The Carbon Border Adjustment Mechanism (CBAM)
14 min
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In this article, we break down what the EU CBAM is, how it works, and what businesses need to do to comply.
ESG / CSR
Industries
MEASURE
ACT
COMFORM
Our Guide to Streamlined Energy and Carbon Reporting (SECR)
Level
By Stephanie Safdie, US Copywriter, on 25/10/2022
Updated by Kara Anderson, on 19/05/2026
Streamlined Energy and Carbon Reporting (SECR) is a mandatory UK reporting framework requiring qualifying companies to disclose their energy use and greenhouse gas emissions.
Introduced in 2019, SECR was designed to improve transparency around corporate energy consumption and support the UK’s transition to a lower-carbon economy.
This guide explains what SECR is, who it applies to, what companies must report, and how organisations can stay compliant with current UK reporting requirements.
Key topics you’ll learn about in this article:
What the Streamlined Energy and Carbon Reporting (SECR) framework is
Which UK businesses are required to comply with SECR
What companies must disclose under SECR requirements
How organisations can prepare accurate SECR reports and maintain compliance
Note: This article reflects SECR guidance and reporting requirements as of May 2026. Organisations should also refer to official UK Government guidance for the latest regulatory updates.
What is the UK’s Streamlined Energy and Carbon Reporting policy (SECR)?
The UK’s Streamlined Energy and Carbon Reporting (SECR) framework requires qualifying companies to annually disclose their energy use, greenhouse gas emissions, and energy efficiency measures.
Introduced on April 1, 2019, SECR was designed to simplify and expand corporate carbon reporting requirements in the UK. The framework replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and broadened reporting obligations to include a wider range of large companies and limited liability partnerships (LLPs).
SECR supports the UK’s wider climate objectives by improving transparency around corporate energy consumption and encouraging organisations to identify opportunities to reduce emissions and improve energy efficiency.
The framework applies alongside several other UK environmental and energy reporting schemes, including:
Energy Savings Opportunity Scheme
Requires large organisations to carry out periodic energy audits.
Climate Change Agreements
Provide energy tax discounts for eligible energy-intensive industries.
UK Emissions Trading Scheme
Applies to certain carbon-intensive sectors across the UK.
By standardising energy and emissions disclosures, SECR helps businesses integrate carbon reporting into broader sustainability and compliance strategies.
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Who is required to report on SECR?
SECR applies to certain UK-incorporated companies and limited liability partnerships (LLPs) that meet specific reporting thresholds.
Organisations required to comply with SECR include:
Quoted Companies
Quoted companies of any size that are listed on a recognised stock exchange must report their energy use and greenhouse gas emissions under SECR requirements.
Large Unquoted Companies
Large unquoted companies are required to comply with SECR if they meet at least two of the following criteria under the Companies Act 2006:
Thresholds
£36m+ turnover
£18m+ assets
250+ employees
Large LLPs
Large LLPs must also comply with SECR if they meet at least two of the same thresholds outlined above.
Thresholds
£36m+ turnover
£18m+ assets
250+ employees
Charities and Not-for-Profit Organisations
Charities and not-for-profit organisations may still fall within the scope of SECR if they meet the definition of a large company under the Companies Act 2006.
Public Bodies
Most public bodies are exempt from SECR requirements. However, some publicly owned organisations and institutions may still be subject to separate environmental or carbon reporting obligations.
What are companies required to disclose under SECR?
SECR reporting requirements vary depending on the type of organisation and whether the company is quoted, unquoted, or structured as a limited liability partnership (LLP).
Requirements for Quoted Companies
Quoted companies must disclose:
01
Core disclosures
annual Scope 1 and Scope 2 greenhouse gas emissions,
total global energy use,
at least one emissions intensity ratio,
details of energy efficiency measures implemented during the reporting year,
and the methodology used to calculate energy use and emissions data.
02
Emissions basis
Emissions must be reported in tonnes of carbon dioxide equivalent (CO₂e) and include the greenhouse gases covered under the Kyoto Protocol.
While Scope 3 emissions are not mandatory under SECR, some organisations voluntarily disclose them as part of wider ESG and sustainability reporting practices.
