How to Complete Your SECR Report in Under 2 Hours

For UK businesses newly subject to Streamlined Energy and Carbon Reporting (SECR), the prospect of preparing your first compliance report can feel overwhelming. Traditional consultants quote 6-10 weeks and charge £15,000-25,000 for SECR compliance services. But with the right approach and modern tools, you can complete your entire SECR report in under 2 hours.

This comprehensive guide walks you through every step of the SECR reporting process, from gathering your energy data to submitting your compliant report to Companies House.

Understanding the SECR Reporting Timeline

Before diving into the process, it's important to understand when your SECR report is due. Your report must be included in your Directors' Report and filed with Companies House as part of your annual accounts.

The deadline is typically:

• 9 months after your financial year-end for private companies
• 6 months after your financial year-end for public companies

Many businesses discover their SECR obligations just weeks before their filing deadline, making efficiency critical.

Step 1: Confirm Your SECR Obligations (15 minutes)

Not all UK businesses need to comply with SECR. Start by verifying whether your company meets the threshold requirements.

Who Must Comply with SECR?

You're required to report under SECR if your company meets at least two of these criteria:

• More than 250 employees
• Annual turnover exceeding £36 million
• Balance sheet total exceeding £18 million

Additionally, quoted companies and Large Unquoted Companies (LUCs) have SECR obligations regardless of these thresholds.

Use Our Compliance Checker

Not sure if you qualify? Use our free SECR compliance checker to determine your reporting obligations in under 2 minutes.

Step 2: Gather Your Energy Data (30-45 minutes)

The most time-consuming part of SECR reporting is typically collecting your energy consumption data. However, with organized preparation, you can complete this step in under 45 minutes.

What Energy Data You Need

For comprehensive SECR compliance, you need 12 months of energy consumption data covering:

Electricity Consumption:

• Grid electricity from all business premises
• Onsite renewable electricity generation (if applicable)
• Total kWh consumed during your reporting year

Natural Gas:

• Gas consumption from all facilities
• Total kWh or cubic meters consumed

Transport Fuels:

• Company-owned vehicle fuel purchases (petrol, diesel)
• Grey fleet mileage (employee-owned vehicles used for business)
• Litres or miles traveled

Other Energy Sources:

• Heating oil, LPG, or biomass
• Any other combustion sources

Where to Find Your Data

Utility Bills: Your electricity and gas suppliers provide monthly or quarterly statements showing kWh consumption. Most suppliers now offer online portals where you can download 12 months of data in spreadsheet format.

Fuel Receipts: For company vehicles, gather fuel receipts or company fuel card statements. For grey fleet, collect mileage logs or expense claims.

Smart Meter Data: If you have smart meters installed, you can often access granular consumption data through your supplier's app or web portal.

Invoice Management Systems: Many businesses use accounting software like Xero, QuickBooks, or Sage. Your utility bills are likely already digitized in these systems.

Pro Tip: Create an Energy Data Folder

Set up a dedicated folder (physical or digital) for all energy-related documents. Include:

• Utility bills for the reporting period
• Fuel receipts and mileage logs
• Renewable energy certificates (if applicable)
• Previous year's data for comparison

For a detailed checklist, see our guide on SECR energy data collection.

Step 3: Calculate Your Carbon Emissions (20-30 minutes)

Once you've gathered your energy data, you need to convert consumption figures into carbon dioxide equivalent (CO2e) emissions using the UK Government's GHG Conversion Factors.

Understanding the GHG Protocol

SECR reporting follows the GHG Protocol Corporate Standard, which categorizes emissions into three scopes:

Scope 1 (Direct Emissions):

• Natural gas combustion in boilers
• Fuel combustion in company-owned vehicles
• Onsite fuel use for heating

Scope 2 (Indirect Energy Emissions):

• Purchased electricity from the grid
• Purchased heat or steam

Scope 3 (Other Indirect Emissions):

• Grey fleet business travel
• Employee commuting (optional under SECR)
• Supply chain emissions (optional under SECR)

SECR requires reporting of Scope 1 and Scope 2 emissions at minimum. Many businesses also report Scope 3 business travel for completeness.

Manual Calculation Method

If calculating manually, follow this formula:

CO2e Emissions = Energy Consumption × Emission Factor

For example:

• Electricity: 50,000 kWh × 0.21233 kgCO2e/kWh = 10,616.5 kgCO2e (10.62 tonnes)
• Natural Gas: 100,000 kWh × 0.18316 kgCO2e/kWh = 18,316 kgCO2e (18.32 tonnes)
• Diesel: 5,000 litres × 2.69869 kgCO2e/litre = 13,493.45 kgCO2e (13.49 tonnes)

Total Carbon Footprint: 42.43 tonnes CO2e

Conversion Factor Tables

The UK Government publishes updated conversion factors annually. For 2026 reporting, ensure you're using the 2026 conversion factors.

