Time to focus on SECR
With ESOS compliance hopefully all sorted, businesses need to focus on SECR.
The ESOS deadline has now passed and it’s time to focus on a new compliance scheme.
SECR, Streamlined Energy and Carbon Reporting, was introduced in April 2019 as a framework for energy and carbon reporting. Its aim is to reduce some of the administrative burden of overlapping carbon schemes and to improve visibility of energy and carbon emissions for large UK organisations. Given the timing of its introduction, SECR could also help businesses on their first steps to meet the UK’s 2050 net zero target. Companies in scope of the legislation will need to include their energy use and carbon emissions in their Directors’ Report as part of their annual filing obligations they will also need to report any energy efficiency actions they have taken within each financial year.
We believe it’s time to focus on SECR. The good news is, if your business complies with ESOS, you’re in a much stronger position as you may have much of the data you require already to hand.
Who needs to comply with SECR?
The scheme affects UK quoted companies and ‘large’ unquoted companies and LLPs. These are defined as those meeting at least two of the following; 250 employees or more, annual turnover of £36m or more or an annual balance sheet of £18m or more.
What the scheme requires
For SECR, companies are required to report the following:
- Scope 1 (direct) and Scope 2 (indirect) energy and carbon emissions (electricity, gas and transport as a minimum).
- Previous year’s figures for energy and carbon. At least one intensity ratio (e.g. tCO2/turnover).
- Detail of energy efficiency action taken within the reporting year.
- Reporting methodology applied.
When will you need to comply?
Compliance will be based on your financial reporting year. Therefore, if your financial year is 1st April – 31st March, your first energy and carbon disclosure data collection will be for the period covering 1st April 2019 – 31st March 2020. This must be submitted in your Director’s Report after March 2020.
Take a look at our chart to see when your SECR deadline will be.
What happens if I don’t comply?
Whilst there are no fixed penalties specified, as there are in ESOS, there are still consequences for non-compliance. Not meeting the reporting requirements of SECR can result in accounts not being signed off. Missing the filing deadline could lead to a civil penalty. So it’s important for organisations to fully align communications between their energy and finance teams and to get a head start where possible.
Save time and hassle
There are similarities with SECR and ESOS when it comes to required data for each scheme, this can be used to your advantage. We offer a combined ESOS and SECR compliance package for businesses at a discounted rate. If you’d like more information on this or any of our services, call +44 1527 511 757 or email us.
Science-Based Targets: everything you need to know
Some large corporations are leading the way in a bid to tackle climate change with science-based targets. What are the benefits of committing to these...
The energy crisis: how did we get here?
If you are concerned about the rising prices, you are not alone. As the world reels from the biggest price rise in electricity and gas...