SECR: Streamlined Energy and Carbon Reporting Guide for UK Companies

Last updated: 24 June 2026 | Author: VerdaScope Editorial Team

SECR guidance helps UK organisations comply with Streamlined Energy and Carbon Reporting (SECR)—the UK’s mandatory regime for energy reporting UK and carbon reporting UK companies must include in annual reports. Introduced in April 2019, SECR requirements apply to quoted companies and qualifying large unquoted companies and LLPs. This guide explains who is in scope, what to disclose, and how to prepare your SECR template workflow.

Regulatory status note (June 2026): SECR remains in force under the Companies Act 2006 and LLP regulations. SECR size thresholds are assessed separately from April 2025 Companies Act size limit changes.

Status Summary (June 2026)

Item Position
In force since 1 April 2019
Legal basis Companies Act 2006; The Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018
Guidance UK Government Environmental Reporting Guidelines (March 2019, current)
Reporting location Directors’ Report (companies) or Energy and Carbon Report (LLPs)
Size thresholds SECR uses its own large company assessment—not affected by April 2025 CA 2006 threshold increases

Direct Answer

SECR (Streamlined Energy and Carbon Reporting) requires qualifying UK companies and LLPs to disclose annual UK energy use, associated greenhouse gas emissions, at least one intensity ratio, and energy efficiency actions in their annual report. It applies to UK quoted companies and large unquoted companies and LLPs meeting Companies Act size thresholds. SECR is mandatory streamlined energy carbon reporting—not voluntary.

Key Takeaways

  • SECR is a UK mandatory energy and carbon reporting requirement for quoted and large unquoted companies and large LLPs.
  • Disclosures appear in the Directors’ Report (or LLP Energy and Carbon Report) alongside annual accounts.
  • Companies must report UK energy use, GHG emissions, an intensity ratio, and energy efficiency measures.
  • Large company test: meet two of three thresholds—turnover £36m+, balance sheet £18m+, 250+ employees (SECR assessment unchanged by 2025 size reforms).
  • SECR data feeds broader ESG and climate disclosure (TCFD metrics, UK SRS S2).
  • Government encourages voluntary adoption by smaller companies.

What Is SECR?

Streamlined energy and carbon reporting was introduced through the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, effective from 1 April 2019. It extended earlier mandatory GHG reporting for quoted companies to include energy use and expanded scope to large unquoted companies.

SECR aims to:

  • Increase transparency of corporate energy use and carbon emissions
  • Drive energy efficiency through public disclosure
  • Provide consistent data for investors and policymakers

Official guidance: UK Government Environmental reporting guidelines including SECR (March 2019).

Who Must Comply with SECR?

In scope

Entity type SECR obligation
UK quoted companies Mandatory (including global energy use for quoted companies)
Large unquoted UK companies Mandatory if required to prepare a Directors’ Report under Companies Act 2006
Large UK LLPs Mandatory Energy and Carbon Report

Large company definition (SECR)

A company is large if it meets at least two of three criteria (consolidated where applicable):

Criterion Threshold
Annual turnover £36 million or more
Balance sheet total £18 million or more
Number of employees 250 or more

Note: Companies Act size thresholds increased for accounting periods from 6 April 2025, but SECR assessments are not affected by those changes according to DBT/RSM guidance—SECR continues to use the established thresholds above.

Out of scope (typically)

  • Small and medium companies below large thresholds
  • Entities not required to prepare a Directors’ Report
  • Some subsidiaries where parent group reporting applies (see group reporting rules in guidance)

Low energy users

Quoted companies and large unquoted companies that consume 40 MWh or less in the reporting period may be exempt from detailed disclosure but must state why they are exempt.

What Must Be Disclosed?

Required SECR disclosures

  1. Annual UK energy use — in kWh (electricity, gas, transport fuel as applicable)
  2. GHG emissions — at minimum Scope 1 and Scope 2 (location-based); Scope 3 not required by SECR
  3. Intensity ratio — at least one metric expressing emissions or energy per unit of activity (e.g. tCO₂e per £m turnover, kWh per unit produced)
  4. Energy efficiency actions — principal measures taken in the financial year to improve efficiency
  5. Methodology — approach to calculations (government conversion factors commonly used)

Quoted companies: additional requirements

Quoted companies must also report global energy use (not only UK) and have reported global GHG emissions since October 2013 under earlier mandatory GHG reporting rules.

Where disclosures appear

  • Companies: Directors’ Report (part of annual report filed at Companies House)
  • LLPs: Energy and Carbon Report

SECR Reporting Workflow

Step 1: Confirm in-scope status

  • Apply large company test at balance sheet date
  • Confirm Directors’ Report obligation
  • Check low-energy exemption (≤40 MWh)

Step 2: Define organisational boundary

  • Consistent with financial consolidation approach unless guidance specifies otherwise
  • Document inclusions/exclusions (subsidiaries, joint ventures)

Step 3: Collect energy data

Source Energy type
Utility invoices Electricity, gas
Fuel cards / fleet records Diesel, petrol
Landlord data Serviced offices (where available)
Estimates Where direct metering unavailable—document assumptions

Step 4: Calculate emissions

  • Apply UK Government GHG Conversion Factors for Company Reporting (updated annually by DESNZ)
  • Separate Scope 1 (direct combustion, owned vehicles) and Scope 2 (purchased electricity)
  • State location-based Scope 2; market-based optional

Step 5: Calculate intensity ratio

  • Choose metric relevant to business (turnover, output units, floor area)
  • Maintain consistency year-on-year or explain changes

