SECR - What is the big deal?

SECR - What is the big deal?

Streamlined Energy and Carbon Reporting (SECR) is the latest UK Government scheme to encourage the development of “carbon consciousness” in UK businesses. It is aimed at around 11,000 companies and Limited Liability Partnerships (LLPs) and effectively replaces the Carbon Reduction Commitment (CRC) scheme.

Does Streamlined Energy and Carbon Reporting apply to you?

Three types of organisation are required to comply with the SECR framework:

• Quoted companies of any size (listed on London Stock Exchange, anywhere in EEU, New York Stock Exchange or NASDAQ).

• Unquoted UK Companies that are defined as ‘large’ by Companies Act 2006

• LLPs that are defined as ‘large’ by the Companies Act 2006

The Companies Act 2006 defines a company or LLP as large if it meets two of the following criteria in one reporting year:

250 employees

£36 million turnover

£18 million balance sheet

When do the SECR regulations come into effect?

SECR was introduced on 1st April 2019 and comes into effect for an organisation’s first full financial year that commences after that date.

What does Streamlined Energy and Carbon Reporting include?

For organisations that meet the qualifying criteria, an SECR report will need to be submitted with their annual financial reports to Companies House. As a minimum, an SECR report must include:

QUOTED COMPANIES: Scope 1 emissions (including combustion of all fuels, transport costs/fuels, process emissions, fugitive emissions) and scope 2 emissions (covering the consumption of electricity, heat, steam, cooling). Emissions and energy consumption are global.

UNQUOTED COMPANIES: UK energy use (minimum gas, electricity, transport), associated GHG emissions, previous year’s energy and GHG emissions (no obligation first year), intensity ratios, details of Energy Efficient Actions and methodology used.

As you can see, SECR obligations will vary from organisation to organisation and this will be covered more in the next blog post.

Summary

Streamlined Energy and Carbon Reporting moves away from the fiscal instruments used by CRC and similar schemes and for some this may come as a relief.  Instead, the new framework aims to promote transparent corporate sustainability and encourage the implementation of energy efficiency actions that bring both economic and environmental benefits to an organisation.  

2020 will see the first submissions of SECR reports and it is evident that as the framework is still in its very early stages, it will be an ever-evolving beast.  We at Swan Energy are looking forward to seeing how this new policy develops in the coming years.

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

NEXT WEEK >>

Streamlined Energy and Carbon Reporting - Your obligations 

 

 

 

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