Streamlined Energy & Carbon Reporting (SECR) Compliance Guide - Made Easy
What is Streamlined Energy & Carbon Reporting?
Large UK companies must comply with the Streamlined Energy & Carbon Reporting (SECR) framework introduced by the Department for Business, Energy and Industrial Strategy (BEIS).
This regulation mandates disclosing UK energy use and carbon emissions within the Directors' Report for eligible businesses.
Who Needs to Comply and Report?
Businesses that meet at least two of the following thresholds in a financial year must report:
1
£36m annual turnover
2
£18m assets / balance sheet total
3
250 employees
Exceptions: If a company consumes less than 40,000 kWh of energy, a disclosure is not required.
*An estimated 11,900 businesses qualify to report their SECR.
Answer these quick questions to see if your company needs to report Scope 1, 2, and 3 emissions under SECR regulations.
What Should You Report?
1. Energy Use and Related Green House Gas Emissions:
- Scope 1 (Direct Emissions):
- Combustion of natural gas (through mains or bottled)
- Fuel use from transport (journeys starting or ending in the UK)
Example: Fuel from burning fuel in companies fleet of vehicles (if they're not electrically powered) or where a site has a gas supply which is being used.
- Scope 2 (Indirect Emissions):
- Electricity purchased and used for operations
Example: The emissions from using electricity across all of the companies buildings
- Scope 3 (Other Indirect Emissions, Voluntary):
- Energy use and emissions from business travel in rental cars or employee-owned vehicles where the company is responsible for purchasing the fuel
Example: When a company buys uses and disposes of products from suppliers
2. Intensity Metric:
- For example, Tonnes of CO2e per Full-Time Equivalent (FTE).
3. Supporting Narrative:
- Methodologies used within the calculation.
- Energy efficiency actions taken during the year.
*Voluntary Disclosures (Optional but Recommended):
- Broader Scope 1 emissions, including other fuel use, refrigerants, and manufacturing emissions.
- Scope 3 emissions, including upstream and downstream energy use comparison.
Challenges and Opportunities
Challenges:
- Setting Boundaries and Scope: Figuring out which operations to report on and where to draw the line.
- Collecting Data: Developing reliable ways to gather and manage the necessary data.
- Handling Complex Operations: Accounting for emissions from complicated or diverse activities.
- Managing Public Perception: Minimising the risks of negative feedback when making information public.
Opportunities:
- Cost Savings: Saving money by becoming more energy-efficient.
- Standing Out: Gaining a competitive edge by showcasing environmental best practices.
- Continuous Improvement: Using regular monitoring to keep improving energy use and reduce carbon emissions.
- Boosting Reputation: Enhancing your company’s image by using green energy and committing to sustainability.
Steps to Ensure Compliance:
1.Define What to Report and Where:
- Identify which parts of the company need to report emissions.
- Decide which emissions should be included for each operation.
- Address challenges in complex operations.
2.Set Up a Reporting System:
- Identify where the data will come from and set up reliable processes.
- Create a clear method for reporting carbon data.
- Develop customised reporting tools for complex operations.
3.Reporting and Disclosure:
- Establish internal guidelines for reporting.
- Regularly review energy use and convert it to emissions data.
- Ensure all reports comply with SECR (Streamlined Energy and Carbon Reporting) requirements.
Energy Procurement: Compliance with Green Energy
As an energy consultancy specialising in green electricity and green biogas, we provide more than just SECR compliance assistance. We help your business minimise its carbon footprint through the procurement of sustainable energy sources. By choosing green electricity and green biogas, your company can significantly reduce Scope 1, and 2 emissions, aligning your energy consumption with your sustainability goals.
- Scope 1 & 2: Our green energy solutions help reduce direct and indirect emissions by powering your operations with renewable sources.
- Scope 3: We support your broader sustainability initiatives, offering green energy solutions that minimise the environmental impact of business travel and other indirect activities.
How Purely Energy Can Assist
Our Key Services
- Guidance on Carbon Reporting: We help define reporting scope, including operational control and organisational boundaries.
- Process Review: We assess the accuracy and completeness of your carbon disclosures by reviewing your processes and data.
- Green Energy Procurement: We provide tailored energy procurement strategies, ensuring your energy use aligns with your environmental goals.
- Best Practices: We recommend strategies for monitoring and reporting operations.
- Assurance: We assure your reporting to build stakeholder trust.
Benefits of Compliance and Green Energy Use
- Accurate and Compliant Reporting: Ensure your disclosures meet all SECR requirements.
- Efficient Reporting: Accelerate the delivery of your reports through streamlined processes.
- Reduced Carbon Footprint: Lower your emissions with our green energy solutions.
- Enhanced Stakeholder Confidence: Increase trust through transparency and adherence to best practices.
- Sustainability Leadership: Differentiate your business by demonstrating a commitment to green energy and sustainability.
Ready to find out more infomation? Contact us today!
Call us on 0161 521 3400 or email info@purelyenergy.co.uk.
Call us on 0161 521 3400 or email info@purelyenergy.co.uk.
