Following extensive consultation the UK Government has announced the new Streamlined Energy and Carbon Reporting framework (SECR), beginning April 2019. But how will it work and what does it mean for businesses?
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.
A formal consultation took place last year which EVORA took part in, and off the back of that the Government announced last week how the new framework will look. Under the new legislation:
- All quoted companies will be required to report their UK energy use, associated Scope 1 & 2 emissions, an intensity metric and, where applicable, global energy use.
- All “large” unquoted companies will be required to report their UK energy use, associated scope 1 & 2 emissions, and an intensity metric.
- All “large” LLPs will be required to report similar to Unquoted Companies.
- Unregistered companies required to prepare a Directors’ Report will also need to include similar information to unquoted companies.
The reporting of Scope 3 emissions will be voluntary for all involved. A statutory de minimis (minimum consumption for qualification) of 40,000 kWh has also been included.
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The framework will be applied through Companies House, which means there are no requirements for non-UK registered companies. The Companies House definition of “large” will also be applied (more than 250 employees or annual turnover of £36mil and annual balance sheet of £18mil), and the information will need to be included in the Annual Reports which are submitted to Companies House.