The Carbon Reduction Commitment (CRC) is a key part of the UK government’s strategy to reduce carbon emissions. The CRC requires businesses to report their carbon emissions and purchase allowances to cover their emissions. The Streamlined Energy and Carbon Reporting (SECR) is the successor to the CRC and will continue to require businesses to report their carbon emissions. The SECR will also extend to include large public sector bodies and will require businesses to disclose their energy efficiency actions and strategies. The SECR is therefore an important part of the UK government’s efforts to reduce carbon emissions and tackle climate change.
Why has SECR been implemented?
By reporting their carbon emissions and taking action to improve energy efficiency, businesses can help to reduce their environmental impact and contribute toward a low-carbon future. For many businesses, SECR will also offer financial benefits, through savings on energy costs which may become apparent after a deeper dive into the figures behind the report. SECR, therefore, provides an important incentive for businesses to take action on climate change.
The efforts of the G20 Financial Stability Board’s Taskforce on Climate-related Disclosures are driving a new standard in how companies account for their carbon footprint. This move will provide important information to investors and financial actors, helping them navigate our transition into sustainable low carbon economies.
UK Government Targets
The government has set a target of reducing emissions by 80% by 2050 and reaching net-zero emissions, and the SECR is a key part of achieving this target. Businesses that report their emissions and take action to improve energy efficiency will play a vital role in helping the UK to meet its climate change goals.
The SECR is, therefore, an important tool for businesses to reduce their carbon emissions and tackle climate change. It provides financial incentives for businesses to take action and helps to create a low-carbon future for the UK.
Who needs to comply with SECR?
The SECR (Streamlined Energy and Carbon Reporting) framework applies to large quoted companies, large unquoted companies, and LLPs with a fiscal year ending on or after 31st December 2019.
To find out if your business needs to comply with SECR, please check the full list of companies that need to report under SECR.
Additionally, any group companies that meet at least two of the three criteria below must also comply:
– an annual turnover greater than £36 million;
– an annual balance sheet total greater than £18 million;
– more than 250 employees.
If you are interested in learning more about SECR and specifically how your business or organisation can comply with the framework, contact our carbon team today.