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September 13, 2022

SECR and Consumption Data: What Businesses Need to Know

*Updated by GOV.UK on 28th September2022*

This blog summarises the information disclosed by the ESFA, which requires large companies to report their energy usage each year.

As the world continues to shift towards a more sustainable future, businesses are being held accountable for their carbon emissions. The Streamlined Energy and Carbon Reporting (SECR) framework was introduced in the UK to help businesses report on their carbon emissions, energy use, and energy efficiency measures. In this article, we'll explore the importance of SECR and how consumption data plays a vital role in the reporting process.

What is SECR?

SECR is a UK government initiative that requires businesses to report their carbon emissions, energy consumption, and energy efficiency measures. It was introduced in 2019 and applies to large UK companies and LLPs that meet certain criteria. The reporting framework aims to simplify and streamline carbon and energy reporting requirements and encourage businesses to improve their energy efficiency.

Who Needs to Report under SECR?

Under SECR, all UK-quoted companies, large unquoted companies, and largely limited liability partnerships(LLPs) must comply with the reporting requirements. A company is classified as "large" if it meets two or more of the following criteria:

“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.”

“The 2018 Regulations are designed to increase awareness of energy costs within organisations, provide them with data to inform the adoption of energy efficiency measures and help them to reduce their impact on climate change. They also seek to provide greater transparency for stakeholders.”

The Importance of Consumption Data in SECR Reporting

Consumption data plays a vital role in SECR reporting. It provides businesses with a clear understanding of their energy usage, which helps them identify areas where they can improve their energy efficiency. In addition to carbon emissions data, businesses must report their energy consumption data under SECR.

The consumption data required under SECR includes:

By analysing this data, businesses can identify areas where they are using excessive amounts of energy and develop strategies to reduce consumption. This not only helps to lower carbon emissions but can also lead to cost savings for the business.

How to Collect Consumption Data for SECR Reporting

Collecting consumption data for SECR reporting can be a complex process, especially for businesses with multiple locations and varied energy sources. However, there are several steps that businesses can take to make the process more manageable:

Step 1: Identify all energy sources.

To ensure that all consumption data is included in the SECR report, businesses must first identify all their energy sources. This includes identifying all electricity and gas meters, as well as any other energy sources used by the business, such as biomass or renewable energy.

Step 2: Collect consumption data.

Once all energy sources have been identified, businesses must collect the consumption data for each source. This can be done by obtaining meter readings or using smart meter data if available.

Step 3: Verify data accuracy.

It's important to verify the accuracy of the consumption data collected. This can be done by checking meter readings against bills or invoices and ensuring that any estimated readings are clearly marked in the SECR report.

Step 4: Calculate carbon emissions.

After collecting consumption data, businesses must use appropriate conversion factors to calculate their carbon emissions. The UK government provides conversion factors for various energy sources that can be used for this purpose.

Definition of emissions scopes and their minimum reporting requirements under GHG protocol

Scope 1 - direct GHG emissions.

Includes emissions from activities owned or controlled by the academy trust that release emissions into the atmosphere. Examples include emissions from combustion in owned or controlled boilers and vehicles.

Scope 2 – energy indirect emissions.

Includes emissions from own consumption of purchased electricity, heat, steam, and cooling. These are a consequence of the academy trust's activities but are from sources not owned/controlled.

Scope 3 – other indirect emissions.

Emissions that are because of the academy trust's actions, but the source is not owned or controlled, and which are not classed as scope 2emissions.
For example business travel in private cars.

Benefits of SECR Reporting

SECR reporting is an essential part of sustainability reporting for UK businesses. It requires the collection and reporting of carbon emissions and consumption data, which provides valuable insights into energy usage and opportunities for energy efficiency improvements. By complying with SECR requirements, businesses can reduce their carbon footprint and save on energy costs.

To read more on SECR and to learn how to calculate your figures click here to be taken to the GOV.UK website. You can also get in touch with our amazing team who can help you keep track of your consumption through live market data.

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