SECR is a continuous process that provides businesses with opportunities to become a leader in sustainability

Thursday, 18 July 2024

In the ever-changing landscape of environmental responsibility, the Streamlined Energy and Carbon Reporting (SECR) framework continues to be a beacon of transparency and accountability.

Here is a reminder of what SECR is, why it matters, and how your business can use it to its advantage.


What Is SECR?

SECR was implemented as a mandatory legislation obligation for selected organisations to disclose environmental information in their annual reports. Applying to over 12,000 UK companies, here is an overview of what gets included:

• Energy Usage: Businesses must disclose all information about the energy they use. From office lighting to factory machinery, it all must be reported.

• Greenhouse Gas Emissions: SECR demands transparency about a company’s carbon footprint and its business emissions.

• Standard Methodology: Companies are required to incorporate details of the methodology used for calculating emissions and an intensity ratio based on a business metric. This helps to make meaningful evaluations about progress.


Who does SECR apply to and what are the thresholds?

All UK-quoted companies are required to comply, as well as large-incorporated unquoted companies and limited-liability partnerships (LLPs), which meet two of the following criteria:

• Over 250 employees
• Annual turnover of £36 million or over
• Balance sheet total of £18 million or over.

Some exemptions apply, private companies that use less than 40,000kWh annually, for example.


Why SECR is important?

If you fall into scope of SECR compliance, reporting under the SECR framework can help you improve energy data collection through robust data management processes.

Tracking energy use and emissions helps you to effectively measure your organisation’s progress towards achieving Net Zero, keep track of your annual performance and uncover cost saving measures.

Furthermore, SECR represents an opportunity to reflect on your business’s green credentials, take a more comprehensive approach to your sustainability strategy and reporting, and improve investor confidence.


Making the most of SECR


Scope Analysis:

Analyse your energy data scope to help you define an energy reporting methodology that suits your organisation.

Set boundaries and understand the environmental issues relevant to your business.


Data Management:

Gather the consumption data for your entire energy estate. It can be broken down by site, department, or process.

Ensure your data is complete, filling any data gaps, and check that utility bill information is correct. This guarantees an accurate compliance submission.


Energy Efficiency Projects:

Identify energy efficiency projects that will provide some “quick wins” – new LED lighting for example. You can report on your successes in your SECR report where you’ve made savings.

Use insights to let SECR guide your business to make further improvements.


Engagement:

Get buy-in from leadership, their support will make the entire process much smoother.

Raise awareness across the business. Behaviour change can advance carbon reduction and help implementation of efficiency projects

SECR is a continuous process that provides businesses with opportunities to become a leader in sustainability:

• Differentiating from competitors by demonstrating best practice in energy savings and efficiency.

• Demonstrate improved performance year on year by establishing ongoing monitoring of energy use and carbon emissions.

• Delivery of operational cost-savings through increasing awareness of energy use and efficiency.

It will provide successes worth celebrating along the way and, rather than seeing it as a compliance burden, it will shine the light on a pathway to a green future.




ENDS
Notes to Editors
For further information, please contact:
Pauline Scoins – Marketing and PR Executive
TEAM Energy
Phone: +44 (0) 01908 690018 Ext 204
Email: pscoins@teamenergy.com
EDW House, Radian Court, Knowlhill, Milton Keynes, MK5 8PJ
www.teamenergy.com

About TEAM

TEAM is the UK’s leading multidisciplinary energy and sustainability consultancy, committed to helping organisations lower their carbon emissions, reduce energy consumption and save money, supporting them in playing their part in the fight against climate change.
Its expert team works alongside its customers to understand their unique challenges and energy management goals whether it’s net zero and carbon reduction, compliance and certificates, or large-scale projects and business strategy.
The organisation’s 35-year history of collaborating with energy and sustainability professionals has led to the continuous development of software solutions and service innovations to meet the evolving needs of the market at pace and scale, helping its customers to navigate the challenging energy landscape.