Impacts, Risks, and Opportunities (IRO) for CSRD Reporting
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In this article, we’ll break down what IROs are, how to identify and assess them, and what CSRD requires in terms of disclosure.
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Our Guide to Streamlined Energy and Carbon Reporting (SECR)
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By Stephanie Safdie, US Copywriter, on 25/10/2022
Updated by Agnès Potier-Murphy, on 07/07/2026
Streamlined Energy and Carbon Reporting (SECR) is a mandatory UK framework requiring qualifying companies and LLPs (quoted companies of any size, plus large unquoted companies and LLPs) to disclose their energy use and greenhouse gas emissions every year. If your business fits either description, SECR reporting almost certainly applies to you.
Introduced in 2019 to improve transparency around corporate energy consumption, SECR now touches far more of the UK economy than many businesses realise: a government evaluation published in January 2026 estimates that around 19,900 organisations fall within its scope.
This guide covers what SECR actually requires and who it applies to. And because SECR compliance is where most organisations trip up, that's where we'll spend most of our time.
Key topics you’ll learn about in this article:
What the Streamlined Energy and Carbon Reporting (SECR) framework is
Which UK businesses actually fall under SECR, and the exemptions that can reduce your reporting burden
The difference between quoted, large unquoted, and LLP obligations under SECR
What companies must disclose under SECR requirements
How organisations can prepare accurate SECR reports and maintain compliance
How SECR connects to TCFD and the incoming UK Sustainability Reporting Standards (UK SRS)
Note: This article reflects SECR guidance and reporting requirements as of July 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 and LLPs to annually disclose their energy use, greenhouse gas emissions, and energy efficiency measures.
Introduced on April 1, 2019 under The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (SI 2018/1155), 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), either because they're quoted on a recognised stock exchange, or because they meet specific size-based reporting thresholds.
Organisations required to comply with SECR include:
Quoted Companies
Quoted companies whose shares are officially listed on the main market of the London Stock Exchange, an EEA state, the NYSE, or NASDAQ must report their energy use and greenhouse gas emissions under SECR requirements, regardless of size.
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. Where energy and GHG data is considered of strategic importance, disclosures may instead go in the Strategic Report, provided the Directors' Report explains that choice.
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 covers fuel used in company-owned or company-controlled vehicles, as well as personal or hire vehicles used for business travel where the company reimburses the fuel cost. For example, through mileage claims. Emissions from third-party transport providers, such as trains, flights, or taxis the company doesn't operate, are 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.
How does group and subsidiary reporting work 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?
Non-compliance is more common than many assume. A January 2026 government evaluation put UK non-compliance rates at 14% to 34%, depending on the method used to measure it. Getting it wrong can still mean regulatory, financial, and reputational consequences.
Regulatory and Financial Risk
SECR disclosures fall under the Companies Act's defective accounts rules, so a court can order a company to prepare and refile a report that doesn't comply.
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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What are the 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
Scope 3 emissions are mostly voluntary under SECR, except that large unquoted companies and LLPs must include reimbursed business mileage in personal or hire cars. Beyond this, 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.
How does SECR relate to TCFD and the UK Sustainability Reporting Standards (UK SRS)?
SECR and TCFD cover similar ground but serve different purposes: SECR is a backward-looking record of what a company has already used and emitted, while TCFD is forward-looking, focused on how climate-related risk could affect a business in future. That gap matters in practice. A January 2026 government evaluation of SECR found that only 16% of SECR-compliant businesses also report under TCFD, and several of the businesses and reporting specialists interviewed felt SECR would benefit from closer alignment with TCFD's forward-looking approach.
The UK Sustainability Reporting Standards (UK SRS), built on the ISSB framework, were finalised in 2026 and are expected to become the main basis for corporate climate disclosure in the UK going forward. Scope 3 reporting is being phased in for the largest entities under UK SRS, with Scope 1 and 2 the immediate priority. Some in the industry now expect SECR to eventually be scaled back as UK SRS becomes established, though nothing has been confirmed.
Regulatory Outlook
SECR isn't being replaced yet, but UK SRS is likely to become the primary framework over time. If your organisation already reports under TCFD, or expects to fall into scope of UK SRS, don't treat SECR compliance as sufficient on its own.
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?
Not entirely. SECR requires quoted companies to report Scope 1 and Scope 2 emissions, and Scope 3 disclosure is largely voluntary, except that large unquoted companies and LLPs must include reimbursed business mileage in personal or hire cars, which technically counts as Scope 3. Beyond that, some organisations choose to report more voluntarily as part of broader ESG 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.
Do I need to report energy used in leased or rented property?
Yes, if you're the one actually using it. In landlord/tenant arrangements, whoever consumes the energy should report it, even if they don't pay the bill directly. Sub-meter readings, invoices, or reasonable estimates can all be used where exact figures aren't available.
Does grey fleet (employee-owned vehicles) count towards SECR?
It can. If you reimburse staff for business mileage in their own cars, that fuel use must be included in your SECR figures, even though the vehicle isn't company-owned. Ordinary commuting to and from work doesn't count.
What does 'comply or explain' mean under SECR?
It's the flexibility built into SECR for cases where full reporting isn't practical, or where disclosure would be seriously prejudicial to the business. Organisations can leave that information out, but must state clearly what's been omitted and why.
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⏱️ Track collaborator progress, set reminders & deadlines for compliance
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🏢 Multi-entity task management & data ingestion at all levels
🧠 AI-powered pre-filling from documentation saves weeks of manual work
🧮 Automatic calculations handle dependencies & speed up consolidation
📈 Multi-entity data collection simplified by mirroring company structure
Strategic ESG Impact & Risk Mitigation
Greenly empowers companies to move beyond reporting to develop strategy, identify risks, and unlock opportunities.
📋 Automated Double Materiality Assessment (DMA) built with CSRD experts
🤖 AI-powered climate risk forecasting integrated into DMA with site-level detail
💰 Translate climate risk into quantified financial opportunities
📍 Location-specific financial risk breakdowns with IPCC-backed data
🔎 Data gap analysis from DMA to improve future reporting
📈 Automated Climate KPI integration
📊 Advanced Materiality Module: benchmarks & specialised add-ons (e.g., CSA)
Tailored & Future-Ready Reporting
Flexible reporting with interoperability across 15+ frameworks.
📝 Custom framework creation with tailored reports
🔀 Interoperability across 10+ frameworks with harmonised database
⚡ Accelerated report creation with AI-powered generation and pre-filling
📄 Auto-generation of complete ESG reports (qualitative & quantitative data)
🛡️ Audit-ready guaranteed reports
💻 Automated ESG report gen incl. XHTML & XBRL for CSRD
📂 Centralised audit trails & attachments per indicator
🤝 Collaborative workflows managing full indicator lifecycle
Expert Guidance & Continuous Support
Comprehensive support & training to empower ESG teams and ensure successful, autonomous reporting.
🧑💼 Dedicated Project Managers & ESG Experts for each framework
📚 Extensive training & resources available on the platform
🤖 AI-powered in-app chatbot (24/7) for instant answers
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