SECR is the part of UK company law that makes larger businesses say, in public, how much energy they use and how much carbon that causes. It is a disclosure rule, not a tax or a target. You do not have to cut anything. You do have to count it, explain how you counted it and publish it with your accounts.
SECR in one paragraph
Streamlined Energy and Carbon Reporting came in through SI 2018/1155 and applies to financial years beginning on or after 1 April 2019. It sits inside the directors' report for companies and in an energy and carbon report for LLPs. Quoted companies, and large unquoted companies and LLPs, must report their UK energy use, the greenhouse gas emissions that follow from it, an intensity ratio and the measures they took to improve efficiency. The "streamlined" part refers to replacing a patchwork of earlier duties with a single framework.
What it replaced
Before SECR, quoted companies reported their greenhouse gas emissions in the directors' report under the 2013 regulations. Large companies also met the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, which closed in 2019. SECR extended the principle to large unquoted companies and LLPs and added energy use to the disclosure. That is why some reporting duties feel familiar but are not quite the same as before.
What you report
The statutory content is narrower than people assume:
- Energy use in kWh from gas, electricity and transport fuel, for the UK. Quoted companies also give global totals.
- Scope 1 emissions from fuels you burn and refrigerant leaks.
- Scope 2 emissions from the electricity you buy. This is the location-based figure. Market-based can be shown beside it. See location and market-based Scope 2.
- Business travel in your own people's vehicles (the "grey fleet") and fuel bought for transport, as part of the energy and emissions figures.
- At least one intensity ratio, such as tonnes of CO2e per £ million turnover or per employee.
- The previous year's figures for comparison.
- The methodology, including the conversion factors you used.
- A narrative of the principal energy efficiency actions taken in the year.
Everything else in Scope 3, such as purchased goods, waste or commuting, is voluntary under SECR. The question people ask most often, whether homeworking has to be reported, is covered separately.
Where the disclosure goes
For a company, it sits in the directors' report (or in the strategic report if the directors choose to place it there) filed with the annual report and accounts. For an LLP, it is a separate energy and carbon report that forms part of the annual report. It is public. Anyone can read it on Companies House.
What counts as "large"
The size tests for large unquoted companies and LLPs, the 40,000 kWh low-energy exemption and the way groups are treated are set out in who has to report under SECR. The older, shorter overview is our SECR guide for contractors.
How SECR relates to other schemes
| Scheme | What it is | Frequency |
|---|---|---|
| SECR | Disclosure of energy and Scope 1 and 2 emissions in the annual report | Every financial year |
| ESOS | Energy audits of buildings, transport and processes, with a notification to the Environment Agency | Every four years |
| PPN 006 | Carbon Reduction Plan for bids to central government above £5m a year | Updated each year, published on your website |
| TCFD-aligned disclosures | Climate-related financial disclosures for the largest companies | Every financial year |
They draw on the same meter reads, fuel cards and invoices. If you collect that data once and keep it in one place, each report is a view of the same records. If you do not, each one is a fresh scramble. See what is PPN 006 for the bid side.
Getting the numbers right
Most SECR disclosures fail on the same few things:
- Missing fuel. Fuel cards are easy. Plant, generators and hired vehicles bought on site accounts are not.
- The wrong conversion. Litres need the right kWh conversion, and the electricity factor changes every year. The 2026 conversion factors moved the grid number.
- Estimated bills. An estimated electricity read is not a measurement. Say so, or get an actual read.
- Inconsistency with the rest of the pack. If the sustainability section of the annual report shows a different tonnage from the SECR section, someone will notice.
MetricOra calculates energy in kWh and emissions in tonnes of CO2e from the same approved records, and its SECR report type is built from those calculations. See the product's reporting and the methodology. It supports the work. It does not decide whether you are in scope. That is a question for your finance director or adviser.
What is changing
The government has been reviewing how SECR works. Commentary on that review is available from professional bodies, and a consultation may follow. Until the regulations are amended, the 2018 rules apply as written. Check the GOV.UK environmental reporting guidance for the current position at the time you file.
Frequently asked questions
What does SECR stand for? Streamlined Energy and Carbon Reporting.
When did it start? For financial years beginning on or after 1 April 2019.
What is reported? UK energy use, Scope 1 and 2 emissions, an intensity ratio, the previous year, the methodology and efficiency actions.
Where is it published? In the directors' report, or the LLP's energy and carbon report.
Is it audited? The report is checked for consistency with the accounts. The emissions figures are not independently verified unless you choose to have them verified.
Sources
- The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (SI 2018/1155), legislation.gov.uk
- The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Schedule 7, legislation.gov.uk
- Environmental reporting guidelines, including SECR, GOV.UK
- Government GHG conversion factors for company reporting, DESNZ