Streamlined Energy and Carbon Reporting Regulations

The Streamlined Energy and Carbon Reporting (SECR) Regulations were introduced in the United Kingdom to promote transparency and encourage energy efficiency and carbon reduction efforts among large businesses and organizations.

Purpose:

1. Transparency: The regulations aim to enhance transparency by requiring qualifying organizations to disclose information on their energy consumption, greenhouse gas emissions, and energy efficiency measures. This allows stakeholders, investors, and the public to better understand an organization's environmental impact and efforts to reduce carbon emissions.

Requirements:

1. Energy and Carbon Reporting: Qualifying organizations are required to report on their annual energy consumption, greenhouse gas emissions, and energy efficiency measures in their annual reports. This includes disclosing data on electricity, gas, and transport fuel consumption, as well as Scope 1 and Scope 2 greenhouse gas emissions.
2. Energy Efficiency Measures: Organizations must also report on any energy efficiency measures undertaken during the reporting period. This includes initiatives such as energy efficiency audits, investment in energy-saving technologies, and implementation of energy management systems.
3. Directors' Responsibility: The regulations place responsibility on directors to ensure compliance with reporting requirements and to approve the inclusion of energy and carbon information in the organization's annual reports.

Applicability:

1. Large Organizations: The SECR Regulations apply to large UK-incorporated companies, LLPs, and qualifying unregistered companies that meet two or more of the following criteria: turnover exceeding £36 million, balance sheet total exceeding £18 million, and employing more than 250 employees on average during the financial year.
2. Public Sector Organizations: In addition to large private sector organizations, the SECR Regulations also apply to most UK public sector bodies, including government departments, local authorities, and NHS Trusts.

Overall, the Streamlined Energy and Carbon Reporting Regulations aim to drive greater awareness of energy consumption and carbon emissions, incentivize energy efficiency improvements, and support the UK's transition to a low-carbon economy. Compliance with these regulations is essential for qualifying organizations to fulfill their reporting obligations and demonstrate their commitment to sustainability and environmental stewardship.

The evidence requirements under the Streamlined Energy and Carbon Reporting (SECR) Regulations aim to ensure accurate and transparent reporting of energy consumption, greenhouse gas emissions, and energy efficiency measures by qualifying organizations. Key aspects of the evidence requirements include:

1. Energy Consumption Data: Qualifying organizations must collect and maintain accurate records of their annual energy consumption, including electricity, gas, and transport fuel usage. This data serves as evidence of the organization's energy consumption levels and forms the basis for reporting under the SECR Regulations.
2. Greenhouse Gas Emissions Data: Organizations are required to measure and report their Scope 1 (direct) and Scope 2 (indirect) greenhouse gas emissions. This includes emissions from combustion of fuels, operation of facilities, and purchased electricity. Accurate emissions data, supported by appropriate methodologies and calculations, is essential to comply with reporting requirements.
3. Energy Efficiency Measures: Organizations must document and report on any energy efficiency measures implemented during the reporting period. This includes investments in energy-saving technologies, adoption of energy management systems, and other initiatives aimed at reducing energy consumption and greenhouse gas emissions.
4. Verification and Assurance: While not explicitly required by the SECR Regulations, some organizations may choose to undergo verification or assurance processes to provide additional credibility to their reported data. Independent verification or assurance statements can enhance confidence in the accuracy and reliability of reported energy and carbon information.
5. Internal Controls and Documentation: Organizations are expected to establish robust internal controls and documentation procedures to ensure the accuracy, completeness, and reliability of reported energy and carbon data. This may involve implementing data collection systems, conducting regular audits, and maintaining appropriate documentation to support reported information.

Overall, the evidence requirements of the SECR Regulations aim to facilitate transparent and accountable reporting of energy consumption, greenhouse gas emissions, and energy efficiency measures by qualifying organizations. Compliance with these requirements is essential for demonstrating adherence to regulatory standards and fulfilling reporting obligations under the SECR framework.