Purpose of the SECR framework
The SECR framework is designed to help businesses measure and report their carbon emissions and energy usage. The SECR is a required framework for large UK businesses, which was created by the UK Government to reach Net Zero by 2050. The aim of SECR is to raise awareness among businesses about their carbon emissions, encouraging them to take steps to reduce their impact on the environment. Businesses are required to report their energy and carbon emissions annually, as well as provide ways in which they are reducing their overall emissions.
What businesses must report under SECR
Under SECR, businesses are required to disclose their greenhouse gas emissions & overall energy consumption, along with actions to improve energy efficiency. They also must report Global Scope 1 & 2 greenhouse gas emissions, which refers to emissions that are released directly or indirectly into the atmosphere by the business. In addition to this, they must report on at least one intensity ratio. An intensity ratio allows a business to compare their energy efficiency performance with competitors. To calculate the ratio, divide the total C02 emissions by the business’s specific metric.
Why SECR reporting is important
To summarise, reporting SECR gives the business the ability to better understand its energy consumption and put measures in place to reduce carbon and greenhouse gas emissions overtime. With mandatory reporting, the Government ensures that emissions are being closely monitored, which contributes to the Net Zero initiative.
