Streamlined Energy Carbon ReportingThe Streamlined Energy & Carbon Reporting (SECR) scheme was launched in April 2019.

The streamlined energy and carbon reporting regulations (SECR) came into effect in April 2018, but thousands of companies are oblivious to their requirements under this act. The SECR replaced the Carbon Reduction Commitment (CRC), which was also a mandatory carbon emissions reporting and pricing scheme which covered large public and private sector organisations in the UK.

The main difference with the SECR compared to the CRC is that companies must first calculate their carbon footprint and this energy information must be included in annual reports.

The only exclusions for organisations meeting these criteria are for those with very low energy consumption of fewer than 40,000-kilowatt hours per year. There are no exemptions or exclusions for companies holding Climate Change Agreements (CCA) or participating in EU ETS.

As SECR is recognised as the gold standard for reporting, many organisation such as ourselves although not captured under this mandatory scheme, adopt the same approach and volunteer their annual carbon footprint in the same way as those mandated to do so.

Streamlined Energy Carbon Reporting

The SECR will apply to all large companies, up to 15,000 in number.  Large companies, as defined in sections 465 and 466 of the Companies Act 2006, are companies that meet two or more of the following criteria:

> turnover (or gross income) of £36 million or more,

> balance sheet assets of £18 million or more,

> 250 employees or more.

Unlocking the Benefits of Streamlined Energy and Carbon Reporting: A Comprehensive Guide

In a world increasingly focused on sustainability and environmental impact, businesses are being urged to act. Streamlined Energy and Carbon Reporting (SECR) has emerged as a crucial tool in this endeavour, enabling businesses of all sizes to measure, report, and manage their energy consumption and carbon emissions. But what exactly is SECR, and how can companies harness its potential?

In this comprehensive guide, we delve into the key aspects of SECR and explore its benefits for businesses of all sizes and sectors. From reducing cost and energy wastage to improving resource efficiency and enhancing reputational standing, SECR offers a multitude of advantages. We navigate through the intricacies of SECR compliance, outlining the reporting requirements and deadlines, and providing invaluable tips to ensure successful implementation.

Whether you’re a seasoned sustainability professional or just beginning your sustainability journey, this guide equips you with the knowledge and tools to unlock the full potential of SECR. Join us as we explore the wide-ranging benefits of adopting streamlined energy and carbon reporting for your organisation.

Understanding Streamlined Energy and Carbon Reporting (SECR)

Streamlined Energy and Carbon Reporting (SECR) is a framework introduced by the UK government to simplify energy and carbon reporting requirements for businesses.  Using the governments Greenhouse Gas (GHG) reporting metrics, SECR aims to encourage greater transparency and accountability in corporate reporting on energy and carbon emissions.

SECR applies to large UK-incorporated companies, including quoted companies and large unquoted companies, as well as limited liability partnerships (LLPs) that meet the qualification criteria. The reporting requirements include disclosing energy consumption, greenhouse gas emissions, and energy efficiency actions in the annual reports and accounts.

The importance of SECR for businesses

SECR is more than just a compliance exercise. It presents businesses with an opportunity to enhance their sustainability efforts and improve their overall environmental performance. By measuring and reporting energy consumption and carbon emissions, companies can gain valuable insights into their operations, identify areas for improvement, and set targets for reducing their environmental impact.

Moreover, SECR provides a framework for businesses to demonstrate their commitment to sustainability and corporate social responsibility. By publicly reporting on their energy and carbon performance, companies can enhance their reputation among stakeholders, including investors, customers, and employees. This can lead to increased trust, brand loyalty, and a competitive advantage in the market.

Key features and requirements of SECR

To comply with SECR, businesses must meet certain reporting requirements and deadlines. These include:

> Reporting on energy consumption: Companies must disclose their total energy use from electricity, gas, and transport fuels, as well as the methodology used to calculate these figures.

> Reporting on greenhouse gas emissions: Companies are required to report their Scope 1 and Scope 2 greenhouse gas emissions. Scope 1 emissions refer to direct emissions from owned or controlled sources, such as combustion of fossil fuels on-site. Scope 2 emissions are indirect emissions associated with the generation of purchased electricity, heat, or steam.

