Companies are reminded that the deadline is fast approaching for the latest phase of Streamlined Energy and Carbon Reporting (SECR).
With a deadline of March 31st, it’s not too late for organisations to prepare their reports – and Syntegra staff are on hand to help you gather relevant documentation ahead of the cut-off date.
Three groups of companies are covered by the UK Government legislation which aims to bring the benefits of carbon and energy reporting to more businesses.
The reporting framework was introduced to encourage the implementation of energy efficiency measures, with both economic and environmental benefits. Organisations subject to the rules should be supported in cutting costs and improving productivity at the same time as reducing carbon emissions as part of a huge sustainability drive.
Companies that fall within the following definitions must comply unless they meet certain exemption criteria:
- Quoted companies of any size that are already obliged to report under mandatory greenhouse gas reporting regulations.
- Unquoted companies incorporated in the UK that meet the definition of ‘large’ under the Companies Act 2006 will have new reporting obligations. This applies to registered and unregistered companies. Note that the criteria for ‘large’ differs from the ESOS Regulations.
- ‘Large’ Limited Liability Partnerships (LLPs) will be required to prepare and file a ‘Energy and Carbon Report’.
Unquoted companies or LLPs are defined as ‘large’ if they meet at least two of the following three criteria in a reporting year:
- a turnover of at least £36 million
- a balance sheet in excess of £18 million
- 250 employees or more
Public bodies do not fall under the new regulations, but they are subject to other legislation which requires carbon reporting.
Private sector organisations not covered by the SECR regulations are encouraged to voluntarily report in a similar manner.
The 2018 Regulations require large unquoted companies that have consumed (in the UK), more than 40,000 kilowatt-hours (kWh) of energy in the reporting period to include energy and carbon information within their directors’ (trustees’) report, for any period beginning on or after 1 April 2019.
They are due to be reported at the end of every financial year.
Figures for all the energy from gas, electricity and transport fuel usage in the UK that an organisation is responsible for should be collated and submitted, along with a description of measures taken to improve energy efficiency.
Where a large company does not consume more than 40,000 kWh of energy in a reporting period, it qualifies as a low energy user and is exempt from reporting under these regulations.
Disclosures should be made available by March 31st.
The final report must state the annual gross quantity of emissions in tonnes of carbon dioxide equivalent resulting from the total UK energy use from electricity, gas and transport.
- For help preparing SECR submissions or identifying energy efficiency programmes for an organisation affected by the regulations, please get in touch today for an initial discussion with our team of sustainability experts.