Does Your Company Need to Write a Streamlined Energy and Carbon Report (SECR)?

As environmental regulations continue to evolve, businesses are facing increasing pressure to be transparent about their energy use and carbon emissions. One of the UK's key reporting requirements is the Streamlined Energy and Carbon Reporting (SECR) framework. But how do you know if your company needs to comply?

If you're unsure whether SECR applies to your business, this guide explains who needs to report, what information is required, and why compliance can benefit your organisation beyond simply meeting legal obligations.

What Is SECR?

Introduced by the UK Government in April 2019, the Streamlined Energy and Carbon Reporting (SECR) framework replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme. Its purpose is to simplify energy and carbon reporting while encouraging businesses to improve energy efficiency and reduce greenhouse gas emissions.

SECR helps investors, customers, employees, and other stakeholders understand how organisations manage their environmental impact.

Which Companies Must Comply?

Your company is likely required to prepare an SECR report if it falls into one of the following categories:

Quoted Companies

Companies listed on the London Stock Exchange, European Economic Area markets, NYSE, or NASDAQ must report their global energy use and greenhouse gas emissions.

Large Unquoted Companies

A UK-incorporated company must comply if it meets at least two of the following criteria:

• Annual turnover of £36 million or more

• Balance sheet total of £18 million or more

• 250 or more employees

Large Limited Liability Partnerships (LLPs)

Large LLPs meeting the same size thresholds are also required to disclose energy use and carbon emissions.

Who Is Exempt?

Some organisations may qualify for an exemption, including:

• Companies using less than 40,000 kWh of energy during the reporting year.

• Certain subsidiaries where the parent company includes the required information within a group report.

• Organisations exempt under specific legislative provisions.

If you believe your company may qualify, it's important to document the reason for exemption within your annual report where appropriate.

What Must Be Included in an SECR Report?

A compliant SECR report typically includes:

• Annual energy consumption (electricity, gas, transport fuel and other relevant energy sources)

• Greenhouse gas emissions associated with energy use

• At least one emissions intensity ratio (such as tonnes of CO₂e per employee or per £million turnover)

• Details of the methodology used to calculate emissions

• A narrative describing energy efficiency actions taken during the reporting year

The report forms part of the company's Directors' Report or Energy and Carbon Report within the annual financial statements.

Why SECR Matters Beyond Compliance

While SECR is a legal requirement for many organisations, it also provides valuable business insights.

Identify Cost Savings

Tracking energy consumption often highlights inefficiencies that can significantly reduce operating costs through improved energy management.

Strengthen ESG Performance

Investors, customers, lenders, and procurement teams increasingly evaluate businesses based on Environmental, Social and Governance (ESG) performance. Accurate carbon reporting demonstrates accountability and commitment to sustainability.

Improve Reputation

Customers increasingly prefer organisations that actively reduce their environmental impact. Transparent reporting can strengthen brand trust and support competitive advantage.

Prepare for Future Regulation

Climate reporting requirements continue to expand across industries. Businesses already measuring and managing emissions are better positioned to adapt to future legislation and reporting frameworks.

Common Challenges Businesses Face

Many organisations struggle with:

• Collecting accurate energy data from multiple sites

• Calculating Scope 1 and Scope 2 emissions correctly

• Choosing appropriate emissions intensity metrics

• Meeting reporting deadlines

• Ensuring calculations align with UK Government conversion factors

Working with experienced sustainability or accounting professionals can simplify the reporting process while reducing compliance risks.

How to Prepare for SECR Reporting

If your company is likely to fall within the reporting thresholds, it's worth preparing throughout the financial year rather than waiting until year-end.

Some practical steps include:

• Maintain accurate records of energy bills and fuel consumption.

• Monitor business travel and transport fuel usage.

• Review opportunities to improve energy efficiency.

• Keep documentation supporting emissions calculations.

• Plan sufficient time for reviewing and approving disclosures before filing annual accounts.

Final Thoughts

For many UK businesses, Streamlined Energy and Carbon Reporting is more than a compliance exercise—it's an opportunity to understand energy use, reduce costs, and demonstrate a genuine commitment to sustainability.

If your organisation meets the qualifying criteria, ensuring your SECR report is accurate, complete, and submitted on time is essential. Even if you're not legally required to report, voluntarily measuring and managing your carbon footprint can help future-proof your business and enhance your reputation with customers, investors, and employees.

Need help with SECR reporting?

Whether you're unsure if your company qualifies or need support preparing an accurate and compliant report, professional guidance can save time, reduce risk, and help identify opportunities to improve energy efficiency while meeting your reporting obligations.

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