SECR reporting: Streamlined Energy and Carbon Reporting in the UK

SECR requires large UK companies to report UK energy use, Scope 1 and 2 emissions, an intensity ratio, and their energy efficiency actions in the annual report.

Teo Lamiot
SECR reporting: Streamlined Energy and Carbon Reporting in the UK
Quick answer

What is SECR reporting?

SECR, the UK's Streamlined Energy and Carbon Reporting rules, requires large UK companies to report their energy use and carbon emissions each year in their annual report. It came into effect on April 1, 2019, and applies to quoted companies, large unquoted companies, and large LLPs. Reports must cover UK energy use, Scope 1 and 2 emissions, an intensity ratio, and the energy efficiency actions taken during the year. Gravity gathers the underlying energy and emissions data and prepares it in the format SECR requires.

A large unquoted company or LLP must meet at least two of these thresholds to fall under SECR.
TestThreshold
Annual revenue36 million pounds or more
Balance sheet total18 million pounds or more
Employees250 or more

There is no separate SECR portal or submission deadline. The disclosure sits in the annual report filed with Companies House, so the SECR deadline is the company's normal filing date. Organisations that used less than 40,000 kWh in the reporting year can state that instead of reporting in full.

Background

The UK's Streamlined Energy and Carbon Reporting (SECR) framework significantly expanded public energy and carbon reporting requirements for UK businesses when it came into effect in 2019. Carbon reporting frameworks have proliferated in the years since, but the SECR remains a leader in tying carbon reporting to energy efficiency actions and energy cost reduction. 

Here’s what companies in the UK and beyond need to know about the SECR, who needs to report, what data must be disclosed, and the implications of non-compliance.

Key Takeaways

  • The SECR requires eligible UK companies and global companies with UK operations to report their energy use and carbon emissions in annual reports.
  • Approximately 10,000+ companies are impacted by this regulation.
  • Impacted organizations must report on annual energy use, greenhouse gas (GHG) emissions, an emissions intensity ratio, and energy efficiency actions.
  • Companies face potential penalties for non-compliance, including fines.
  • The framework aims to drive adoption of energy efficiency measures, lower energy costs, and reduce emissions.

Impact of the SECR on Businesses

Who Needs to Comply

The SECR affects approximately 10,000+ companies that are based in or have operations in the UK:

  • Publicly-listed companies of any size.
  • Large private companies, Limited Liability Partnerships (LLPs), and nonprofit organizations that meet at least two of the following criteria:
    • Annual revenue of £36 million or more
    • Balance sheet total of £18 million or more
    • 250 employees or more

Penalties for Non-Compliance

Failure to comply with the SECR can lead to serious consequences:

  • Financial penalties: The Financial Reporting Council (FRC), which oversees SECR enforcement, can impose fines and other enforcement actions for non-compliance, which vary depending on the nature and severity of the breach.
  • Legal penalties: Directors may face legal action for late filings or inaccurate reporting.

Exemptions

Companies that meet any of the following criteria are exempt from SECR reporting:

  • Organizations that consume less than 40,000 kWh of energy in the reporting year
  • Private companies and LLPs for which it is either commercially confidential or infeasible to obtain some or all of the required information (though this requires an accompanying explanation)
  • Subsidiaries included in a parent company's group report (under certain conditions)
  • Public sector organizations (though they have their own reporting requirements)

Reporting Requirements Under the SECR

Energy and Carbon Reporting

Companies must include the following information in their annual reports:

  • Energy use: Annual energy consumption in the UK (in kWh), including from gas, purchased electricity, and transport fuel. Public companies must also report their global energy use.
  • Emissions intensity ratio: At least one emissions intensity ratio that allows for comparison of emissions over time or with other organisations (i.e., emissions per financial or operational metric).
  • Greenhouse gas emissions: Associated Scope 1 (direct) and Scope 2 (indirect) emissions in tons of carbon dioxide equivalent (CO2e). Companies are also encouraged to report their Scope 3 emissions, but this is not mandatory.
  • Energy efficiency actions: A narrative description of key energy efficiency measures taken during the reporting period.
  • Methodologies: Methodologies used to calculate the required information.

