As the urgency to address climate change accelerates in 2024, businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions. One important regulatory instrument designed to facilitate this process is the Streamlined Energy and Carbon Reporting (SECR) framework. SECR mandates qualifying organisations to report their energy consumption, greenhouse gas emissions and related efficiency measures alongside their annual financial reporting. However, navigating the intricacies of SECR compliance can be a complex task, especially for organisations unfamiliar with the required reporting processes, methodologies, and data management.
That’s where our Carbonology® team comes in. In this blog post, we will provide a comprehensive guide to the key aspects of SECR compliance, detailing the legal requirements, reporting scope, essential steps and best practices for effectively complying with this vital regulation. Moreover, we will showcase how Carbonology®’s expert consultancy support can greatly benefit your organisation by streamlining the SECR compliance journey, ensuring accurate and timely reporting, and unlocking insights for continuous improvement in energy efficiency and carbon emissions reduction.
Arming yourself with a thorough understanding of SECR and the invaluable backing of Carbonology®’s expertise ensures your organisation is well-equipped to successfully navigate the SECR framework and contribute to a more sustainable future. By leveraging our exclusive, proven methodology and industry-leading consultancy support, your business can not only thrive in an increasingly eco-conscious regulatory landscape but also make a genuine impact in the global fight against climate change.
I. Understanding the Streamlined Energy and Carbon Reporting (SECR) Framework
Established in response to the growing concerns surrounding climate change, the SECR framework is a requirement for large UK companies and Limited Liability Partnerships (LLPs) to report their energy consumption and greenhouse gas emissions, as well as the measures taken to improve energy efficiency. Key elements of the SECR framework include:
1. Legal Requirements: SECR applies to organisations meeting two of the following three criteria in a financial year – (a) at least 250 employees, (b) annual turnover exceeding £36 million, and (c) a balance sheet total exceeding £18 million.
2. Reporting Scope: Qualifying companies must report on their annual energy usage, greenhouse gas emissions, and details of energy efficiency measures undertaken during the reporting period. The scope encompasses all types of energy consumption, including electricity, natural gas, and transport fuel.
3. Disclosures: SECR reporting must occur alongside financial reporting, being included within annual reports and Directors’ Reports, which are then filed with Companies House.
II. Navigating SECR Compliance with Carbonology® Support
Our Carbonology® team offers comprehensive guidance and expertise for organisations aiming to successfully navigate the SECR framework:
1. Measure and Analyse: We help you identify, quantify, and analyse your organisation’s energy usage and emissions sources, ensuring accurate data collection.
2. Calculate Emissions: Our experts assist in calculating your organisation’s greenhouse gas emissions using approved methodologies such as those outlined in ISO 14064-1.
3. Develop Energy Efficiency Measures: We work closely with your organisation to identify and implement suitable energy efficiency measures, providing tailored recommendations for ongoing improvement.
4. Reporting and Submission: Our consultancy support ensures your organisation adheres to reporting requirements and deadlines, assisting in the completion and submission of required declarations as part of your annual financial reporting.
III. Importance of Accurate SECR Reporting and Carbon Reduction
Accurate and comprehensive SECR reporting holds significant benefits for your organisation:
1. Regulatory Compliance: Adherence to the SECR framework ensures your organisation complies with current regulations and avoids potential fines or reputational damage associated with non-compliance.
2. Continuous Improvement: The reporting process can unlock valuable insights and opportunities for operational improvements, leading to enhanced energy efficiency and reduced carbon emissions over time.
3. Stakeholder Engagement: Demonstrating your organisation’s commitment to energy efficiency and carbon reduction can enhance brand perception and foster positive relationships with stakeholders, including investors, clients, and regulators.
IV. Integrating SECR Reporting with Other Carbon Management Initiatives
Effective carbon management involves integrating SECR reporting with broader environmental strategies, such as:
1. Carbon Reduction Plan – PPN 06/21: Align your SECR reporting with the aims of your organisation’s Carbon Reduction Plan, ensuring that the proposed measures contribute effectively to overall emissions reduction targets.
2. PAS 2060 and Carbon Neutrality Goals: Leverage the data gathered for SECR reporting to support your organisation’s journey towards carbon neutrality and compliance with PAS 2060.
3. Supply Chain Emissions Management: Use the insights gained through SECR reporting to inform your organisation’s engagement with suppliers and encourage more sustainable practices across your supply chain.
Optimise Your SECR Compliance Journey with Carbonology® Expertise
The Streamlined Energy and Carbon Reporting (SECR) framework plays a pivotal role in driving energy efficiency improvements and emissions reductions across organisations in 2024. By partnering with Carbonology®, your organisation can ensure that the SECR compliance process is expertly navigated and seamlessly integrated with broader carbon management efforts.
With our Carbonology® team on your side, you will not only enhance your organisation’s understanding of its energy usage and emissions, but also unlock opportunities for continuous improvement, operational efficiency, and strengthened stakeholder relationships. Begin your journey towards enhanced SECR compliance and overall carbon management today with the unwavering support of Carbonology®.
