There’s a new Carbon Reporting framework coming into force in 2019: Streamlined Energy & Carbon Reporting or SECR. What are the basics you really need to know?
- SECR replaces the CRC Energy Efficiency Scheme (which you might also know as the Carbon Reduction Commitment).
- The number of organisations affected by SECR will grow to almost 12,000, compared to just 4,000 for CRC… So, you might be included in SECR even though you’ve never been in CRC.
ARE YOU INCLUDED IN SECR?
All quoted companies (who are already party to Mandatory Carbon Reporting, also known as Mandatory Greenhouse Gas Reporting) will be required to report under SECR rules which have been revised slightly for MCR.
From April 2019 all unquoted companies and Limited Liability Partnerships (LLPs) will be included if they meet two of the following criteria:
- At least 250 employees
- Annual Turnover greater than £36 million
- Annual Balance Sheet total greater than £18 million
IF YOU’RE ALREADY COVERED BY MANDATORY CARBON REPORTING AS A QUOTED COMPANY
Note that from 1st April 2019 there are new requirements. The rules you may have followed to date will change slightly so you will need to ensure that you know how this might affect your business.
IF YOU’RE NEW TO SECR – UNQUOTED COMPANIES
Reporting your Carbon Emissions may be new to you, but it‘s not new to us. Here at Envantage we’ve been measuring greenhouse gas emissions for organisations for 14 years, working with accountants and auditors since the inception of Mandatory Carbon Reporting to assure compliance for some of the largest business in the UK. Our experience is unrivalled, giving you peace of mind.
There are some exceptions, but very few. If you’re still unsure, or if this is a surprise to you, contact us today to check whether you’re affected.
SECR comes into force on 1st April 2019. In your first accounting period beginning after that date, you will need to quantify your energy consumption from electricity, gases, and business transport. You will also be obliged to report energy against an intensity metric and after the first year compare your performance with the previous year.
All of this information needs to be published in the Director’s report within your published accounts, for the transparent view of your stakeholders. You will also need to publish a narrative about the energy efficiency measures you’ve taken during a reporting period.
SECR is an important part of your obligations under the Companies Act 2006, and your published results can be subject to official audit by HMRC. Therefore it’s essential that you know the risks and ensure that your SECR compliance and reporting is in safe hands.
By choosing the right partner you can get on with your day job in the knowledge that your compliance is being dealt with professionally.
CAN SECR BE A BENEFIT?
While SECR is a mandatory scheme with rules to follow, it is a scheme aimed at reducing the carbon emissions of UK organisations. Embracing its values can be a benefit to you. Publishing the required information helps your potential customers and your stakeholders to understand your approach to improving your efficiencies, boosting your brand value. The information used in your submissions can also be invaluable in your marketing literature and tender processes, helping you to win more customers.
Many organisations also use the information required for mandatory submissions as a start point to measuring their own full Carbon Footprint. Why not take the next step and build a complete view of your Carbon impact? The brand benefits of this can be significant: ask us how we can help.
SO… ARE YOU COMPLETELY READY?
SECR will affect your organisation from your first month of your first accounting year after 1st April 2019. Don’t leave things to the last minute.
You will need to have data collection routines in place to make sure you’re protected against the risks of non-compliance. In addition, simple supply-and-demand means that as the 2019 accounting year progresses, help will become more scarce and expensive. A managed process throughout your reporting year is the best approach to SECR. By avoiding last-minute work and last-minute charges, you will be prepared and protected.
As well as a vastly experienced team, Envantage can offer audit support: we’ve worked alongside auditors for many of our clients and will support you with HMRC, if necessary, to provide the evidential records you will need in the event of any audit. You can rest assured that you have the right partners looking after you.
ACT NOW TO PROTECT YOURSELF
Your Annual Report for financial years beginning on or after 1 April 2019 will need to contain your SECR information, so if you’re not certain what will be required, now is the time to check. Contact Envantage today to ensure that you’re going to be compliant – call free on 0800 054 577 or email firstname.lastname@example.org