Understanding the SECR reporting requirements is an important step for any organisation that falls within the scope of Streamlined Energy and Carbon Reporting.
SECR requires qualifying businesses to disclose information about their energy consumption, greenhouse gas emissions and energy-efficiency activities. However, preparing a compliant report involves more than simply adding up energy bills.
Businesses must identify the correct reporting scope, collect suitable data, apply the appropriate emissions factors and ensure the required information is included in their annual reporting documentation.
This guide explains the main SECR reporting requirements and how businesses can prepare for them.
What Are the Main SECR Reporting Requirements?
The precise requirements depend on the organisation’s legal structure, reporting status and circumstances. However, qualifying organisations generally need to report information covering:
- Energy consumption.
- Associated greenhouse gas emissions.
- Energy-efficiency actions.
- Relevant reporting methodology and information.
- The required information within the company’s annual report.
Each element should be considered carefully to ensure the report is complete and consistent.
1. Report Relevant Energy Consumption
One of the central SECR requirements is the disclosure of energy consumption during the relevant financial year.
Depending on the organisation’s activities, this may include:
- Electricity purchased and consumed.
- Gas used in buildings or operations.
- Fuel used for transport.
- Other relevant energy sources within the reporting scope.
Businesses should establish which energy sources are relevant to their operations and ensure the data is collected consistently.
This may involve reviewing:
- Utility bills.
- Meter readings.
- Fuel records.
- Supplier statements.
- Fleet information.
- Landlord or facilities-management data.
Where energy is supplied through a landlord or third party, businesses may need to obtain additional information to ensure the report is accurate.
2. Calculate Greenhouse Gas Emissions
SECR reporting also requires qualifying organisations to disclose the greenhouse gas emissions associated with their reported energy consumption.
Emissions are generally calculated using appropriate government-published greenhouse gas conversion factors.
The calculation process involves:
- Identifying the relevant energy consumption.
- Selecting the appropriate conversion factors.
- Calculating the associated emissions.
- Recording the methodology used.
- Presenting the results clearly within the report.
It is important that businesses use the correct factors for the relevant reporting year and apply them consistently.
Errors in energy data, units or conversion factors can affect the accuracy of the final emissions figures.
3. Include an Energy-Intensity Ratio
Qualifying organisations are generally required to report an energy-intensity ratio.
This provides a way of comparing energy consumption against an appropriate business metric, such as:
- Revenue.
- Floor area.
- Production output.
- Number of employees.
- Another relevant operational measure.
The most appropriate ratio depends on the organisation’s activities and reporting circumstances.
An intensity ratio can help stakeholders understand energy performance in context and may also support internal benchmarking and efficiency planning.
4. Describe Energy-Efficiency Actions
SECR is not only about reporting energy consumption and emissions. Businesses must also describe the principal energy-efficiency measures they have taken, or intend to take.
These actions may include:
- LED lighting upgrades.
- Building-management improvements.
- Heating and cooling optimisation.
- Equipment replacement.
- Insulation improvements.
- Renewable energy installations.
- Energy monitoring and management systems.
- Changes to operational processes.
The report should explain the principal actions in a meaningful way, rather than simply listing generic environmental commitments.
Where possible, businesses should consider including information about the purpose of each measure and how it supports improved energy performance.
5. Explain the Reporting Methodology
A clear reporting methodology helps demonstrate how the figures have been prepared.
Businesses should be able to explain:
- Which energy sources were included.
- Which data sources were used.
- Which emissions factors were applied.
- How any estimates were calculated.
- How the intensity ratio was determined.
- Any relevant changes from the previous reporting period.
Good documentation makes the report easier to review and helps maintain consistency from one year to the next.
6. Include the Information in the Annual Report
SECR information must be included within the relevant annual reporting documentation.
For many qualifying companies, this will form part of the directors’ report or strategic report, depending on the organisation’s circumstances and the applicable requirements.
The report should be prepared alongside the wider annual reporting process, rather than treated as an entirely separate document.
This helps ensure that the information is included correctly and within the relevant statutory deadlines.
What Data Should Businesses Collect?
Preparing early is one of the best ways to simplify SECR reporting.
Businesses should consider collecting:
| Data category | Examples |
|---|---|
| Electricity | Meter readings, supplier bills, consumption records |
| Gas | Utility statements, meter data |
| Transport fuel | Fuel records, fleet data |
| Other energy sources | Relevant operational energy consumption |
| Business metrics | Revenue, floor area, production or employee data |
| Efficiency measures | Completed and planned energy-efficiency actions |
The exact data requirements will depend on the organisation’s reporting scope and circumstances.
Common Problems with SECR Reporting
Several issues can make SECR reporting more difficult than expected.
Incomplete Energy Data
Businesses may have missing bills, estimated readings or information held by different departments. These gaps should be identified and resolved as early as possible.
Inconsistent Units
Energy data may be recorded in different units. Converting and checking the figures carefully is essential to avoid calculation errors.
Incorrect Conversion Factors
Using outdated or inappropriate emissions factors can affect the accuracy of the reported figures.
Unclear Reporting Scope
Businesses must understand which activities and energy sources fall within the relevant reporting requirements.
Leaving Preparation Too Late
SECR reporting often forms part of the annual reporting process. Delaying data collection can create unnecessary pressure close to the filing deadline.
How Can Businesses Prepare for SECR?
A practical preparation process should include:
- Confirm whether the organisation is within scope.
- Identify the relevant reporting period.
- Establish which energy sources must be included.
- Collect and review energy consumption data.
- Identify the appropriate emissions factors.
- Calculate greenhouse gas emissions.
- Determine a suitable energy-intensity ratio.
- Document energy-efficiency actions.
- Review the report for completeness and consistency.
- Ensure the information is included in the relevant annual reporting documentation.
Starting early allows time to investigate missing information and resolve any inconsistencies.
How CN Investments Can Support Your SECR Reporting
SECR reporting can be complex, particularly for organisations with multiple sites, varied energy sources or incomplete historical data.
At CN Investments, we support businesses with the practical aspects of SECR reporting, helping them understand their obligations, organise relevant data and prepare clear, accurate reporting information.
We can also help businesses identify opportunities to improve energy efficiency and connect their reporting activity with wider carbon reduction objectives.
If you need support understanding the SECR reporting requirements, preparing your data or reviewing your current reporting process, contact CN Investments to discuss how we can help.
Conclusion
SECR reporting requirements are designed to improve transparency around corporate energy use and carbon emissions. For qualifying organisations, meeting those requirements involves accurate data collection, appropriate emissions calculations, meaningful reporting and a clear understanding of the applicable obligations.
By preparing early and taking a structured approach, businesses can make the reporting process more manageable while gaining valuable insight into energy performance and potential efficiency improvements.
