SECR - Splitting Transport into Scope 1, 2 and 3

SECR - Splitting Transport into Scope 1, 2 and 3

In 2018, transport was responsible for 28% of the UK’s carbon emissions, as is illustrated in Figure 1. Transport has been the largest emitting sector since overtaking the energy supply sector in 2016. The main source of transport emissions is the consistent on-road use of petrol and diesel vehicles and this is the main reason why emissions have only fallen by 3% since 1990. Although this is progress, it pales in comparison when compared to other sectors; the Energy Supply sector’s emissions have fallen by 62% and Business by 31% since 1990, meaning transport is one area where carbon reduction could be the most viable.

SECR - Splitting Transport into Scope 1, 2 and 3

To this end, the UK Government has seen fit to include transport in an eligible company’s Streamlined Energy and Carbon Reporting (SECR) obligations.

To include eligible transport in an organisation’s SECR submission, transport energy usage should be split into the relevant Scope. Swan Energy has produced a brief guide to what goes where based on the UK Government's Environmental Reporting Guidelines (including SECR):

Scope 1 Transport

Transport energy usage is included in Scope 1 if an organisation purchases or reimburses the fuel used for transport directly, if the organisation operates the mode of transport and if journeys start and/or end within the UK.  All types of transport are eligible, including road vehicles, trains, planes and water going vessels.

This means an organisations total energy consumption should include fuel used in:

• Company cars on business use

• Personal/Hire cars on business use (including reimbursements for business mileage)

• Fleet vehicles

• Private jets, fleet aircraft, trains, ships and drilling platforms which the organisation operates

• Onsite transport such as forklifts

Scope 2 Transport

If an organisation provides charging for electric vehicles used for the purposes described within Scope 1, the organisation should ensure no double counting of electricity consumption occurs.  It is good practice for an organisation to separate this energy figure from other electricity usage and identify the potential emissions savings compared to fossil fuel vehicles.

Scope 3 Transport

It is not mandatory to include Scope 3 Transport energy usage and emissions in an SECR submission, but using the UK Government National Conversion factors, it is possible to calculate Scope 3 energy usage and emissions.

Transport that would come under Scope 3 includes:

• Train/plane/taxi travel of an organisation’s employees where the organisation does not operate the mode of transport

• Transportation of goods where an organisation subcontracts a firm or self-employed individual to undertake this work for you

• Employee commuting

Out of Scope Transport

Again, it is not obligatory to report the energy usage and emissions from transport, but an organisation should consider reporting out of scope transport if it forms a substantial part of the organisation’s energy usage or emissions. An example of this would be international travel.

Please call us on 01484 843867 or email joe.youldon@swanenergy.co.uk if you have any further questions or need help with Streamlined Energy and Carbon Reporting.

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