The Streamlined Energy and Carbon Reporting (SECR) was introduced in the UK in April 2019 and was brought in to simplify energy and carbon emissions reporting for required businesses.

Streamlined Energy and Carbon Reporting (SECR) is mandatory for organisations, 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:

·        You have more than 250 employees.

·        You have a turnover greater than £36m.

·        Your balance sheet totals more than £18m.

Where a large company does not consume more than 40,000 kWh of energy in a reporting period, it qualifies as a low energy user and is exempt from reporting under these regulations. A statement to this effect should be included in the academy trust's directors' (trustees') report.

SECR will be enforced by The Conduct Committee of the Financial Reporting Council - penalties for non-compliance have yet to be published, though if these are anything like those of ESOS or the CRC they will be substantial.

SECR Key Requirements

There are several key requirements that all qualifying UK organisations must undertake to comply with SECR.

·        Quantify your organisations energy usage for a 12-month period.

·        Quantify your organisations tCO2e emissions for the same 12-month period.

·        Report on energy efficiency measures implemented in the last 12 months.

·        Report against at least one intensity metric

·        Describe the methodology used for the SECR reporting

·        Finally, the SECR information must be published in the Directors report submitted along with the company accounts.

Deliverables

·        Calculation of Scope 1 direct greenhouse gas (tCO2e) emissions from activities owned and controlled by client.

·        Calculation of Scope 2 energy indirect emissions (tCO2e) from purchased electricity, heat by client.

·        Calculation of Scope 3 other indirect emissions (tCO2e) from activities not owned and controlled by client.

·        Calculate the total energy kWh used to determine the tCO2e emissions.

·        Inclusion of at least one intensity ratio preferably relating to the client’s business.

·        Report on any principal energy efficiency measures undertaken in the clients reporting year.

·        Explanation of the methodology for creating the SECR report.

Direct Efficiency Ltd will create the SECR report and SECR evidence pack and both will be sent to the client for inclusion within their annual Directors report and their records.