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LATEST MARKET UPDATE:UK gas and power prices continue to climb as cooler weather and weak wind generation across North West Europe support gas demand, delaying the building up of gas storage levels ahead of this Winter, which puts a significant risk premium on the period.

What is SECR?

SECR is the UK Government's Streamlined Energy and Carbon Reporting policy implemented in 2019 when the Companies Director's Report and Limited Liability Partnerships came into force. This regulation is designed to increase awareness of energy costs within organisations to reduce the impact of climate change; it also provides transparency for stakeholders.

SECR operates in parallel with the Energy Savings Opportunity Scheme (ESOS), which also applied to large UK companies however, ESOS is reported every four years whereas SECR is reported annualy into your yearly accounts. 

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SECR is now 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

The following companies do not have to report, but are encouraged to in a similar manner:

  • Charities
  • Not-for-profit
  • Academies
  • Universities
  • Hospitals 
  • NHS

 

Businesses required to be SECR compliant need to report on Global Scope 1 and 2 emissions. Scope 1 covers direct emissions from controlled sources, whereas Scope 2 covers indirect emissions from the reporting company's purchased energy. If your business meets the requirements but consumes less than 40 MWh, there is no obligation for detailed disclosure, but it is recommended as you are being more transparent with your stakeholders. You will also need to include a statement confirming your energy consumption. 

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Why is SECR important? 

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This legislation has seen around 12,000 companies disclosing their energy and carbon emissions. The data that is implemented through the SECR process can highlight many different areas of energy-saving opportunities for businesses. By collecting this intelligence, companies can recognise any areas of inefficiency and opportunities to save money and reduce carbon emissions in the process. 

 

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. 

By collecting this intelligence, Utility Team can recognise areas of inefficiency which will open opportunities to save money and carbon.

What impact does SECR have on your business?

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

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How we can help

Here at Utility Team, we specialise in solving our client's energy challenges. We will provide you with tailored support through your SECR reporting process, from understanding the legislation to generating a compliant report submission; we 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!