A new energy and carbon reporting framework is in force

Energy efficiency in the home Print publication


A new energy and carbon reporting framework applies from 1 April 2019, following abolition of the CRC Energy Efficiency Scheme and the introduction of corresponding increases in rates of climate change levy.

The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (2018 Regulations), have been in force since 1 April 2019 and implemented Government’s policy on Streamlined Energy and Carbon Reporting (SECR). The 2018 Regulations bring in additional disclosure requirements for quoted companies and also introduce requirements for large unquoted companies and limited liability partnerships to disclose their annual energy use and greenhouse gas emissions, and related information. The definition of ‘large’ is the same as applies in the existing framework for annual reports and accounts. The SECR requirements mean that there will be an almost seven-fold increase in the number of companies required to comply with energy and carbon reporting legislation.

The 2018 Regulations apply to:

  • quoted companies (those whose equity share capital is officially listed on the Main Market of the London Stock Exchange or is officially listed in an European Economic Area State or is admitted to dealing on either the New York Stock Exchange or NASDAQ);
  • large unquoted companies (whether registered or unregistered) which are required to prepare company accounts and reports;
  • large LLPs.

The 2018 Regulations are designed to:

  • increase awareness of energy costs within large and quoted organisations, including enhanced visibility to key decision makers;
  • create more of a level playing field among large organisations, in terms of energy and emissions reporting;
  • ensure administrative burdens associated with energy and emissions reporting are proportionate and broadly aligned to existing energy reporting requirements and the business reporting framework;
  • provide organisations with the right data to inform adoption of energy efficiency measures and opportunities to reduce their impact on climate change; and
  • provide greater transparency for investors, and other stakeholders, on business energy efficiency and low carbon readiness.

WM Comment

The new mandatory reporting requirements imposed by the 2018 Regulations apply to financial years beginning on or after 1 April 2019.