Introduction:

Streamlined Energy and Carbon Reporting (SECR) stands as a pivotal framework compelling UK companies to conscientiously disclose their energy and carbon metrics.

It's not just about compliance; it's about embracing a culture of transparency and accountability.

In this comprehensive guide, we dissect the nuances of SECR and reveal how the Futureproof platform facilitates this crucial reporting for your business.

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SECR Unpacked:

It goes beyond tracking emissions to encouraging companies to actively enhance their energy efficiency.

SECR requires a detailed report inclusive of greenhouse gas emissions, energy consumption, and a narrative on improvement efforts, alongside the employed methodologies and an intensity ratio for contextual understanding.

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SECR's Origin Story:

The policy emerged on April 1, 2019, heralding a new era of environmental reporting that also signaled the termination of the CRC Energy Efficiency Scheme, shifting towards a more integrative approach with global ESG reporting frameworks.

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Mandatory Compliance and Exclusions:

Who reports?

UK-listed companies, significant unquoted companies, and large LLPs are all roped into SECR’s mandate, defined by the Companies Act 2006.

It is a requirement for:

• All quoted companies (i.e. companies listed on the public exchange), who are already required to comply with greenhouse gas reporting
• ‘Large’ unquoted companies that are incorporated in the UK
• ‘Large’ Limited Liability Partnerships (LLPs)

As per the Companies Act 2006, companies are considered ‘large’ if they meet at least two of the following criteria:

• A turnover of at least £36 million
• A balance sheet of at least £18 million; or

Who is exempt?

Organisations with minimal energy use and public sector entities are exempt but are encouraged to engage in voluntary reporting to maintain transparency.

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Conducting SECR Reporting:

Minimum requirements include:

• Energy use which includes gas, purchased electricity and transport fuel, along with GHG emissions
• Information around methodology used to measure energy use and emissions
• A narrative description of efforts taken to improve energy efficiency over the last 12 months
• An intensity ratio which is used to compare emissions data with a business metric, to allow for comparison with similar businesses and previous years
• Equivalent figures from previous years as a base for comparison on changes and improvements

Companies must also offer prior year data to track their progress and establish benchmarks.

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The Value of SECR Reporting:

Strategic Benefits: SECR reporting ushers in operational cost savings, brand enhancement, and fosters an investor-friendly image through transparent and accountable practices.

Environmental Gains: It propels businesses toward global sustainability efforts, contributing to a reduced carbon footprint and environmental leadership.

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SECR Reporting Made Simple with Futureproof:

• Simplifying SECR: The Futureproof platform streamlines the process, from data collection to final reporting.
• Data Accuracy and Management: Futureproof ensures data is accurately collated and managed for year-on-year tracking within an auditable framework.
• Visual Reporting: Utilising the platform, users can create comprehensive reports that meet SECR’s stringent requirements, simplifying the disclosure process.

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The Evolution of SECR Reporting:

Anticipate more stringent future requirements, possibly incorporating Scope 3 emissions and setting specific sustainability targets as the norm.

Prepare for changes that may tighten legislation, influencing companies to enhance their sustainability reporting and environmental impact reduction efforts.

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Conclusion:

SECR reporting is more than a statutory requirement; it's an opportunity for your business to showcase its dedication to sustainability.

The Futureproof platform is designed to ease this transition, empowering your company with tools for effective sustainability management.

By collaborating with Futureproof, your organisation is not merely complying with the law but leading the charge towards a more sustainable and accountable corporate landscape.