SECR Reporting for Technology Companies

Software companies, IT services, and technology firms 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 technology 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 technology companies, these typically include:

• Natural gas for office heating (if any)
• Refrigerant leaks from cooling
• Company vehicle fleet (minimal)
• Backup generators

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 offices
• Data centre power (huge component if owned)
• Server and network equipment
• Development and test environments

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

• Data centre energy can dwarf all other sources
• Cloud vs on-premise reporting decisions
• Fast growth makes year-on-year comparison difficult
• Global operations with UK-specific reporting

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

Technology 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.