Timeline and Deadlines for Compliance

  • SECR reporting is an annual obligation aligned with a company's financial year.
  • Reports must be included within the Directors' Report section of the annual report (or equivalent for LLPs).
  • There is no separate submission process – SECR data is part of the annual financial reporting to the Companies House.

How Gravity Can Help You Meet SECR Requirements with Confidence

There are various approaches to ensure compliance with the SECR’s energy and carbon reporting requirements, including managing the process in-house, hiring a consulting firm, or implementing specialized software.

As an integrated energy and carbon management platform, Gravity is uniquely positioned to ensure you meet your SECR requirements. We offer world-class software, personalized support from climate experts, and partnerships with market-leading energy efficiency vendors to reduce energy costs and drive decarbonization

Here's how we can support you:

  • Automated data collection: Collecting energy use data and calculating Scope 1 and 2 emissions data are often the most time-consuming elements of SECR reporting. Using Gravity's utility bill scanning feature and utility APIs, you can process thousands of documents in seconds – without manual error. The supplier engagement solution and surveys makes it possible to collect data from across your operations and transport activities in record time.
  • Simplified reporting: Our platform will automatically format your data to meet the SECR’s disclosure requirements. You can also translate the raw data collected for SECR to other disclosure frameworks you may need to comply with, including the CSRD, TCFD, CDP, and other standards.
  • Energy efficiency measures: Gravity leverages energy use and cost data to identify energy efficiency opportunities with positive ROI, and accelerates implementation by connecting customers to a network of trusted vendors. Gravity’s platform allows you to track progress and measure the impact of energy efficiency measures, simplifying energy efficiency action reporting for the SECR.
  • Data assurance: Data assurance should be baked into every step of the process to ensure accurate reporting and methodology disclosure for the SECR. Gravity's platform supports viewing data logs, attaches supporting evidence for every data point, and streamlines the verification process by keeping all documentation in one place. 
  • Expert assistance: You'll be partnered with an expert Climate Strategist who will help you navigate SECR as it applies to your company, develop appropriate intensity ratios, and ensure you can leverage your reporting to drive action that helps the bottom line.

How do you calculate SECR emissions?

SECR emissions are calculated from energy and fuel consumption, not estimated from spend. The method has three parts.

  • Collect consumption in kWh. Gas and purchased electricity come from utility bills and meter data. Transport fuel comes from fuel cards, mileage claims and expense records, converted from litres or miles into kWh.
  • Apply UK conversion factors. Most reporters use the UK government's annual greenhouse gas conversion factors, published by DEFRA and DESNZ. Scope 2 electricity is normally reported on a location-based basis using the UK grid factor for the reporting year. Record which year's factor set you used, because the factors change annually.
  • Build an intensity ratio. Divide total emissions by a metric that suits the business, such as tonnes of CO2e per £million of turnover, per square metre, per unit produced or per full-time employee. Use the same ratio each year so the trend is readable.

Gravity's utility bill management reads consumption and cost straight off bills and utility APIs, and carbon accounting applies the correct factor version and keeps the evidence attached to every figure.

What is the SECR deadline?

SECR follows the financial year, not a fixed calendar date. The disclosure has to be in the Directors' Report for the financial year being reported, filed with Companies House by the normal deadline: nine months after the year end for private companies and LLPs, six months for public companies. Since the numbers have to be signed off with the accounts, most teams start collecting energy data at least a quarter before the year end.

SECR vs ESOS: what is the difference?

Both are UK schemes and both look at energy, but they do different jobs. SECR is an annual disclosure of energy use and emissions inside the annual report, and it applies on the size tests above. ESOS, the Energy Savings Opportunity Scheme, is a four-yearly energy audit for large undertakings, assessed against a separate threshold and submitted to the Environment Agency. ESOS produces recommendations, SECR makes the numbers and the actions public. Companies subject to both can use the same energy data for each.

SECR vs CSRD, TCFD and CDP: do they overlap?

They ask for the same underlying data in different shapes. SECR is the narrowest: UK energy, Scope 1 and 2, one intensity ratio, and a narrative on efficiency actions. CSRD requires Scope 1, 2 and 3 under ESRS E1, a transition plan and assurance. Climate-related financial disclosures in the UK and ISSB-aligned reporting elsewhere add governance, strategy and risk. CDP is a questionnaire scored by a third party. If you build one inventory with evidence attached, each of these becomes a different export rather than a separate project. Our sustainability reporting guide maps the frameworks against each other.

