Since its initial announcement in 2016, the Department for Business, Energy, and Industrial Strategy (BEIS) has been working on a new framework to simplify the complicated environmental reporting landscape that exists currently. What they came up with is known as the “Streamlined Energy & Carbon Reporting Framework” (SECR).
Following an extensive consultation process, which EVORA took part in, the Government recently confirmed the details of how the framework will look. Under the new legislation:
- All quoted companies will be required to report their UK energy use, associated Scope 1 & 2 emissions (in simple terms, covering electricity and gas use), an intensity metric and, where applicable, global energy use in their Annual Reports.
- All “large” unquoted companies will be required to report their UK energy use, associated scope 1 & 2 emissions, and an intensity metric in their Annual Reports.
- All “large” LLPs will be required to report similar to Unquoted Companies in their Annual Reports.
- Unregistered companies required to prepare a Directors’ Report will also need to include similar information to unquoted companies.
The framework will be applied through Companies House, which means there are no requirements for non-UK registered companies. Meanwhile, the Companies House definition of “large” will be applied (i.e. when two or more of the following are true: 250 employees or more, annual turnover of £36mil or more, annual balance sheet of £18mil or more).
The legislation takes effect on April 1st 2019 and applies to any financial reporting years starting on or after this date. This means the first SECR reports will need to be filed in 2020.
How we can help:
Here at EVORA, we have significant experience in the collation, management, and analysis of ESG data.
Through use of our bespoke ESG data management software, SIERA, and the support of our team of expert consultants we can fully manage the delivery of your annual SECR Report from start to finish, and help you use this information as the basis for a broader ESG strategy that will maximise value from the SECR process and deliver transformative change for your Company.
If you have further questions or are seeking assistance with your environmental reporting, get in touch and our team of experts will be happy to help.