Overview
The UK Streamlined Energy and Carbon Reporting (SECR) framework was introduced to improve transparency around energy use and carbon emissions among businesses. It aims to encourage organizations to reduce their carbon footprint and support the UK’s commitment to net-zero emissions by 2050.
The SECR requires companies to report on energy consumption, greenhouse gas emissions, and energy efficiency measures, providing valuable insights into their environmental impact.
Key requirements
The SECR framework has separate objectives for quoted companies and large unquoted companies or LLPs, based on defined thresholds of relevance.
Quoted Companies
Scope: It applies to quoted companies of any size.
Mandatory Reporting:
- Electricity, gas, and transport energy consumption, are calculated from all activities across the globe.
- Greenhouse gas emissions (Scope 1, 2, and optionally Scope 3).
- Intensity Ratios: Metrics such as emissions per employee or unit of production.
- Energy conservation measures implemented in the Financial year.
- Additional Requirements: Explain what approach has been used for emission and energy consumption estimation.
Who’s affected
SECR applies to large companies and limited liability partnerships that meet two of the following three criteria:
- Annual turnover of £36 million or more
- Total assets worth £18 million or more
- 250 or more employees
Fashion retailers and brands meeting these criteria must comply with SECR reporting requirements.
Unquoted Companies and LLPs
- Scope: Made applicable to the large companies and LLPs satisfying any two out of the following three conditions:
- Annual turnover of £36 million or more.
- £18 million or more in total assets.
- 250 or more employees.
- Mandatory Reporting:
- UK total final consumption (electricity, gas, and transport fuel).
- Greenhouse gas emissions are associated with the organization’s energy consumption (Scope 1 and Scope 2).
- Intensity Ratios: Specific measures related to operations, for example, emissions per dollar of revenues or unit of production.
- Energy conservation activities were conducted during the financial year.
How can Carbon Trail help?
Compliance Assistance
- Carbon Trail offers expert guidance to fashion brands navigating SECR regulations, ensuring accurate data collection and reporting.
Services for sustainability reporting
- Carbon Accounting: Comprehensive tracking and analysis of carbon emissions.
- Product Life Cycle Assessment (LCA): Life cycle assessment services to evaluate the environmental impact of products.
- Digital Product Passports: Support in creating and implementing digital passports for transparency.
- Decarbonization Services: Strategies to reduce carbon footprints effectively.
FAQs
What is SECR?
SECR stands for Streamlined Energy and Carbon Reporting, a UK framework that mandates certain businesses to report on their energy consumption and carbon emissions.
Who needs to comply with SECR?
Large companies and limited liability partnerships that meet specific financial criteria are required to comply with SECR reporting.
What information must be reported under SECR?
Businesses must report their total energy consumption, greenhouse gas emissions, intensity ratios, and energy efficiency measures.
When is the SECR compliance deadline?
SECR reports should be submitted annually, aligning with the company’s financial year and included in the annual report.
How can Carbon Trail assist with SECR compliance?
Carbon Trail provides expertise in data collection, sustainability reporting, and various services to help fashion brands comply with SECR regulations.
What are the consequences of non-compliance with SECR?
Failing to comply with SECR can lead to penalties, reputational damage, and potential restrictions on business operations.
