Streamlined Energy and Carbon Reporting framework to take effect in April, 2019Meabh Carey
Out with the Old...
Those who’ve qualified for CRC since 2012 could be heard breathing a sigh of relief as we recently entered the final year of compliance before its abolished in 2019. And with the end of CRC an opportunity arises for a more simplified reporting landscape to take its place in the UK. Reducing the administrative burden on organisations and greater impacts on energy efficiency are top of the list for reform.
In with the New
With ESOS, Mandatory Greenhouse Gas Reporting, CRC and Climate Change Agreements and Levies already in place, a plethora of policies have been used to encourage investment in energy efficiency in the UK. Now, having outlined plans for the introduction of the mandatory Streamlined Energy and Carbon Reporting (SECR) framework in 2019, the Government have developed their broadest policy yet.
The Streamlined Energy and Carbon Reporting framework’s broadened scope will mean 11,900 organisations will now be required to disclose carbon emissions. That’s almost triple the amount that were captured by CRC. With less than 9 months until the new legislation is to be implemented, companies across the UK are now seeking expert guidance on who exactly these 11,900 companies are, and what will be required to ensure compliance?
Key Questions Answered
Who is Required to Comply?
The SECR will continue to apply to all UK quoted companies. In addition, the new legislation will now also be applicable to all “large” UK unquoted companies who meet two of the below criteria, following the Companies Act, 2006:
- 250+ employees
- Annual turnover greater than £36m
- Annual balance sheet total greater than £18m
Those who consumed 40,000 kWh or less in the reporting period will be exempted. Public sector organisations and other organisations that are not registered as companies will not be required to report.
What and How to Report?
Quoted companies: will continue to disclose scope 1&2 greenhouse gas emissions and a carbon intensity metric as already required by mandatory GHG reporting. The only extras required will be to report global energy use and an account of actions taken to improve energy efficiency during the year.
Unquoted companies including those currently covered by CRC: will disclose scope 1&2 greenhouse gas emissions from Electricity, Gas and Transport (defined as road, rail, air, shipping). A carbon intensity metric and an account of actions taken to improve energy efficiency during the year are also required.
A notable difference for all organisations is the indication that SECR figures should be published alongside financial figures in Annual Reports rather than in stand-alone documents. Following the Recommendations of the Taskforce on Climate-related Financial Disclosures, publishing SECR figures in mainstream financial disclosures is intended to align energy/carbon performance with financial and operational performance.
How to Get Started
The Government Response recognised the dominant concerns around the timing of responses and overlap between the SECR and ESOS, but nevertheless the proposed introduction date in April 2019 is fast approaching.
Contact Us to learn more about how Accuvio’s purpose built Streamlined Energy and Carbon Reporting (SECR) compliance capabilityrecording your energy/carbon data and ensuring you meet all your company-specific requirements.
Register Now for our upcoming webinar on the latest features of the Accuvio Software.