Reporting requirements explained: Streamlined Energy and Carbon Reporting
Under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, qualifying companies are required to report their energy usage and associated emissions within their directors’ report. This demonstrates how they are implementing the government’s policy on Streamlined Energy and Carbon Reporting (SECR).
Entities in scope
Quoted companies: companies whose equity share capital is listed on the London Stock Exchange Main Market, a European Economic Area State, New York Stock Exchange or NASDAQ. The requirement covers companies of all sizes providing they prepare a directors’ report.
Unquoted companies or LLPs: large companies (registered and unregistered) required to prepare a directors’ report and large LLPs. Large is defined as satisfying two or more of the following criteria for two years:
- Turnover greater than £36 million
- Balance sheet total greater than £18 million
- More than 250 employees.
Exemptions to SECR apply to low energy users and qualifying subsidiaries.
Low energy users are defined as quoted companies consuming less than 40,000 kWh globally, or an unquoted company or LLP consuming less than 40,000 kWh in the UK.
Subsidiaries are exempt to the extent that their reporting period terminates after, or is co-terminus with, the parent company and the energy and carbon information disclosed by the parent company is on a consolidated basis.
What do you need to report?
For more information, please contact us or check our environmental, social and governance (ESG) page.