SECR Reporting for Agricultural Businesses

Agricultural companies meeting 2 of 3 criteria: 250+ employees, £36m+ turnover, £18m+ balance sheet. Streamlined Energy and Carbon Reporting (SECR) requires qualifying companies to disclose their UK energy use, greenhouse gas emissions, and energy efficiency measures in their annual accounts.

Understanding your specific obligations as a agriculture business is crucial for compliance. This guide covers the emission sources, intensity ratios, and efficiency measures most relevant to your sector.

Scope 1 emissions are direct emissions from sources your company owns or controls. For agriculture companies, these typically include:

• Fuel for tractors and machinery
• Livestock enteric fermentation (if included)
• Manure management
• Agricultural heating
• Refrigeration for storage

These emissions are calculated by multiplying your fuel consumption by the UK Government conversion factors. You'll need to collect data from utility bills, fuel cards, and maintenance records.

Scope 2 emissions come from purchased electricity, heat, steam, and cooling. SECR requires you to use the location-based method (UK grid average), though you may also disclose market-based figures if you purchase green energy.

• Electricity for grain drying
• Irrigation pumping
• Cold storage
• Packaging facilities
• Offices

Collect electricity consumption data from your bills or smart meters. For most agriculture operations, electricity represents a significant portion of total emissions.

SECR requires at least one intensity ratio—a metric that normalises your emissions against business activity. This helps stakeholders understand whether emission changes reflect business growth or efficiency improvements.

For agriculture companies, common intensity ratios include:

Choose a ratio that best reflects your business model. For example, if you're a high-volume, low-margin operation, "per tonne of product" might be more meaningful than "per £m revenue."

SECR requires a narrative describing energy efficiency measures taken during the reporting period. Simply stating "no measures taken" is non-compliant if opportunities existed.

Typical efficiency measures for agriculture include:

• Seasonal energy variation
• Multiple small dispersed sites
• Weather-dependent operations
• Integrating agricultural and processing emissions

These challenges are common across the agriculture sector. Addressing them early in your reporting process will save time and improve accuracy. Consider engaging specialists if your operations are particularly complex.

Agriculture companies may also need to comply with additional energy and carbon regulations:

Understanding how these frameworks interact helps streamline compliance and avoid duplication of effort.