The first Streamlined Energy and Carbon Reporting (SECR) compliance phase is well underway with many businesses in the process of submitting their first reports.
SECR is the mandatory requirement for quoted companies, large companies and Limited Liability Partnerships (LLPs) to measure their annual UK energy consumption and associated carbon emissions. SECR information must be disclosed each year in your organisation’s Directors’ Report as part of your annual filing obligations.
Why act now?
At BiU we recommend starting today to avoid common compliance reporting issues, such as:
- Complex organisational structures that are not properly deciphered to ensure a correct reporting
- Internal processes are not set up to enable accurate and timely reporting
- Insufficient data availability – such as data surrounding transport energy
- Limited access to specialist energy and carbon consultants to assist with compliance as deadlines are approached
- Last minute compliance meaning higher risk of inaccurate reporting
- Heightened risks of delays obtaining consumption data following COVID-19.
Such issues have led to many businesses missing ESOS compliance deadlines, submitting inaccurate or incomplete information. The result of which is enforcement notices and fines for non-compliance!
Your reputation is at risk
SECR is regulated and enforced by the Conduct Committee of the Financial Reporting Council. The Committee has the power to enquire into instances where relevant disclosures have not been provided. Therefore the need for timely and up to date SECR information is extremely important and the risks associated with delaying action are significant.
The information submitted within your publicly availably accounts could be heavily scrutinised by your stakeholders. This is a great opportunity to demonstrate relevant, complete, consistent, transparent and accurate reporting but to also take action. BiU can help develop your energy and carbon reduction programme that will demonstrate your business is taking action to reduce carbon emissions in line with your corporate ambitions.
Where acceptable accounts are delivered after the filing deadline, the company is liable to a civil penalty in accordance with Section 453 of the Companies Act 2006.
When should I start collecting data for SECR reporting?
We recommend starting your SECR project at least 6 months ahead of your financial year-end.
Our energy and carbon specialists will produce a 6-month interim report to ensure everything is in order to deliver accurate and timely SECR submissions for your business. The below table can be used as a guide for when you should start:
|FY Start Month||Year 1 SECR Start||Year 1 SECR End||Start Process|
|Jan||Jan 2020||Dec 2020||Jul 2020|
|Feb||Feb 2020||Jan 2021||Aug 2020|
|Mar||Mar 2020||Feb 2021||Sep 2020|
|Apr||Apr 2019||Mar 2020||Act now|
|May||May 2019||Apr 2020||Act now|
|Jun||Jun 2019||May 2020||Act now|
|Jul||Jul 2019||Jun 2020||Act now|
|Aug||Aug 2019||Jul 2020||Act now|
|Sep||Sep 2019||Aug 2020||Act now|
|Oct||Oct 2019||Sep 2020||Act now|
|Nov||Nov 2019||Oct 2020||Act now|
|Dec||Dec 2019||Nov 2020||Act now|