Mandatory carbon reporting is increasingly widespread globally, with CSRD and CSDDD standardising reporting in the EU and the United States Securities and Exchange Commission (SEC) requiring companies to more transparently disclose climate-related risks and information. 

In the UK, carbon reporting requirements are standardised by SECR - the Streamlined Energy and Carbon Reporting regulation. While SECR came into effect in 2018, SECR-compliant reporting is mandatory from the financial year starting April 1st 2019 and for every subsequent financial year.

What is SECR?

SECR (Streamlined Energy and Carbon Reporting) requires qualifying companies to report on energy use and carbon emissions in the Director’s Report for quoted companies and in an Energy and Carbon Report for large unquoted companies or large Limited Liability Partnerships (LLPs).

SECR succeeds the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and is designed to incentivise the adoption of energy saving, energy efficiency measures, and standardise  reporting. It aims to provide transparent data on businesses' carbon footprints and energy performance, making it accessible to investors and other stakeholders.

SECR Reporting Guidance

Who needs to report

SECR affects three categories of companies:

1. Quoted companies of any size i.e. companies whose equity share capital is:
- Officially listed on the main market of the London Stock Exchange
- Officially listed in an European Economic Area State
- Is admitted to dealing on either the New York Stock Exchange or NASDAQ.

2. Large* unquoted companies incorporated in the UK, which are required to prepare a Directors’ Report under Part 15 of the Companies Act 2006.

3. Large* Limited Liability Partnerships (LPPs).

*A company or LLP is considered large when it satisfies two or more of the following criteria:

- Turnover: £36 million or more 
- Balance sheet total: £18 million or more 
- Number of employees: 250 or more. 

Despite it not being mandatory, the UK government encourages all other companies to report in the same way.

SECR Requirements

There are some distinctions in SECR requirements between quoted and large non-quoted companies/LLPs. 

SECR requirements - Methodologies

While no methodology is prescribed for the collection of relevant data, robust and widely accepted methodologies must be employed 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.

Green Future Project’s Carbon Footprint & Utilities Optimisation software ensures you have all the tools needed to measure and monitor your Scope 1, 2, and 3 CO2e emissions, enabling you to:

- Define and apply multiple intensity ratios to benchmark emissions effectively

- Centralize energy consumption data from buildings in any location

- Compare emissions and energy usage across all financial reporting years (since 2019)

- Set and track reduction targets with precision.

The software provides SECR-compliant data, ready for effortless inclusion in your reports.

What to report: SECR requirements for quoted companies

- Underlying global energy use that is used to calculate GHG emissions
- Annual GHG emissions from activities for which the company is responsible including combustion of fuel and operation of any facility; and the annual emissions from the purchase of electricity, heat, steam or cooling by the company for its own use
- Previous year’s figures for energy use and GHG emissions
- At least one intensity ratio
- Narrative description of any energy efficiency action taken
- Methodology used in calculation of disclosures

For financial years starting on or after 1 April 2019, quoted companies are also required to state the proportion of their energy consumption and emissions that relates specifically to the UK (including its offshore area).

By monitoring your company’s energy consumption in real time, Green Future Project’s Carbon Footprint & Utilities Optimisation software allows you to identify inefficiencies and develop targeted energy saving and cost reduction strategies. 

Green Future Project: Bridging Compliance and Innovation with SECR

The SECR requirements for an organisation’s carbon report closely mirror those for reporting on Scope 1 (direct emissions from sources owned or controlled by the company) and Scope 2 emissions (indirect emissions from the generation of purchased energy) as specified by the GHG Protocol and the direct emissions and energy indirect emission categories of ISO 14064-1.

While reporting on Scope 3 emissions (all indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream) remains voluntary, it is strongly encouraged to report on these to give interested stakeholders a more complete picture of the risks, opportunities, and financial impacts associated with these emissions. 

Green Future Project’s Carbon Footprint & Utilities Optimisation software acts as the key link between your sustainability goals and SECR compliance. By streamlining the collection, monitoring, analysis, and reporting of Scope 1, 2, and 3 CO2e emissions, the platform makes it easier to meet SECR requirements while supporting your decarbonization strategy.

With its centralized tools and advanced features, such as customisable intensity ratios and historical data comparisons, the software ensures your reports are accurate, robust, and aligned with recognized methodologies like the GHG Protocol and ISO 14064-1:2018.

By adopting Green Future Project’s solution, your organisation not only fulfills SECR requirements but also positions itself as a leader in transparent and impactful carbon reporting, empowering you to meet stakeholder expectations and drive meaningful change.