Streamlined Energy and Carbon Reporting, or SECR, is due to come into force in April 2019 and imposes mandatory energy and carbon reporting responsibilities on some organisations – so who is affected?
All large UK undertakings are likely to fall within the scope of SECR, with very few exceptions. Only those firms with annual energy consumption of less than 40,000 kWh can avoid SECR completely.
For those with energy consumption over the threshold, two of the three following criteria must also apply:
- 250+ employees.
- £36m+ annual turnover.
- £18m+ annual balance sheet total.
These criteria extend SECR obligations from only quoted companies, to all qualifying large UK incorporated unquoted organisations and equivalent LLPs from April 2019.
What does SECR mean?
SECR imposes new rules for your organisation to record and report carbon emissions and energy consumption, including your premises and your transport fleets.
You must disclose your annual energy performance and energy use against an intensity metric and give an outline of energy efficiency improvement actions that were carried out during the past year.
If you are not already aware, it is important to note that the last reporting period ends in March 2019 at the same time as SECR comes into effect – which means this legislation will apply to many organisations that are currently covered by CRC, along with many more which are not.
Does SECR apply to me?
CRC applies to around 4,000 companies. In comparison, SECR is expected to apply to 11,900, nearly three times as many – so it is more likely that SECR will apply to you too.
The qualifying thresholds mentioned above are lower, so smaller companies will need to comply with SECR, including some who have never had to report before.
All UK quoted companies already affected by SECR will also continue to fall within the scope after April 2019.
What will I need to report?
Affected companies should report Scope 1 and 2 emissions, with voluntary reporting of Scope 3 emissions.
Quoted companies must report based on their global emissions, while unquoted companies must report based on their UK energy consumption.
If you have not yet started to prepare for SECR in April 2019, it is essential that you do so – especially if you need to start reporting energy usage for the first time or make the transition over from CRC.
Envantage can help with energy and emissions quantification and energy efficiency advice – just call us on 0800 054 2577 to find out more about what we can do for you.