SECR Reporting Guide
Comprehensive Streamlined Energy and Carbon Reporting (SECR) guidance for UK businesses. Navigate SECR requirements and integrate with UK SRS reporting.
What is SECR?
Streamlined Energy and Carbon Reporting (SECR) is a UK mandatory reporting framework that requires large companies to report on their energy use and carbon emissions. SECR came into effect for reporting periods beginning on or after 1 April 2019, introduced by The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
SECR Scope and Thresholds
The SECR size test is drafted as an exemption rather than an inclusion test. Paragraph 20B(2) of Schedule 7 to SI 2008/410 exempts a company that satisfies two or more of: turnover not more than £36 million; balance sheet total not more than £18 million; not more than 250 employees.
Being in scope therefore means exceeding at least two of those figures. It is a two-of-three test, not an any-of-three test.
SECR applies to:
- Large unquoted companies: Companies that exceed 2 or more of the following figures, per the DBT SECR guidance:
- More than 250 employees
- Annual turnover greater than £36 million
- Annual balance sheet total greater than £18 million
- Large LLPs: Limited liability partnerships meeting the same test, which prepare a standalone Energy and Carbon Report. Ordinary partnerships and sole traders are outside the regulations
- Quoted companies: UK quoted companies, in scope regardless of size, reporting global Scope 1 and Scope 2 emissions and global energy use
A company or LLP that consumed 40,000 kWh or lessof energy in the UK during the period may withhold the quantitative information. The relief is not automatic: paragraph 20D(7)(a) requires the report to state that the information is not disclosed for that reason. The measure is UK consumption, and the figure is 40,000 kWh or less — not the "under 40 MWh" formulation that circulates widely.
SI 2024/1303 raised the general Companies Act 2006 size thresholds by roughly 50% for financial years beginning on or after 6 April 2025, but the SECR thresholds were not amended. The SECR thresholds are now lower than the medium-sized accounts thresholds, so a company reclassified from large to medium-sized for accounts purposes can still be in SECR scope.
SECR Reporting Requirements
Mandatory Disclosures
- Energy consumption: Total energy consumption in kWh
- Scope 1 emissions: Direct emissions from owned/controlled sources
- Scope 2 emissions: Indirect emissions from purchased energy
- Energy intensity ratio: Energy use per unit of activity
- Methodology: Basis of calculation and data sources
- Previous year comparison: Year-on-year changes
Additional Requirements for Quoted Companies
- Global basis: Global Scope 1 and Scope 2 emissions and global underlying energy use, rather than UK energy use only
- Energy efficiency actions: Measures taken to improve energy efficiency
- Annual report inclusion: SECR information in the directors' report
SECR Calculation Methodology
Energy Consumption
Calculate total energy consumption including:
- Gas consumption (kWh)
- Electricity consumption (kWh)
- Transport fuel consumption (kWh)
- Other fuels (converted to kWh)
Carbon Emissions
- Scope 1: Apply the current DESNZ conversion factors — the 2026 set, published 11 June 2026 to fuel consumption
- Scope 2: Apply grid electricity emission factors
- Scope 3: Material categories for quoted companies
Intensity Metrics
Choose appropriate intensity denominators such as:
- Per square metre of floor space
- Per full-time employee
- Per unit of production
- Per £ turnover
SECR Compliance Steps
1. Determine Applicability
Assess whether your organisation meets SECR thresholds for the reporting period.
2. Define Organisational Boundary
Establish reporting boundaries using financial or operational control approach.
3. Collect Energy Data
Gather energy consumption data from all sources within your boundary.
4. Calculate Emissions
Apply appropriate emission factors to convert energy use to CO2 equivalent.
5. Calculate Intensity Ratios
Select and calculate meaningful intensity metrics for your business.
6. Prepare Disclosures
Document methodology, data sources, and prepare SECR statement.
7. Include in Annual Report
Incorporate SECR information in Directors' Report or equivalent.
SECR and UK SRS Integration
SECR provides a foundation for UK SRS compliance, which is mandated by the Department for Business and Trade's UK SRS S1 and S2 (published February 2026), offering:
- Data foundation: SECR data supports UK SRS S2 disclosures
- Process alignment: Similar data collection and calculation methods
- Scope expansion: UK SRS builds on SECR with broader sustainability metrics
- Enhanced governance: UK SRS requires more detailed climate governance
Key Differences
- Scope: UK SRS covers broader sustainability topics beyond energy/carbon
- Detail: UK SRS requires more comprehensive climate risk and transition planning per UK SRS S2
- Assurance: Neither regime mandates assurance. FCA CP26/5 proposes only that in-scope companies state whether or not they have obtained third-party assurance, and give four particulars where they have
- Timeline: Different reporting deadlines — SECR annual (in the directors' report), UK SRS proposed for accounting periods beginning on or after 1 January 2027, subject to an FCA Policy Statement expected in autumn 2026 and not published as of 27 July 2026
Best Practices
- Data quality: Implement robust data collection and verification processes per SECR guidance
- Consistency: Maintain consistent methodologies year-over-year
- Transparency: Clearly document assumptions and limitations
- Integration: Align SECR with broader FRC sustainability reporting guidance
- Continuous improvement: Regularly review and enhance data systems
Is SECR being replaced by UK SRS?
No. DESNZ published the statutory post-implementation review of SECR on 26 May 2026, and its formal departmental recommendation is "Amend": "the overarching recommendation is to retain the SECR requirements with amendments… Removing SECR would risk reversing gains in transparency and board level accountability."
Refinements will be explored through a planned 2026 consultation on streamlining energy and emissions reporting, which had not launched as of 27 July 2026. On the interaction with UK SRS, the DBT government response of 25 February 2026 commits only to consider how energy and emissions data reported under UK SRS interacts with SECR, with a view to reducing unnecessary duplication where possible. Day-to-day SECR reference material — deadlines, thresholds and FAQs — lives on our dedicated SECR guidance hub at secr.quest.
Who enforces SECR
There is no SECR-specific regulator and no SECR-specific civil sanction regime. The disclosures sit in the directors' report filed at Companies House, and the FRC's Conduct Committee — an authorised body under section 457 of the Companies Act 2006 — monitors compliance through Corporate Reporting Review and can apply to court for revised accounts.
DESNZ describes the regime as "light touch", noting that it "works well for quoted companies, where FRC oversight is strongest, but is less effective for the wider private/LLP cohort".
Get Started with SECR Compliance
Begin your SECR compliance journey by assessing your reporting obligations and establishing energy data collection systems under the 2018 Regulations.