Streamlined Energy and Carbon Reporting (SECR) is a UK reporting framework designed to improve transparency around energy use and carbon emissions. It requires certain businesses to disclose information about their energy consumption, associated greenhouse gas emissions and the steps they have taken to improve energy efficiency.

For qualifying organisations, SECR is not simply an environmental statement. It is a formal reporting obligation that forms part of the annual reporting process.

Understanding what SECR involves, whether it applies to your organisation and what information needs to be reported is essential for maintaining compliance and identifying opportunities to reduce energy costs and carbon emissions.

What Does SECR Stand For?

SECR stands for Streamlined Energy and Carbon Reporting.

The framework was introduced in the UK to replace the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and broaden energy and carbon reporting requirements for qualifying organisations.

SECR is intended to encourage businesses to:

• Measure and understand their energy consumption.
• Report their greenhouse gas emissions transparently.
• Identify opportunities to improve energy efficiency.
• Demonstrate the actions they are taking to reduce their environmental impact.

Although SECR is a reporting requirement, it can also provide valuable insight into operational efficiency and long-term carbon reduction planning.

Who Needs to Comply with SECR?

SECR generally applies to:

• Quoted companies.
• Large unquoted companies.
• Large limited liability partnerships (LLPs).

For large unquoted companies and LLPs, the organisation will generally need to meet at least two of the following three criteria:

• More than 250 employees.
• An annual turnover of more than £36 million.
• A balance sheet total of more than £18 million.

These thresholds are subject to the detailed requirements of the relevant legislation, and businesses should assess their circumstances carefully rather than relying solely on one financial or operational measure.

Certain organisations may be exempt, including some businesses that are considered small or medium-sized under the applicable company law definitions.

What Does SECR Require Businesses to Report?

The information required depends on the type of organisation and the reporting period. However, qualifying businesses will generally need to include relevant information about:

Energy Consumption

Businesses must report their energy consumption for the relevant financial year. This may include electricity, gas and transport fuel, depending on the organisation’s activities and the reporting requirements that apply.

Greenhouse Gas Emissions

The report must include the greenhouse gas emissions associated with the relevant energy consumption. These figures are generally calculated using appropriate government-published conversion factors.

Energy-Efficiency Actions

Qualifying organisations must describe the principal measures they have taken, or intend to take, to improve energy efficiency.

This could include initiatives such as:

• Upgrading lighting systems.
• Improving building insulation.
• Installing energy-efficient equipment.
• Optimising heating and cooling systems.
• Improving energy management.
• Reducing unnecessary energy consumption.

The report should provide meaningful information rather than simply stating that energy efficiency is important.

Where Is SECR Information Reported?

For companies required to prepare a strategic report, SECR information is generally included within the directors’ report or strategic report, depending on the organisation and the applicable reporting requirements.

The information must be included in the company’s annual reporting documentation and made available in accordance with the relevant filing and publication obligations.

This means SECR should not be treated as a separate exercise completed in isolation from the wider annual reporting process.

When Does SECR Reporting Take Place?

SECR reporting is generally completed as part of the organisation’s annual reporting cycle.

The relevant information must relate to the company’s financial year, and the report must be prepared and filed within the applicable statutory deadlines.

Businesses should therefore begin collecting energy and emissions data well before their annual accounts and reports are due. Leaving the process until the last minute can make it difficult to obtain accurate information, resolve data gaps and prepare a meaningful report.

Why Is SECR Important?

SECR provides businesses with a structured way to understand and communicate their energy and carbon performance.

Beyond compliance, the process can help organisations:

• Identify areas of high energy consumption.
• Recognise opportunities to reduce operating costs.
• Improve energy management.
• Support wider carbon reduction strategies.
• Demonstrate environmental responsibility to stakeholders.
• Establish a more consistent approach to emissions reporting.

For businesses developing a broader Net Zero strategy, SECR can also provide a useful foundation for understanding current energy use and identifying practical opportunities for improvement.

What Happens If a Business Does Not Comply?

SECR is a statutory reporting requirement for qualifying organisations. Failure to provide the required information, or failure to comply with the relevant reporting obligations, can create regulatory and reputational risks.

Businesses should ensure they understand whether they are within scope, what information they need to report and how the requirements apply to their particular structure.

How Can CN Investments Help?

Preparing an SECR report requires more than collecting energy bills. Businesses need to identify the correct reporting scope, gather reliable data, calculate emissions accurately and present the required information clearly.

At CN Investments, we help businesses understand their SECR obligations and prepare the information needed to support compliant energy and carbon reporting.

Our approach focuses on accurate data, clear reporting and practical recommendations that can help businesses identify opportunities to improve energy efficiency and reduce emissions.

If you are unsure whether SECR applies to your organisation, or need support preparing your next report, contact CN Investments to discuss your requirements.

Conclusion

SECR is an important part of the UK’s approach to corporate energy and carbon transparency. For qualifying organisations, understanding the requirements early makes the reporting process more manageable and helps ensure the information is accurate, complete and submitted on time.

Whether you are reviewing your reporting obligations for the first time or looking to improve your existing process, professional guidance can help you approach SECR with confidence.