SECR Reporting Requirements: A Practical Guide for UK Businesses
Updated: 8 hours ago
If your business has been asked to provide energy consumption figures or greenhouse gas emissions data for its annual accounts, you may have come across Streamlined Energy and Carbon Reporting (SECR).
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For some UK organisations, reporting this information is a legal requirement. But knowing whether your business qualifies, what data to collect and how to calculate emissions isn't always straightforward, particularly if you're new to carbon reporting.
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This guide explains the SECR reporting requirements, including who must report, what information to include, the exemptions that may apply and the practical steps involved in preparing your disclosures.
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What Is Streamlined Energy and Carbon Reporting (SECR)?
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Streamlined Energy and Carbon Reporting is a UK framework requiring certain organisations to disclose their energy consumption, greenhouse gas emissions and energy efficiency actions as part of their annual reporting.
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Introduced for financial years beginning on or after 1 April 2019, SECR expanded existing corporate emissions reporting requirements and replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme.
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Its purpose is to make business energy use and emissions more transparent, while encouraging organisations to identify opportunities to improve energy efficiency.
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Unlike voluntary carbon footprint reporting, SECR is a legal requirement for organisations that fall within its scope. The information is generally included in a company's annual directors' report, while qualifying limited liability partnerships (LLPs) prepare an energy and carbon report.
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You can find the full requirements in the UK Government's Environmental Reporting Guidelines.
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Who Needs to Comply With SECR Reporting Requirements?
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SECR applies to three main categories of UK organisation:
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UK incorporated quoted companies: Companies meeting the relevant legal definition of quoted, regardless of their size.
Qualifying large unquoted companies: UK incorporated companies meeting the applicable SECR size criteria and reporting conditions.
Qualifying large LLPs: Limited liability partnerships meeting the relevant size criteria.
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For unquoted companies and LLPs, the SECR size test generally involves exceeding at least two of the following thresholds:
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SECR size criterion | Threshold |
Average number of employees | More than 250 |
Annual turnover | More than £36 million |
Balance sheet total | More than £18 million |
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These are the thresholds used in the SECR framework. Although the UK increased the general company-size thresholds for certain financial reporting purposes from April 2025, those changes did not automatically replace the SECR thresholds.
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There are also rules concerning financial years, parent companies, subsidiaries and group reporting. A business should therefore consider its wider circumstances rather than relying on these three figures alone.
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Do smaller businesses need to report?
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Most smaller businesses outside the relevant categories are not required to report under SECR. They may still choose to measure their emissions voluntarily, or have other reporting obligations.
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What Must Be Included in an SECR Report?
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Organisations within scope must disclose specified information about energy use, greenhouse gas emissions and energy efficiency. The exact requirements depend on whether the organisation is quoted, unquoted or an LLP.
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Reporting requirement | Quoted companies | Qualifying unquoted companies and LLPs |
Energy consumption | Relevant global energy use | Specified UK energy use |
Greenhouse gas emissions | Relevant global emissions | Emissions associated with specified UK activities |
Intensity ratio | At least one | At least one |
Energy efficiency measures | Applicable disclosure | Applicable disclosure |
Calculation methodology | Required | Required |
Previous-year comparison | Generally required, subject to applicable provisions | Generally required, subject to applicable provisions |
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This is a simplified overview. Organisations should check the detailed reporting boundaries, exemptions and other conditions that apply to them.
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1. Energy Consumption
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Energy consumption is reported in kilowatt-hours (kWh), a unit commonly used on electricity and gas bills.
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For qualifying unquoted companies and LLPs, the requirements generally cover specified UK electricity, gas and transport energy use. Quoted companies have broader global reporting obligations.
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The information may be spread across several departments. Electricity bills might sit with facilities, fuel records with operations, and other relevant information with finance or procurement.
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Our guide to five carbon data sources most businesses already have explains where to start looking.
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2. Greenhouse Gas Emissions
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Organisations must calculate and report the greenhouse gas emissions associated with their applicable reporting activities.
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These figures are expressed in tonnes of carbon dioxide equivalent (tCO₂e), a unit that allows different greenhouse gases to be expressed on a comparable basis.
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Energy use and emissions are related, but they aren't the same thing. Two activities can consume similar amounts of energy while producing different estimated emissions, depending on the energy source and calculation factors.
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3. Energy Efficiency Actions
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SECR also requires information about the principal energy efficiency measures taken during the reporting period.
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These could include improvements to heating controls, lighting, equipment or operational processes.
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The important distinction is between action already taken and future plans. Businesses should report relevant measures undertaken during the financial year rather than presenting intended improvements as completed work.
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Where no qualifying measures have been taken, the applicable rules may require a statement confirming this.
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4. Calculation Methodology
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Businesses must explain the methodology used to calculate their reported greenhouse gas emissions.
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This helps readers understand which data sources, conversion factors and calculation approaches were used. Maintaining supporting records is useful both for preparing the disclosure and for understanding changes between reporting years.
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5. Energy Intensity Ratios and Comparisons
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An intensity ratio places emissions in the context of business activity. For example, an organisation might report tonnes of CO₂e per £ million of turnover or per unit of production.
