This requires companies to report their energy consumption and carbon emissions (also known as greenhouse gases) in their annual Directors’ Report. As many of those affected by SECR will already be working towards ESOS Phase 2 compliance, it’s likely that energy managers and their teams will be dedicating significant resources to understanding and meeting their compliance obligations this year.
At Inenco, we’re keen to ensure that businesses have the support they need to meet their energy reporting requirements. With this in mind, we’ve put together an action plan to ensure that those that are eligible for SECR are prepared when it comes into force.
Confirm whether your business needs to comply with SECR
You will need to comply with SECR for the first financial year starting on or after 1st April 2019, if:
– at least 250 employees
– an annual turnover of £36m+
– an annual balance sheet of £18m+
If your organisation is a UK incorporated quoted company, you will have been reporting your global greenhouse gas emissions publicly since 2013; SECR will continue this requirement for your company.
Decide how you will calculate consumption
Large unquoted companies must report on UK electricity, gas and transport energy and emissions. There are a number of ways that you can calculate your business’s energy consumption and greenhouse gas emissions, so it makes sense to decide the best method for your business now. The preferred method is obtaining meter data (from your supplier, data collector etc.), but you can also use invoices or annual statements from your suppliers.
Remember that you will need to include data on your in-house transport fuel usage or mileage, similar to the requirements of ESOS, and quoted companies must report all Scope 1 and 2 emissions, which could bring in other fuels, refrigerants and overseas operations.
Streamline your reporting
If you’re required to comply with energy reporting schemes, you may find that you can utilise your existing data collection and reporting processes to support your SECR compliance. SECR requires very similar data set to the soon-to-close CRC scheme, which many companies that will be affected by SECR will currently be complying with, but you may also be able to use the data you collect for CCAs, EUETS, ESOS or even for normal company-level energy management. Now is a good time to take a look at how you can use these data collection processes to facilitate your SECR compliance.
Engage with key stakeholders
One of the main aims of SECR is to increase awareness and visibility of energy costs and greenhouse gas emissions among key decision makers within large companies, which is why you are required to include the information you collect through SECR in your Director’s Report. Make sure that those involved in the creation and approval process for your Director’s Report are prepared for the additional SECR information they will need to include and review.
Seek external support
The Government recommends seeking external verification for your SECR report, to help ensure the figures you present to the public are accurate, complete and consistent with best practice Having external, specialist support can also significantly ease the admin burden on your team.
At Inenco, our compliance team have been helping businesses to meet their energy reporting requirements for over 50 years. We’ll work with you to explore the options available to you and help you to navigate the entire journey to compliance, from scoping and data-gathering to publishing a fully compliant report and identifying opportunities to improve accuracy and widen the scope of reporting.
If you think your business could benefit from Inenco’s expertise when it comes to SECR compliance, give us a call today on 08451 46 36 26 or email email@example.com.