What Is SECR? Streamlined Energy and Carbon Reporting Guide
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Quick Answer: What Is SECR? Streamlined Energy and Carbon Reporting (SECR) is a UK government framework that requires qualifying organisations to disclose their energy consumption, carbon emissions, and energy efficiency measures within their annual reports.
What Is Streamlined Energy and Carbon Reporting?
Streamlined Energy and Carbon Reporting, commonly referred to as SECR, is a mandatory reporting framework introduced by the UK government to improve transparency around business energy use and carbon emissions. The scheme requires qualifying organisations to disclose details of their energy consumption, greenhouse gas emissions and actions taken to improve energy efficiency as part of their annual reporting obligations.
SECR forms a key part of the UK’s wider strategy to reduce carbon emissions and encourage organisations to become more energy efficient. By requiring businesses to measure and publicly report their energy performance, the framework promotes greater accountability while also helping organisations identify opportunities to reduce costs and environmental impact.
The reporting requirements apply to specific categories of businesses operating within the UK and are designed to provide stakeholders, investors, customers and regulators with clear information about an organisation’s overall environmental performance.
Why SECR was introduced
SECR was introduced on 1 April 2019 to replace the former Carbon Reduction Commitment (CRC) Energy Efficiency Scheme. The government recognised that many businesses lacked visibility of their energy consumption and associated carbon emissions, making it difficult to identify opportunities for improvement.
The introduction of SECR aimed to simplify, or indeed streamline, reporting requirements while extending participation across a broader range of organisations. By embedding energy and carbon reporting into annual financial reporting processes, the framework encourages businesses to integrate sustainability considerations as part and parcel of strategic decision-making.
The scheme also supports the UK’s legally binding climate targets by encouraging organisations to monitor their environmental impact and implement practical energy efficiency measures.
Who needs to comply with SECR?
Not every business in the UK is required to comply with SECR. The regulations apply to specific categories of organisations that meet certain size and reporting criteria. Understanding whether your organisation falls within the scope of SECR is the first step towards compliance.
Quoted companies
All quoted companies incorporated in the UK are generally required to report under SECR regulations.
A quoted company is typically one whose shares are officially listed on a recognised stock exchange, admitted to trading on the New York Stock Exchange, listed on a European Economic Area market or traded on the Nasdaq exchange.
These organisations must report their global energy use and associated greenhouse gas emissions, providing a comprehensive overview of their environmental impact across all operations.
Large companies and LLPs
In addition to quoted companies, SECR applies to large unquoted companies and large Limited Liability Partnerships (LLPs).
An organisation is generally considered large if it meets at least two of the following criteria:
- Annual turnover of £36 million or more
- Balance sheet assets of £18 million or more
- 250 or more employees
Businesses that meet two of these thresholds are typically required to comply with SECR reporting obligations as part of their annual accounts.
Exemptions and thresholds
Certain organisations may be exempt from SECR requirements even if they meet the size thresholds.
For example, organisations can claim an exemption if they can demonstrate that their total energy consumption is below 40,000 kWh during the reporting period. Some public sector bodies and charitable organisations may also fall outside the scope of the regulations depending on their structure and reporting requirements.
Businesses should carefully assess their circumstances and seek professional guidance where necessary to determine whether exemptions apply.
SECR eligibility criteria
| Organisation type | Subject to SECR? | Qualification criteria |
| Quoted Companies | Yes | Listed on recognised stock exchanges and incorporated in the UK |
| Large Unquoted Companies | Yes | Meet at least two of the size thresholds |
| Large LLPs | Yes | Meet at least two of the size thresholds |
| Small and Medium Businesses | Usually No | Do not meet SECR size requirements |
| Low Energy Users | Potentially Exempt | Total annual energy use below 40,000 kWh |
What Needs to Be Reported Under SECR?
SECR requires organisations to provide specific information relating to energy consumption, emissions, and efficiency improvements.
The exact reporting requirements vary between the types of organisations, but several core elements remain consistent.
Energy consumption
Qualifying organisations must report their annual energy consumption.
This includes energy used from electricity, gas, transport fuel and other relevant sources. The reporting period generally aligns with the organisation’s financial year, ensuring consistency with annual reporting requirements.
Accurate energy data collection is essential (smart meters or half-hourly meters), as it forms the foundation of the entire reporting process.
Carbon emissions
Businesses must also disclose the greenhouse gas emissions associated with their reported energy consumption.
These emissions are typically calculated using government-approved conversion factors that translate energy usage into carbon dioxide equivalent (CO2e) emissions.
Reporting emissions allows organisations and stakeholders to better understand environmental performance and track progress over time.
Intensity ratios
SECR requires organisations to include at least one intensity ratio.
An intensity ratio provides context for energy consumption and emissions by relating them to a measurable business activity. Examples include:
- Tonnes of CO2e per employee
- Tonnes of CO2e per square metre
- Tonnes of CO2e per unit produced
- Tonnes of CO2e per £1 million revenue
Intensity ratios help organisations benchmark performance and monitor efficiency improvements from year to year.
Efficiency actions
Qualifying organisations must describe any energy efficiency measures implemented during the reporting period.
