As climate regulations tighten globally, the UK’s Streamlined Energy and Carbon Reporting (SECR) framework enhances corporate transparency on carbon emissions. SECR mandates large businesses to disclose energy use, promoting accountability and sustainability. In this blog post, I explain what SECR is and how it benefits your business.
As the impacts of the climate crisis escalate, carbon legislation is emerging as a key regulatory instrument for governments worldwide. Companies are facing increased scrutiny regarding their greenhouse gas (GHG) emissions and sustainability practices. From the EU’s Carbon Border Adjustment Mechanism (CBAM) to the United States’ proposed SEC climate disclosure rules, carbon reporting frameworks are evolving rapidly though their future may depend on political shifts.
The UK is also enhancing its carbon reporting landscape through the Streamlined Energy and Carbon Reporting (SECR) regulation which require large businesses to disclose their energy use and carbon emissions, promoting greater transparency and accountability. Here’s a look at how SECR has been developed in the UK.
The Streamlined Energy and Carbon Reporting (SECR) regulations are the UK’s approach to increasing corporate transparency on environmental impact. Introduced under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, it became mandatory from 1 April 2019 for financial reporting periods starting on or after this date.
SECR requires eligible large companies to disclose their energy use and carbon emissions in their annual reports, fostering accountability and driving sustainability improvements. By making this information publicly available, businesses demonstrate their commitment to reducing their carbon footprint and improving energy efficiency.
SECR plays a key role in corporate sustainability by aligning with several key frameworks:
What to report under SECR?
No size threshold – all quoted companies must report the following:
Companies consuming ≤40 MWh in a reporting year are exempt. Otherwise, if the company meets two of the following criteria:
Their reporting requirements are:
Companies consuming ≤40 MWh in a reporting year are exempt. Otherwise, if the company meets two of the following criteria:
Their reporting requirements are:
If the company meets two of the following criteria, they are not required to report but can do so voluntarily.
*Mandatory Reporting, 1. LSE: London Stock Exchange, 2. EEA: European Economic Area, 3. NYSE: New York Stock Exchange
How TÜV SÜD can help you meet SECR compliance
At TÜV SÜD, we provide two key services to help you comply with SECR requirements:
For unquoted companies and LLPs, we focus on UK-only energy use, while quoted companies must report their annual consumption.
We ensure that emissions calculations align with Defra emissions conversion factors, maintaining accuracy and comparability with industry standards.
SECR does not require companies to conduct energy audits for compliance.
Companies must provide a narrative description of energy efficiency actions, and our team ensures this meets SECR compliance requirements.
A complete SECR report, with the intensity ratios and impact categories requested by the customer.
We assist enabling easy integration of SECR reporting into your annual reports and financial statements.
An assurance service from TÜV SÜD highlighting the intensity ratios, impact categories and underlying GHG inventory.
TÜV SÜD will conduct independent verification activities in alignment with ISO 14064-3. This will involve verifying the customers’ SECR report on the accuracy, completeness and consistency of energy use, GHG emissions data and energy efficiency action.
TÜV SÜD provides tailored carbon footprint solutions, focusing on Product Carbon Footprint (PCF) and Corporate Carbon Footprint (CCF) assessments. For a comprehensive environmental impact assessment, we provide Life Cycle Assessment (LCA) to systematically evaluate the environmental footprint of products at every stage of their life cycle—from raw material extraction to end-of-life disposal. Our expertise helps businesses measure, reduce, and verify their emissions across the value chain, ensuring compliance with global standards like the GHG Protocol, ISO 14067, and PAS 2050.
Contact our energy and carbon management experts today if you want to save time and money by streamlining the process of collecting and calculating emissions data across all your company’s activities.
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