SECR: How to Submit a Compliant Report

There are many reports you need to submit when you run a business. VAT returns. Annual accounts. Confirmation statements.

If you’re eligible, you may also need to file a SECR report.

This guide will explain the key obligations under SECR and how to submit your report without the stress.

What is SECR?

SECR (Streamlined Energy and Carbon Reporting) is a UK framework that came into force in 2019.

Under SECR, eligible UK companies must report on their energy use and greenhouse gas emissions every year. They must submit this report to Companies House as part of their annual accounts.

The aim of SECR is to make relevant companies more aware of their energy use and take action to become more sustainable.

Who Needs to Comply With SECR?

You must report on SECR if you’re a UK-registered organisation and one of the following applies:

1. You’re a ‘quoted company’ whose shares are traded on a stock exchange (not necessarily the London Stock Exchange)
2. You’re a ‘large’ company or limited liability partnership (LLP) which meets two of the three following criteria:
   1. You have a turnover exceeding £36 million
   2. You have gross assets over £18 million
   3. You have more than 250 employees

If you’re a low energy user (i.e. you use less than 40,000kWh of energy in a financial year) and are a large company or LLP, you are exempt from SECR.

If you’re not sure if you’re eligible, we’d be happy to check for you.

What Do You Need to Report?

You are required to report on your Scope 1 and Scope 2 greenhouse gas emissions as part of SECR.

By greenhouse gases, we mean the following seven gases:

• Carbon dioxide (CO₂)
• Methane (CH₄)
• Nitrous oxide (N₂O)
• Hydrofluorocarbons (HFCs)
• Perfluorocarbons (PFCs)
• Sulphur hexafluoride (SF₆)
• Nitrogen trifluoride (NF₃)

As well as Scope 1 and Scope 2 reporting, you need to:

• Provide an intensity ratio. This compares your greenhouse gas emissions to an appropriate business metric for comparative purposes. Commonly used metrics include:
  • Tonnes of CO₂ per £ million in revenue
  • Tonnes of CO₂ per square metre of floor space
  • Tonnes of CO₂ per employee
  • Tonnes of CO₂ per product produced
• Provide the previous year’s figures for greenhouse gas emissions and energy use (if applicable)
• Advise the steps you have taken to reduce carbon emissions

You must also advise on the reporting methodology you have used. There isn’t a specific recommended methodology, but it’s advised that you use an independent standard like the Greenhouse Gas Protocol.

Do You Need to Report on Scope 3 Emissions?

At this time, you don’t need to report on Scope 3 Emissions. These are emissions not covered by Scope 1 and Scope 2, which encompass your supply chain.

However, you should report on Scope 3 Emissions voluntarily, especially if you’re a quoted company. This can help you gain a better understanding of how your suppliers, vendors, employees, and customers emit greenhouse gases, and how you can work together to reduce them.

Plus, it can make your business more appealing to stakeholders, who may want to know what you’re doing to make your supply chain more sustainable.

The government held a consultation about Scope 3 Emissions reporting in late 2024, so there is the possibility that this reporting will become mandatory in the future.

When Are Reports Due?

SECR reports are due every year and cover a 12-month reporting period.

You must submit your report when your business’s financial year ends (for most businesses, this is the 31 March).

The government recommends aligning your SECR reporting with your financial year for ease of reporting, but this isn’t mandatory.

Expert Tips for Ensuring High-Quality SECR Reporting

SECR can feel like a frustrating process, especially if you’ve never had to report on your energy use as a business before. However, it doesn’t have to be.

Here’s how to make sure you submit your SECR report on time while including all the information the government needs.

1. Determine all Your Data Sources

You will need to pull your SECR reporting from a wide range of sources. Before you start putting your report together, understand where you will need to get all the relevant data from to ensure an accurate and comprehensive data set.

For example:

• Utility bills
• Meter readings (if you have circuit-level energy monitoring in place)
• Fuel purchase records
• Fleet management records
• Facility management records

A good energy monitoring platform can help you consolidate your data and compile it in an easy-to-read format.

2. Good is Better Than Perfect

While it’s important to submit an accurate report and verify your data, it’s essential to be timely.

If you miss the deadline, you may be subject to a late filing fee, which can range from £150 to £7,500 depending on the size of your company and how late you submit your report.

Estimates are acceptable if you can’t get an exact figure as long as you explain this in your report.

There is also a ‘comply or explain clause’. This means you can exclude information if it’s not practical to collect or if it’s commercially sensitive (as your report is submitted to Companies House, it will be available for public viewing).

For example, say you acquire a new business just before the end of the financial year and are unable to obtain complete and accurate energy data for the new business. You can explain this in your SECR report and advise that you will have all the data in time for the next reporting period.

However ‘comply or explain’ isn’t a loophole for omitting data you don’t want to include. If the government believes you’re using it incorrectly, it may request additional information or reject your report.

3. Show Your Work

The more exposition you can provide alongside your report, the better – especially if you don’t think the figures you provide paint a comprehensive picture of your energy use.

It’s okay to annotate your report with additional information, for example, context about why you’ve chosen a specific intensity metric or why there are variations in your reporting.

4. Ask for Help

You don’t have to deal with your SECR reporting on your own.

It’s perfectly acceptable to use a third-party company to help you put together your report, especially if you don’t have the in-house resources or expertise to do it yourself.

A third party (like Tritility) will help you gather and interpret your data, calculate your Scope 1 and 2 emissions, and draft a final report.

This means you can focus on running your business with peace of mind that your report ticks all the right boxes.

If you need help with your SECR reporting or aren’t sure if you need to comply, let’s talk.