions, renewable energy use, and location-based and market-based figures to reflect green power purchases. Others began aligning their SECR disclosures with TCFD recommendations, signalling a shift toward more holistic climate reporting. These trends suggest SECR becoming a springboard for broader sustainability reporting, encouraging companies to go beyond the minimum.
Impact on Emissions Reductions
SECR is a disclosure regime, not a direct emissions‑reduction tool. Companies aren’t penalised for high emissions, only for failing to report. Still, the principle that “what gets measured gets managed” seems to hold: many firms use their SECR statements to highlight energy‑saving projects such as LED upgrades or fleet improvements, suggesting the framework encourages action through visibility and accountability.
The government’s 2023 Call for Evidence even asked businesses whether SECR reporting had helped them cut energy use or emissions, signalling that the upcoming Post‑Implementation Review will assess real‑world impact. While external factors like COVID‑19 and 2022’s energy price spikes also shaped consumption patterns, SECR has at minimum created a consistent transparency baseline. Since 2019, stakeholders can clearly track a large company’s annual energy use and carbon trends, something that wasn’t possible before.
SECR Challenges and limitations
While SECR has improved transparency, it hasn’t been without problems. Early FRC reviews found compliance gaps, such as missing UK/offshore breakdowns or unclear methodologies. The regime has also been criticised for its narrow scope: most Scope 3 emissions, often 80–95% of a company’s footprint, aren’t required. Quoted companies can omit Scope 3 entirely, and unquoted companies only report limited business‑travel emissions, meaning SECR alone doesn’t give a full picture of climate impact.
Many firms now disclose broader Scope 3 data voluntarily, driven by stakeholder expectations and TCFD alignment. But because SECR is a “report, don’t reduce” regime with no penalties for high emissions, its impact depends on market and reputational pressure. Some argue this isn’t enough to meet climate goals, and stronger measures may be needed.
With SECR’s current limitations in mind, attention is now shifting to the upcoming UK Sustainability Reporting Standards (UK SRS), which are set to reshape corporate climate disclosures and potentially supersede SECR.
The UK Sustainability Reporting Standards (UK SRS): A New Era of Disclosure
The UK Sustainability Reporting Standards (UK SRS) are the UK’s forthcoming adoption of the global sustainability and climate disclosure rules developed by the International Sustainability Standards Board (ISSB). The ISSB’s IFRS S1 (general sustainability disclosures) and IFRS S2 (climate disclosures), published in 2023, form the international baseline, and the UK plans to mirror them with only minor domestic adjustments.
The government strongly supports this move, aiming to create a “world‑leading sustainable finance framework.” After reviewing the ISSB standards, the UK’s Technical Advisory Committee recommended endorsement in late 2024, and a public consultation on draft UK SRS S1 and S2 ran in mid‑2025. The final UK Sustainability Reporting Standards were expected by the end of 2025 for voluntary use, with potential mandatory adoption for certain entities in the following years.
To learn about the upcoming UK Sustainability Reporting Standards, read our blog: What is UK Sustainability Reporting Standards and how will it impact UK businesses?
The UK Sustainability Reporting Standards represent the next chapter in corporate accountability. They build on the foundation that SECR helped lay, getting companies used to measuring and disclosing environmental data, and take it to a higher level of breadth and depth. Businesses that have taken SECR seriously, improved their data management, and engaged with climate reporting frameworks have a head start. Those that treated SECR as a box-ticking exercise will find they need to catch up quickly as the demands increase.
SECR: Laying the Groundwork for UK SRS
Since 2019, Streamlined Energy and Carbon Reporting (SECR) has driven transparency in energy and emissions disclosure, helping thousands of UK businesses track carbon performance, standardise reporting, and adopt energy-saving measures. It bridged the gap after CRC, making carbon reporting business-as-usual and preparing companies for a future of climate accountability.
Now, UK Sustainability Reporting Standards (UK SRS) will raise the bar; expanding transparency across ESG and aligning UK firms with global benchmarks. This evolution reflects growing urgency for climate action and robust sustainability data to guide investment and drive change.
What businesses should do now:
- Continue SECR compliance and improve reporting quality, including Scope 3 emissions.
- Prepare for UK SRS by strengthening data processes and integrating sustainability with financial strategy.
- Monitor 2026 regulatory updates and consider early voluntary adoption to gain investor confidence.
UK SRS isn’t just a new checklist, it’s an opportunity to future-proof your business, uncover efficiencies, and demonstrate leadership on the road to net zero. SECR set the stage; UK SRS will bring sustainability into full focus.