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ComplianceBasicsUK Law

What is Streamlined Energy and Carbon Reporting (SECR)?

A comprehensive guide to understanding the basics of SECR, who it applies to, and how to stay compliant.

Introduction

The Streamlined Energy and Carbon Reporting (SECR) framework was introduced by the UK government to simplify carbon and energy reporting requirements for businesses. It builds on existing requirements such as mandatory greenhouse gas (GHG) reporting for quoted companies.

Who Needs to Comply?

SECR applies to:

  1. Quoted companies of any size.
  2. Large unquoted companies incorporated in the UK.
  3. Large Limited Liability Partnerships (LLPs).

A company is considered 'large' if it meets two or more of the following criteria:

  • Turnover of £36 million or more.
  • Balance sheet total of £18 million or more.
  • 250 employees or more.

What Needs to be Reported?

Businesses must report on their global energy use and greenhouse gas emissions. This includes:

  • Scope 1: Direct emissions from owned or controlled sources (e.g., gas boilers, fleet vehicles).
  • Scope 2: Indirect emissions from the generation of purchased electricity.
  • Optional Scope 3: All other indirect emissions.

Conclusion

Staying compliant helps not only in avoiding penalties but also in identifying energy-saving opportunities.