Understanding Streamlined Energy and Carbon Reporting (SECR)

SECR is a statutory reporting requirement for organisations listed on the stock exchange or categorised as a “Large” company within the UK. It is designed to provide greater transparency of organisations’ energy usage and associated emissions generation. The information required must be included 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 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 this exemption is being used, a note to that effect must be included within the Trustee’s report.  

General information required 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.  

An explanation of these points is provided below. 

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. Energy usage must be provided as kWh, so litres of diesel for example needs to be converted to kWh.  

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 that should be included: 

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

• Electricity purchased. 

• Fuel or energy used 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.   

Green House Gas Emissions 

Greenhouse gas emissions must be provided for the energy that is within scope.  

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

Emissions are normally calculated using the most up to date emissions factors from the Department for Energy Security and Net Zero (Previously provided under the names of BEIS and DEFRA).  

Information should be provided in the form of tonnes of carbon dioxide equivalent (tCO2e) 

Intensity Metrics 

At least a single intensity metric should be provided. 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 

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. An explanation as to the methodology and emissions factors utilised in generating the report is required. 

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.  If no actions have been taken, this also must be stated.  

Prior Years Figures 

It is not required 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 

Extra information on either energy usage or emissions, can optionally be included, 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.  

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