Streamlined Energy Carbon (SECR) is a carbon reporting scheme introduced in 2019 that legally requires large private and public companies to report their energy usage, greenhouse gas (GHG) emissions, and the actions they've taken to improve operational efficiency on an annual basis. SECR specifically replaces the UK’s old Carbon Reduction Commitment (CRC) scheme but builds upon other existing legislation, such as the Energy Saving Opportunity Scheme (ESOS), Climate Change Agreements (CCA), and the EU and UK Emissions Trading Scheme (EU and UK ETS).
Implementing SECR and ESOS reporting framework is particularly important for organisations in Energy-Intensive Industries (EII), such as manufacturing and engineering. If you qualify, your business may be eligible for an exemption of up to 85% of Contracts for Difference (CfD) and Renewables Obligation (RO) charges.
Why is SECR so important?
The SECR scheme is designed to simplify aspects of consumption reporting by aligning submission dates with financial reporting years. It differs from the Energy Savings Opportunities Scheme (ESOS) as reports must be submitted annually, not just every four years, and has more UK-specific different requirements and qualification criteria.
Because reports are due on a yearly basis, energy efficiency issues can become more salient to upper-level administration more quickly. Like all other carbon reporting initiatives, SECR provides businesses with invaluable data that can be used to highlight operational inefficiencies, improve green credentials, and attract more eco-conscious customers and stakeholders.
Simply switching to more energy-efficient light bulbs, ensuring computers are turned off when not in use, and installing smart meters can make a substantial difference to your utility bills. By demonstrating greater corporate social responsibility, you can receive discounts on energy bills through Ofgem schemes and even encourage more employee engagement by raising awareness about the impact of climate change.
What information must be included?
Detailed reports documenting energy use and all associated emissions relating to gas, electricity, and transport. Reports must also include an emission intensity ratio and efficiency action plans to identify progress.
If your organisation meets all qualification criteria but consumes less than 40MWh, then the information you must disclose doesn’t need to be quite as detailed. And unlike ESOS, subsidiaries are only required to submit an energy efficiency action plan comply if they individually qualify themselves, (as opposed to all operators within a group structure if at least one qualifies).
To make sure your company is ready for ESOS Phase 2, get in touch now or read more about it here.
How can we help?
Noncompliance can incur hefty penalties, so get in touch today to learn more about how SECR, ESOS, UK ETS, CfDs, and other climate change policies may affect your organisation. If your business was required to comply with CRC, it’s likely that you’ll be affected by ESOS and SECR, too. As the submission deadline for ESOS Phase 3 approaches (December 5th, 2023), it’s never been more important to optimise your carbon reporting processes to ensure a cleaner, greener future.
Quickly convert compliance into savings with our help. No matter your business’ size or industry, we have all the tools to conduct the necessary audits and analysis on your behalf.
Other tools to improve green credentials and prove compliance: