Streamlined Energy & Carbon Reporting (SECR)
With a similar criteria to the Energy Saving Opportunities Scheme (ESOS), SECR was implemented on 1st April 2019 replacing the Carbon Reduction Commitment (CRC).
Why has SECR been implemented?
SECR is intended to encourage the implementation of energy efficiency measures, with both economic and environmental benefits, supporting companies in cutting costs and improving productivity at the same time as reducing carbon emissions.
Who needs to comply with the SECR?
Three groups of businesses are affected by the new regulations. Companies that fall within the following definitions must comply unless they meet certain exemption criteria:
- Quoted companies of any size that are already obliged to report under mandatory greenhouse gas reporting regulations.
- Unquoted companies incorporated in the UK that meet the definition of ‘large’ under the Companies Act 2006 will have new reporting obligations. This applies to registered and unregistered companies. Note that the criteria for ‘large’ differs from the ESOS Regulations.
- ‘Large’ Limited Liability Partnerships (LLPs) will be required to prepare and file a ‘Energy and Carbon Report’.
Unquoted companies or LLPs are defined as ‘large’ if they meet at least two of the following three criteria in a reporting year:
- a turnover of £36 million or more;
- a balance sheet of £18 million or more; or
- 250 employees or more.
Public bodies do not fall under the new regulations, but they are subject to other legislation which requires carbon reporting.
It is worth noting that charities, not-for-profit companies or others undertaking public activities – such as companies owned by universities, academies or NHS Trusts – will need to check whether they meet the above qualifying criteria.
Private sector organisations which fall outside of the scope of the new regulations are encouraged to voluntarily report in a similar manner.
Source: Carbon Trust