How does SECR help reduce energy costs?

SECR is the only major disclosure that asks directly what a company did to use less energy. That makes the report a useful record of efficiency work rather than an accounting exercise. The efficiency actions most often reported are lighting upgrades, controls and building management tuning, compressed air leak repair, variable speed drives on motors and pumps, and heating and cooling upgrades. Gravity's energy management product ranks these by payback using your own bill data, so the narrative section is backed by measured savings. Our energy efficiency guide covers the common measures in more detail.

Final Thoughts on the UK's SECR

The UK's SECR framework is a key pillar of the country's climate strategy. As mandatory energy and carbon reporting becomes common globally, the SECR positions UK businesses to adapt to an energy-efficient, low-carbon future. Companies that embrace the SECR as an energy efficiency opportunity, rather than just a compliance exercise, can benefit from reduced energy costs and better preparedness for other climate-related regulations, including the European Union’s CSRD and California’s CCDAA in the U.S.

Frequently asked questions

Which companies are required to comply with SECR?

SECR affects more than 10,000 companies based in or operating in the UK. It covers quoted companies of any size, and large private companies, LLPs and nonprofits that meet at least two of these tests: annual revenue of at least 36 million pounds, a balance sheet total of at least 18 million pounds, or at least 250 employees.

What needs to be reported under SECR?

Companies must report their UK energy use, an emissions intensity ratio, their Scope 1 and Scope 2 greenhouse gas emissions, the energy efficiency actions taken during the year, and the methodology behind the figures. Quoted companies must also report their global energy use.

Does SECR require Scope 3 emissions?

No. SECR requires Scope 1 and Scope 2 emissions, plus UK energy use and an intensity ratio. Scope 3 is voluntary under SECR, though many companies report it anyway to meet frameworks like CSRD or CDP.

Are there exemptions to SECR reporting?

Yes. Organisations that consume less than 40,000 kWh of energy in the reporting year are exempt, as are public sector bodies and certain subsidiaries already covered by a parent company's group report. Private companies and LLPs can also leave out information that is commercially confidential or not practical to obtain, but they have to explain the omission in the report.

How often do companies need to report under SECR?

Every year. SECR follows the company's financial year and the disclosure sits inside the annual report, so there is no separate reporting cycle to manage.

What is the SECR deadline?

There is no separate SECR submission. The disclosure is filed with the annual accounts at Companies House, so the deadline is the normal filing deadline: nine months after the financial year end for private companies and LLPs, and six months for public companies.

Which emission factors should be used for SECR?

Most reporters use the UK government's annual greenhouse gas conversion factors published by DEFRA and DESNZ, and report Scope 2 electricity on a location-based basis using the UK grid factor for the reporting year. The methodology used has to be stated in the report, including which year's factor set was applied.

How does a company prepare for SECR?

Start by pulling a full year of UK energy bills and fuel records, then convert them to emissions using current factors. Track the energy efficiency actions taken during the year, since SECR requires a narrative on them. Gravity collects this data and produces the figures and intensity ratio SECR asks for.

Do companies need external verification for their SECR data?

No. External verification is not legally required under SECR. Many companies still get their figures assured, because it catches errors before they are filed and gives investors more confidence in the numbers.

What penalties exist for non-compliance with SECR?

SECR sits within the Companies Act 2006, so failing to report can bring financial penalties and legal action against company directors personally.

When did SECR come into effect?

SECR came into effect on April 1, 2019, replacing the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme.

What is the difference between SECR and ESOS?

ESOS is a UK energy audit scheme that runs on a four-year cycle and focuses on finding energy savings. SECR is an annual reporting duty that puts energy and carbon figures in your annual report. A company can fall under both.

How does SECR relate to other carbon reporting schemes?

SECR replaced the CRC Energy Efficiency Scheme and widened what has to be disclosed. It runs alongside other UK schemes such as the Energy Savings Opportunity Scheme, and the energy and emissions data behind it is the same data that feeds CSRD and CDP reporting.