SECR is a replacement for the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and requires organisations to report energy and carbon emissions in their annual report. Where the CRC applied to around 4,000 businesses, the SECR regulations will apply to an estimated 11,900 companies across the UK, increasing awareness further through the need to gather energy data.
In addition, the SECR guidelines say that businesses are required to comment on any energy efficiency projects and provide a narrative description of the principal measures taken to increase energy efficiency during the relevant financial year. This means that an organisation’s action or otherwise is the area of energy efficiency implementation will now be public and must be meaningful, informative and be commensurate with the size and level of energy use of the business.
Who needs to comply with the SECR?
The SECR will apply to all quoted companies (those whose shares are listed on the stock exchange) and large UK companies with over 250 employees or annual turnover of more than £36m or an annual balance sheet of over £18m.
Public sector organisations are exempt from SECR, and private companies that can provide evidence that they use less than 40,000kWh in a year will not be required to comply.