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What are SECR reporting standards?

The Streamlined Energy and Carbon Reporting (SECR) regulations came into effect in April 2019 in the United Kingdom, as a mandatory reporting framework for certain UK companies and large LLPs to disclose their energy and carbon emissions. The framework is intended to increase transparency and encourage companies to take action on energy efficiency and carbon reduction.


SECR reporting requirements apply to quoted companies and large unquoted companies and LLPs, which are defined as those that exceed at least two of the following thresholds in the financial year:

Turnover of £36m or more

Balance sheet total of £18m or more

250 employees or more


Companies that fall under the scope of SECR are required to report their energy consumption, energy efficiency actions, and greenhouse gas emissions in their annual reports. This includes information on energy consumption by fuel type, as well as information on energy efficiency actions taken and the corresponding savings achieved. Companies are also required to report their scope 1 and scope 2 greenhouse gas emissions, in accordance with the GHG Protocol, as well as their scope 3 emissions if they are material to the company.


The SECR regulations also require companies to set and report on energy efficiency targets, and to disclose their progress towards achieving these targets in their annual reports. Additionally, companies are required to report on the steps they are taking to reduce their greenhouse gas emissions, including any actions they have taken to improve energy efficiency and reduce emissions in their supply chain.


It's worth noting that the SECR framework is aligned with the TCFD framework, and companies that report under SECR may also be able to use the information they have reported for TCFD.


Overall, SECR reporting standards provide a framework for companies to disclose information about their energy consumption, energy efficiency actions, and greenhouse gas emissions, which can help investors and other stakeholders understand a company's exposure to climate-related risks and opportunities, and encourage companies to take action on energy efficiency and carbon reduction. The SECR regulations are mandatory and are enforced by the UK government. It is important for companies to comply with these regulations to avoid penalties.



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