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Once the financial year finishes, many finance professionals will be under pressure as they dive into annual reports and year-end results. And for companies eligible for SECR, this process can become even more arduous
In this guide, we cover all the key requirements for SECR compliance and what steps your business can take now to stay compliant and prepared.
Streamlined Energy and Carbon Reporting (SECR) is a government framework that was first introduced in 2019 to improve transparency around energy use and carbon emissions. It requires qualifying businesses and organisations to disclose their energy consumption, greenhouse gas emissions, and any energy efficiency and sustainability actions they are taking, within their annual reports. This helps to standardise reporting and encourage businesses to better understand, manage, and reduce their environmental impact.
The businesses who need to comply with SECR reporting requirements fall into the following groups:
– Quoted companies of any size that are already subject to mandatory greenhouse gas reporting regulations.
– UK-registered, unquoted companies incorporated in the UK that meet the definition of “large” under the Companies Act 2006. This includes both registered and unregistered companies.
– Large Limited Liability Partnerships (LLPs) that are required to prepare and file an ‘Energy and Carbon Report’
Unquoted companies or LLPs are defined as ‘large’ if during a reporting year, they meet at least two of the following criteria:
Although SECR is a mandatory requirement for all quoted businesses, large unquoted companies and all Large Limited Liability Partnerships (LLPs), compliance goes beyond meeting a legal obligation.
SECR reporting helps organisations gain a clearer understanding of their energy use and carbon emissions, enabling them to make more informed decisions about energy efficiency. It also provides greater transparency for investors, stakeholders, and customers, demonstrating a commitment towards sustainability and environmental responsibility.
By identifying opportunities to reduce energy consumption and emissions, SECR can help businesses lower costs, manage risk, and strengthen their sustainability credentials.
The exact SECR reporting requirements will vary depending on your business type.
Quoted Companies are required to:
Large companies are only required to report on UK energy use and associated GHG emissions (as a minimum, gas (Scope 1), electricity use (Scope 2) and transport (Scope 1, 2 & 3) in their SECR report.
Businesses, especially large companies and those in energy-intensive sectors, should start preparing as soon as possible to ensure compliance with SECR.
We would recommend starting to think about SECR at least 6 months before the financial year end, as it will give you plenty of time for data gathering and mapping. You will submit your SECR report alongside your annual financial report, which could be as soon as 3 months from financial year end, depending on your company type. We suggest following these steps:
SECR relies on accurate reporting of energy use and greenhouse gas emissions. Start by auditing your current data collection methods. Identify gaps in monitoring, meter readings, and usage tracking. It can also be beneficial to carry out a site audit, to gain deeper insights into the way you use energy.
SECR reporting requires businesses to disclose direct (Scope 1) and indirect (Scope 2) emissions, with large companies also required to report Scope 3 emissions produced by their grey fleets. By understanding the different scopes of your emissions, it will make it easier to accurately report on them.
Establish a timeline for data collection, verification, and submission well before the reporting deadline, giving you plenty of time to collect and report high quality data. Assigning responsibilities to team members can also help keep reporting running on time.
Energy management is more than just a compliance task; it’s an opportunity to bring your team together to work towards a common goal. Training staff in energy efficiency practices and reporting requirements ensures accuracy and encourages a culture of sustainability.
SECR is also about demonstrating progress. Businesses should review their existing energy-saving initiatives and consider new strategies to reduce consumption. There are lots of ways to improve energy efficiency, from upgrades to your building, such as LED lighting systems and better insultation, to tackling high energy consuming systems like heating and cooling by carrying out regular services and repairs.
Visible improvements can not only enhance your business’s image, but it can also reduce operational costs.
For businesses with large, multisite or complex operations, it may be beneficial to work with a sustainability consultancy who can guide you through the SECR process, making sure you stay compliant, and help identify opportunities for efficiency improvements.
By taking these steps, businesses can not only meet SECR compliance requirements but also create a foundation for long-term energy efficiency and sustainability. Early preparation avoids last-minute stress and positions your company as a forward-thinking, environmentally responsible organisation.
SECR reporting is an important part of a business’s environmental and financial transparency, and ensuring compliance requires a year-round approach rather than a last-minute annual exercise. Businesses can do this by consistently tracking energy use and emissions throughout the year, assigning clear responsibility for data collection and reporting, and regularly reviewing performance to identify gaps or inefficiencies early.
Staying up to date with SECR guidance and integrating reporting requirements into your wider business strategies also helps maintain accuracy whilst ensuring you’re prepared for deadlines.
Investing in submetering with energy analytics or Virtual Energy Management can make SECR reporting easier, by providing you with up-to-date figures and commentary around your energy use.
By embedding SECR into everyday operations, you can reduce compliance risk, improve data quality, and demonstrate your commitment to sustainability.
In 2026, SECR is undergoing changes, with new reporting requirements becoming more aligned with financial reporting standards with a new Sustainability Reporting Standards (SRS) framework. Unlike SECR, which focuses mainly on energy use and Scope 1 and 2 emissions, SRS will cover a wider range of environmental, social, and governance (ESG) reporting.
This includes broader greenhouse gas reporting (potentially including Scope 3 emissions), and sustainability governance and strategy. The introduction of SRS is a shift towards more detailed and standardised sustainability reporting, helping businesses provide stakeholders with a clearer picture of their long-term environmental and social impact.
This comes alongside shifting perceptions of sustainability and greater importance being placed on combating climate change, as well as investors calling for more detailed and comparable sustainability information about businesses to help them make better-informed decisions.
If you’re struggling to get to grips with SECR or the proposed changes under UK SRS, Consultus Sustainability can help. Our team has expertise in energy management and sustainability, including Scope 1, 2 and 3 emissions, and can help ensure your SECR reporting is completed on time and to a high standard.
In addition to SECR reporting, we also offer a number of services that can help your business improve its overall sustainability:
If you’re ready to get started, get in touch with us today.
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