The UK’s Streamlined Energy and Carbon Reporting (SECR) framework mandates transparency in corporate energy use and greenhouse gas (GHG) emissions. Introduced in April 2019, SECR aims to enhance sustainability accountability and drive energy efficiency across UK businesses.
Streamlined Energy and Carbon Reporting (SECR) is a UK reporting scheme that requires qualifying organisations to disclose information about their annual energy use, associated greenhouse gas emissions (typically Scope 1 and Scope 2), and the actions they have taken to improve energy efficiency. These disclosures must be included in the company’s annual Directors’ Report or equivalent filings, making energy and carbon performance part of mainstream corporate reporting rather than a separate exercise.
SECR replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and extended reporting obligations to a wider range of businesses, while simplifying how information is presented. By standardising what needs to be reported and who is in scope, the framework aims to improve transparency, support better decisions on energy use and help organisations demonstrate progress on carbon and efficiency goals.
SECR applies to UK-incorporated entities that meet at least two of the following criteria:
This includes:
Companies consuming 40,000 kWh or less during the reporting period are exempt but must state this in their report.
Under SECR, obligated companies must disclose:
While Scope 3 emissions reporting is voluntary under SECR, companies are encouraged to include this information where possible, as it provides a more comprehensive view of their environmental impact and helps link SECR disclosures to wider net zero and sustainability goals.
For corporate groups, the parent company must report on behalf of the group, including all subsidiaries that meet the SECR criteria. Subsidiaries not meeting the thresholds individually can be excluded, provided their energy and emissions data are not material to the group’s overall figures.
Beyond regulatory adherence, SECR offers several advantages:
Failure to comply with SECR requirements can result in enforcement actions by the Conduct Committee of the Financial Reporting Council. Penalties may include fines and reputational damage. Additionally, incomplete or inaccurate reports may be rejected by Companies House, leading to further administrative burdens.
To ensure effective compliance:
SECR represents a significant step towards greater corporate environmental accountability in the UK. By adhering to SECR requirements, businesses not only comply with legislation but also position themselves as leaders in sustainability, ready to meet the challenges of a low-carbon economy.
The framework generally applies to quoted companies and large UK-incorporated organisations that meet at least two of the relevant size tests.
Large limited liability partnerships may also need to report.
SECR requires businesses to disclose their annual UK energy consumption, the related Scope 1 and Scope 2 emissions, an intensity ratio such as emissions per unit of turnover, and a brief explanation of how the figures were calculated. They should also outline any actions taken to improve energy efficiency during the reporting year.
A qualifying organisation that uses 40,000 kWh or less during the reporting period may not need to provide the full energy and emissions disclosures. However, it must explain this in its annual report.
A parent company can usually report on behalf of the wider group. The report should include subsidiaries covered by the framework, although some smaller subsidiaries may be excluded where their figures are not material.
Yes. Energy management software can bring consumption data together and reduce the amount of manual spreadsheet work required. It can also make the information easier to review before the final SECR reporting figures are approved.
Incomplete or inaccurate disclosures may lead to enforcement action and could create reputational risk. Starting early and checking the available data can make compliance more manageable.