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April 1st 2019 saw the introduction of some significant legislation changes for UK registered companies, especially regarding the requirement to report on energy consumption, GHG emissions, and energy intensity within annual reports.

These changes are due to the Streamlined Energy and Carbon Reporting (SECR), which is a replacement scheme for the Carbon Reduction Commitment (CRC) which ended on the same day the SECR began.

It is hoped that the result of these changes will mean obligatory carbon reporting for at least 8,000 businesses from the CRC.

As well as this, at least 10,000 companies will be required to report their energy and emissions in their annual reports for the first time,due to the qualification criteria of the new Streamlined Energy and Carbon Reporting (SECR) legislation. 

That opening paragraph might seem a little complicated, so allow us to break down what is being introduced.

Under the SECR scheme:

• Energy use and carbon emissions will be visible to company boards and investors
• An energy intensity metric will put usage into context
• Metrics will be used to help gauge productivity, efficiency, and market risk
• The legislation will begin in parallel with the proposed increase to the Climate Change Lecy (CCL), to continue incentivising energy reductions
• Companies will be eligible under the same terms as ESOS except SECR does not require companies to have at least 250 employees

Who qualifies?

UK Quoted Companies (MGHG)
OR
UK listed companies with two of the below:

• More than 250 employees
• Turnover more than £36m
• Balance sheet total more than £18m

Who is exempt?

Unquoted companies who can prove that it is not practical to obtain their SECR information (in part or full) can apply for exemption

When Directors believe and can prove that SECR information disclosure could seriously negatively harm the business

Low energy users.

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External URL: https://imveloltd.co.uk/april-2019-changes-to-streamlined-energy-and-carbon-reporting/