What is SECR and who does it apply to?
Streamlined Energy and Carbon Reporting (SECR) is the UK's mandatory framework requiring qualifying companies to report their energy use and carbon emissions as part of their annual Directors' Report. It applies to quoted companies, large unquoted companies, and LLPs that meet at least two of the following thresholds: 250+ employees, £36m+ turnover, or £18m+ balance sheet total. In 2026, approximately 11,900 UK companies fall within scope — and enforcement scrutiny has increased significantly since the framework's introduction in 2019.
What must be reported?
Companies must disclose their UK energy use in kWh, associated greenhouse gas emissions in tonnes of CO₂ equivalent (tCO₂e), and at least one intensity ratio (such as tCO₂e per £m revenue or per employee). This covers Scope 1 direct emissions from owned sources like gas boilers and fleet vehicles, and Scope 2 indirect emissions from purchased electricity. While Scope 3 reporting isn't mandatory under SECR, many organisations are voluntarily including business travel and key supply chain categories to prepare for upcoming UK Sustainability Reporting Standards (UK SRS).
Common pitfalls in SECR reporting
The most frequent mistakes we see are using outdated DEFRA emission factors, failing to apply the location-based method correctly for electricity, and inconsistencies in organisational boundary definitions between years. Many companies also struggle with data collection — especially when utility bills span multiple financial periods or when sites are part of shared tenancies. Another common issue is calculating the intensity ratio incorrectly by mixing group revenue with UK-only emissions.
How to speed up your SECR process
The most effective approach is to centralise data collection early, ideally 3 months before your financial year-end. Establish a clear data ownership model where each site or department knows what they need to provide. Automate emission factor application rather than manually looking up DEFRA conversion factors each year. Finally, build your SECR disclosure into a repeatable template that carries forward year-on-year, so your comparisons are consistent and audit-ready from day one.