Streamlined Energy and Carbon Reporting
What is SERC?
Streamlined Energy and Carbon Reporting (SECR) requires all large UK registered companies to report on their energy consumption, Greenhouse Gas (GHG) emissions and energy intensity, within their annual report.
The inclusion of energy and carbon reports within annual reports is in line with The Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD).
The proposed SECR scheme aims to ensure energy use and carbon emissions are visible to company boards and investors. An energy intensity metric (such as kWh per unit of production, per employee etc) will help put usage into context for companies.
SECR will also contribute to the government’s Clean Growth Strategy ambition of enabling Businesses and Industries to improve their energy productivity by at least 20% by 2030.
The Government has tried to keep eligibility in line with Energy Savings Opportunities Scheme (ESOS) regulations. However, organizations should be cautious, as unlike ESOS, SECR eligibility does not require a company to meet the minimum of 250 employees.
The government will not specify the exact procedures that should be used for SECR reporting, nor will they specify which intensity metrics to use. They have however created guidance on good practice. GEAB use this guidance as a minimum requirement.
Does your organization qualify for SECR?
Your company needs to report under SECR if the following apply:
UK Registered Company with a minimum of 250 employees;
and/or an annual turnover of £360 million and above;
and/or an annual balance sheet of 36 million and above.
How GEAB help you to comply with SECR:
Determine your current or future risk or exposure to SECR compliance.
Support those responsible for your annual financial report submission (to Companies House) regarding any current/future SECR inclusions.
Implement Utility, Transport consumption, and emission-type data collection strategy across the organization. This might be via energy champions at each location, meter readings, or collecting data from utility providers.
SECR suggests automated metering data be used where possible to avoid data inaccuracies from this process. Supplier invoices should be used to cross-reference site information rather than informing the submission.
Calculate Scope 1, 2 emissions (including transport). (Scope 3 is optional).
Help you decide and report on an intensity metric. This will be a metric that influences energy use (i.e. production, per employee, or floor area).
Your global and/or UK energy use, emissions, intensity metric, and commentary of energy efficiency measures as part of your Annual Report submission to Companies House via a specific addendum.
GEAB deliver SECR compliance
Our Compliance team of sustainability and governance experts help to interpret SECR guidelines to determine whether your organization needs to comply with SECR. If so, we help to produce your first SECR report, creating a template that fits your business for future use.
Our independent Energy & Emissions Management platform helps organizations collect, manage and report SECR environmental compliance data accurately and efficiently.
If you are collecting and reporting the information required under SECR for the first time or simply don’t have the internal resource, our simple, 5-step SECR-Assist service is here to help.
GEAB can carry out all necessary on-going audits to ensure you are fully compliant with SECR, with minimal disruption to your organization.
To discuss eligibility and meet SECR compliance legislation, contact GEAB from 9am-5pm Monday to Friday on 0800 084 3477.