SECR reporting made simple: a worked example and free template

Qualifying organisations must disclose their energy use, associated carbon emissions and energy-efficiency actions within their annual reporting.

While the requirements may appear relatively straightforward, preparing an accurate SECR disclosure involves more than collecting utility bills and calculating emissions- organisations must establish which activities fall within their reporting boundary, understand which emissions need to be included, collect reliable energy data and apply an appropriate calculation methodology.

In this guide, we explain the current SECR reporting requirements, explore the differences between Scope 1, Scope 2 and Scope 3 emissions, and provide a simple worked example for a business with manufacturing and office operations.

We also include a practical reporting template and highlight where specialist support can help organisations prepare accurate, consistent and meaningful disclosures.

Who needs to report under SECR?

SECR was introduced in April 2019 and applies to three main categories of organisation:

• UK quoted companies, regardless of size.
• Large UK-incorporated unquoted companies.
• Large Limited Liability Partnerships (LLPs).

For unquoted companies and LLPs, the SECR size criteria generally require an organisation to meet at least two of the following thresholds:

Important 2026 clarification: Changes introduced in April 2025 increased the financial thresholds used to determine company size for certain accounting purposes to £54 million turnover and £27 million balance sheet total.

However, the SECR qualifying thresholds have not changed.  Organisations classified as medium-sized for financial reporting purposes may still fall within the scope of SECR.

Certain exemptions apply. For example, organisations consuming 40,000 kWh or less of relevant energy during the reporting year may qualify for the low-energy-user exemption, although an appropriate statement must still be included in the annual report.

Group structures, subsidiaries and changes in organisational circumstances can also affect reporting obligations.

Confirming whether an organisation falls within scope is therefore an important first step, particularly where reporting responsibilities are not immediately clear.

For more information about SECR scope and requirements, download our free factsheet.

What does SECR reporting involve?

SECR requires qualifying organisations to report their energy consumption, associated greenhouse gas emissions and relevant energy-efficiency information.

The exact requirements differ depending on whether an organisation is a quoted company or a large unquoted company or LLP.

In general, disclosures include:

• Annual energy consumption expressed in kilowatt-hours (kWh).
• Associated greenhouse gas emissions expressed in tonnes of carbon dioxide equivalent (tCO₂e).
• At least one appropriate emissions intensity ratio.
• A description of the calculation methodology.
• Comparative information from the previous annual reporting period, where applicable.
• A summary of the main energy-efficiency actions undertaken during the reporting year.

Understanding Scope 1, Scope 2 and Scope 3 emissions

Greenhouse gas emissions are commonly classified into three categories, known as scopes, under the Greenhouse Gas Protocol.

These categories distinguish between emissions generated directly by an organisation, emissions associated with purchased energy and other indirect emissions arising from its activities.

Understanding these distinctions is essential when determining which emissions should be included in an SECR disclosure.

Scope 1 – Direct greenhouse gas emissions-  covers emissions from sources owned or controlled by an organisation, and may include:

• Natural gas burned in boilers or manufacturing processes.
• Petrol and diesel consumed by company-owned or controlled vehicles.
• Fuel used in on-site generators.
• Refrigerant gas leaks from refrigeration or air-conditioning equipment.

Scope 2 – Indirect emissions from purchased energy- covers emissions associated with the generation of purchased electricity, steam, heat or cooling consumed by an organisation.  Examples include:

• Electricity used to operate manufacturing machinery.
• Electricity for office lighting, computers and IT equipment.
• Electricity used for ventilation and cooling systems.
• Purchased electricity used to charge electric company vehicles.

Scope 3 – Other indirect emissions- covers other indirect emissions arising from activities within an organisation's wider value chain.

Examples include:

• Business travel in employee-owned or hired vehicles.
• Business flights and rail journeys.
• Purchased goods and services.
• Waste disposal.
• Employee commuting.
• Third-party transport and distribution.

Scope 3 can represent a substantial proportion of an organisation's overall carbon footprint, particularly where supply chains or transport activities are significant.

However, not all Scope 3 emissions are mandatory under SECR.

Which emission scopes must be reported under SECR?

For UK quoted companies, SECR generally requires reporting of global Scope 1 and Scope 2 greenhouse gas emissions and the associated energy consumption. Wider Scope 3 reporting is encouraged but is not mandatory under SECR.

