Meet the requirements of SECR with Verco
The requirements for GHG reporting will be changing in April with the implementation of the SECR. Verco can help you to understand what is needed and ensure compliance is achieved in a way that benefits your business.
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The government has released its guidance on Streamlined Energy and Carbon Reporting (SECR) that will come into force on 1st April 2019. This will expand present mandatory GHG reporting requirements from all quoted companies, to all large unquoted companies and large limited liability partnerships, and will need to be included within their Directors’ Report as part of their annual filing obligations. However, companies will no longer have to report their energy and carbon via the CRC Energy Efficiency Scheme, which is presently in its final year and will come to an end on 31st March 2019. The cost of any CRC allowances purchased will be covered by a general increase in the Climate Change Levy.
We are at the forefront of the industry, working with key industry groups and governments on the development of new standards and policies and improving existing ones. Our team will work with you to proactively manage the data challenges you face and deliver exceptional performance in the disclosures you make.
From 1st April 2019, companies will have to report the following:
- Scope 1 and 2 emissions from electricity, gas and transport
- Associated energy use
- A comparison with the previous year’s data
- An intensity ratio
- Calculation methodology
- Information about any energy efficiency actions during the financial year and where possible, resulting energy savings.
Quoted companies will be required to report globally, whilst large unquoted companies and large limited liability partnerships will be required to report on UK operations. The definition of a large company will be based on the Companies Act definition, satisfying two or more of the following requirements:
- £36 million turnover
- £18 million balance sheet
- 250 employees
Although similar, this definition covers more companies than the ESOS large organisation definition. Energy efficiency actions undertaken following ESOS audit recommendations will be able to be included in the new reporting. Organisations will be exempt if they consume less than 40,000kWh of energy during the financial year and there is no requirement for independent verification or assurance of the published energy and carbon data. However, as the data will be included in the Directors’ Report, external assurance is encouraged.
As the new requirement applies to financial years starting on or after 1st April 2019, companies will not have to file their first reports under the new regulations until 2020 at the earliest:
Ahead of the new regulations beginning, we advise companies to:
- Review their qualification status if they have not already done so for ESOS or if they have done so but did not qualify for ESOS.
- Put in place data collection processes for all energy types including for transport energy
- Capture information on energy efficiency actions undertaken during the financial year
We provide a compliance offer to fully meet all EU and UK energy and carbon regulation. Verco's integrated reporting programme, Report For Zero (R4Z), delivers this. R4Z combines market-leading automated data collection with stunning analytics to deliver outstanding environmental reporting at low cost.
For an informal discussion on how these changes will affect your business, please contact Christopher Hill: Christopher.Hill@vercoglobal.com