Legislative compliance
secr
streamlined energy and carbon reporting
Qualification:
The new Streamlined Energy and Carbon Reporting (SECR) legislation will apply throughout the UK from April 2019 for large unquoted companies, and large limited liability partnerships (LLPs) meeting at least two of the following qualification criteria:
Turnover of £36 million or more
Balance sheet total of £18 million or more
Number of employees 250 or more
There are some small exclusions outlined for organisations meeting these criteria, but with very low energy consumption (<40,000 kWh per annum), similarly to ESOS. Unlike the Carbon Reduction Commitment (CRC) scheme there are no exemptions or exclusions for companies holding Climate Change Agreements (CCA) or participating in the EU ETS.
Quoted companies are already affected by Mandatory Greenhouse Gas reporting at present but must comply with further requirements under SECR reporting from 1st April 2019. Requirements for quoted and unquoted large companies under SECR are different. Information contained here is for a large unquoted company only. If you are a quoted company, please contact us to discuss.
WHAT DO I HAVE TO DO?
To comply with SECR, the following must be disclosed in the Directors Report for unquoted companies and is an extension of Companies Act 2006:
UK energy consumption: Electricity, gas and transport (company operated cars, fleet, grey fleet / employee owned vehicles and hire cars etc) must be reported in relevant energy units (kWh). Other sources can be voluntarily included
Associated GHG emissions from the above sources
An emissions intensity metric: Emissions must be expressed against at least one intensity metric (e.g. tCO2e / £ turnover)
Emissions over time: With the exception of the first mandatory reporting year, emissions data must be shown from the previous year
A narrative on energy efficiency actions undertaken: A narrative of actions taken to increase energy efficiency and manage carbon emissions must be provided
To transparently quantify and report under SECR, it is vital that the correct methodology, scope and approach are adopted to ensure figures reported are reliable.
Reported data must be accurate and based on evidential records allowing data to be fully auditable, much like the financial accounts this data will sit alongside. The area of carbon footprinting is still relatively new and many organisations have fallen foul of incorrect reporting and have been accused of making false claims. As a result, there are now published guidelines and standards (ISO 14064 and GHG protocol) relating to the correct GHG quantification methodologies that should be adopted to ensure robust and reliable figures are reported.
next steps:
UKGP employs specialised energy and carbon compliance consultants to deliver SECR compliance. We have a range of highly skilled consultants in this area of energy and carbon reporting, allowing your company to meet full compliance and to reduce the administrational burden this new legislation brings.
As this legislation goes live on 1st April 2019 and will affect an undertaking’s financial accounting period commencing on or after this date, it is important to assess if you qualify and get ready for the first period under this scheme. Please contact for more information and how we can help deliver compliance.
esos
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