What is Streamlined Energy and Carbon Reporting?

Streamlined Energy and Carbon Reporting (SECR) is the UK framework that requires in-scope organisations to disclose annual energy use, greenhouse gas (GHG) emissions, at least one intensity ratio, a narrative of energy-efficiency actions, and the methodologies used within their annual report. It has applied to financial years starting on or after 1 April 2019 and remains the core statutory baseline for UK corporate energy and carbon disclosure.

SECR's goals are practical: raise board-level awareness of energy cost and carbon risk, create a level playing field across large UK organisations, and provide stakeholders with consistent, decision-useful information. For many businesses, doing SECR well delivers very tangible benefits - visibility of energy waste, faster paybacks on upgrades, and better credibility in tenders - because the same data that meets the regulation also uncovers efficiency savings. If you're starting from scratch or need a faster, audit-ready route, our SECR reporting service can compile the figures and narrative for your Directors' Report.

Two points set SECR apart. First, it integrates directly into the Directors' Report (or an LLP's Energy & Carbon Report), keeping carbon alongside finance. Second, it explicitly encourages the use of accepted standards (e.g., GHG Protocol, ISO 14064-1) and UK Government conversion factors, so the maths stands up to scrutiny, and year-on-year comparisons stay consistent.

Who needs to report under SECR (and who's exempt)?

Your organisation is in scope if you are:

• a quoted company (UK-incorporated and listed on the Main Market, an EEA market, NYSE or NASDAQ); or
• a large unquoted company or large LLP meeting at least 2 of 3 Companies Act thresholds: £36m+ turnover, £18m+ balance sheet, 250+ employees.

Low energy user exemption: If total energy consumption is ≤ 40 MWh in the reporting period, you can state this and omit detailed figures (but you must explicitly say you are a low energy user in the report). Not sure if you're in scope? Book a call to confirm eligibility and required disclosures.

Group reporting: At group level, include subsidiaries that would themselves be in scope, with limited ability to exclude a subsidiary that wouldn't be obliged on a standalone basis. Quoted companies must also indicate the proportion of energy and emissions attributable to the UK and offshore. All of this stems from the 2018 Regulations that amended the Companies Act reporting framework - monitored for compliance by the Financial Reporting Council.

What exactly must you include to be SECR-compliant?

At minimum, disclose for the financial year:

1. Energy use (kWh):
   • Quoted companies: global underlying energy use.
   • Large unquoted companies & LLPs: UK energy use (gas, purchased electricity, and transport fuel you purchase).
2. GHG emissions (tCO₂e):
   • Quoted: global Scope 1 and Scope 2.
   • Large unquoted/LLPs: UK emissions linked to the energy above; include business travel in rental or employee-owned vehicles where you buy the fuel (Scope 3 minimum).
3. At least one intensity ratio (e.g., tCO₂e/£m revenue, tCO₂e/m², tCO₂e/unit produced).
4. Energy-efficiency actions taken in the year (narrative).
5. Methodologies used (standards, factors, assumptions) and prior-year comparatives (where applicable).

Remember: if you buy the fuel, it's in scope for transport; if you procure a transport service, it falls outside the mandatory boundary for large unquoted/LLPs under SECR (though it's good practice to report as Scope 3). For peace of mind before sign-off, have an external specialist like us check against the guidance and common pitfalls.

How do you calculate SECR numbers accurately (and defensibly)?

Use the UK Government greenhouse gas conversion factors (see the latest factors here) for the relevant year to convert activity data (kWh, litres, mileage) into tCO₂e. These are updated annually and come with a full methodology explaining grid electricity, fuels, T&D losses, and well-to-tank estimates - so your calculations are consistent and auditable.

Follow accepted standards (e.g., GHG Protocol Corporate Standard or ISO 14064-1) and document: boundaries (financial/operational control), estimation methods (e.g., pro-rata, benchmarking), emission factors used (location- vs market-based electricity where relevant), and any material exclusions. The report must explicitly state your methodology.

Prefer a second set of eyes on your numbers and methods? Use our verification service to de-risk sign-off.

Bookmark: The official Environmental reporting guidelines is the authoritative reference for guidance, definitions, examples and templates.

How do you write a high-performing SECR disclosure (and avoid the traps)?

SECR checklist:

• Scope & boundary set (group/UK vs global; quoted vs unquoted/LLP).
• Energy totals (kWh) and GHG totals (tCO₂e) compiled, with UK split (and UK/offshore split for quoted).
• At least one intensity ratio chosen and calculated consistently with prior year.
• Energy-efficiency actions described (focus on material measures and, where possible, quantified savings).
• Methodology section includes standards, conversion factors (with year), estimation notes, and any "comply or explain" statements.

Frequent errors: omitting company-fuelled transport; missing the narrative of actions; forgetting to state the methodology; presenting only market-based electricity without the recommended location-based number; and not making clear that prior-year data is unavailable in a first SECR year. Get it right first time: We can prepare your SECR report or provide a compliance-check before filing.

How does SECR fit with the wider UK reporting landscape in 2026?

The headline: SECR is set to continue refreshed rather than replaced. The Government's 2026 evaluation concludes it works and represents good value, so the most likely path is "maintain and modernise" alongside the move to UK-endorsed ISSB/UK SRS disclosures.

What this means for your reporting

• Don't under-invest in SECR. Treat it as a durable requirement. Expect clearer templates, more consistent placement, and firmer oversight to close the visible compliance gap among private companies and LLPs.
• Connect the dots. SECR is backward-looking by design; the biggest gains come when you link it to forward-looking plans and targets (e.g., transition plans), so the annual energy and emissions numbers support strategy and investor messaging. That alignment is exactly where policy is heading.

Exploit re-use. The same data powers ESOS actions, PPN 006/Carbon Reduction Plans, and emerging UK SRS metrics. Designing your SECR pack for reuse reduces effort and improves consistency across stakeholder requests.