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What is SECR?
The Streamlined Energy and Carbon Reporting (SECR) framework is a UK government initiative that requires large companies to report their annual energy consumption and greenhouse gas (GHG) emissions. Introduced in 2019, SECR aims to increase transparency around corporate energy use and carbon footprints while encouraging businesses to improve their energy efficiency.
SECR replaced the previous Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and is designed to be simpler and more integrated with existing corporate reporting requirements.
Key Benefits of SECR:
- Improved energy efficiency and cost savings
- Enhanced corporate reputation and stakeholder confidence
- Better understanding of energy consumption patterns
- Compliance with UK climate change legislation
Who Must Report?
SECR applies to UK companies that meet any of the following criteria:
Large Companies
- Turnover > £36 million
- Balance sheet total > £18 million
- Employees > 250
Quoted Companies
- Listed on a UK stock exchange
- Must report regardless of size
- Includes AIM-listed companies
Note: Companies must meet at least two of the three criteria (turnover, balance sheet, employees) to be classified as "large" under the Companies Act 2006.
What Must You Report?
SECR requires companies to disclose the following information in their Directors' Report:
1. Energy Consumption
- Total energy consumption in kWh
- Breakdown by energy type (electricity, gas, transport fuel)
- Energy intensity ratio (e.g., kWh per employee or per £ turnover)
2. Greenhouse Gas Emissions
- Scope 1 emissions (direct emissions from owned sources)
- Scope 2 emissions (indirect emissions from purchased energy)
- Scope 3 emissions (other indirect emissions, if material)
- Emissions intensity ratio (tCO₂e per employee or per £ turnover)
3. Energy Efficiency Actions
- Principal measures taken to improve energy efficiency
- Planned actions for the following year
- Methodology used for calculations
Pro Tip:
Your SECR report should be narrative and explain the context behind your numbers. Don't just present data – tell the story of your energy and carbon journey.
Deadlines & Penalties
⏰ Critical Deadline
Your SECR report must be included in your annual Directors' Report and filed with Companies House within 9 months of your financial year-end.
For example: If your financial year ends on 31 March 2025, your SECR report is due by 31 December 2025.
Penalties for Late Filing
Late Filing Penalties
- Up to 1 month late: £150
- 1-3 months late: £375
- 3-6 months late: £750
- Over 6 months late: £1,500
Additional Consequences
- Potential director disqualification
- Criminal prosecution
- Damage to corporate reputation
- Increased regulatory scrutiny
💡 Smart Planning
Start your SECR preparation at least 3 months before your filing deadline. This gives you time to gather data, perform calculations, and review your report.
Methodology & Standards
SECR requires robust and transparent methodology for calculating emissions and energy consumption:
Calculation Standards
- GHG Protocol: Use the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard
- UK Conversion Factors: Apply the latest UK Government GHG Conversion Factors
- Organizational Boundary: Define clear scope of operations to include
- Materiality: Focus on emissions sources that represent >1% of total emissions
Data Sources & Quality
- Energy Bills: Supplier invoices and meter readings
- Fuel Records: Company vehicle fuel consumption
- Travel Data: Business travel records and expense claims
- Third-Party Verification: Consider independent verification for large companies
Intensity Ratios
Choose meaningful intensity ratios that reflect your business model:
- Service Companies: tCO₂e per employee or per £ turnover
- Manufacturing: tCO₂e per unit produced or per £ revenue
- Retail: tCO₂e per square foot or per £ sales
Common Mistakes to Avoid
❌ Missing the Deadline
The most common mistake is underestimating the time needed to prepare a compliant SECR report.
❌ Incomplete Scope Coverage
Failing to include all relevant operations, especially if you have multiple sites or subsidiaries.
❌ Poor Data Quality
Using estimates instead of actual meter readings or supplier data.
❌ Missing Narrative Context
Presenting raw data without explaining what it means or what actions you're taking.
❌ Inconsistent Methodology
Changing calculation methods year-on-year without proper explanation or justification.
✅ Best Practice
Start with a simple, robust methodology and stick to it. You can always refine and expand your approach in subsequent years as you gain experience and improve data collection.
Getting Started with SECR
Follow this step-by-step approach to ensure successful SECR compliance:
Assess Your Eligibility
Check if your company meets the SECR criteria using our free compliance checker.
Gather Your Data
Collect energy bills, fuel records, and business travel data for the reporting period.
Choose Your Methodology
Decide on calculation methods and intensity ratios that make sense for your business.
Calculate Emissions
Apply conversion factors to calculate your carbon footprint across all scopes.
Write Your Report
Draft a narrative report explaining your methodology, results, and future plans.
Review & File
Have your report reviewed by stakeholders and file with Companies House before the deadline.
Additional Resources
Professional Support
- Environmental consultants
- Accountancy firms with SECR expertise
- Industry associations and networks
- Automated compliance platforms