Understanding Streamlined Energy and Carbon Reporting (SECR)

For organisations the stock exchange or categorised as a “Large” company within the UK SECR is a statutory reporting requirement. It is designed to provide greater transparency into organisations’ energy usage and emissions. You must then include this information within the annual Trustee’s or Director’s report.  

Academy Trusts, along with all other charitable organisations, are within scope of these regulations if they fulfil any two of the following criteria. By doing so they would therefore meet the threshold of “Large” according to the 2006 Companies Act: 

• Turnover of £36 million or more. 

• Balance sheet total of £18 million or more. 

• More than 250 employees. 

As an approximation, this is normally when a trust has more than 5-6 schools. There is also an exemption if the organisation is a “Low Energy User” which means less than 40,000kWh of within-scope energy usage, although this is unlikely for a trust meeting the “Large Company” threshold. If you plan to use this exemption, you also need to include a note to that effect within the Trustee’s report.  

Information included in an SECR report

1. Energy Usage for specific elements in kWh 

1. Green House Gas Emissions (GHG) in tCO2e 

1. An intensity ratio for GHG emissions (tCO2e/unit) 

1. The methodology chosen for the GHG calculations 

1. A narrative explaining actions taken to improve energy efficiency within the year 

1. The equivalent figures for the previous year.  

Read on for an explanation of these points. 

Energy Usage 

Trusts must report on their UK Energy usage (not global use) from Gas, Purchased Electricity, and Transport where they are responsible for purchasing fuel. You must provide energy usage as kWh, so convert litres of diesel for example to kWh.  

Additionally, it is a misconception that SECR should include all energy and emissions which would be categorised as Scope 1 by the Greenhouse Gas Protocol. This is not the case, and in fact the requirement includes a mixture of Scope 1, Scope 2 and Scope 3.  

Sources to include: 

• Any gaseous fuel usage: such as facility heating. This includes both fossil fuel gas and biogas.  

• Purchase of electricity. 

• Use of fuel or energy for transportation purposes: This is specifically for where the Academy is responsible for purchasing the fuel, or in the case of electric vehicles, the electricity.  This covers owned vehicles (e.g. minibuses or fleet vehicles), or staff owned cars where the academy reimburses the employee.  

A SECR report does not require information on fuel where the cost is included within a charge for the service e.g. taxis, contracted buses, rail, air travel etc. It is in this category where there is a crossover between Scope 1, Scope 2 and Scope 3 of the Greenhouse Gas Protocol. Owned fossil fuel vehicles are Scope 1, electric vehicles are Scope 2, whilst staff owned vehicles are Scope 3 – Business Travel.   

Greenhouse Gas Emissions 

You must provide Greenhouse gas emissions for the energy that is within scope.  

Again, you are not required to include other Scope 1 elements such as heating oil and refrigerant emissions.  

You normally calculate emissions using the most up to date emissions factors from the Department for Energy Security and Net Zero. Previously these were under the names of BEIS and DEFRA.  

You’ll need to provide information in the form of tonnes of carbon dioxide equivalent (tCO2e) 

Intensity Metrics 

You should include at least a single intensity metric. This is the total green house gas emissions divided across a metric which could be expected to increase or decrease in line with an organisation’s activity. Examples in business include staff full time equivalent (FTE), or financial turnover. In Academy trusts, a carbon per pupil or per 1000 pupils is more common.  

Calculation Methodology for SECR

Different green house gas methodologies exist, such as the World Resources Institute Green House Gas Protocol or ISO 14064-1, as well as variations in emissions factors. You’re also required to supply an explanation as to the methodology and emissions factors utilised in generating the report. 

Narrative of measures taken to improve efficiency 

Academies are continually looking for ways to optimise energy usage for both environmental and financial benefit. This section provides space to lay out some efficiency actions taken within the last year. This might include alternative building management controls, an increase in teleconferencing or transitioning to an electric vehicle fleet.  You must also state if no actions have been taken.  

Prior Years Figures 

You don’t need to restate efficiency actions or calculation methodology. But energy usage in kWh and tCO2e and the intensity metric for the previous year should be included within the report so as to provide a direct comparison from one year to the next.  

Optional information for SECR

You can optionally include extra information on either energy usage or emissions. And organisations which strictly might be outside of the scope of the regulations are also free to submit an SECR type report within their Trustees Report.  

For more information, get in touch here.