Maximizing Savings and Sustainability: The Benefits of SECR Compliance for Companies


SECR, which stands for Streamlined Energy and Carbon Reporting, is a reporting framework introduced by the UK government in April 2019.

SECR is part of the UK’s broader efforts to reduce emissions and improve energy efficiency. The purpose of SECR is to improve the reporting of energy use and greenhouse gas emissions by companies and organizations in the UK.

SECR is mandatory for large quoted companies, unquoted companies, and largely limited liability partnerships. This means that companies must report their energy use and greenhouse gas emissions annually as part of their directors’ reports.

SECR is designed to provide companies with a straightforward and streamlined way to report their energy use and carbon emissions, making it easier for companies to comply and for investors to understand the sustainability performance of companies.

The need for SECR arose from the growing awareness of the impact of human activity on the environment and the need for companies to be more transparent about their energy use and emissions.

It also provides investors with important information about companies’ sustainability performance, helping them make informed investment decisions.

Key Benefits of SECR Compliance

SECR compliance offers a range of benefits for companies, including improved energy efficiency, financial savings, and reduced carbon footprint.

Let’s take an inside look at each of these benefits:

Improved Energy Efficiency

Monitoring and reporting of energy use: SECR requires companies to regularly monitor and report on their energy use, which helps them identify improvement areas. By tracking their energy use, companies can identify opportunities to reduce energy consumption, improve energy efficiency, and save money.

Setting targets for reducing energy use: SECR also encourages companies to set targets for reducing their energy use, which helps to drive improvements in energy efficiency. Establishing clear goals and regularly monitoring progress towards these targets can catalyze the collaboration and efforts of employees and stakeholders toward reducing energy consumption and increasing efficiency within the company.

Financial savings

Identification of areas for cost savings: By tracking and reporting their energy consumption, companies can pinpoint instances where energy is being misused, and finances are being wasted. This enables them to find ways to save costs and make enhancements that lower their energy expenses.

Improved energy management: One of the financial advantages of SECR is enhanced energy management. By monitoring their energy usage, companies can locate areas that need improvement and put in place strategies to save energy, ultimately leading to a decrease in energy costs.

Reduced Carbon Footprint

Reporting on greenhouse gas emissions: SECR requires companies to report their greenhouse gas emissions, which helps to raise awareness of the issue and encourages companies to take steps to reduce their carbon footprint.

Encouragement for reducing emissions: SECR also encourages companies to set targets for reducing their greenhouse gas emissions, which helps to drive improvements in sustainability and reduce the company’s carbon footprint.

Case Studies of Companies that have benefited from SECR

Many real-world examples of companies have successfully implemented SECR and achieved significant benefits.

Let’s check these case studies:

Tesco: Tesco is a UK-based retailer that has successfully implemented SECR.

The company has established specific targets for reducing carbon emissions in its operations, to achieve a 100% reduction by 2035 in the UK and a progressive decrease of 35% by 2020, 60% by 2025, 85% by 2030, and 100% by 2050 on a global scale.

These targets are based on a 2015 baseline.

Royal Mail: Royal Mail has already achieved the distinction of having the lowest carbon emissions per parcel among the major delivery companies in the UK. However, they are determined to do more.

They aim to continually reduce emissions, minimize waste and enhance the air quality in the areas where we conduct our operations.

To summarize, SECR compliance offers numerous advantages to companies, including increased energy efficiency, financial gains, and a reduction in their carbon footprint. Through consistent monitoring and reporting of energy usage and emissions, organizations can enhance their sustainability practices and play a role in building a more sustainable future.