Updated for 2025/26 reporting year
SECR Reporting Guide
A step-by-step guide to Streamlined Energy and Carbon Reporting for UK companies. From checking your eligibility to publishing a compliant disclosure in your Directors' Report.
Who must report?
Quoted companies, large unquoted companies, and LLPs meeting 2 of 3 size thresholds.
What to disclose?
UK energy use (kWh), associated emissions (tCO₂e), an intensity metric, prior-year figures, and an efficiency narrative.
Where does it go?
In the Directors' Report within your annual accounts filed at Companies House.
9 steps to a compliant SECR disclosure
Check whether your company qualifies
SECR applies to quoted companies of any size, and to large unquoted companies and LLPs that meet at least two of three thresholds: turnover above £36M, balance sheet above £18M, or more than 250 employees. Use our threshold checker to find out instantly.
Check thresholds →Define your reporting boundary
Decide which entities and operations are included. Most companies use the "financial control" approach under the GHG Protocol, meaning you report emissions for operations you have financial control over. Clearly document which subsidiaries, sites, and leased assets are in scope.
Collect energy and activity data
Gather consumption data for all fuel, electricity, and transport sources. This typically includes gas and electricity bills, fuel card statements, fleet mileage records, and expense claims for business travel. Organise by site if you operate from multiple locations.
Choose your emission factors
Apply the latest DESNZ UK Government GHG Conversion Factors. For the 2025/26 reporting year, use the DESNZ 2025 dataset. Scope 1 factors cover direct combustion (gas, diesel, petrol). Scope 2 covers purchased electricity. Scope 3 covers business travel and other indirect sources.
Try our calculator →Calculate emissions by scope
For each activity row, multiply the quantity consumed by the appropriate conversion factor to get kgCO₂e. Then aggregate into Scope 1 (direct), Scope 2 (electricity), and Scope 3 (other indirect). Convert totals from kg to tonnes by dividing by 1,000.
Calculate an intensity metric
SECR requires at least one intensity ratio to normalise emissions against business size. Common choices are tCO₂e per employee, tCO₂e per £M revenue, or tCO₂e per m² of floor area. This enables meaningful year-on-year comparison even as the business grows or contracts.
Write the narrative disclosure
Your Directors' Report must include a narrative describing the energy efficiency actions your company has taken during the reporting period. This doesn't need to be lengthy — a few paragraphs covering monitoring practices, efficiency investments, and future plans is sufficient.
Include prior-year comparison
Unless this is your first year of SECR reporting, include prior-year figures alongside current-year data so readers can assess progress. Report restated prior-year figures if your methodology or boundary has changed.
Publish in the Directors' Report
The SECR disclosure goes into the Directors' Report within your annual accounts filed at Companies House. It should appear as a clearly labelled section. Quoted companies have additional requirements including global emissions and a separate Scope breakdown.
What SECR requires you to disclose
The table below summarises the mandatory disclosure items under the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (SI 2018/1155).
| Disclosure Item | Applies To |
|---|---|
| UK energy use (kWh) | All qualifying companies |
| Associated greenhouse gas emissions (tCO₂e) | All qualifying companies |
| At least one intensity ratio | All qualifying companies |
| Prior-year comparison figures | All (except first year) |
| Methodology description | All qualifying companies |
| Energy efficiency narrative | All qualifying companies |
| Global energy and emissions | Quoted companies only |
| Scope 1, 2, 3 breakdown | Quoted companies only |
Understanding the three scopes
Direct Emissions
Emissions from sources owned or controlled by your company. This includes natural gas for heating, diesel and petrol for company vehicles, gas oil for generators, and fugitive emissions from refrigerants and air conditioning.
Common sources: Natural gas, diesel, petrol, LPG, gas oil, refrigerant top-ups
Indirect Energy Emissions
Emissions from the generation of purchased electricity consumed by your company. For most UK companies this is their grid electricity. The DESNZ grid average factor for 2025 is 0.207 kgCO₂e per kWh.
Common sources: Purchased electricity
Other Indirect Emissions
Emissions from activities not owned or controlled by your company but that occur as a consequence of your operations. Under SECR, business travel in vehicles not owned by the company is the most commonly reported Scope 3 category.
Common sources: Business travel (flights, rail, hire cars, taxis), water supply
Frequently asked questions
When did SECR come into effect?
SECR came into effect on 1 April 2019 for financial years beginning on or after that date. It replaced the CRC Energy Efficiency Scheme and expanded on the existing Mandatory Carbon Reporting (MCR) requirements for quoted companies.
What is the penalty for non-compliance?
Failure to include the required SECR disclosure in your Directors' Report means the annual accounts are technically non-compliant. Companies House may reject the filing, and directors could face personal liability. In practice, auditors will flag the omission.
Can we claim a low-energy exemption?
Yes. If your organisation's total energy consumption is 40 MWh or less in the reporting year, you can claim a low-energy use exemption and include a short statement to that effect instead of the full disclosure.
Do we need to report Scope 3 emissions?
For large unquoted companies and LLPs, Scope 3 reporting is voluntary but recommended. Quoted companies must report Scope 3 if they are material and practicable to obtain. Business travel is the most commonly reported Scope 3 category.
Which emission factors should we use?
The UK Government recommends using the DESNZ (formerly BEIS) conversion factors published annually. For the 2025/26 financial year, use the DESNZ 2025 dataset. These are the factors built into SECR-ESG.
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