Here are the top 5 things you need to know about the new SECR legislation
In April 2019, the government’s Streamlined Energy & Carbon Reporting legislation (SECR) will be introduced as the the CRC Energy efficiency scheme is phased out. It aims to make mandatory energy and carbon reporting “simpler for businesses” while incentivising energy efficiency measures and creating a blueprint for Britain’s low-carbon future. The trajectory of energy and carbon reporting legislation is clearly moving to increasing transparency and verified energy data will be essential to the new SECR reporting framework.
This is all good news so don’t feel daunted. Here the thing you need to know:
1. Will it affect your business: About 12,000 UK organisations will now need to comply with SECR, Currently, 4,000 organisations report to CRC. The framework will be compulsory for businesses that operate within the following parameters:
- All quoted UK companies
- Large UK incorporated unquoted firms (companies fulfilling at least 2 of the following conditions in the financial year: over 250 employees, over £36 million annual turnover or over £18 million total on the annual balance sheet)
2. What will you need to report on? Companies will be required to report on energy use, carbon emissions and energy efficiency actions. Energy in the scope of the new SECR legislation includes all transport (road, rail, air and shipping) and UK electricity and gas.
3. How will you need to report? From April 2019, qualifying unquoted companies will be required to include in their annual Directors’ Report their UK energy use and associated scope 1 and 2 emissions and an intensity metric. Energy use must include electricity, gas and transport. Quoted companies registered in the UK will continue to be required to report on global energy use and carbon emissions
4. How does this align with other reporting frameworks? Carbon emissions and environmental disclosures will build upon the existing mandatory GHG reporting requirements, the Energy Savings Opportunity Scheme (ESOS) and it also references emerging voluntary frameworks like the Task Force on Climate-related Financial Disclosures (TCFD)
5. Is there a simple way to comply while contributing to wider environmental, social and business benefits? Yes. Why just comply when you can do so much more?
The Planet Mark helps organisations by using straightforward 3-step process of measuring, engaging and communicating, It not only certifies your energy and carbon emissions for your SECR reporting, but it helps in a wealth of other ways:
- Go beyond energy and measure your whole environmental performance including water consumption, travel and waste generated.
- Unlock your employee’s talent, knowledge and passion to drive improvements year on year by putting systems in place to reduce your whole environmental footprint.
- Create a healthy bottom line through environmental reductions – on average, certified businesses make a 12% carbon saving per employee which saves costs and increases profits.
- Gain a competitive advantage through this third-party verification offered by The Planet Mark which will make your bids and tenders stronger.
- Complement your ISO14001 through The Planet Mark and make the assessment of your existing environmental management system easier
- Grow your business by telling your story with confidence and get access to marketing materials to promote your achievements
- Build a stronger brand that gets recognised by customers, new talent and investors.
- Have the option to apply the same robust measurement to your social and community activities in order to demonstrate your company’s social value.
Of course, navigating the complex reporting landscape can be difficult but The Planet Mark makes it easy for you. The Planet Mark has empowered hundreds of companies to make a real difference to their business, their people and the world around them. Through robust data management, effective employee and supplier engagement and communications that get noticed, we help companies drive business, environmental and social value.
Now is your time to make your mark. Make it a positive one. Join our community of over 1 million people engaged in The Planet Mark.
Call for a chat, but we’d rather buy you a cup of coffee.
Other SECR qualifying data
- To reduce the complexity and administrative burden, UK subsidiaries that qualify for SECR will not be required to report if they are covered by a parent’s group report.
- Companies that are not registered in the UK are not obliged to file annual reports at Companies House and will not be in scope for SECR
- Where a parent company is not registered in the UK but has subsidiaries that are, these subsidiaries will be in scope if they qualify for SECR in their own right
- Organisations not registered as companies, for example public sector organisations, some charities and some private sector organisations, are not in scope of the SECR framework
- Companies using less than 40,000 kWh of energy in the reporting year will be exempt from SECR
- SECR will allow exemptions from disclosing their SECR information where it is not practical to do so. There will be an additional exemption from disclosing information which the directors think would be damaging to the interests of the company
- For GHG emissions, Scopes 1 and 2 will be required with Scope 3 reporting remaining voluntary.