The Streamlined Energy and Carbon Reporting (SECR) is a UK ESG reporting framework designed to enhance transparency around energy consumption and carbon emissions. This article looks into the SECR’s specifics, outlining which businesses are affected, what information must be reported, and when. We’ll also explore how tools like IBM Envizi from Ikano Insight can streamline your ESG reporting process.
Who needs to comply with SECR?
SECR applies to a specific subset of UK businesses:
- Quoted companies: businesses listed on a public exchange.
- Large unquoted companies: companies that meet at least two of the following criteria:
- Turnover exceeding £36 million
- Balance sheet total exceeding £18 million
- More than 250 employees
- Large limited liability partnerships (LLPs): similar criteria to large unquoted companies.
SECR reporting requirements
SECR mandates companies to disclose specific information about their energy use and carbon emissions. This includes:
- Energy consumption: total energy use, broken down by fuel type.
- Carbon emissions: scope 1 and 2 greenhouse gas emissions.
- Energy efficiency measures: details of steps taken to improve energy efficiency.
- Emissions intensity: a comparison of emissions to a relevant metric, such as turnover.
While reporting scope 3 emissions is not mandatory, it is strongly recommended.
Reporting timelines and frequency
SECR reporting is an annual requirement. Companies must include the necessary information in their director’s report for financial years starting on or after 1 April 2019.
The purpose of SECR
The SECR serves several important objectives:
- Improved energy efficiency: by publicly disclosing energy consumption and carbon emissions, companies are incentivised to identify and implement energy-saving measures.
- Informed decision-making: the availability of standardised energy and carbon data empowers investors, customers, and other stakeholders to make informed choices.
- Contribution to climate goals: by encouraging transparency and accountability, SECR supports the UK’s efforts to reduce greenhouse gas emissions.
Streamlining SECR with IBM Envizi ESG Suite & Ikano Insight
Compliance with SECR can be a complex and time-consuming process. Ikano Insight’s ESG Optimiser, powered by IBM Envizi, offers a streamlined solution to manage and report on energy and carbon data.
Key benefits of using IBM Envizi for SECR include:
- Data centralisation: collect and consolidate energy consumption and emissions data from various sources.
- Calculation automation: automatically calculate energy use, carbon footprint, and emissions intensity.
- Reporting efficiency: generate SECR reports efficiently and accurately.
- Benchmarking: compare performance against industry peers and identify improvement opportunities.
By leveraging IBM Envizi, businesses can simplify SECR compliance, reduce the risk of errors, and gain valuable insights into their energy performance.
SECR is a significant step towards a low-carbon economy. By understanding the requirements and leveraging tools like Envizi, businesses can not only meet their regulatory obligations but also drive positive environmental impact.
Would you like to learn more about the specific data points required for SECR reporting or explore how ESG Optimiser services from Ikano Insight can further support your sustainability goals? Book a FREE demo of ESG Optimiser today or visit our website to find out more!