Step 6: Document efficiency actions

  • Building upgrades, LED lighting, fleet changes, behavioural programmes
  • Be specific—avoid generic statements

Step 7: Review and include in annual report

  • Finance and company secretarial review
  • Align narrative with ESG reporting if broader sustainability section published

SECR Template Structure

Use this structure for internal data collection and Directors’ Report drafting:

SECR DISCLOSURE TEMPLATE

Reporting period: [Financial year]
Organisational boundary: [Description]

1. ENERGY CONSUMPTION (UK)
   - Electricity (kWh): 
   - Gas (kWh): 
   - Transport fuel (kWh): 
   - Total UK energy (kWh): 

2. GREENHOUSE GAS EMISSIONS
   - Scope 1 (tCO₂e): 
   - Scope 2 location-based (tCO₂e): 
   - Total (tCO₂e): 

3. INTENSITY RATIO
   - Metric: [e.g. tCO₂e per £m turnover]
   - Value: 

4. ENERGY EFFICIENCY ACTIONS
   - [Action 1]
   - [Action 2]

5. METHODOLOGY
   - Conversion factors: [Year/source]
   - Estimation approaches: [If any]

Group Reporting and Subsidiary Exemptions

SECR includes provisions for group reporting where a parent prepares consolidated group disclosures. Subsidiary companies may be exempt from separate SECR disclosure when covered by parent group reporting—subject to specific conditions in the regulations and guidance.

Actions for groups

  1. Confirm which entities require individual Directors’ Reports
  2. Determine whether parent-level group SECR disclosure covers subsidiaries
  3. Document exemption basis in subsidiary accounts where applicable
  4. Ensure consolidated energy and emissions data captures all UK group entities

Consult your auditor on group structures and exemption eligibility.

SECR Reporting Timeline

Milestone Timing
Financial year end Balance sheet date for size test
Data collection Throughout year; finalise at year-end
Emission factor update Apply DESNZ factors for reporting year
Directors’ Report drafting With annual report preparation
Board approval Before accounts finalisation
Filing at Companies House With annual accounts deadline

Build SECR data collection into monthly or quarterly finance processes—not a last-minute year-end exercise.

SECR and Other Frameworks

Framework Relationship
TCFD SECR emissions data supports TCFD metrics pillar for premium listed companies
UK SRS S2 SECR provides baseline emissions; S2 requires broader climate governance and Scope 3
CDP CDP climate questionnaire requests similar energy and emissions data
ESG reporting SECR is often the first mandatory environmental disclosure for large UK companies

See TCFD reporting guide and UK Sustainability Reporting Standards.

Examples: Compliant vs Risky Approaches

Compliant

  • All UK energy sources captured with invoice-level data
  • Government conversion factors cited with reporting year
  • Intensity ratio consistent with prior year
  • Specific efficiency projects named with expected savings
  • Low-energy exemption applied only when ≤40 MWh evidenced

Risky

  • Emissions stated without kWh energy breakdown
  • Missing intensity ratio
  • Generic “we recycle and switch off lights” efficiency narrative
  • Scope 2 omitted for purchased electricity
  • Boundary changes without restatement note

Common Mistakes

Mistake Consequence
Missing transport fuel Under-reported Scope 1
Wrong conversion factor year Inaccurate emissions
No intensity ratio Non-compliant report
Ignoring group structures Wrong entities in scope
Confusing SECR with full carbon footprint Scope 3 omitted when stakeholders expect it (voluntary)

Frequently Asked Questions

What is SECR?

SECR is Streamlined Energy and Carbon Reporting—UK mandatory disclosure of energy use, greenhouse gas emissions, intensity ratios, and efficiency actions in annual reports.

Who must report under SECR?

UK quoted companies, large unquoted UK companies, and large UK LLPs meeting size thresholds (two of three: £36m turnover, £18m balance sheet, 250 employees).

Is SECR the same as carbon footprint reporting?

SECR requires Scope 1 and 2 emissions and UK energy use. A full carbon footprint often includes Scope 3, which SECR does not mandate.

When did SECR start?

1 April 2019 for reporting in financial years beginning on or after that date.

What is the SECR low energy exemption?

Companies using 40 MWh or less in the period may provide reduced disclosure but must state they are a low energy user.

Does SECR apply to academy trusts and public sector?

Separate SECR guidance exists for academy trusts. Public sector bodies have different reporting requirements.

Can we use an SECR template from software providers?

Yes—provided underlying data and methodology meet government guidance and your auditors’ expectations.

How does SECR relate to UK SRS?

SECR provides foundational emissions data. UK SRS S2 requires broader climate disclosures including governance, strategy, and potentially Scope 3.

Conclusion

SECR guidance supports compliance with one of the UK’s longest-standing mandatory climate-related reporting requirements. For qualifying large companies and quoted issuers, streamlined energy carbon reporting is an annual obligation—not a voluntary initiative.

Use SECR as the data foundation for broader ESG reporting, TCFD metrics, and future UK SRS alignment.

Next steps:

  1. Scope 1, 2 and 3 emissions — understand emissions categories beyond SECR
  2. ESG reporting — mandatory vs voluntary landscape
  3. Sustainability reporting guide — framework comparison

Sources and Update Log

Date Update
24 June 2026 Article published; SECR thresholds unchanged despite CA 2006 reforms

Authoritative sources:

This article is for general information only. Confirm SECR obligations with your auditor or company secretary.