The Streamlined Energy and Carbon Reporting (SECR) is new legislation to affect all large UK undertakings from April 2019.
Why is it needed?
SECR follows the Government’s decision to remove the Carbon Reduction Commitment (CRC) scheme from April 2019, which will result in a loss of £790m in annual CRC tax revenues and an increase in the Climate Change Levy (CCL) for businesses. Following detailed consultations lead by the Goverment, the reform package aims to reduce administrative burdens, raise awareness of energy efficiency, reduce bills, and save carbon.
How does SECR work?
All qualifying companies must start to report their energy and carbon emissions from buildings and transport, along with efficiency measures taken over the previous year. This involves the collection and reporting of data regarding energy use, emissions and the production of an energy efficiency action plan.
Who does it affect?
It is important to note that SECR will extend far beyond the 4,000 companies currently involved in CRC and is expected to affect over 11,900 companies – especially those already affected by CRC or ESOS.
New, lower qualification criteria may well affect smaller companies, which haven’t previously reported under ESOS or CRC. SECR reporting will continue to apply to all quoted companies but will now also apply to large UK incorporated unquoted companies, and LLPs that meet the following criteria:
- At least 250 employees – or
- Annual turnover greater than £36m and annual balance sheet total greater than £18m
(There are some small exclusions for organisations within these criteria).
If you believe your organisation may be affected by SECR, contact us today or call Bradley on 01744 778530