SECR - Streamlined Energy and Carbon Reporting

The Companies Act 2006 (Strategic Report & Directors’ Reports) Regs 2013 amended the Large and Medium-sized Companies and Groups (Accounts and Reports) Regs 2008 to require quoted companies to report information on greenhouse gas (GHG) emissions in their Directors’ Reports.
Quoted companies are required to report on the impact of its activities on the environment to the extent it is necessary to understand the company’s business within their Annual Report, including the use of KPIs.
The Companies (Directors’ Report) and LLP’s (Energy & Carbon Report) Regs 2018 impose obligations on what must be included in the Directors’ Report for LLP’s, quoted and large unquoted companies.
UK unquoted companies are defined as “large” if they meet at least two of the following criteria in a reporting year:
- a turnover of £36 million or more;
- a balance sheet of £18 million or more; or
- 250 employees or more.
Large unquoted companies (and large LLPs) are obliged to report their UK energy use and associated greenhouse gas emissions through their annual reports, including:
- Energy used and emissions from (as a minimum) gas, electricity and transport fuel,
- At least one emissions intensity ratio, and
- Information relating to energy efficiency actions undertaken & planned