SECR (Streamlined Energy and Carbon Reporting)
As the UK's leading verification body for Government carbon reporting schemes, such as EU ETS (EU Emissions Trading Scheme) and CCA (Climate Change Agreements), Lucideon is able to apply the same rigorous auditing principles to SECR. Lucideon verifiers are experienced carbon and energy auditors and not just cross trained financial auditors - they therefore understand your operations and measurement/monitoring processes (invoices, meter reads, etc).
How Does SECR Work?
There is a new mandatory reporting requirement; Streamlined Energy and Carbon Reporting. Regulations will require all “large” companies (threshold goes down to 250 employees) to include energy usage and carbon emissions data in their annual accounts filed at Companies House. Although this doesn’t require mandatory independent verification it would be advisable for reporters to have it checked out before going public. If you are one of these organizations, we can verify your reports and evidence pack before submission to the Authority, to ensure that they are correct. The government has confirmed this will apply to company financial years beginning on or after the 1st April 2019.
The draft SECR regulations have been released (July 2018) - this is the link to the draft regulation amending the Companies (Director’s Report) Regulations 2018. This amended legislation will become a UK statutory instrument when it passes through Parliament: www.legislation.gov.uk
Who Does This Apply To?
All large companies and Limited Liability Partnerships (LLPs) as defined under the Companies Act 2006 as meeting two of the three conditions below:
- More than 250 employees
- Annual turnover greater than £36m
- Annual balance sheet total greater than £18m.
The government calculates that 11,900 companies will be required to report on their carbon emissions under these new regulations.
Why Does This Need Reporting?
The UK government requires businesses to reduce their emissions in order that the country as a whole can meet the 4th carbon budget which requires a 51% reduction of carbon emissions by 2027. To credibly demonstrate emissions reductions, businesses must first measure them and then publish them in the public domain. Stakeholders of the businesses can then see the emissions data and use that for their own decision making regarding; energy saving initiatives, climate change risk and emissions within their supply chain.
What Information Businesses Must Publish?
Businesses must publish the following information for each financial year:
- Their UK energy use
- The associated scope 1 and scope 2 emissions
- An emissions intensity metric
- A narrative on energy efficiency action taken.
Lucideon & SECR
Lucideon Assurance are closely following the updated information on SECR.
To find out more about SECR click here.