Large UK organisations will be required to report their energy use, carbon emissions and energy efficiency measures in their annual reports as of April 2019.

The ruling comes as a result of the government’s Streamlined Energy & Carbon Reporting consultation, to which it published its response on Wednesday 18 July 2018.

The reform package aims to make mandatory energy and carbon reporting “simpler for businesses” by reducing administrative burdens, whilst also raising awareness of energy efficiency and helping businesses reduce bills, and save carbon.

Its goal is to enable businesses and industry to improve energy efficiency by at least 20% by 2030 – an ambitious objective of the government’s Clean Growth Strategy.

The new Streamlined Energy and Carbon Reporting (SECR) framework will replace a scrapped CRC Energy Efficiency Scheme.

What businesses will be affected by SECR?

SECR will apply to:

• All quoted UK companies (whose shares are listed on the stock exchange)

• Large UK incorporated unquoted firms (with at least 250 employees or annual turnover more than £36 million and an annual balance sheet totalling more than £18 million)

While large businesses are already measuring their energy use under the Energy Savings Opportunity Scheme (ESOS), there is currently no requirement for public disclosure. This however will change under SECR, with businesses required to publish their energy reporting.

The latest framework takes the total number of businesses reporting to around 11,900.

Are there any exemptions to SERC?

There is an exemption for unquoted companies if it would “not be practical to obtain some or all of the SECR information” or if directors believe disclosing information would be “seriously prejudicial” to the interests of the company. The latter should only be used in “exceptional circumstances”.

In addition, organisations that use low levels of energy will not be required to disclose their SECR information if they can confirm they used 40,000kWh or less over the 12-month period.

Other key takeaways from the SECR framework:

• Electronic reporting will be voluntary for SECR information from 2019 although, the government intends to keep mandatory electronic reporting as an option for the longer term.

• An Energy Performance Indicator (EnPI) must be included within the report. The company will decide their relevant intensity metric.

• Reporting must include a narrative commentary on energy efficiency action taken in the financial year.

Additionally, the government has launched a Call for Evidence on what additional policies or regulations might be needed to meet its target of improving business energy efficiency by 20 per cent by 2030.

It is asking for industry and other stakeholders opinion on ideas such as strengthening building regulations, incentivising greener manufacturing processes, and boosting access to green finance. Organisations have until 26 September 2018 to respond.

Talk to an expert

For advice on how Streamlined Energy & Carbon Reporting may affect your business, talk to one of our experts today. Call us on 02920 893811 or email us and we’ll get back to you.