SECR – UK Carbon reporting regulations

Carbon reporting regulations are expanding globally, CHW look at how it affects UK businesses?

August 2023

There are lots of things happening around the globe with regards to carbon emissions reporting and environmental responsibilities. The acronyms surrounding this can be bewildering. To date, across the globe there are over forty sets of rules and regulations that have been developed, this number is set to rise. This will affect your business one way or another one the coming years.

This is just the beginning… we can hear the groans already.

The reporting requirements cover all things “sustainable” from energy consumption to environmental protection; your business will be caught up in this collaborative global effort to control, monitor and reduce our reliance on climate damaging activity. Over the next few months we will breakdown what’s happening now and what is coming down the track, we will try to help you avoid the pitfalls that some organisations have fallen into, so you can steer a path to a carbon happy future.

In the European Union, the upcoming implementation of the CSRD (Corporate Sustainability Reporting Directive) is noteworthy. In the United States, the SEC (Securities and Exchange Commission) has introduced its own legislative proposal for climate-related disclosures in their registration statements and periodic reports.

However, for UK based companies, a prominent carbon reporting framework is the SECR (Streamlined Energy Carbon Reporting), this is significantly shaping the reporting landscape.

Carbon Happy World delves into the SECR, its applicability, and the compliance timeline it brings.


Understanding the SECR:

The SECR policy in the UK mandates organisations to include energy consumption and carbon emission data in their annual reports.

The SECR builds upon existing reporting mandates that entities might already be subjected to. Its primary objectives are to broaden the scope of energy and carbon reporting to encompass a larger pool of companies and to encourage actions toward energy efficiency.

Who falls under SECR Compliance?

This policy applies to:

• Quoted companies (publicly listed entities).

• Large unquoted companies.

• Large limited liability partnerships (LLPs)


In the context of the SECR, companies and LLPs are classified as “large” if they meet two or more of these criteria:

• Annual turnover exceeding £36 million.

• Balance sheet value surpassing £18 million.

• Workforce consisting of 250 employees or more.

Although external validation isn’t obligatory, it is strongly recommended.

Large unquoted companies and LLPs are exempt from SECR reporting if their energy consumption during the reporting period is below 40 MWh.


Compliance Deadlines:

Companies are obligated to incorporate SECR-aligned information in their Director’s Report, commencing from the financial year starting April 1st, 2019, and for each subsequent fiscal year there after.


Adhering to SECR Guidelines:

SECR requirements differ based on the entity type, distinguishing between quoted companies and large unquoted companies/LLPs.

Quoted companies must disclose:

• Global scope 1 and 2 greenhouse gas (GHG) emissions. Reporting scope 3 emissions is voluntary yet highly recommended.

• At least one emissions intensity ratio, comparing emissions data with relevant business metrics.

• Current reporting year’s underlying global energy usage.

• Previous year’s energy use and GHG figures.

• Energy efficiency measures pursued during the fiscal year.

• Employed methodology, with preference for widely recognised standards like GHG Reporting Protocol (Corporate Standard), ISO 14064-1:2018, CDSB, or Global Reporting Initiative.

• SECR-compliant Data Compilation & Reporting


Carbon Happy World can calculate the measurement of scope 1, 2, and 3 emissions, enabling data sharing through SECR-compliant reports.

SECR-compliant Data Compilation & Reporting:

Large unquoted companies and LLPs are required to disclose:

• UK energy consumption and associated GHG emissions.

• Previous year’s energy usage and GHG emission statistics.

• At least one intensity ratio.

• Implemented energy efficiency actions.

• Utilised methodology.

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