Key factors for 2026 include:

• UK electricity: 0.21233 kgCO2e per kWh
• Natural gas: 0.18316 kgCO2e per kWh
• Diesel (average): 2.69869 kgCO2e per litre
• Petrol (average): 2.31537 kgCO2e per litre

For detailed guidance on using conversion factors, see our article on UK Government Conversion Factors for SECR calculations.

Energy Intensity Metrics

SECR requires you to report at least one intensity metric that contextualizes your emissions. Common metrics include:

• Tonnes CO2e per employee: Total emissions ÷ employee count
• Tonnes CO2e per £1M turnover: (Total emissions ÷ revenue) × 1,000,000
• Tonnes CO2e per square meter: Total emissions ÷ total floor space

Choose a metric that meaningfully represents your business operations and that you can track year-over-year.

Step 4: Document Your Methodology (10-15 minutes)

SECR regulations require transparency about how you calculated your emissions. Your report must include:

Reporting Boundary

Clearly state which legal entities and operations are included in your report. This should align with your financial consolidation approach (operational control, financial control, or equity share).

Example: "This report covers all UK operations of ABC Manufacturing Ltd where we have operational control, including our head office in Birmingham and manufacturing facility in Manchester."

Calculation Methodology

Document your approach:

• Which GHG Protocol scopes you're reporting (1, 2, and optionally 3)
• Which conversion factors you used (year and source)
• How you handled data gaps or estimations
• Any exclusions and their justification

Example: "Emissions calculated using the GHG Protocol Corporate Standard and UK Government 2026 conversion factors. Scope 1 includes natural gas and company vehicles. Scope 2 includes grid electricity (location-based method). Scope 3 includes grey fleet business mileage."

Data Quality Statement

Be transparent about your data sources:

• Actual meter readings vs. estimates
• Any assumptions made
• Confidence level in your figures

The GHG Protocol Corporate Standard provides detailed guidance on documentation requirements.

Step 5: Identify Energy Efficiency Actions (15-20 minutes)

SECR requires you to describe the energy efficiency measures taken during the reporting period and their estimated impact.

What Counts as Energy Efficiency Actions?

Qualifying measures include:

• LED lighting upgrades
• Building insulation improvements
• HVAC system optimization
• Equipment replacements with more efficient models
• Behavioral change programs (switch-off campaigns)
• Electric vehicle fleet transition
• Renewable energy installations
• Building management system implementations

How to Document Actions

For each measure, include:

1. Description: What you did (e.g., "Replaced 200 fluorescent tubes with LED alternatives")
2. Timing: When implemented (e.g., "Completed Q2 2025")
3. Impact: Estimated annual savings (e.g., "Expected 15,000 kWh reduction per year")

If you took no actions during the reporting period, you must state this explicitly: "No energy efficiency measures were implemented during the reporting period."

Forward-Looking Measures

While SECR focuses on measures already taken, many companies also outline planned future initiatives to demonstrate commitment to continuous improvement.

Step 6: Format Your SECR Disclosure (10-15 minutes)

Your SECR report must be included in your Directors' Report within your annual accounts. The disclosure should be clearly titled and contain all mandatory elements.

Required SECR Disclosure Elements

Your report must include:

1. UK energy consumption (kWh) for the reporting period
2. Associated greenhouse gas emissions (tonnes CO2e) for Scope 1 and Scope 2
3. At least one intensity metric (e.g., emissions per employee)
4. Prior year comparative figures (from second year onwards)
5. Energy efficiency actions taken during the period
6. Methodology statement explaining your approach

Sample SECR Disclosure Structure

Streamlined Energy and Carbon Reporting (SECR)

For the year ended [DATE], our total UK energy consumption and associated
greenhouse gas emissions were:

Energy Consumption: X,XXX kWh
Scope 1 (Direct) Emissions: XX.X tonnes CO2e
Scope 2 (Indirect) Emissions: XX.X tonnes CO2e
Total Scope 1 & 2 Emissions: XX.X tonnes CO2e

Intensity Metric: X.X tonnes CO2e per employee

Energy Efficiency Actions:
[Description of measures taken]

Methodology:
[Explanation of calculation approach, standards used, and reporting boundary]

You can see a complete example in our sample SECR report.

Step 7: Review and Quality Check (10 minutes)

Before finalizing your report, conduct a thorough quality check:

Data Accuracy Checklist

• Energy consumption figures match utility bills
• All facilities and operations included
• Conversion factors are from the correct year
• Calculations are mathematically correct
• Totals sum properly (Scope 1 + Scope 2 = Total)
• Units are consistent (kWh for energy, tonnes for emissions)
• Intensity metric calculation is correct
• Prior year figures match previous submission (if applicable)

Compliance Checklist

• All mandatory disclosure elements included
• Methodology clearly explained
• Energy efficiency actions described
• Reporting boundary defined
• GHG Protocol standards referenced
• UK Government conversion factors cited
• Report included in Directors' Report section

Step 8: Submit to Companies House (5 minutes)

Once your Directors' Report (including SECR disclosure) is finalized, you submit it as part of your annual accounts filing to Companies House.

Filing Methods

WebFiling: Companies House offers a free online filing service for small companies using abbreviated accounts.