03
Emissions Intensity Ratios
Quoted companies must report at least one emissions intensity ratio to help contextualise emissions data relative to business activity.
tonnes of CO₂e per £m revenue,
tonnes of CO₂e per employee,
or tonnes of CO₂e per m² of floor space.
Companies are also expected to provide year-on-year comparisons where applicable.
04
Energy Efficiency Measures
Quoted companies must describe any actions taken during the reporting year to improve energy efficiency or reduce emissions.
building efficiency upgrades,
equipment modernisation,
lighting improvements,
or operational efficiency initiatives.
If no energy efficiency actions were taken, companies should state this clearly within the report.
05
Reporting Methodology
Organisations should disclose the methodology used to calculate emissions and energy consumption data.
the GHG Protocol,
ISO 14064-1,
and UK Government / DEFRA emissions factor guidance.
06
Reporting Location
Quoted companies must include SECR disclosures within their Directors’ Report for financial years beginning on or after April 1, 2019.
Requirements for Large Unquoted Companies and LLPs
Large unquoted companies and LLPs must report:
01
Core disclosures
UK energy use from electricity, gas, and transport fuel consumption,
associated greenhouse gas emissions,
at least one emissions intensity ratio,
energy efficiency measures implemented during the reporting year,
and the methodology used to calculate emissions and energy data.
02
Transport reporting
Transport reporting generally applies to directly purchased fuel used in company-controlled vehicles. Emissions associated with third-party transport providers are typically excluded from SECR reporting requirements.
03
Reporting Location
Large unquoted companies typically disclose SECR information within their Directors’ Report or Strategic Report.
Large LLPs must disclose the information within their Energy and Carbon Report.
Are there any exemptions to reporting?
Although SECR applies to many UK organisations, certain exemptions may apply depending on the size, structure, and energy consumption of the business.
Low Energy User Exemption
Low Energy User Exemption
Organisations that consume 40 MWh or less of energy during the reporting period may qualify as low energy users.
In these cases, companies are not required to provide the full range of SECR disclosures. However, the organisation must still state within its report that it qualifies for the low energy user exemption.
In these cases, companies are not required to provide the full range of SECR disclosures. However, the organisation must still state within its report that it qualifies for the low energy user exemption.
Group Reporting Considerations
Group Reporting Considerations
Where SECR disclosures are prepared at group level, parent companies may exclude subsidiaries that would not independently fall within the scope of SECR requirements.
Practicality and Commercial Sensitivity
Practicality and Commercial Sensitivity
In limited circumstances, organisations may omit certain information where data collection is impractical or disclosure would be seriously prejudicial to the interests of the company.
Where information is omitted, companies should clearly explain the reason within the report.
Where information is omitted, companies should clearly explain the reason within the report.
Quoted companies are generally not eligible for the low-energy user exemption.
Group and subsidiary reporting under SECR
SECR disclosures may be prepared at group level, allowing parent companies to report energy use and greenhouse gas emissions on behalf of qualifying subsidiaries within the group.
Where a parent company includes a subsidiary’s information within consolidated SECR disclosures, the subsidiary is generally not required to submit a separate energy and carbon report.
In some cases, subsidiaries that would not independently fall within the scope of SECR requirements may be excluded from group-level reporting.
Companies should ensure that group reporting arrangements are clearly documented and aligned with the Companies Act 2006 and SECR reporting requirements.
What are the consequences of non-compliance?
Failure to comply with SECR reporting requirements may expose organisations to regulatory, financial, and reputational risks.
Regulatory and Financial Risk
Companies that fail to submit accurate or complete SECR disclosures may face regulatory scrutiny or enforcement action under UK company reporting requirements.
The severity of any penalties or corrective action will depend on the nature of the reporting failure and the organisation’s compliance obligations.
The severity of any penalties or corrective action will depend on the nature of the reporting failure and the organisation’s compliance obligations.
Reputational Impact
Incomplete or inaccurate environmental disclosures may affect stakeholder confidence, particularly among investors, customers, and business partners that expect transparent sustainability reporting practices.
Increased Regulatory Scrutiny
Non-compliance may result in greater oversight from regulators or additional review of a company’s environmental reporting processes and governance practices.
Operational Risks
Poor energy and emissions reporting practices may also limit an organisation’s ability to identify inefficiencies, monitor performance, and support broader sustainability or carbon reduction objectives.
