Reporting your carbon emissions
Who needs to report?
Lighting and controls
Business energy Management Systems (BeMS)
Energy Saving Opportunity Scheme (ESOS) - Audit
Business Heat and Power Systems (BHPS)
Frequently asked questions about Streamlined Energy and Carbon Reporting
Where, when and how will companies need to report?
Qualifying companies will need to report in their Directors’ report or equivalent section contained within their annual report for financial years beginning on or after 1 April 2019.
1. If your usual reporting year is 1 January to 31 December, the first financial year which the relevant report must comply would be 1 January 2020 to 31 December 2020. You should collect data for 2020 and report in the Directors report for this year during 2021.
2. If your usual reporting year is 1 April to 31 March, the first financial year which the relevant report must comply would be 1 April 2019 to 31 March 2020 You should collect data on 1 April 2019 and report in the Directors report that covers April 2019 to March 2020
If the required information is not included in your annual report penalties will apply.
Do Public bodies have to report under the new regulations?
Public bodies don’t have to report as part of SECR, but they are subject to alternative legislation around carbon emissions reporting.
Charities, not-for profit companies and some academies NHS trusts and companies owned by universities may need to report.
You can find out more about public bodies and carbon reporting on Gov.UK
What are the differences between SECR and ESOS?
The compliance frequency for SECR is annual rather than the 4 year phases for ESOS.
UK companies registered with companies’ house, large Limited Companies (LLP’s) and companies that meet 2 or more of the ‘Large companies’ criteria will have to report their energy use, carbon emissions and energy saving measures as part of the SECR framework. To be eligible for ESOS, only one of the criteria for ‘large companies’ must be met.
Organisation in a group
With ESOS, if one company in a group qualifies, the whole group must report regardless of size. With SECR the rules are slightly different depending on the size of the company.
- UK Registered companies – The whole company must comply.
- Unquoted companies, large companies and LLP’s – Only those companies within the group, who qualify as large are required to comply.
ESOS requires that a company should measure total consumption of energy across the business in a reporting year, audit areas of significant consumption and suggest energy efficiency opportunities. Or ensure that another compliance route such as ISO 50001:2011 – Energy Management System (EnMS) is in use.
For UK registered companies, SECR requires that they report their global energy use (all fuel types), any associated greenhouse gases, all energy saving actions, an intensity ratio, previous years energy use and greenhouse gas emissions and the methodology used.
For Large companies and LLP’S, SECR requires that they report a minimum of electricity, gas and transport use, any associated greenhouse gases, any energy saving actions, an intensity ratio, previous years energy use and greenhouse gas emissions and the methodology used.
Where to report
For SECR all qualifying companies must report annually in their Director’s report or equivalent energy and carbon report.
ESOS still requires companies to report compliance to the Environment Agency, this must be signed off by companies house registered board level director(s) first.
External cost associated with emissions
There are no external cost implications associated with emissions for any qualifying companies for SECR. Costs apply to ESOS.
Source of legislation
Legislation for SECR is UK domestic.
ESOS is part of the Energy Efficiency Directive from the European Union.
Which intensity metrics/ratios should be used in reporting?
The government has not specified the intensity metrics that must be used in reporting. Companies will need to express their emissions as a ratio against at least one quantifiable factor related to business activities, such as turnover, number of full-time employees, or production volume. Some examples of an intensity ratio may be tonnes of CO2e per total £m sales revenue, for retail sector; tonnes CO2e per square meter store area or for manufacturing sector; tonnes of CO2e per product manufactured. Reporting against an intensity ratio provides a way to benchmark performance year on year.
Can companies be exempt from reporting?
Companies will not need to comply with the SECR if they meet one or more of the following exemptions:
- Their energy use is 40MWh or less over a 12-month period.
- UK subsidiaries are covered by parent company’s group report.
- Unquoted companies not registered in the UK. (Qualifying UK registered subsidiaries under these parent groups will need to report).
- If it is impractical for a company to obtain some or all its global energy use, so long as the excluded information is clearly stated, with justification of why this has been done.
- In some cases – particularly in energy intensive industries publicly reporting on energy use could be deemed to be commercially sensitive information and disclosing this could be seriously prejudicial to a company’s interests. In certain exceptional circumstances this can be used by the Director’s as justification for an exemption.
If you have a REGO backed supply, can you claim zero carbon emissions?
The E.ON REGO backed supply is independently assured by PricewaterhouseCoopers LLP (PwC) against our product matching commitment, and the application of our interpretation of the WRI’s Quality Criteria for Scope 2 Reporting for the year ending 31 March 2017 and 31st March 2018. Because of this you can confidently claim zero carbon emissions for your estimated consumption.
I don’t have REGO backed supply, what do I need to do?
If you are not on a REGO backed supply then your supply will be from a variety of sources for example coal, nuclear and/or renewables and you will need to use the grid standard emissions factors which can be found on the GOV.UK website.
What are Scope 1, 2 and 3 emissions?
Scope 1: Fuel sources combusted at a site or in an asset owned or controlled by the reporting organisation.
Scope 2: Electricity used by an organisation at sites owned or controlled by them.
Scope 3: Emissions associated with grid losses (the energy loss that occurs in getting the electricity from the power plant to the organisations that purchase it) across the transmission and distribution network. (Scope 3 reporting is voluntary under SECR).