Software Filing: Most businesses use accounting software (e.g., Xero, FreeAgent) or professional services to file accounts electronically.

Paper Filing: Still accepted but increasingly rare and slower to process.

Your SECR disclosure is embedded within the Directors' Report, so there's no separate SECR filing process. Simply include it in your standard annual accounts submission.

For detailed filing guidance, visit the Companies House website.

Streamlining the Process with Automation

While the manual process outlined above can be completed in under 2 hours with preparation, automation can reduce this to under 10 minutes.

How Comply Carbon Accelerates SECR Reporting

Modern SECR compliance platforms like Comply Carbon eliminate manual calculations and formatting:

1. Upload your utility bills (PDFs, images, or spreadsheets)
2. AI extracts consumption data automatically
3. Emissions calculated using latest UK Government conversion factors
4. Compliant report generated in GHG Protocol format
5. Download ready-to-submit disclosure for your Directors' Report

This approach:

• Reduces completion time from hours to minutes
• Eliminates calculation errors
• Ensures compliance with latest standards
• Provides audit trail documentation
• Costs £1,999 vs. £15k-25k for consultants

Learn more about our automated SECR compliance process.

Common SECR Reporting Challenges and Solutions

Challenge 1: Missing Energy Data

Problem: Some utility bills are missing or unavailable for the full 12-month period.

Solution:

• Contact suppliers to request historical data (often available 2+ years back)
• Use estimated consumption based on similar periods
• Document estimation methodology clearly
• Note data limitations in your methodology statement

Challenge 2: Complex Organizational Structure

Problem: Multiple legal entities, subsidiaries, or international operations make boundary definition unclear.

Solution:

• Align your reporting boundary with financial consolidation
• Clearly document which entities are included/excluded
• Consider separate SECR reports for different qualifying entities
• Seek professional guidance for complex group structures

Challenge 3: First-Year Reporting

Problem: No prior year comparatives available for first-time reporters.

Solution:

• SECR regulations allow "not applicable" for prior year in first report
• Consider voluntary reporting of previous year for context
• Establish robust data collection processes for future years

Challenge 4: Calculating Scope 3 Emissions

Problem: Grey fleet mileage and other Scope 3 sources are difficult to track.

Solution:

• Implement mileage tracking through expense systems
• Use average vehicle emissions if specific data unavailable
• Consider excluding optional Scope 3 if data quality is poor
• Build better tracking systems for future reporting periods

SECR Reporting Best Practices

Start Early

Don't wait until your accounts filing deadline. Begin data collection 3-4 months before year-end to allow time for data gathering and supplier follow-up.

Centralize Data Management

Designate one person or team responsible for energy data collection and create a central repository for all relevant documents.

Engage Stakeholders

Involve facilities teams, finance, procurement, and sustainability functions to ensure comprehensive data coverage.

Document Everything

Maintain clear records of your data sources, calculations, assumptions, and decisions. This creates an audit trail and simplifies future reporting.

Plan for Improvement

Use your SECR report as a baseline for setting reduction targets and tracking progress year-over-year.

Beyond Compliance: Using SECR Data Strategically

While SECR is a regulatory requirement, the data you gather has strategic value:

Cost Reduction Opportunities

Energy consumption data highlights where costs are concentrated, identifying opportunities for efficiency investments with strong ROI.

ESG Reporting

SECR data forms the foundation for broader environmental, social, and governance (ESG) reporting to investors, customers, and stakeholders.

Net Zero Planning

Understanding your carbon footprint is the essential first step toward science-based emissions reduction targets and net zero commitments.

Competitive Advantage

Demonstrating environmental responsibility through transparent reporting can differentiate your business in procurement processes and customer relationships.

Frequently Asked Questions

Q: Can I use previous years' conversion factors? No, you must use the conversion factors for the reporting year. The UK Government updates these annually based on the latest data.

Q: What if my data isn't perfect? SECR regulations recognize that perfect data isn't always achievable. Use reasonable estimates where necessary and document your approach clearly.

Q: Do I need external verification? SECR doesn't require third-party verification for most companies. However, quoted companies may choose external assurance to enhance credibility.

Q: Can I update my report after submission? Once filed with Companies House, your accounts (including SECR disclosure) are part of the public record. Corrections require filing amended accounts, so thorough review before submission is crucial.

Conclusion

Completing your SECR report doesn't need to be a months-long process costing tens of thousands of pounds. With organized data collection, clear methodology, and the right tools, you can produce a compliant, high-quality SECR report in under 2 hours.

The key steps are:

1. Confirm your obligations
2. Gather energy consumption data
3. Calculate emissions using UK Government conversion factors
4. Document your methodology
5. Describe energy efficiency actions
6. Format your disclosure
7. Review for accuracy and compliance
8. Submit with your annual accounts

For businesses seeking maximum efficiency, automated platforms like Comply Carbon reduce the process to under 10 minutes while ensuring 100% compliance with Companies House requirements.

Ready to complete your SECR report? Get started with Comply Carbon or explore our comprehensive SECR compliance guide for more detailed guidance.