Streamlined Energy and Carbon Reporting ramps up
1st April 2020 signalled the start of a new financial year for many UK companies; and some will be preparing to include energy and carbon data in their financial reports for the first time.
Streamlined Energy and Carbon Reporting, or SECR, was introduced by the government last year and applies to reports for financial years starting on or after 1 April 2019.
Who does SECR apply to?
Quoted companies have been reporting on their annual emissions since 2013, but SECR has brought in additional disclosure requirements and introduced new reporting rules for large unquoted companies and large LLPs too.
We’ve put together a handy guide to the new SECR requirements for businesses in scope.
When do I need to report?
SECR applies to reports for financial years starting on or after 1 April 2019. When you need report depends what financial year your organisation uses. For example, if your financial year just ended (on 31 March 2020), you will be expected to file a report which covers that period.
Companies with a later financial year end may not have to report until early next year (2021). But many will see the benefits of laying the groundwork now. We are currently working with clients to ensure they have good, accurate and robust data collection processes in place, ahead of the deadline.
Building on ESOS reporting
Many companies affected by SECR will have already reported on their energy use under ESOS – the Energy Savings Opportunity Scheme. SECR builds on this by requiring organisations to disclose publicly their energy use and emissions, and provide a ‘narrative’ on what they have done to reduce them. We are helping a number of ESOS participants with this next step. With a long history of helping clients achieve carbon-related compliance, we have considerable experience in this area
Extra time to comply?
The government recently announced that businesses will be able to apply for a 3-month extension for filing their accounts so that they can prioritise managing the impact of Coronavirus – this includes your SECR report.
While companies will still have to apply for the 3-month extension to be granted, those citing issues around COVID-19 will be automatically and immediately granted an extension.
Concept provides support and advice on a broad range of energy reporting and compliance issues; if you would like advice on SECR please get in touch with one of our consultants by calling 01256 303620 or emailing email@example.com.