By
Senior Demand Generation Manager
Edited: 10 Feb 2026
10 min read
Streamlined Energy and Carbon Reporting (SECR) is a UK reporting requirement that obliges certain organisations to disclose their energy use and carbon emissions as part of their annual reporting.
If you’re unsure whether SECR applies to your business, what exactly you need to report, or what happens if you get it wrong, this guide explains it clearly; without jargon.
This page is written for UK businesses that want to stay compliant and use reporting as a foundation for credible climate action.
What is SECR?
Streamlined Energy and Carbon Reporting (SECR) is a UK government framework introduced in 2019 to increase transparency around organisational energy use and greenhouse gas emissions.
SECR requires qualifying organisations to disclose:
Energy consumption
Associated carbon emissions (Scope 1 and Scope 2)
Actions taken to improve energy efficiency
The information must be included in statutory annual filings, making it publicly available
The aim is simple:
to improve consistency, comparability, and accountability in how UK organisations report their environmental impact.
Who does SECR apply to?
SECR applies to large UK organisations, including, companies and LLPs that are:
UK incorporated and
Meet two or more of the following:
Turnover of £36 million or more
Balance sheet total of £18 million or more
250 or more employees
Quoted companies
UK-listed companies are also subject to SECR, with some additional reporting requirements.
Who is exempt?
SECR does not apply to organisations that fall below the size thresholds set by the Companies Act.
In addition, organisations that consume less than 40 MWh of energy during the reporting period may qualify for a de minimis exemption. Where this exemption is used, it must be explicitly stated in the Directors’ Report.
While many small and medium-sized businesses are not legally required to comply with SECR, some choose to voluntarily report to meet investor, client, or supply chain expectations.
What does SECR require you to report?
SECR reporting focuses on three core areas.
1. Energy use
You must report total energy consumption from:
Electricity
Gas
Transport fuel (if applicable)
This should be expressed in kilowatt-hours (kWh).
2. Greenhouse gas emissions
Organisations must disclose:
Scope 1 emissions (direct emissions, e.g. gas, owned vehicles)
Scope 2 emissions (indirect emissions from purchased electricity)
Emissions must be calculated using recognised conversion factors and methodologies.
3. Energy efficiency actions
You are required to describe:
Measures taken during the reporting year to improve energy efficiency
Or explicitly state that no measures were taken, with justifications
This section is qualitative but scrutinised closely by auditors and stakeholders.
Where and how is SECR reported?
SECR disclosures must be included in:
The Directors’ Report (or equivalent)
Filed with Companies House
Made publicly available as part of statutory accounts
There is no separate SECR submission portal. Accuracy and consistency with financial reporting are therefore critical.
What happens if you don’t comply with SECR?
Failure to comply with SECR is a breach of the Companies Act 2006 reporting requirements. Because SECR disclosures must be included in statutory annual filings, non-compliance can result in accounts being considered incomplete or non-compliant.
If this leads to delayed or rejected filings, Companies House may apply automatic civil penalties for late submission. In addition, the Financial Reporting Council (FRC) may challenge inadequate disclosures, creating regulatory and reputational risk.
Financial Penalties
If your annual report is rejected due to missing SECR data, you risk missing your filing deadline, which triggers automatic civil penalties.
Length of delay | Private Company / LLP Fine | Public Company (PLC) Fine |
Up to 1 month | £150 | £750 |
1 to 3 months | £375 | £1,500 |
3 to 6 months | £750 | £3,000 |
Over 6 months | £1,500 | £7,500 |
Note: These fines are doubled if a company files late in two successive financial years.
Personal Liability
Responsibility for SECR disclosures sits with company directors. While SECR non-compliance does not usually result in direct fines, the Financial Reporting Council can apply to court to require a company to correct or reissue defective reports. Persistent failure to comply with statutory reporting obligations can escalate into broader regulatory action, with reputational, governance, and investor consequences for directors.
Lessons from Similar Frameworks
While SECR-specific fines are often handled through the "rejection and resubmission" process, the UK government is increasingly aggressive with environmental enforcement. For instance, the Environment Agency recently issued over £160,000 in fines to businesses failing to comply with ESOS (Energy Savings Opportunity Scheme) - a clear signal that the era of "optional" carbon reporting is over.
Reputational risk
Public filings are easily accessible
Inaccurate or vague reporting raises red flags with investors, clients, and journalists
Commercial risk
Increasingly, SECR data is used in:
Procurement decisions
Due diligence
Sustainability ratings and benchmarks
In practice, weak SECR reporting often undermines broader climate claims; even when organisations are taking action elsewhere.
Why SECR matters beyond compliance
While SECR is a legal requirement, it also creates an opportunity.
Done properly, SECR can:
Establish a credible emissions baseline
Improve internal data quality
Support future disclosures (e.g. SBTi, net zero strategies)
Reduce exposure to greenwashing and misleading claims
Within Ecologi’s 3Rs framework, SECR sits firmly within the Report pillar. It provides the reporting foundation that supports transparency and accountability, while enabling more credible emissions reduction planning over time.
Many UK organisations use SECR as the first structured step toward more advanced climate reporting.
How Ecologi helps with SECR reporting
Ecologi supports UK businesses by making SECR reporting:
Accurate
Audit-ready
Aligned with best-practice climate frameworks
We help organisations:
Measure Scope 1 and Scope 2 emissions correctly
Apply appropriate methodologies and conversion factors
Present disclosures clearly and defensibly
Build a reporting foundation that scales beyond SECR
Trusted by over 16,000 businesses, including hundreds of UK organisations navigating statutory climate reporting, Ecologi helps teams report with confidence.
Speak to a climate expert to understand how SECR applies to your organisation and how to report with confidence.