> Reporting on energy efficiency actions: Businesses must outline the energy efficiency measures they have implemented during the reporting year. This includes investments in renewable energy, energy-saving projects, and other initiatives aimed at reducing energy consumption and carbon emissions.

> Reporting on intensity ratios: Companies need to disclose intensity ratios, such as energy consumption per unit of production, to provide context for their energy and carbon performance.

> Reporting on global energy performance: If a company operates outside the UK and meets certain criteria, it may be required to report on its global energy performance.

It is important for businesses to understand these requirements and ensure accurate and complete reporting to comply with SECR.

Benefits of implementing SECR

Implementing SECR brings numerous benefits to businesses, regardless of their size or sector. These benefits include:

> Cost and energy savings: By measuring and analysing energy consumption, companies can identify inefficiencies and implement energy-saving measures. This can lead to significant cost savings and reduced energy wastage.

> Improved resource efficiency: SECR encourages businesses to optimise their resource usage, leading to more efficient operations. By identifying areas of high energy consumption and carbon emissions, companies can implement strategies to reduce their environmental impact.

> Enhanced reputation and stakeholder trust: Publicly reporting on energy and carbon performance demonstrates a company’s commitment to sustainability. This can enhance its reputation among stakeholders, including investors, customers, and employees, and increase trust and loyalty towards the brand.

> Compliance with regulatory requirements: SECR ensures that businesses meet their legal obligations regarding energy and carbon reporting. By complying with SECR, companies avoid penalties and reputational damage associated with non-compliance.

> Competitive advantage: Adopting SECR can give businesses a competitive edge in the market. As sustainability becomes increasingly important to consumers, companies that demonstrate their commitment to environmental responsibility are more likely to attract customers and gain a competitive advantage.

Business Energy Services.Infinite possibilities. Endless opportunities.

Steps to streamline energy and carbon reporting

Implementing SECR requires careful planning and execution. To streamline energy and carbon reporting, businesses can follow these steps:

A: Conduct an energy audit: Start by assessing your current energy consumption and carbon emissions. Identify areas of high energy usage and potential inefficiencies.

B: Set targets and goals: Establish clear targets and goals for reducing energy consumption and carbon emissions. These targets should be specific, measurable, achievable, relevant, and time-bound (SMART).

C: Implement energy-saving measures: Implement a range of energy-saving measures, such as installing energy-efficient lighting, optimizing heating, and cooling systems, and promoting employee awareness and engagement.

D: Monitor and track progress: Continuously monitor and track your energy consumption and carbon emissions. Use appropriate tools and software to gather accurate data and measure progress towards your targets.

E: Report and disclose: Ensure accurate and timely reporting of energy consumption, carbon emissions, and energy efficiency actions. Include this information in your annual reports and accounts, as required by SECR.

By following these steps, businesses can streamline their energy and carbon reporting processes and maximize the benefits of SECR compliance.


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    Tools and resources for SECR compliance

    Several tools and resources are available to assist businesses in complying with SECR requirements. These include:

    > Energy monitoring software: Utilise energy monitoring software to track and analyse energy consumption in real-time. These tools provide valuable insights into energy usage patterns and help identify areas for improvement.

    > Carbon accounting software: Carbon accounting software simplifies the process of calculating and reporting greenhouse gas emissions. It automates data collection, applies emission factors, and generates accurate reports for SECR compliance.

    > Sustainability consultants: Engage the services of sustainability consultants like Catalyst who specialise in SECR compliance. These experts can provide guidance and support throughout the reporting process, ensuring accurate and timely disclosure of energy and carbon performance.

    > Industry associations and organisations: Many industry associations and organisations offer resources and guidance on SECR compliance. These include templates, best practice guides, and training materials to help businesses navigate the reporting requirements.

    By leveraging these tools and resources, businesses can streamline their SECR compliance efforts and optimize their energy and carbon reporting processes.

    Best practices for reporting and managing energy and carbon emissions

    To ensure effective energy and carbon reporting, businesses should follow these best practices:

    > Accurate data collection: Collect accurate and reliable data on energy consumption and carbon emissions. Use appropriate measurement and monitoring systems to ensure data integrity.

    > Regular data monitoring: Continuously monitor energy usage and carbon emissions to identify trends and anomalies. Regular monitoring enables businesses to take timely action and make informed decisions.

