Since 1 April 2019, large UK companies need to report their global energy use and greenhouse gas emissions in line with The Streamlined Energy and Carbon Reporting (SECR). The new regulation is a simplified version that replaces the so far existing CRC Energy Efficiency Scheme. It affects around 11,000 UK quoted and non-quoted large companies. Filed information needs to give a good understanding of the companies impact. To put this into a broader framework, companies can include social impact and community investment in an integrated report. The new regulation is part of the UK Government’s Clean Growth Strategy.
With the Clean Growth Strategy, the UK Government aims to improve the energy productivity of businesses and industries by at least 20% until 2030. The regulation shall lead to more transparency for investors on the companies emissions and energy costs and as a consequence pressure the companies to cut down those numbers. But a regulation on transparency existed before, as mentioned: the SECR is only a simplified version. Companies were already held to disclose their environmental impacts. It is questionable whether another way of reporting them will have a bigger impact on their emissions. The Government emphasizes the aspect of cutting costs and improving productivity while reducing carbon emissions to get companies on board. Electronic filing is not yet obligatory, leading to a lot of paperwork for the reports.