Posted on: 12/02/2019
The Department for Business, Energy & Industrial Strategy (BEIS) has issued guidance for companies preparing to report on their energy usage.
All large businesses must disclose their global energy use and greenhouse gas emissions from 1 April.
More than 11,000 companies will be affected by the Streamlined Energy & Carbon Reporting (SECR) regulations.
SECR replaces the mandatory greenhouse gas reporting requirements that have been in place since 2013, and introduces new energy and emissions reporting requirements. UK quoted companies in scope will be required to report on their global energy use in addition to greenhouse gas emissions in their annual directors' report, while large unquoted companies and limited liability partnerships (LLPs) will also be required to disclose their annual energy use, greenhouse gas emissions and related information.
Measurement and management
The Government said the “new simplified rules will ensure more than 11,000 large businesses report on carbon emissions and cut down the amount of energy they use”.
“By accounting for carbon emissions, investors and shareholders will be able to see the opportunity and potential savings from cutting down on energy waste and increasing the efficiency of their businesses,” it added.
However, despite the guidance, there remain "points for clarification and questions" around the reporting obligations, according to environmental law expert Georgie Messent of Pinsent Masons.
"We would strongly advise quoted and unquoted companies and LLPs covered by the SECR to consider, as soon as possible, how the new framework will impact on their carbon and emissions monitoring and reporting," she said.