Why is SECR carbon reporting beneficial for companies?
SECR reporting helps organisations improve transparency around their energy use and greenhouse gas emissions while identifying opportunities to reduce costs and improve operational efficiency.
By measuring and reporting energy consumption, businesses can better understand where emissions are generated, track performance over time, and support more informed sustainability and energy management decisions.
SECR disclosures can also strengthen stakeholder confidence by providing investors, regulators, and customers with more consistent and standardised environmental reporting data.
Climate Impact
SECR reporting helps organisations measure, manage, and reduce greenhouse gas emissions while supporting broader sustainability and decarbonisation goals.
Financial Efficiency
Tracking energy consumption can help businesses identify inefficiencies, improve resource management, and reduce operational costs over time.
Long-Term Strategy
Consistent environmental reporting can strengthen ESG disclosures, support investor confidence, and improve long-term business resilience and reporting maturity.
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Best practices for SECR reporting
Although SECR establishes minimum disclosure requirements, many organisations choose to strengthen their reporting processes to improve data quality, consistency, and long-term sustainability reporting capabilities.
Some common SECR reporting best practices include:
Use Consistent Reporting Methodologies
Organisations should apply consistent methodologies and emissions factors across reporting periods wherever possible to improve comparability and reporting accuracy.
Commonly used frameworks include:
Commonly used frameworks include:
Improve Data Collection Processes
Businesses should establish clear internal processes for collecting and validating energy and emissions data across facilities, operations, and transport activities.
Strong data governance can help improve reporting accuracy and reduce compliance risks.
Strong data governance can help improve reporting accuracy and reduce compliance risks.
Maintain Clear Documentation
Organisations should retain supporting calculations, assumptions, methodologies, and reporting boundaries to help demonstrate compliance and support internal or external review processes.
Consider Broader Sustainability Reporting
While Scope 3 emissions are not mandatory under SECR, some organisations voluntarily expand disclosures to support broader ESG, sustainability, or climate reporting objectives.
Review Reporting Boundaries Regularly
Companies should periodically review organisational boundaries, operational changes, and reporting scopes to ensure disclosures remain accurate and aligned with current business activities.
Some organisations also align SECR disclosures with wider sustainability reporting frameworks such as ISSB or CSRD reporting requirements.
Frequently Asked Questions About SECR
What does SECR stand for?
SECR stands for Streamlined Energy and Carbon Reporting, a UK regulatory framework requiring qualifying organisations to disclose energy use, greenhouse gas emissions, and energy efficiency measures within annual reports.
When did SECR come into effect?
SECR came into effect on April 1, 2019, replacing the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and expanding corporate energy and carbon reporting requirements in the UK.
Is Scope 3 reporting mandatory under SECR?
No. SECR requires quoted companies to report Scope 1 and Scope 2 emissions, while Scope 3 emissions remain voluntary. However, some organisations choose to disclose Scope 3 emissions as part of broader ESG or sustainability reporting practices.
Does SECR apply to companies outside the UK?
SECR applies to qualifying UK-incorporated companies and LLPs. However, multinational organisations with UK subsidiaries may still fall within scope if those subsidiaries meet SECR reporting thresholds.
What is the difference between SECR and ESOS?
SECR focuses on annual energy and carbon disclosure requirements, while ESOS requires large organisations to conduct periodic energy audits and identify energy efficiency opportunities.
Where should SECR disclosures be published?
SECR disclosures are typically included within a company’s Directors’ Report, Strategic Report, or Energy and Carbon Report, depending on the organisation’s structure and reporting obligations.
What emissions are included under SECR?
SECR reporting generally covers Scope 1 and Scope 2 greenhouse gas emissions associated with energy use, including electricity, gas, and transport fuel consumption.
Are charities required to comply with SECR?
Charities and not-for-profit organisations may be required to comply with SECR if they meet the definition of a large company under the Companies Act 2006.
What is an emissions intensity ratio?
An emissions intensity ratio measures greenhouse gas emissions relative to a business activity metric, such as revenue, employee count, or floor space, helping organisations track performance over time.
Can companies use estimates in SECR reporting?
Yes. Where precise data is unavailable, organisations may use reasonable estimations or assumptions, provided the methodology is clearly explained and applied consistently.
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