The UK Government has announced that large companies across the UK will be required to report on their carbon and energy use as part of the announced Streamlined Energy & Carbon Reporting (SECR) framework.
The new framework forms a package of changes following a review of the business energy efficiency tax and policy landscape announced in the 2016 Budget. The review looked at ways to simplify the landscape which stakeholders viewed as overly complex. As a result, it was announced the CRC Energy Efficiency Scheme is to be abolished, Climate Change Levey to increase and new reporting will be done.
SECR will apply to large unquoted organisations with at least 250 employees, or those that have an annual turnover greater than £36m and balance sheet total above £18m. These firms will join listed companies, which have been mandated since 2013 to report on:
- Carbon emissions;
- Energy consumption;
- Energy efficiency action (if any).
Reporting will form part of the Directors’ Report and Accounts and Auditor’s Reports (Limited Liability Partnerships) for the financial years starting on or after 1 April 2019.
The UK Government anticipates that the new package of measures will provide a net societal benefit of up to £1.5bn. Draft Regulations for the SECR framework have been laid before the UK Parliament and subject to parliamentary approval.