How to Do SECR Reporting

What is SECR?

Streamlined Energy and Carbon Reporting (SECR) is a UK government regulation that requires qualifying companies to report their energy use and greenhouse gas emissions in their annual Directors' Report. Introduced in April 2019, SECR replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and extended the reach of mandatory carbon reporting to a much larger number of organisations.

SECR applies to UK-incorporated quoted companies, large unquoted companies, and large LLPs that meet at least two of three qualifying thresholds: more than 250 employees, turnover above £36 million, or balance sheet total above £18 million. Approximately 11,000 UK companies fall within scope.

Step 1: Determine if You Qualify

Check whether your organisation meets at least two of these three criteria in the financial year being reported:

• More than 250 employees (average across the year) • Annual turnover exceeding £36 million • Balance sheet total exceeding £18 million

If your company is a quoted company on any stock exchange, you must report regardless of size. Group companies should check both individual entity and group-level thresholds. If you qualify at group level, all entities within the group should be included in the consolidated report.

Note that the thresholds are checked annually — you may move in and out of scope depending on your financial year results.

Step 2: Define Your Organisational Boundary

Choose either the operational control or financial control approach to define which activities fall within your reporting boundary. Most companies use operational control, which means you report on facilities and operations where you have the authority to introduce and implement operating policies.

For multi-site organisations, this means listing every building, fleet vehicle, and operation you control. For group structures, this includes all subsidiaries where you hold operational control. Joint ventures are typically included at 100% if you have operational control, or excluded if you don't.

Step 3: Collect Your Energy Data

Gather energy consumption data for the full reporting period (typically your financial year). You need:

• Electricity consumption in kWh — from utility bills, half-hourly metering data, or landlord statements • Natural gas consumption in kWh — from gas bills or meter readings • Transport fuel — litres of petrol, diesel, LPG used by company-owned or controlled vehicles • Other fuels — any other combustion fuels used on-site (heating oil, biomass, etc.)

For each data source, record the quantity consumed, the time period covered, and the source of the data. If actual data isn't available for some period, you'll need to estimate — but document your estimation methodology clearly.

Step 4: Calculate Your Emissions

Apply the appropriate DEFRA/BEIS emission factors to convert your energy data into greenhouse gas emissions (reported in tonnes of CO₂ equivalent — tCO₂e).

Scope 1 (direct emissions): Multiply fuel consumption by the relevant DEFRA conversion factor. This covers natural gas combustion, transport fuel, refrigerant leaks, and any other direct combustion on-site.

Scope 2 (indirect energy): Multiply electricity consumption by the UK grid electricity factor. If you have a renewable energy tariff, you still report using the grid average factor for SECR purposes (location-based method).

Always use the DEFRA factors for the year that covers most of your reporting period. The factors are updated annually, usually published in June.

Step 5: Calculate Your Intensity Ratio

SECR requires at least one intensity ratio — a metric that normalises your emissions relative to a measure of business activity. Common intensity ratios include:

• tCO₂e per employee (total emissions ÷ average headcount) • tCO₂e per £ million revenue (total emissions ÷ annual revenue in £m) • tCO₂e per square metre (for property companies) • tCO₂e per unit of production (for manufacturers)

Choose a ratio that is meaningful for your business and that stakeholders can use to track progress year-on-year. You should use the same ratio consistently each year to enable comparison.

Step 6: Write the Energy Efficiency Narrative

Your SECR report must include a narrative description of energy efficiency measures taken during the reporting period. This doesn't need to be lengthy, but should cover:

• What energy efficiency actions you've taken (LED upgrades, HVAC improvements, fleet electrification, renewable energy procurement, behavioural change programmes) • The estimated or actual impact of those measures • Plans for future efficiency improvements

If you haven't taken any measures, you must state this. The narrative is often the most visible part of SECR reporting to stakeholders, so it's worth making it substantive.

Step 7: Include in Your Directors' Report

The SECR disclosure must appear within your Directors' Report (or equivalent for LLPs). The required disclosures are:

• UK energy use in kWh (broken down by electricity, gas, transport fuel) • Associated greenhouse gas emissions in tCO₂e (Scope 1 and Scope 2 separately) • At least one intensity ratio • Description of energy efficiency measures • Methodology used (reference to DEFRA factors, GHG Protocol, etc.) • Previous year's figures for comparison (from year 2 onwards)

The report is then filed with Companies House as part of your annual accounts.