SECR Reporting for Chemical Companies

Chemical companies meeting 2 of 3 qualifying criteria. 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 chemicals 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 chemicals companies, these typically include:

• Natural gas for process heat
• Fuel for steam generation
• Process emissions (chemical reactions)
• Refrigerants
• Flare gas

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 process equipment
• Pumping and compression
• Cooling systems
• Laboratory energy

Collect electricity consumption data from your bills or smart meters. For most chemicals 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 chemicals 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 chemicals include:

• Complex process emissions calculations
• High temperature heat requirements
• Continuous operation constraints
• Integration with Climate Change Agreements

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

Chemicals 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.