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LATEST MARKET UPDATE: Gas and Power prices are largely trading at parity with last week’s levels, despite some significant price swings at the front of the pricing curve. The bout of low pressure has seen reduced wind output, increasing demand for gas-fired power generation and stretching a European gas system which is struggling to attract global LNG. Winter prices have also been volatile with concerns over gas storage levels being partially offset by positive supply news surrounding the potential completion of the Nordstream 2 gas pipeline. Prices further out have been softer, as renewed coronavirus fears in the wake of the delta variant have weigh on global oil markets.

SECR

Streamlined Energy and Carbon Reporting

Supporting your business with the government’s streamlined energy and carbon reporting framework.

What is SECR?

SECR is the UK Government's Streamlined Energy and Carbon Reporting policy implemented in April 2019 when the Companies Director's Report and Limited Liability Partnerships came into force. The SECR regulation is designed to increase awareness of energy costs within organisations to help reduce the impact of climate change. As well as providing an increased awareness, the SECR framework also provides transparency for stakeholders, helping them understand the environmental impact of the company.

SECR operates in parallel with the Energy Savings Opportunity Scheme (ESOS), which is also applied to large UK companies. That being said there are differences between ESOS and SECR reporting. Namely, ESOS is reported on every four years whereas SECR is reported annually into your yearly accounts.

That being said, it is recommended that the above organisations consider streamline energy and carbon reporting, or a similar type of reporting, to keep a record of their environmental impact.

Wind Turbines, Galicia, Spain

Who needs to pay attention to SECR?

SECR is an informative piece of legislation and SECR reporting is now mandatory for a large portion of companies.

SECR is mandatory for any companies, LLPs and groups that exceed one of the following criteria:

  • £36m annual turnover
  • £18m balance sheet total
  • 250 employees or more

There are a few exceptions to the rules. Despite companies exceeding in the above needing to consider their SECR, the following companies do not have to put together a report:

  • Charities
  • Not-For-Profit Organisations
  • Academies
  • Universities
  • Hospitals
  • NHS
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What does SECR include?

If your business is required to be SECR compliant, you will need to report on Global Scope 1 and 2 emissions.

Scope 1 emissions cover direct emissions from controlled sources. Scope 2 emissions, where similar, vary slightly as they covers indirect emissions from the reporting company's purchased energy. Likewise, a company will need to report on their global energy use (where appropriate). Any emissions not included within Scope 1 and Scope 2, constitute Scope 3. It is voluntary for companies to report on Scope 3 emissions.

If your business meets the requirements, and consumes more than 40 MWh, you will need to provide a detailed disclosure of your emissions. If, on the other hand, your business consumes less than 40 MWh, there is no obligation for detailed disclosure. That being said, detailed disclosures on your SECR are recommended as you are being more transparent with your stakeholders.

Included within your SECR, you will also need to incorporate a statement confirming your energy consumption.

Why is SECR important?

SECR is an excellent opportunity for highlighting the importance of energy management in the UK’s largest companies. As more companies share information on SECR, this regulation is not only a means of measuring your company’s emissions but a barometer on your climate change reduction credentials.

So far, SECR legislation has seen around 12,000 companies disclosing their energy and carbon emissions. The data that is implemented through the SECR process can highlight different areas of energy-saving opportunities for businesses.

By collecting this intelligence, companies can recognise any areas of inefficiency and opportunities to save money whilst reduce carbon emissions in the process.

The Positive Impact of SECR Reporting

There are several core bonuses to SECR as a reporting system. Streamlined energy and carbon reporting not only helps you highlight areas of your business where you can reduce your environmental impact and energy consumption accordingly, it also helps you understand any areas of your business where you can save money.

SECR regulation means stakeholders are more aware of the impact your company has on the environment as your statement is available to the public via Companies House.

Why is SECR important?

SECR is an excellent opportunity for highlighting the importance of energy management in the UK’s largest companies. As more companies share information on SECR, this regulation is not only a means of measuring your company’s emissions but a barometer on your climate change reduction credentials.

So far, SECR legislation has seen around 12,000 companies disclosing their energy and carbon emissions. The data that is implemented through the SECR process can highlight different areas of energy-saving opportunities for businesses.

By collecting this intelligence, companies can recognise any areas of inefficiency and opportunities to save money whilst reduce carbon emissions in the process.

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The Positive Impact of SECR Reporting

There are several core bonuses to SECR as a reporting system. Streamlined energy and carbon reporting not only helps you highlight areas of your business where you can reduce your environmental impact and energy consumption accordingly, it also helps you understand any areas of your business where you can save money.

SECR regulation means stakeholders are more aware of the impact your company has on the environment as your statement is available to the public via Companies House.

Streamlined energy and carbon report allows your company to make more informed, data-driven decisions on managing energy whilst improving productivity with a simplified framework.

How Utility Team can help with SECR

Here at Utility Team, we specialise in solving our client's energy challenges and can help you with the completion of your SECR. Our goal is to provide you with tailored support through your SECR reporting process, from understanding the legislation to generating a compliant report submission.

Our Utility Team SECR experts can work with you to make sure your SECR compliance is the basis for business improvement. We know as a business you have other areas to focus on, which is why we are proud to offer a service that supports you and your business, leaving you to do what you do best.

For any queries surrounding SECR, please feel free to contact us to discuss your SECR requirements.

Let us support you through your SECR report today

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Let us support you through your SECR report today!