Governments around the world are implementing regulations to monitor and control greenhouse gas emissions, with the aim of combating climate change. One such regulation in the United Kingdom is SECR, or Streamlined Energy and Carbon Reporting. But what exactly is SECR, and why is it important?
Let's delve deeper into this topic.
What is SECR?
SECR stands for Streamlined Energy and Carbon Reporting. It is a mandatory reporting framework introduced by the UK government in April 2019 that replaces the now-defunct Carbon Reduction Commitment (CRC). SECR aims to increase transparency regarding carbon emissions and energy usage among large organizations operating in the UK.
Under SECR, eligible companies are required to disclose their energy consumption, greenhouse gas emissions, and energy efficiency measures in their annual reports. This information provides stakeholders, including investors, customers, and the public, with valuable insights into a company's environmental performance and sustainability efforts.
Who does SECR apply to?
SECR applies to large UK-incorporated companies and LLPs (Limited Liability Partnerships) that meet certain criteria. Generally, a company is considered eligible for SECR if it meets at least two of the following criteria:
What are the requirement of SECR Carbon Reporting?
Under the SECR guidelines, the UK government provides a suggested template on pg 51 for organisations to follow.
It's essential for companies to understand and comply with these requirements to fulfill their obligations under SECR and provide stakeholders with accurate and meaningful information about their environmental performance. Failure to comply with SECR reporting requirements can result in penalties and reputational damage for non-compliant companies. Therefore, it's advisable for eligible organizations to seek guidance from experts or consult official SECR guidance documents to ensure compliance with the regulations.
SECR plays a crucial role in promoting corporate sustainability and combating climate change in the UK. By requiring large companies to report on their energy usage and carbon emissions, SECR increases transparency, drives energy efficiency, supports climate action, and enhances competitiveness. As environmental concerns continue to grow, SECR remains an important tool for holding businesses accountable and driving positive change towards a more sustainable future.
How can Earthchain help?
Earthchain supports UK-based businesses to measure, manage and report on their emissions in an automated manner. You can lean on Earthchain's technology to do the heavy lifting for you when it comes to data gathering and analysis to ensure that you can report with confidence.
If we can support you with your measurement or broader efforts around compliance reporting, please don't hesitate to reach out