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At least one suitable intensity ratio is required under the applicable SECR reporting provisions.
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Organisations generally also provide previous-year comparison figures, subject to the relevant exceptions. These comparisons can help explain changes, although a rise or fall in emissions should not automatically be interpreted as an improvement or deterioration in efficiency.
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How Do You Calculate Emissions for SECR Reporting?
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The calculation process usually begins with activity data, such as electricity consumption in kWh or fuel use in litres.
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That information is combined with an appropriate emission factor, which estimates the greenhouse gases associated with a unit of activity.
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Activity data × emission factor = estimated greenhouse gas emissions
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A Simple Electricity Example
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Imagine a business has recorded 10,000 kWh of electricity consumption during a reporting period.
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To estimate the associated emissions, it would select an appropriate electricity emission factor for the relevant year and methodology, then multiply that factor by 10,000.
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If the factor is expressed in kilograms of CO₂e per kWh, the result will be in kilograms of CO₂e. Dividing by 1,000 converts that result into tonnes.
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This example demonstrates the calculation method rather than providing an actual SECR result. A complete disclosure must use the correct factors, reporting boundaries and relevant data for the organisation.
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The UK Government publishes annual greenhouse gas conversion factors, which can support emissions calculations.
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For a more detailed explanation, see our guide to what emission factors are and how they work.
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Does SECR Require Scope 1, 2 and 3 Emissions?
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Scope 1, 2 and 3 are categories used in greenhouse gas accounting to describe different sources of emissions.
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Category | What it covers | Example |
Scope 1 | Direct emissions from sources owned or controlled by a business | Fuel burned in a company-operated boiler |
Scope 2 | Indirect emissions from purchased electricity, heat, steam or cooling | Electricity used in an office |
Scope 3 | Other indirect emissions across a business's value chain | Purchased goods or certain business travel |
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SECR does not require every organisation to report a complete Scope 1, 2 and 3 carbon footprint. However, it is also incorrect to say that all Scope 3 emissions are optional.
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Quoted companies must report relevant global Scope 1 and 2 emissions, with wider Scope 3 reporting encouraged where appropriate.
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For qualifying large unquoted companies and LLPs, certain business-travel activities can be mandatory. Government guidance specifically identifies relevant travel in rental cars and employees' own vehicles where the organisation is responsible for purchasing the fuel, even though those emissions may fall within Scope 3 under greenhouse gas accounting frameworks.
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Other Scope 3 categories are generally voluntary under SECR, although reporting material emissions more widely is encouraged.
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This distinction matters because a complete organisational carbon footprint and a statutory SECR disclosure serve different purposes.
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For more information, read our guide to Scope 1, 2 and 3 carbon emissions and our introduction to GHG Protocol standards.
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What Are the SECR Exemptions?
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Some organisations may qualify for exemptions or reduced disclosure requirements.
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Low-Energy Exemption
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An important provision applies where relevant energy consumption is 40,000 kWh or less during the reporting period.
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The correct reporting boundary matters. For quoted companies, the low-energy test concerns relevant global energy use, while qualifying unquoted companies and LLPs generally assess the specified UK energy activities.
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An organisation using the low-energy exemption must still include the appropriate statement in its report. It should not simply omit the disclosures without explanation.
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Other Reporting Provisions
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There are also specific rules relating to group reporting, information that is not practical to obtain and disclosures that meet the legal test for being seriously prejudicial.
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These are limited provisions, not general exemptions from reporting. Organisations should confirm the applicable conditions before relying on them.
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The Government's official SECR guidance explains these circumstances in more detail.
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When Is the SECR Reporting Deadline?
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There is no single SECR reporting deadline that applies to every UK business.
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SECR disclosures form part of the organisation's annual reporting arrangements, so the relevant deadline depends on its financial year, legal structure and applicable filing obligations.
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For qualifying companies, the information is generally included in the directors' report accompanying the annual accounts. Qualifying LLPs prepare the relevant energy and carbon report under their own reporting arrangements.
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These reports form part of the statutory reporting process associated with Companies House.
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Businesses can make preparation easier by collecting energy and activity data throughout the year rather than waiting until the accounts are due.
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Our guide to annual carbon emission reporting explores the wider process of organising carbon information.
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SECR Reporting Checklist for UK Businesses
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Once you've confirmed that your organisation is within scope, this checklist can help you organise the work.
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Confirm eligibility. Check your organisation type, size criteria, financial year and group structure.
Review exemptions. Establish whether any relevant low-energy or other provisions apply.
Define the reporting boundary. Identify which business entities and energy activities must be included.
Collect activity data. Gather the required electricity, gas, transport and other relevant records.
Calculate emissions. Apply appropriate emission factors and a documented methodology.
Choose an intensity ratio. Select a measure relevant to your business activities.
Record energy efficiency actions. Identify qualifying measures undertaken during the reporting period.
Prepare comparisons. Include previous-year information where required.
Review calculations and assumptions. Check units, data sources, estimates and exclusions.
