Don’t get caught out by SECR
Don’t get caught out by SECR…
As you had to comply with the ESOS scheme it is more than likely that you will need to comply with Streamlined Energy and Carbon Reporting (SECR), a new mandatory compliance scheme for large companies.
What is SECR?
SECR came into effect on the 01 April 2019, replacing the Carbon Reduction Commitment (CRC). Although designed to simplify energy and carbon reporting for large organisations, the SECR does, however, draw more businesses into its net.
Who does SECR affect?
Whether you are a listed company, unlisted or a limited liability partnership you will need to report if you meet any two of the following three criteria:
- Over 250 employees
- Annual turnover greater than £36 million
- Annual balance sheet greater than £18 million
When is SECR reporting required?
Your first report will relate to your first full financial year starting on or after the 01 April 2019 and will form part of your company’s annual report. Although that means this first report will not be due until April 2020, it’s important to start making sure your record keeping is fit for purpose. This includes details of energy use relating to electricity, gas and transport as well as the associated greenhouse gas (GHG) emissions. Crucially, it’s reporting what you have done to reduce energy and carbon emissions.
How to prepare for SECR
You’ll need to make the following publicly available, related to the activities of your business (for example per dozen eggs, kilograms of tomatoes, hectare of arable production etc.):
- energy use
- carbon emissions
- energy efficiency actions
These figures will likely be published in Annual Reports alongside financial data. As you have been reporting under ESOS you will be collecting most of the information needed for SECR but will need to prepare additional disclosures and commentary as SECR is an annual obligation.
The Conduct Committee of the Financial Reporting Council is responsible for monitoring compliance of a company’s reports and accounts with the relevant reporting requirements.
Each year we help our customers:
- Save £1 million on their electricity bills
- Sell in excess of £30 million worth of electricity back to the grid
- Claim over £4 million in Climate Change Levy (CCL) scheme discounts, saving 30% on their annual fees