The SECR replaced the Carbon Reduction Commitment (CRC) from 1st April 2019 and builds on requirements for those organisations already reporting under the mandatory Green House Gas (GHG) and Energy Savings Opportunity Scheme (ESOS). Whereas the CRC applied to 4,000, the SECR will be in the region of 12,000.
The scheme includes quoted companies that are already obliged to report GHG and large unquoted and limited liability partnerships. Large is the definition under the companies act 2006, meeting two of the following three criteria, which differs from ESOS:
There are exclusions:
Although SECR may seem like an administrative burden on your business, being proactive about energy efficiency is beneficial to all businesses. It removes unnecessary costs and helps your business become more sustainable and environmentally friendly.
Unlike the CRC there are no financial payments for emissions, with the lost revenue being made up through an increase in the Climate Change Levy (CCL) from 1st April 2019.
Annual reporting is based on an organisation’s financial year and published within the Director’s or Energy and Carbon Report. This includes UK energy use from Electricity, Gas and Transport fuel as well as the GHG emissions and one energy intensity metric, such as tonnes of CO2/kWh. Quoted companies will need to also provide global energy use.
There must be a robust and transparent description of the measures taken to improve energy efficiency within the reporting year, with previous year comparisons as the scheme progresses. First reports were due from 1st April 2020.
We can provide organisations with tailored support and guidance surrounding SECR. To begin with we can help you establish whether you qualify and then discuss the gathering of data and reporting, as well as the most important aspect, which is how you will reduce your energy use.
Get in touch with us today for more information.