Prepare the statutory disclosures. Include the required information in the appropriate annual report and follow the applicable approval and filing process.
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This checklist is a preparation tool, not a legally complete SECR reporting template.
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Do You Need an SECR Reporting Template?
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An SECR reporting template can help organise information, particularly when a business operates across several sites or collects data from different teams.
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A useful working template might include sections for energy consumption, greenhouse gas emissions, intensity ratios, calculation methods, energy efficiency actions and previous-year comparisons.
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It's also worth keeping supporting records showing where the figures came from, which conversion factors were applied and where estimates were necessary.
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However, a generic template cannot determine an organisation's legal obligations. The correct disclosures depend on its reporting classification and circumstances.
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For practical advice about improving data collection, read our guide to improving carbon data over time.
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Common SECR Reporting Mistakes to Avoid
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Missing energy records. Relevant information may be held across facilities, operations and finance, particularly when a business has several locations or vehicles.
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Using unsuitable emission factors. Factors need to match the activity, units, reporting period and calculation methodology.
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Treating estimates as exact measurements. Where estimates are needed, assumptions should be reasonable, documented and clearly understood.
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Assuming all Scope 3 emissions are optional. Certain business-travel activities can fall within mandatory SECR disclosures for qualifying unquoted companies and LLPs.
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Confusing SECR with a complete carbon footprint. Mandatory disclosures cover specified activities, while a wider organisational inventory may include additional emissions sources.
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Leaving preparation too late. Establishing clear responsibilities and collecting information throughout the year can make it easier to identify gaps before the annual report is due.
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Our article on whether businesses can estimate carbon emissions explains how estimates can be used responsibly.
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How Can Businesses Prepare for SECR Reporting?
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For many businesses, one of the first practical challenges is establishing where the relevant information is held.
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Electricity and gas bills may be managed by facilities, transport information by operations and other records by finance. Bringing these sources together is easier when responsibilities, reporting periods and units are agreed from the outset.
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It can also help to maintain a consistent record of the emission factors and assumptions used. This provides a clearer explanation of how the figures were calculated and supports comparisons between reporting years.
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These practices are useful beyond SECR. Businesses measuring their wider carbon footprint may also benefit from understanding which information is available, which figures are estimated and where data quality could be improved.
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Understanding Your Business Carbon Emissions With Scope
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Understanding your organisation's carbon emissions can be a useful starting point for wider carbon measurement and reporting.
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Scope Carbon Tracking helps businesses measure and track carbon emissions, supporting a clearer picture of the emissions associated with their activities.
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You can explore Scope's Business Carbon Tracking platform to learn more.
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Scope's SECR-specific functionality has not been established for this article. Businesses responsible for mandatory SECR reporting should separately confirm that their information, calculations and statutory disclosures meet the applicable requirements.
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Frequently Asked Questions About SECR Reporting
Is SECR mandatory for every UK business?
No, SECR applies to specified categories of quoted companies, qualifying large unquoted companies and LLPs, subject to the applicable conditions and exemptions.
Is the SECR reporting threshold £36 million or £54 million?
The SECR framework retains its own size criteria, including the £36 million turnover and £18 million balance sheet thresholds, alongside the employee criterion. The newer £54 million turnover threshold relates to changes in general company-size classifications and should not automatically be substituted into the SECR test.
Are Scope 3 emissions mandatory under SECR?
A complete Scope 3 inventory is not mandatory under SECR. However, qualifying large unquoted companies and LLPs must include certain business-travel energy use and related emissions where the relevant conditions apply.
Is SECR the same as ESG reporting?
No, SECR is a specific UK legal reporting framework focused on energy consumption, greenhouse gas emissions and energy efficiency information.
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ESG reporting is broader and can cover environmental, social and governance information under various laws, standards and voluntary frameworks.
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Our guide to ESG reporting requirements for the UK and Europe explains these wider obligations.
How is SECR different from ESOS?
SECR focuses on disclosing specified energy and emissions information through annual corporate reporting.
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The Energy Savings Opportunity Scheme (ESOS) is a separate framework involving energy assessments and related obligations for qualifying organisations. A business may need to consider both schemes, depending on its circumstances.
Can businesses use estimates for SECR reporting?
Estimates may be necessary where complete information is unavailable. The approach should be reasonable, appropriately documented and consistent with the relevant guidance. Estimates should not be presented as exact measurements.
Does carbon tracking software automatically make a business SECR-compliant?
No, carbon tracking software may support emissions measurement, but SECR compliance depends on the organisation's legal obligations, reporting boundary, methodology, disclosures and wider reporting process.
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Making Sense of SECR Reporting Requirements
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Understanding SECR begins with establishing whether your organisation is required to report and which activities fall within the applicable rules.
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From there, collecting relevant energy data, using suitable emission factors and keeping a clear record of your methodology can help you prepare accurate, understandable disclosures.
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For businesses looking to understand their emissions beyond mandatory reporting, Scope's Business Carbon Tracking platform provides a starting point for exploring carbon measurement and tracking.
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For specific SECR obligations, always refer to current Government guidance and obtain appropriate professional advice where needed.
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