Streamlined Energy and Carbon Reporting Compliance (SECR)
SECR: Everything you need to know
Our Streamlined Energy and Carbon Reporting service helps UK companies meet SECR obligations efficiently. Changing Footprint ensures your annual energy and carbon disclosures are complete, accurate, and aligned with UK government standards — saving time and improving transparency across your organisation. Whether that’s to ensure that you comply with UK legislation or to drive additional value, beyond compliance.
Background
Streamlined Energy & Carbon Reporting (SECR) legislation requires qualifying companies and LLPs to disclose annual energy use and greenhouse gas emissions in their Directors’ Report (or an equivalent LLP report). It was implemented by the Companies (Directors’ Report) and LLP (Energy & Carbon Report) Regulations 2018 and took effect from the 2019.
Who must Report
1. All quoted companies (companies listed on a stock exchange).
2. Large unquoted companies.
3. Large Limited Liability Partnerships (LLPs).
A company or LLP is treated as large for SECR if it meets two or more of the following tests in the reporting year:
- Turnover: £36 million or more.
- Balance sheet total: £18 million or more.
- Number of employees: 250 or more.
What are the minimum legal requirements?
- Annual energy use (electricity, gas, transport fuel etc.) for the relevant reporting period.
- Scope 1 and Scope 2 greenhouse gas emissions.
- Specific Scope 3 items: energy use/emissions from business travel may be required for certain unquoted companies and LLPs.
- At least one intensity ratio (e.g. tCO₂e per £m revenue).
- Figures from the previous year for comparison.
- A short narrative describing the methodology, operational boundary, any exclusions and energy efficiency action(s) taken in the reporting year.
How do we deliver SECR?
Key steps for smooth reporting, to comply with SECR
- Kick‑off & scoping — Meet your nominated leads, review your organisational and group structure, agree the reporting period and confirm reporting level.
- Define operational and organisational boundaries — Document which sites, operations and fuel sources to include, choose consolidation approach, identify material Scope 3 items.
- Data collection — Gather meter data, invoices, fuel cards, vehicle fleet data, utility statements. Provide data template.
- Emission calculations — Convert kWh, litres and other units into tCO₂e using recognised government conversion factors.
- Quality assurance & sensitivity checks — Run QA checks, look for anomalies and test.
- Draft reporting pack & Directors’ Report text — Prepare emissions inventory, document the methodology, suggested Directors’ Report wording.
- Client review, iteration & sign‑off — Review with finance and legal, adjust assumptions, finalise.
- Delivery & filing support — Supply final text and supporting spreadsheets for filing.
- Optional: third‑party assurance & continuous improvement — Coordinate verification and set up dashboard.
How to get real value from SECR?
Going beyond SECR compliance
Complying with SECR provides businesses with an annual Carbon emissions statement, review of energy savings activities and Carbon trajectory. Expanding the scope of works to include an environmental impact or energy savings opportunity review, will lead to demonstrable benefits for a marginal increase in costs.
for more information or support on SECR Reporting or producing a more in depth Carbon Footprint, we’d be delighted to hear from you 😊.
Frequently Asked Questions:
Scope 1 and Scope 2 are the legal minimum. Specific Scope 3 items (notably certain business travel emissions) may be required; other Scope 3 categories are voluntary but encouraged.
Quoted companies must include global energy use where required; large unquoted companies must disclose UK energy use and associated emissions.
If not practical to obtain some information, state what is omitted and why, and describe steps being taken to acquire the data.
Failure to comply can lead to scrutiny from auditors, the Financial Reporting Council (FRC) and reputational damage. Both Companies House and the FRC are able to impose fines for non compliance.
We provide an audit‑ready pack and can coordinate independent limited assurance if required.