    > Transparent reporting: Provide clear and transparent reporting on energy consumption, carbon emissions, and energy efficiency actions. Use standardised metrics and terminology to facilitate comparison and benchmarking.

    > Stakeholder engagement: Engage stakeholders, such as employees, customers, and suppliers, in energy and carbon management initiatives. Encourage their participation and feedback to foster a culture of sustainability.

    > Continuous improvement: Regularly review and update energy management strategies to drive continuous improvement. Set new targets and goals as performance improves and technology advances.

    By adopting these best practices, businesses can effectively manage their energy and carbon emissions, drive sustainability, and meet SECR reporting requirements.

    Case studies: Successful implementation of SECR

    To illustrate the benefits and challenges of implementing SECR, let’s explore two case studies of companies that have successfully embraced streamlined energy and carbon reporting.

    > Company A: A multinational manufacturing company implemented SECR across its operations. By conducting an energy audit, the company identified opportunities for energy savings and implemented energy-efficient technologies. As a result, the company achieved a 20% reduction in energy consumption and significantly reduced its carbon emissions. The successful implementation of SECR improved the company’s reputation and led to cost savings.

    > Company B: A medium-sized retail company integrated SECR into its sustainability strategy. Through targeted energy-saving initiatives, such as energy-efficient lighting and optimised HVAC systems, the company reduced its energy consumption by 15%. By publicly reporting on its energy and carbon performance, the company attracted environmentally conscious customers and gained a competitive advantage in the market.

    These case studies highlight the diverse benefits that SECR can bring to businesses across different sectors, showcasing the potential for cost savings, improved environmental performance, and enhanced reputation.

    Challenges and potential solutions for SECR reporting

    While SECR offers numerous benefits, it also presents challenges for businesses. Some common challenges include:

    > Data collection and management: Gathering accurate and comprehensive data on energy consumption and carbon emissions can be complex, especially for large and geographically dispersed organisations. Implementing robust data collection and management systems can help overcome this challenge.

    > Resource constraints: Small and medium-sized enterprises (SMEs) may face resource constraints when implementing SECR. Limited budgets and lack of dedicated sustainability teams can hinder compliance efforts. Working with a consultant like Catalyst or collaborating with industry associations and leveraging available resources can help overcome these challenges.

    > Changing regulations: SECR requirements may change over time, requiring businesses to adapt their reporting processes. Staying up-to-date with regulatory changes and engaging with sustainability experts can ensure ongoing compliance.

    > Data accuracy and verification: Ensuring the accuracy and credibility of reported data is essential for SECR compliance. Engaging third-party verification services can provide independent assurance and enhance the reliability of reported figures.

    By addressing these challenges proactively and seeking appropriate solutions, businesses can overcome obstacles and maximize the benefits of SECR implementation.


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      Our Approach to SECR

      Catalyst Digital Energy is an award-winning energy consultancy with a focus on digital energy services, total energy contract lifecycle management and energy management services. It is revolutionising how businesses manage energy with its unique Energy Spend Management Platform, which is powered by Robotic Process Automation (RPA) EaaSi®.

      Catalyst is digitising all aspects of energy, including billing, data, consumption, spend, payments, procurement and emissions reporting. When combined with its fully funded renewable energy solutions, Catalyst offers a unique and powerful approach to managing energy.

      Are you legally required to report your carbon emissions under the streamlined energy and carbon reporting secr regulations?

      Streamlined Energy and Carbon Reporting (SECR) regulations. SECR applies to large UK companies, limited liability partnerships, and large unquoted companies. These entities are mandated to disclose their energy use and greenhouse gas emissions in their annual reports.

      What is streamlined energy and carbon reporting

      Streamlined Energy and Carbon Reporting (SECR) is a UK government initiative requiring businesses to report their energy consumption, greenhouse gas emissions, and energy efficiency measures annually in their financial reports. It aims to increase transparency and encourage organisations to reduce their carbon footprint and energy consumption.

      Is GHG reporting mandatory in UK

      Yes, greenhouse gas (GHG) reporting is mandatory in the UK for certain organisations under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, which require large companies to report their annual GHG emissions in their annual reports. Failure to comply can result in penalties and reputational risks.