SECR requires quoted companies, and large unquoted companies and LLPs with two of 250 employees, £36 million turnover and £18 million balance sheet, to report energy use, the related emissions, an intensity ratio, the previous year’s figures, their method and energy efficiency measures in the directors’ report. The 2025 rise in company size thresholds did not change the SECR test. Companies using 40,000 kWh or less in the UK may say so instead.
Who must report
Streamlined Energy and Carbon Reporting (SECR) has applied since April 2019 under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. It covers all quoted companies, and large unquoted companies and large LLPs that meet at least two of three conditions: 250 or more employees, turnover of £36 million or more, and a balance sheet total of £18 million or more.
From April 2025 the general company size thresholds in the Companies Act rose, to £54 million turnover and £27 million balance sheet for a large company. The SECR test kept the old figures, so a company that is no longer “large” for its accounts can still have to report energy and carbon.
What goes in the report
The disclosures go in the directors’ report, or in an energy and carbon report for LLPs.
- UK energy use in kWh, at least from gas, electricity and transport fuel; quoted companies report global energy use.
- The greenhouse gas emissions from that energy use; quoted companies report their global Scope 1 and Scope 2 emissions.
- At least one intensity ratio, such as tonnes of CO₂e per £ million of turnover or per employee.
- The previous year’s figures, from the second year of reporting.
- The methodology used to calculate the figures.
- The main measures taken to improve energy efficiency during the year.
Transport and the low-energy exemption
Transport fuel includes the vehicles the company owns or leases, and business travel in employees’ own cars where the company is responsible for the fuel. A company that used 40,000 kWh of energy or less in the UK during the year does not have to give the figures, but must say that it falls under this exemption. Groups report for the group in the parent’s directors’ report; subsidiaries included there may be exempt.
Preparing the figures
SECR does not prescribe one method, but the government’s guidance points to the GHG Protocol and the UK Government’s conversion factors for greenhouse gas reporting. Collect a full year of gas and electricity invoices or meter readings per site, fuel card and mileage records for transport, and keep the calculation so the auditor reading the directors’ report can follow it.
Doing it in Greener Ahead
Carbon accounting in Greener Ahead calculates energy use and Scope 1 and 2 emissions from your invoices, meter readings and fuel records, with the emission factor and source behind every tonne, compares each year with the last and gives you the figures for an intensity ratio. It also covers all 15 Scope 3 categories if you report more than SECR asks. It costs €1,495 per year with unlimited users, and you can try it free for 14 days without a card. Check the pricing page for current details.
SECR for quoted and unquoted companies
What each type of company reports.
| Disclosure | Quoted companies | Large unquoted companies and LLPs |
|---|---|---|
| Energy use | Global energy use | UK energy use: at least gas, electricity and transport fuel |
| Emissions | Global Scope 1 and Scope 2 | Emissions from that UK energy use |
| Intensity ratio | At least one | At least one |
| Previous year | From the second year | From the second year |
| Method | Required | Required |
| Energy efficiency actions | Required | Required |
| Low-energy exemption | Not applicable | 40,000 kWh or less in the UK: state it |
Common gaps in SECR disclosures
These are the gaps that auditors and readers notice.
- Business mileage in employees’ own cars left out.
- Only part of the year covered for some sites.
- No intensity ratio, or one that changes every year.
- No description of the method or conversion factors.
- Energy efficiency actions described in general terms only.
Sources and scope
- legislation.gov.uk: The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018
- GOV.UK: environmental reporting guidelines, including Streamlined Energy and Carbon Reporting
- legislation.gov.uk: The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024
These resources explain a preparation workflow. Check your selected standard and recipient requirements before sharing your report.
Joost ThissenFounder
