What Businesses Need to Know About SECR Compliance

UK businesses that meet certain criteria are legally required to report on their energy consumption and carbon emissions under the Streamlined Energy and Carbon Reporting (SECR) framework. Introduced in 2019, SECR aims to improve transparency and accountability, while encouraging companies to reduce energy use and lower carbon output.

This article explains the key aspects of SECR compliance: who needs to comply, what is required in the report, and how organisations can ensure accurate and compliant submissions.

For end-to-end support, see our SECR Compliance Services

What Is SECR?

Streamlined Energy and Carbon Reporting (SECR) is a UK regulation that forms part of the Companies (Directors’ Report) and Limited Liability Partnerships (Amendment) Regulations 2018. It requires qualifying businesses to report their energy use, greenhouse gas emissions, and energy efficiency actions in their annual reports.

The purpose is to help businesses better understand their environmental impact, drive energy improvements, and provide transparency for investors and other stakeholders.

Who Needs to Comply with SECR?

SECR applies to the following UK organisations:

• Quoted companies of any size that are required to prepare a Directors’ Report under Part 15 of the Companies Act 2006. This includes all UK-incorporated companies listed on:
  • the main market of the London Stock Exchange
  • a European Economic Area (EEA) regulated market
  • the New York Stock Exchange (NYSE) or NASDAQ
• Large unquoted companies (UK incorporated) that meet two or more of the following conditions, as set out in sections 465 and 466 of the Companies Act 2006:
  • Turnover of £36 million or more
  • Balance sheet total of £18 million or more
  • 250 or more employees
• Large Limited Liability Partnerships (LLPs) meeting the same criteria above, also defined under the Companies Act.

Public sector organisations, small businesses, and most charities are generally exempt from SECR. However, some choose to report voluntarily to support ESG transparency and stakeholder engagement.

What Information Must Be Reported?

Organisations must include the following in their SECR disclosures:

• Total energy consumption in kilowatt-hours (kWh), covering electricity, and transport
• Greenhouse gas emissions in tonnes of CO₂ equivalent (tCO₂e)
• At least one intensity ratio, such as emissions per £ million turnover or per square metre
• Description of actions taken during the reporting year to improve energy efficiency
• A comparison to previous year’s figures (once available)

Reports must use government-approved emission conversion factors and include a clear methodology statement.

SECR and SECR Reporting Deadlines

There is no standalone SECR deadline; SECR reporting is tied to your company’s financial reporting cycle. Disclosures must be included in the Directors’ Report or LLP Energy and Carbon Report submitted to Companies House.

Missing or submitting an incomplete SECR report could result in the annual report being rejected; this can lead to delays, fines, or reputational risk.

Preparing for SECR compliance requires accurate data, detailed analysis, and a clear reporting process. Are you ready to report?

How to Prepare a SECR Report

Preparing a compliant SECR report involves five key steps:

1. Determine eligibility
   Confirm whether your organisation meets the SECR thresholds.
2. Gather relevant data
   Collect consumption figures for Scope 1, 2 and 3 related data points across your operations e.g., electricity, gas, refrigerant losses, business travel, vehicle fuel etc..
3. Calculate emissions
   Use the UK Government’s published conversion factors to convert usage data into carbon emissions.
4. Choose intensity ratios
   Select an appropriate metric that is consistent and relevant to your business operations.
5. Write the narrative
   Describe any actions taken to reduce energy use during the year and how these align with your sustainability goals.

Inteb provides full support across all of these steps, with consultants who manage SECR submissions for a wide range of UK businesses.

Why SECR Matters Beyond Compliance

SECR is more than a compliance obligation — it plays a strategic role in supporting wider business and sustainability goals. The reporting requirements are designed to:

• Increase awareness of energy costs across large and quoted organisations, including improved visibility at senior decision-making levels
• Level the playing field by standardising how large organisations report energy and emissions performance
• Align with existing business reporting frameworks, keeping administrative burden proportionate
• Equip businesses with actionable data to inform energy efficiency decisions and reduce their impact on climate change
• Enhance transparency for investors, lenders and stakeholders on energy performance and climate-readiness

SECR also creates internal accountability, encouraging cross-functional collaboration on emissions reduction and efficiency improvements.

Common SECR Compliance Mistakes

Many businesses fall short due to incomplete data or reporting that fails to meet statutory requirements. Common mistakes include:

• Excluding transport energy use or emissions
• Using the wrong emission factors
• Choosing vague or inconsistent intensity ratios
• Failing to explain methodology
• Omitting previous year comparisons when available

With Inteb’s guidance, your SECR report is thorough, compliant, and audit-ready.

Supporting SECR compliance in the aviation industry requires sector-specific insight and streamlined carbon data reporting.

Case Study:

A well-known UK-based aviation-sector firm required SECR compliance but lacked centralised data. Inteb supported the client to collect and collate Scope 1, 2 and 3 related consumption data from multiple suppliers, converted the data into emissions, and developed company-level intensity ratios.

Our consultants wrote the full SECR disclosure narrative, which was later integrated into the client’s annual report. The client achieved compliance with SECR and later used the emissions data for their Net Zero Roadmap and ESG reporting.

SECR and Other Compliance Schemes

SECR reporting is often part of a wider compliance strategy. It complements or overlaps with:

• ESOS – Energy audit and identification of energy-saving opportunities
• MEES – Minimum Energy Efficiency Standards for lettings
• ISO 50001 – International standard for energy management systems
• BREEAM or NABERS – Sustainability certifications for buildings

Inteb works with clients to streamline their compliance activities and integrate reporting into a broader sustainability programme.

Need help with SECR compliance? Ask Ceejay your questions and take the stress out of reporting.

Get SECR Support from the Experts

If your business needs help preparing an accurate, compliant SECR report, or you’re unsure whether the rules apply, our team is ready to help.

Contact Inteb today for a no-obligation consultation. We manage the process from start to finish, including data collection, carbon conversion, narrative writing and report submission.