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SECR (Streamlined Energy and Carbon Reporting) is the new mandatory reporting scheme in the UK for large companies. It aims to encourage businesses to implement energy efficiency measures by promoting cost savings and environmental benefits.
Quoted and unquoted companies, large limited liability partnerships (LLPs), and public bodies are required to report under SECR. Charities and not-for-profit organisations should also check their requirements.
What is SECR Reporting?
SECR Reporting is the name given to a new carbon reporting scheme introduced in 2019 that requires UK large businesses to disclose their energy usage, emissions and actions they’ve taken to improve their operational efficiency on an annual basis. It replaces the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme which ended on 31 March 2019.
Streamlined Energy and Carbon Reporting was introduced to make reporting easier, aligning submission dates with financial reporting years and to help support the government’s Clean Growth Strategy ambition of helping businesses reduce their carbon footprint to net zero.
Obligated companies are required to submit their SECR reports to Companies House for financial accounting periods starting on or after 1 April. It includes all quoted and large unquoted companies and LLPs, as well as public sector organizations visit here.
What are the benefits of SECR Carbon Reporting?
As a streamlined energy and carbon reporting scheme, SECR is designed to make it easier for organisations to measure, track and achieve reductions in their energy and carbon footprints. This will support the government’s Clean Growth Strategy ambition of enabling business and industry to improve their energy productivity by 20% by 2030.
As an added benefit, companies will be able to create greater transparency for investors and stakeholders on how they are improving their energy efficiency and becoming low carbon ready. This will enable larger firms to use your services and procure more from you in the future, as well as boosting the bottom line.
Quoted companies have been required to report global scope 1 and 2 GHG emissions in their directors’ reports since 2013, along with an intensity metric. Large unquoted companies and LLPs must also report their total global energy use, as well as the methodology used to calculate the data.
Does SECR have to be reported by anyone?
The Streamlined Energy and Carbon Reporting (SECR) framework requires large businesses to disclose their annual energy usage and greenhouse gas emissions. It promotes stronger climate change and energy cost visibility within organisations, allowing companies to see how energy usage can be improved and save money.
It also aligns with recommendations from the G20 Financial Stability Board’s Taskforce on Climate-related Financial Disclosures, by providing information for investors and other stakeholders to help them make better investment decisions as the world moves to a sustainable, low carbon economy.
Quoted companies and large unquoted companies and LLPs are required to report their SECR-accordant energy and carbon information in their Director’s Report from the financial year starting April 2019. All other entities are encouraged, but not required, to provide a carbon report of their annual emissions and intensity metric in their Directors’ Report according to the SECR requirements.
How does the disclosure work?
The UK Government wants to encourage companies to reduce their energy use and carbon emissions, and to help achieve this they have introduced a new set of regulations that will come into force on 1 April 2019.
It applies to all quoted and large unquoted organisations, as well as large limited liability partnerships (LLPs). This regulation is designed to simplify current energy and carbon reporting by combining elements of schemes to make it easier for businesses.
Quoted companies will be required to report their Global Scope 1 & 2 greenhouse gas emissions, global energy use and an intensity ratio through their annual reports. This includes information about any energy efficiency action taken in the period.
What about Greenly?
Greenly.earth is a climate tech company that offers unique software for SMEs to measure, reduce and offset their carbon footprint. It automates data collection and carbon analytics through integrations with over 100 enterprise softwares, including accounting, travel, cloud data, electricity vendors and more.
It helps SMBs calculate their company-level GHG emissions activities and indirect emissions from purchased consumption – like electricity from utility providers – and supports stakeholder engagement, emissions reduction planning and compliance management.
Founded in 2019, Greenly is now entering the next stage of scaling, having closed a $22 million Series A funding round co-led by Energy Impact Partners (EIP) and German and France-based investment fund Xange. It currently has more than 400 customers and is expanding its global footprint by opening offices in the U.S.
The go-to carbon accounting platform for your business
As the world’s governments push companies to reduce their carbon emissions, they need a digitized solution that streamlines, digitizes, and automates emissions reporting. This enables them to stay compliant with climate impact legislation and build brand equity in the process.
Choosing the right software is a big decision, and it’s one that can be confusing. But if you ask the right questions, you’ll be able to find a partner that can meet your sustainability needs and support your business on its journey.
Internal capacity and expertise – This is critical to ensuring your organization can make the most of your new system. You’ll need to determine your level of commitment and resourcing for data collection, accounting, and reporting.
Industry partnerships – Check to see if your potential provider is part of an ecosystem of relevant industry partners. This is a good indicator of their knowledge, current and future support capability, and ability to cater to the climate change and emissions needs of your business.
Reporting and analytics – Emissions data, benchmark reporting, and energy consumption rates are a vital component of any carbon management system. It’s also a key component of your broader ESG and sustainability reporting.
Lastly, look for carbon accounting solutions that offer robust compliance and security controls to protect your data and prevent it from being stolen or misused. This can be particularly important if your company has sensitive or confidential information to safeguard.
