March 19, 2024

Reporting

Leveraging Carbon Management Software to Navigate Streamlined Energy and Carbon Reporting (SECR) Requirements

Leveraging Carbon Management Software to Navigate Streamlined Energy and Carbon Reporting (SECR) Requirements
Contents

The UK’s Streamlined Energy and Carbon Reporting (SECR) has been in effect since 1 April 2019. This includes an estimate of over 12,000 companies in the UK that report, following the end of the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme. The SECR builds on the existing requirements but the scope of who reports has expanded. 

Since then, the EU’s Corporate Sustainability Reporting Disclosure (CSRD) was approved beginning in the fiscal year of 1 January 2024 and the US’s SEC Climate Disclosure is bringing up the rear in 2024.

Following our reporting series, we include the SECR to give a brief overview of what it is and who it applies to. Since the SECR is not a new implementation, the UK has been pioneering the sustainable economic transition for a while. However, it wasn’t as easy in 2019 as it is today to streamline carbon reporting and other ESG information. But now with the AI tools and automation we have in 2024, we’ve come a long way in emissions management software. We’ll show you how Net0 can help.

Who does the SECR apply to? 

  • Quoted companies in the UK (those that are publicly listed on a stock exchange)
  • Large unquoted companies
  • Large limited liability partnerships (LLPs)

"Large companies” responsible are determined by meeting two or more of the following criteria:

  • a turnover of £36 million or more
  • a balance sheet of £18 million or more
  • 250 employees or more

Said companies can refrain from SECR if they demonstrate that their energy consumption was below 40 MWh during the reporting period.

What are the SECR requirements?

The UK government has published SECR guidance for those who are responsible for submitting their report. To summarize SECR requirements, companies must publish the following as a minimum:

  • The entity must report its total annual energy consumption in the UK (measured in kWh), covering at least gas, purchased electricity, and transportation fuels, along with the associated greenhouse gas emissions (measured in tonnes of carbon dioxide equivalent, CO2e).
  • The trust must select an emissions intensity ratio. This ratio, which compares emissions to a relevant business or financial metric, helps in tracking performance over time or in comparison with other entities.
  • The methodologies employed to derive the necessary data must be detailed in the report.
  • A description of any actions taken to enhance energy efficiency during the reporting period should be included. If no actions were taken, this should be explicitly stated.
  • For comparative analysis, the report must also include the figures from the previous year.

Like other regulations of its kind, SECR holds to the “comply or explain” requirement. If some information isn’t included in the entity’s SECR, then there must be an explanation as to why not.

What about carbon reporting within SECR?

The SECR requirements state at minimum to use a widely-known standard such as the Greenhouse Gas Protocol (GHGP) for scope 1, 2, and 3 emissions.

  • Scope 1 - report at least emissions from the combustion of gas and fuel for transport purposes
  • Scope 2 - the minimum requirement is emissions from purchased electricity
  • Scope 3 - at least the emissions from business travel in either rental or employee-owned vehicles when the organization is responsible for purchasing fuel
scope 1 2 and 3 emissions flow chart

What actions you can take for proper carbon reporting

  • Achieve accurate and complete data collection for input in Net0 emissions management platform
  • Collaborate with other players in the value chain to obtain data for scope 3 metrics
  • Choose a carbon accounting methodology for effective carbon accounting

Benefits of accurate carbon reporting

  • Avoiding penalties for inaccurate reporting
  • Providing investors with necessary information in real-time that leads to decision-making in your favor
  • Enhanced eco-friendly reputation amongst peers in a climate-first economy

How Net0 can help with carbon reporting for the SECR

Net0 transcends traditional carbon calculation methods, offering an AI-enhanced carbon management platform leveraged by businesses and governments to fully enact their carbon mitigation strategies. With a growing consumer demand for environmentally friendly products and services, alongside investor calls for concrete, long-term climate progress data, carbon reporting has become an essential, non-negotiable aspect of operating within a climate-conscious economy.

Leveraging automation, Net0 captures and converts data into measurable carbon emissions across all 3 scopes, facilitating precise tracking. Its rapid analysis, incorporating over 50,000 emissions factors, enables organizations to formulate and implement targeted strategies to reduce carbon emissions. This results in verifiable, audited carbon reporting that meets the standards expected by governments and investors alike. Net0's reporting complies with major regulatory frameworks including the GHG Protocol, the SECR, the SEC Climate Disclosure, the CSRD, and more, ensuring credibility and reliability in carbon management efforts.

Schedule a demo with Net0 to discover how we can simplify your emissions data management, resulting in impeccable carbon reports that fully comply with all SECR guidelines.

Written by:

Kristin Irish

As a content writer for Net0, Kristin harnesses her expertise and enthusiasm for carbon emissions reduction, merging it with her other passion: the B2B SaaS industry. Her global outlook and dedication enrich the sustainability sector with insightful perspectives.
Company LinkedIn

Request a demo of Net0 platform

Talk to us to learn more about making your business carbon neutral.
Request a demo

Reimagine Sustainability
with AI

Capitalize on the economic opportunities of sustainability with Net0's emissions management software.

Schedule a demo
Net0 Interface