SECR: What is the SECR & how will it affect your business?
February 21, 2020
Now that ESOS phase 2 has come to an end, attention is turning to the SECR 2020 reporting deadline. If you know that you need to comply with Streamlined Energy and Carbon Reporting (SECR) we can help. At Ignite Energy we assist businesses all over the UK to save on the energy they use. We also help our clients to remain compliant with UK energy reporting obligations, including SECR.
Read about SECR in 2020 now
We specialise in solving our clients’ energy challenges. Working with some of the UK’s largest organisations, we have considerable experience in helping them to be compliant with all relevant energy legislation including ESOS and GHG reporting. As a result, we are ideally placed to give advice on how SECR regulations will affect your business and how best to report.
Read our SECR guide now to learn all about the energy reporting regulations that might affect your business.
What is SECR?
Streamlined Energy and Carbon Reporting (SECR) is a carbon and energy consumption reporting scheme that builds on – but does not replace – requirements that businesses may face. They include the mandatory greenhouse gas (GHG) reporting for quoted companies, the Energy Saving Opportunity Scheme (ESOS), Climate Change Agreements (CCA) Scheme, and the EU Emissions Trading Scheme (ETS).
It is a mandatory reporting framework for all large UK businesses and is imposed by the UK government. SECR legislation was implemented on 1st April 2019.
SECR can help businesses to focus on energy efficiency because reporting highlights consumption and opportunities for reductions. SECR compliance requires businesses to report on actions taken in previous years which should highlight and contrast on any progress made.
SECR is aimed at streamlining and simplifying reporting for energy and carbon for large UK businesses. It broadens the scope for compliance, meaning more businesses now need to comply with energy and carbon reporting legislation.
SECR Regulations and your business
Businesses that are required to be SECR compliant need to report global scope 1 and 2 emissions, energy consumption and an intensity metric that quantifies energy consumption in a way that is relevant to your business such as –
- kWh per m2 of floor area
- kWh per £ of sales
- kWh per employee
- kWh per site
- kWh against level occupancy (e.g.hotel/accommodation)
- kWh against units of product produced
Eligible companies registered in the UK are required to report on global energy use and carbon emissions.
Businesses are also required to report what energy efficiency actions they have taken over the previous year.
Failure to comply with SECR regulations could incur financial penalties for your business.
The Conduct Committee of the Financial Reporting Council is responsible for checking compliance of the SECR information provided. If you do not report or your SECR report does not meet the requirements, the report may be rejected, and a penalty applied for late compliance.
Does my business need to comply with SECR?
SECR applies to all UK Quoted companies and UK registered businesses that meet two or more of the following criteria in the financial year that they are reporting in:
- More than 250 employees
- £36m or more turnover
- Balance sheet total of more than £18m
If you are a small business with only a few properties you are probably exempt from the SECR. However, all qualifying businesses in the UK will need to comply with SECR. This includes businesses that have an annual energy consumption of more than 40,000 kWhs.
If you think your company needs to submit reports in compliance with SECR, call us now on 0333 023 2222. We can help.
SECR compliance in 2020
Your first SECR report will be required at the earliest in April 2020 depending on when your financial year ends. Your report will be due in your Directors Report at the end of your first financial year following April 2019.
What are the benefits of complying with SECR?
SECR compliance can be viewed as much more than just a mandatory reporting requirement. At Ignite Energy we think there are many advantages for businesses that are actively SECR compliant. Let us help you to make the most of SECR and what compliance can offer you.
SECR: an opportunity rather than a burden
Although submitting reports to remain SECR compliant may feel like a drain on resources and a burden for your business, compliance can offer so much more. In fact, SECR compliance can act as a catalyst for positive change for your business.
“The UK government’s Streamlined Energy and Carbon Reporting (SECR) regulation has the potential to raise the importance of energy management and carbon savings in the Boardroom. SECR has not been on many companies radar yet, however large companies will be unable to file their company accounts without the SECR report, which will certainly make it a priority going forward.”
Lord Redesdale – CEO – The EMA
SECR compliance provides opportunities for businesses to collect and learn from energy usage data. With a well-thought-out strategy for managing their energy usage, businesses can save millions. This is particularly true when the business has multiple sites in its portfolio. Gathering intelligence around energy consumption is a vital first step in creating such a strategy.
The data that is gathered can highlight lots of different areas of energy saving for a business. This intelligence can enable a business to make informed, data-driven decisions on how to manage energy across their portfolio of sites.
“SECR gives organisations reason to look at their energy consumption and emissions and find ways to make improvements, benefitting both the environment and their bottom line” Ethan Higgins – Marketing and Innovation Director – Ignite Energy
How can Ignite Energy help your business with SECR?
We can help you to understand the SECR and the impact it will have on your business. We have experience in managing compliance for large organisations and can help you to comply with SECR.
Furthermore, we can help you to make the most from any opportunities that have been highlighted through SECR compliance.
Our expertise allows us to offer end-to-end energy-saving solutions, from reporting through to the implementation of energy saving projects. Once we know where the opportunities are we can suggest and install innovative solutions across your portfolio of sites.
Our integrated service approach and experience in managing energy for multi-site businesses means that we can help you to turn SECR compliance into real-world energy savings.
Pets at Home Case Study
As a result of helping Pets at Home with ESOS compliance, we identified energy-saving opportunities that have allowed the business to save millions in energy spend.
Learn more about our innovative energy saving work with Pets at Home now.
Ignite Energy look after Greenhouse Gas emissions reporting (GHG) and ESOS for many of our customers. We have also managed CRC for our customers from its inception to the closure of the scheme.
We have helped businesses to turn compliance into an opportunity to reduce energy consumption and have delivered millions of pounds in savings off the back of our customers reporting obligations.
For more information regarding SECR compliance and how we can help, talk to us today: