SECR reporting: A complete guide for UK businesses

In this guide we explain what Streamlined Energy and Carbon Reporting (SECR) is, who needs to comply and how to prepare accurate, compliant reports. Learn how data automation and energy management software simplify compliance while improving transparency and sustainability performance.

What is SECR reporting?

Streamlined Energy and Carbon Reporting (SECR) is a UK government initiative introduced in April 2019 to encourage greater transparency in business energy use and emissions. It replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and simplified carbon disclosure obligations for large companies.

The SECR framework aims to make carbon reporting a standard part of financial and sustainability disclosures, driving energy efficiency and helping the UK achieve its Net Zero by 2050 target.

Who needs to comply

SECR applies to:

• Quoted companies listed on the UK stock exchange.
• Large unquoted companies that meet at least two of the following criteria: turnover > £36 million, balance sheet > £18 million or > 250 employees.
• Large LLPs meeting the same thresholds.

These organisations must include SECR information in their annual Directors’ Report or equivalent filing.

SECR reporting requirements

To comply with SECR, companies must include four key disclosures in their annual report:

1. Energy use
Report total UK energy consumption from electricity, gas and transport fuels. Multi‑site operators must consolidate usage across all premises, vehicle fleets and operations.

2. Greenhouse gas (GHG) emissions
Disclose total Scope 1 and 2 emissions – direct emissions from owned operations and indirect emissions from purchased electricity and heat. Many organisations also voluntarily include Scope 3 data for supply chain emissions.

3. Intensity ratios
Provide at least one intensity ratio to contextualise energy and emissions, such as emissions per £ turnover, per employee or per square metre of floor space.

4. Energy‑efficiency actions
Detail any energy‑saving initiatives implemented during the reporting year, such as lighting upgrades, HVAC optimisation or operational efficiency projects. See our energy saving tips for examples.

SECR reports should align with financial disclosures, demonstrating how sustainability performance integrates with wider business strategy.

Benefits of SECR reporting for businesses

SECR is a compliance obligation, but done right, can also be an opportunity for business improvement.

Greater transparency and accountability
Publishing energy and carbon data improves transparency for investors, regulators and customers. It demonstrates that sustainability is taken seriously and embedded in governance.

Identifying cost‑saving opportunities
Tracking energy use helps identify inefficiencies and avoidable costs. According to the Carbon Trust, UK businesses waste up to 20 % of their annual energy through inefficiencies – a figure SECR can help reduce.

Supporting corporate sustainability strategies
SECR data supports broader ESG frameworks and helps organisations benchmark performance over time. It also strengthens alignment with Net Zero commitments and corporate responsibility goals.

Enhancing investor and stakeholder trust
Transparent reporting signals proactive management, improving investor confidence and brand reputation. For property owners, energy efficiency can also affect property valuation and long‑term asset performance.

Common challenges in SECR reporting

Despite its benefits, SECR reporting can be resource‑intensive, especially for organisations managing complex portfolios.

Data collection across multiple sites
Gathering consistent, accurate energy data from multiple facilities, meters and transport sources is often challenging. Incomplete or inconsistent data can compromise compliance.

Managing large volumes of utility and transport data
Different data formats like spreadsheets, invoices and meter exports can be difficult to consolidate manually.

Risk of inaccuracies
Manual reporting increases the likelihood of errors and incomplete audit trails, exposing organisations to compliance risk.

Balancing compliance with strategic goals
Many businesses struggle to move beyond compliance and use SECR insights strategically to improve efficiency, reduce costs and drive sustainability.

How software streamlines SECR reporting

Energy and carbon reporting software automates much of the SECR process – saving time, improving accuracy and creating valuable business insight.

Automated data capture
Software integrates directly with meters, sensors and utility suppliers to collect accurate energy data automatically. This eliminates manual entry and reduces human error.

Integration with finance, property and facilities systems
Integrating SECR data with core business systems ensures complete coverage and consistency across reporting streams. It also links energy performance with cost centres and asset portfolios.

Real‑time dashboards
Modern energy management software provides live dashboards for tracking energy use and carbon output, helping teams identify spikes, trends or anomalies before year‑end.

Simplified audit trails
Automated audit logs ensure traceable, verifiable data for internal review and external auditors, simplifying compliance.

MRI Software’s energy management and reporting solutions
MRI’s energy and sustainability tools automate data collection, reporting and analysis across property portfolios. By centralising performance data, clients can monitor compliance, track energy efficiency progress and prepare accurate SECR disclosures with minimal manual effort.

Steps to ensure SECR compliance

1. Confirm if your business qualifies
   Check whether your organisation meets SECR thresholds based on size and structure.
2. Gather accurate energy and emissions data
   Collect electricity, gas and transport data across all UK operations. Use automated tools where possible.
3. Choose appropriate intensity ratios
   Select metrics that best represent your business model and operations.
4. Implement energy efficiency initiatives
   Act on insights to cut consumption and emissions – refer to our energy saving tips for ideas.
5. Use reporting software
   Simplify data management and ensure reliable audit trails through digital solutions.

SECR vs ESOS: What’s the difference?

Both SECR and ESOS aim to improve UK business energy efficiency, but they differ in scope and purpose.

Feature	SECR	ESOS
Purpose	Annual public disclosure of energy and carbon data	Four‑yearly energy audit to identify efficiency opportunities
Who it applies to	Large UK companies, LLPs and quoted companies	Organisations with > 250 employees or > €50 million turnover
Frequency	Annual	Every four years
Output	Published report in Directors’ Report	Internal energy audit and compliance submission
Focus	Transparency and accountability	Identifying and planning efficiency improvements

Some businesses qualify for both schemes. Software solutions like MRI’s help streamline data management and ensure that information collected for one can easily support the other.

Future of SECR and energy compliance

SECR plays a central role in the UK’s pathway to Net Zero. As carbon accountability becomes standard across financial and corporate reporting, SECR compliance will only grow in importance.

The government is expected to strengthen requirements over time, expanding reporting boundaries and mandating digital submission. Businesses that invest now in data systems and reporting infrastructure will be better prepared for future regulatory updates.

Digitalisation will remain key. Energy management platforms that unify data across property, finance and sustainability teams provide the foundation for smarter, real‑time decision‑making and continuous efficiency improvement.

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