Streamlined Energy and Carbon Reporting (SECR) is a UK government initiative designed to enhance corporate transparency regarding energy use and carbon emissions. Complying with SECR is not only a legal requirement but also a strategic move for businesses looking to demonstrate their commitment to sustainability. In this step-by-step guide, we’ll walk you through the process of SECR compliance, ensuring that your organization meets the necessary standards and positions itself as a responsible corporate citizen.

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Step 1: Determine Eligibility

Before delving into SECR compliance, ascertain whether your organization falls within the scope of the regulations. Generally, if your company is a “large” organization under the Companies Act 2006 (as amended by the Companies (Directors’ Report) and Limited Liability Partnerships (Amendment) (EU Exit) Regulations 2019), SECR compliance is mandatory.

Step 2: Collect Energy Data

Gather comprehensive energy data for your organization, including electricity, gas, and transport energy consumption. Ensure you have records covering the entire reporting period, typically the organization’s financial year.

Step 3: Calculate Carbon Emissions

Calculate the carbon emissions associated with your organization’s energy consumption. This involves converting energy consumption data into carbon dioxide equivalent (CO2e) emissions using conversion factors provided by the UK government.

Step 4: Identify Applicable Emission Sources

Determine the sources of emissions associated with your organization. This may include direct emissions from owned or controlled sources and indirect emissions from purchased electricity and energy-related activities.

Step 5: Include Scope 3 Emissions

SECR reporting includes mandatory disclosure of Scope 1 and Scope 2 emissions, but organizations are encouraged to report on Scope 3 emissions voluntarily. Identify and quantify relevant Scope 3 emissions, such as business travel, commuting, and purchased goods and services.

Step 6: Prepare Energy and Carbon Report

Compile the necessary information into a comprehensive Energy and Carbon Report. This report should include the organization’s energy consumption, associated carbon emissions, and any energy efficiency measures implemented during the reporting period.

Step 7: Include SECR Information in Director's Report

Integrate the SECR information into your organization’s Director’s Report, which is part of the annual financial statements. Ensure that the report is clear, concise, and meets the disclosure requirements outlined in the SECR regulations.

Step 8: Engage Stakeholders

SECR compliance is an opportunity to engage stakeholders by transparently communicating your organization’s commitment to energy efficiency and carbon reduction. Consider sharing the Energy and Carbon Report on your company website or through other communication channels.

Step 9: Verify Data Accuracy

Thoroughly review and verify the accuracy of the data presented in your Energy and Carbon Report. Inaccurate or incomplete information could lead to non-compliance and potential reputational risks.

Step 10: Submit Reports to Relevant Authorities

Submit your SECR-compliant reports to the appropriate regulatory bodies. This typically involves including the SECR information in your annual filings with Companies House.

SECR compliance is not just a legal requirement; it’s an opportunity for organizations to showcase their dedication to sustainable practices. By following this step-by-step guide, your business can navigate the complexities of SECR reporting, meet regulatory obligations, and contribute to the broader goals of reducing carbon emissions and enhancing corporate transparency.

Remember, SECR compliance is an ongoing process. Stay informed about any updates to the regulations, and consistently monitor and improve your organization’s energy efficiency to stay ahead of evolving sustainability standards.