Quick Facts

You must comply if your business falls within any of the following definitions:

    • Quoted companies of any size
    • ‘Large’ unquoted companies, LLPs and Academy trusts.
  • A company is defined as ‘Large’ if it meets at least two of the following definitions:
    • a turnover of £36 million or more;
    • a balance sheet of £18 million or more; or
    • 250 employees or more.
  • Quoted companies are defined as ‘A company that is UK incorporated and whose equity share is listed on the Main Market of the London Stock Exchange UK or in an EEA State, or admitted to trading on the New York’ Stock Exchange or Nasdaq
  • Public bodies do not fall under the legislation
  • If a company uses less than 40MWh it does not need to report. It does need to include a statement in the end of year report stating they are a low energy user.
  • All companies must report:
    • Previous year’s figures for energy use and GHG
    • At least one intensity ratio
    • Methodology used
  • Quoted companies must report:
    • Annual GHG emissions from activities for which the company is responsible and the annual emissions from the purchase of electricity, heat, steam or cooling by the company for its own use
    • Underlying global energy use
  • ‘Large’ companies/LLPs/Academy Trusts must report:
    • UK energy use (as a minimum gas, electricity and transport, including UK offshore area)
    • Associated greenhouse gas emissions
    • Energy efficiency action taken
  • If reporting at a group level, all subsidiaries that fall within the remit of the legislation must be included. Companies that fall outside of the remit (e.g. are not defined as ‘large’) can be excluded.
  • There is no prescribed methodology under the legislation, however, a methodology must be used and disclosed. The legislation recommends that organisations use a widely recognised independent standard, such as:
    • GHG Reporting Protocol – Corporate Standard.
    • International Organisation for Standardization, ISO (ISO 14064-1:2018).
    • Climate Disclosure Standards Board, CDSB.
    • The Global Reporting Initiative Sustainability Reporting Guidelines.
  • Energy consumption must be reported in kWh
  • GHG emissions in kgCO2e
  • New requirements imposed by the 2018 Regulations on quoted companies and on large unquoted companies and large LLPs apply to reports for financial years starting on or after 1 April 2019.
  • A ‘comply or explain’ clause allows carbon and energy information to be excluded where it is not practical to obtain, or in exceptional circumstance that disclosure would be ‘seriously prejudicial’ to the interest of the organisation.
  • Qualifying companies will need to include information in line with the SECR framework in their Directors’ Report, or an equivalent Energy and Carbon Report for LLPs, for financial years beginning on or after 1 April 2019.
  • An ‘intensity ratio’ compares a company’s emissions against a relevant and verifiable metric. The aim is to allow year-on-year comparisons whilst compensating for potential business growth or reduction.  For example, in a manufacturing environment you could use the metric tonnes of carbon emissions per tonnes of output.
  • A company must define its Organisational Boundaries. It can choose any of the following definitions:
    • Financial control boundary – Report on all activities within your financial control
    • Operational control boundary – Report on all activities within your operational control
    • Equity share boundary – Report on GHG emissions according to your organisation’s equity share
    • Climate Change Reporting Framework (CCRF)
  • Environmental reporting periods should be for 12 months.
  • The periods should ideally correspond with an organisation’s financial year
  • Quoted Companies must report Scope 1 & 2 emissions. Scope 3 emission reporting is voluntary but encouraged.
  • Large unquoted companies, LLP’s and Academy trusts must report Scope 1 & 2 UK emissions and energy use, and, Scope 3 emissions from business travel (rental cars, employee-owned vehicles etc.) where the company is responsible for buying the fuel. Other scope 3 emission reporting is voluntary.
  • Scope 1 emissions include:
    • Fuel combustion
    • Company vehicles
    • Fugitive emissions
  • Scope 2 emissions include:
    • Purchased electricity, heat, steam and cooling
  • Scope 3 emissions include:
    • Purchased goods and services
    • Business travel
    • Employee commuting
    • Waste disposal
    • Use of sold products
    • Transportation and distribution (up and downstream)
    • Investments
    • Leased assets and franchises
    • Organisations are required to report on all energy use and emissions that they are responsible for (e.g. in a rented office where the tenant can control the lighting and HVAC, the tenant is responsible for the emissions, even though they do not directly purchase the energy).
  • The following activities should be included in your calculation of your total energy consumption:
    • Fuel used in company cars on business use.
    • Fuel used in fleet vehicles which you operate on business use.
    • Fuel used in personal/hire cars on business use (including fuel for which the organisation reimburses its employees following claims for business mileage).
    • Fuel used in private jets, fleet aircraft, trains, ships, or drilling platforms which you operate.
    • Onsite transport such as fork-lift trucks.
    The following activities are not required to be included in your calculation of your total energy consumption but may be reported separately (including as part of Scope 3 emissions):
    • Fuel associated with train travel of your employees where you do not
    operate the train.
    • Fuel associated with flights your employees take where you do not
    operate the aircraft.
    • Fuel associated with taxi journeys your employees take where you do
    not operate the taxi firm.
    • Fuel associated with transportation of goods where you subcontract a
    firm or self-employed individual to undertake this work for you.
  • SECR should be reported in the same format as the annual reports and accounts
  • Data can be reasonably estimated if it’s missing or incomplete.
  • There is a small (2-5%) allowance for omission of data
  • Emissions must be reported in CO2 The ‘e’ stands for ‘equivalent’.  For any quantity and type of greenhouse gas, CO2e signifies the amount of CO2 which would have the equivalent global warming impact. A quantity of GHG can be expressed as CO2e by multiplying the amount of the GHG by its GWP (Global Warming Potential). E.g. if 1kg of methane is emitted (which has a GWP of 25), this can be expressed as 25kg of CO2e (1kg CH4 * 25 = 25kg CO2e).
  • It is not mandatory to give individual figures for emissions of each GHG. Instead, the annual quantity of emissions must be stated in carbon dioxide equivalent (CO2e).
  • Reporting of Carbon offsetting under SECR is not mandatory.
  • All quoted companies, unquoted companies and LLPs all are required to detail the actions they have taken within the reporting year to increase their energy efficiency. The resulting energy savings of these measures should be noted.  If no action has been taken, this should also be reported.
  • Process emissions: emissions from physical or chemical processes such as CO2 from the calcination step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminium smelting, etc.
  • Fugitive emissions: intentional and unintentional releases, such as equipment leaks from joints, seals, packing, gaskets, as well as fugitive emissions from coal piles, wastewater treatment, pits, refrigerants, cooling towers, gas processing facilities, etc.
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