Glossary
SECR
Streamlined Energy and Carbon Reporting (SECR) is a UK government framework introduced in 2019, designed to simplify and streamline reporting requirements for business energy usage and greenhouse gas emissions. The focus of this system is to improve the levels of understanding and control over energy use and cost in businesses and ultimately drive substantial improvements in energy efficiency.
Under the SECR framework, qualifying UK companies are required to present a detailed annual report. The report includes information on the company’s energy use, relevant carbon emissions, and any energy efficiency measures they have taken within that reporting year. This includes all UK and international energy use from buildings, transport, and industrial processes. The companies required to comply with this regulation are those which are listed on the Stock Exchange, in an European Economic Area, or a similar market, as well as large UK incorporated unlisted companies and Limited Liability Partnerships (LLPs).
By mandating these reports, the SECR framework aims to promote sustainability and green energy practices among businesses. It encourages them to reduce their carbon footprint as a measure to counteract climate change. It not only provides a consistent way for businesses to calculate their energy consumption and emissions, but also helps them identify potential opportunities for green initiatives and energy-saving measures.
In essence, the application of SECR offers three key benefits. First, it fosters accountability among organisations for their contributions to carbon emissions. Second, it helps identify cost-effective approaches to reduce energy usage and carbon emissions. Third, it promotes transparency which can then build trust between businesses and their stakeholders, contributing to a more sustainable future in the longer term.
The SECR framework represents a move towards a more accountable, sustainable industry and business model. Companies who embrace these changes not only operate in alignment with legal requirements, but have the opportunity to demonstrate leadership in energy efficiency and green practices. This, in turn, can provide a competitive advantage in markets increasingly concerned with environmental sustainability.