Examples may include:
- Upgrading lighting systems to LED technology
- Installing energy-efficient heating and cooling equipment
- Improving building insulation
- Implementing energy monitoring systems
- Optimising manufacturing processes
These disclosures demonstrate the practical steps businesses are taking to improve environmental performance and reduce energy consumption.
How to prepare for SECR reporting
Successful SECR compliance requires careful planning and accurate data management. Organisations that establish robust reporting processes often find compliance easier and gain greater value from the information collected.
Collect energy data
The first step involves gathering comprehensive energy consumption data.
Businesses should collect information from electricity bills, gas invoices, fuel records, smart meters, half-hourly meters and energy management systems. Data should cover the entire reporting period and include all relevant locations and activities.
Maintaining organised records throughout the year can significantly simplify the reporting process.
Calculate emissions
Once energy consumption data has been collected, organisations must calculate the associated greenhouse gas emissions.
Most businesses use the latest UK government conversion factors to convert energy usage figures into carbon dioxide equivalent emissions. Consistent methodology is important to ensure accuracy and comparability between reporting periods.
Many organisations choose to use specialist energy consultants or reporting software to streamline calculations.
Select a ratio
Choosing an appropriate intensity ratio is another important requirement.
The ratio should reflect the nature of the organisation’s activities and provide meaningful insight into performance. For example, a manufacturing company may use emissions per unit produced, while an office-based organisation may use emissions per employee.
Consistency is important, as it allows performance trends to be measured accurately over time.
Document methodology
SECR reports must explain the methodology used to calculate energy consumption and emissions. This includes outlining data sources, calculation approaches, emission factors used and any assumptions made during the reporting process.
Clear documentation enhances transparency and helps stakeholders understand how reported figures were derived.
Why SECR matters for business energy management
Although SECR is a regulatory requirement for many organisations, it also provides significant business benefits. The reporting process often highlights opportunities to improve efficiency, reduce costs and strengthen sustainability performance.
Cost visibility
One of the most valuable benefits of SECR is improved visibility of energy consumption and associated costs.
When organisations analyse their energy data in detail, they often identify areas of waste, inefficient equipment, or operational practices that increase expenditure unnecessarily. Greater visibility supports informed decision-making and can lead to substantial cost savings over time.
Energy efficiency planning
SECR reporting provides a strong foundation for energy efficiency initiatives. By measuring consumption patterns and emissions, businesses can establish benchmarks, set improvement targets and monitor progress against overarching sustainability objectives.
This data-driven approach supports long-term energy management strategies while helping organisations reduce both costs and environmental impact.
How business energy data supports SECR compliance
Reliable energy data is at the heart of successful SECR reporting. Without accurate information, organisations may struggle to meet reporting requirements or identify meaningful opportunities for improvement.
Consumption records
Detailed consumption records provide the evidence needed to support energy and emissions calculations.
Businesses should retain electricity invoices, gas bills, fuel records, meter readings and other supporting documentation. Regular monitoring can improve data accuracy while reducing the risk of reporting errors. Well-maintained records also simplify audits and compliance reviews.
Supplier information
Energy suppliers play an important role in supporting SECR compliance.
Suppliers can provide detailed consumption data, billing information, meter readings, and historical usage records. Access to accurate supplier information helps organisations produce more reliable reports and reduces administrative burdens.
Working closely with energy providers can improve reporting efficiency and support broader energy management objectives.
How D-ENERGi supports UK businesses
Navigating SECR requirements can be challenging, particularly for organisations managing multiple sites, complex operations, or large energy portfolios.
D-ENERGi supports UK businesses through comprehensive energy management services that help improve visibility, streamline data collection and support reporting obligations. By providing access to detailed consumption information, market expertise and energy management solutions, businesses can gain greater control over energy usage while supporting compliance requirements.
In addition to assisting with data management, D-ENERGi helps organisations identify opportunities for efficiency improvements, cost reduction and long-term sustainability planning.
For more insights into the general world of business energy, check out our blog now. We have a wealth of guides just like this, perfect for anyone eager to learn more about how to manage expenditure and efficiency.
Frequently Asked Questions (FAQs)
Who must comply with SECR reporting requirements in the UK?
SECR generally applies to quoted companies, large unquoted companies and large LLPs that meet at least two of the qualifying size thresholds relating to turnover, balance sheet assets, and employee numbers.
What information must be included in an SECR report?
An SECR report typically includes energy consumption data, greenhouse gas emissions, at least one intensity ratio, details of energy efficiency actions taken during the reporting period and information about the reporting methodology used.
What is an intensity ratio in SECR reporting?
An intensity ratio is a metric that relates carbon emissions or energy consumption to a business activity measure, such as employee numbers, floor space, production output or revenue.
How do businesses calculate carbon emissions for SECR?
Businesses calculate emissions by applying government-approved conversion factors to their energy consumption data. These factors convert energy usage figures into carbon dioxide equivalent emissions for reporting purposes.
Is SECR mandatory for all UK businesses?
No. SECR is not mandatory for all UK businesses. The regulations primarily apply to quoted companies, large unquoted companies and large LLPs that meet specific qualification criteria. Smaller businesses generally fall outside the scope unless other reporting requirements apply.