For large unquoted companies and LLPs, the requirements focus on relevant UK energy consumption and associated emissions, including:

• Scope 1 emissions from relevant direct energy use.
• Scope 2 emissions from purchased energy.
• Certain Scope 3 emissions associated with business transport, including relevant journeys in employee-owned or hire vehicles where the organisation purchases the fuel.

This does not mean that every category of Scope 3 emissions must be calculated for SECR purposes.

Establishing the correct reporting boundary helps ensure that relevant activities are captured without unnecessarily extending the scope of the exercise.

Energy consumption, intensity ratios and methodology

Alongside emissions, organisations must disclose relevant energy consumption in kWh.

An emissions intensity ratio is also required. This compares emissions against a meaningful measure of business activity, helping organisations assess performance over time.

Examples include:

• tCO₂e per £million turnover.
• tCO₂e per tonne of manufactured product.
• tCO₂e per employee.
• tCO₂e per square metre of occupied floor area.

The chosen metric should be relevant to the organisation's activities and applied consistently wherever possible.

Organisations must also describe the methodology used to calculate their energy consumption and emissions, including the approach taken to conversion factors, reporting boundaries and significant assumptions.

Annual UK Government greenhouse gas conversion factors are used to calculate the emissions associated with different energy sources.  The factors are freely available from the GOV.UK website, together with supporting guidance and methodology documents.

Worked example: a business with manufacturing and office operations

Consider a fictional UK manufacturing company operating:

• Two manufacturing sites.
• One distribution warehouse.
• One head office.
• A company vehicle fleet.

The company consumes energy through production processes, building services, office activities and transport.

Its activities can be classified as follows:

The company collects annual electricity, gas and transport energy information and identifies the following consumption:

Figures are fictional and for illustration only.

The relevant consumption figures are then converted into greenhouse gas emissions using the appropriate conversion factors and methodology.

For example:

Electricity consumption (kWh) × applicable electricity emissions factor = associated emissions (kgCO₂e)

The same broad principle applies to other energy sources, although different fuels, activities and reporting categories require appropriate factors and treatment.

Emissions are then expressed in tCO₂e, with 1 tonne equivalent to 1,000 kg.

An intensity ratio can also be calculated. If the company chooses turnover as its measure, its relevant emissions would be divided by annual turnover expressed in £millions. This creates a metric that can be compared with future reporting periods to help assess changes in carbon performance.

Although the underlying calculation may appear simple, the accuracy of the result depends on whether the data is complete, the emissions have been correctly categorised and the methodology has been applied consistently.

Manufacturing and office energy are not necessarily straightforward

Different parts of an organisation can have considerably different energy profiles and reporting challenges.

Manufacturing sites may consume significant amounts of electricity and gas through production equipment, motors, compressed air systems, refrigeration, ventilation and process heating.

Offices generally have lower total energy consumption, but leased premises and shared building services can make data collection more challenging.

For example, our manufacturing company example may receive detailed electricity data for its factories but only a quarterly service-charge statement for its leased head office.

Questions may then arise regarding:

• Whether all relevant energy consumption has been captured.
• How landlord-supplied energy should be treated.
• Whether estimated readings are sufficiently reliable.
• How missing billing periods should be addressed.
• Whether energy records cover the correct financial year.
• Whether changes in site occupancy or operations affect year-on-year comparisons.

These practical issues can have a significant influence on the reliability of the final disclosure.

A review of the underlying information can help establish whether the reported figures provide a reasonable and consistent representation of the organisation's activities.

What might a SECR disclosure contain?

Using our example manufacturing company, the final SECR disclosure would summarise the relevant annual energy consumption, associated emissions, intensity ratio and energy-efficiency actions.

A simplified reporting structure might look like this:

This is an illustrative example rather than a complete statutory SECR disclosure. The actual report would include calculated emissions in tCO₂e, appropriate comparative figures and the required supporting narrative.

The published disclosure should be supported by appropriate records documenting the source information, calculations, assumptions and reporting methodology.

Free SECR reporting preparation template

Before preparing the final disclosure, organisations can use the following template to identify the information they will need.

This provides a useful starting point for collating the information needed for SECR reporting.

However, collecting the information is only one part of the process. Organisations must also establish whether their data and calculation approach are appropriate to their particular reporting circumstances.

Why use an external SECR consultant?

For organisations with straightforward operations and comprehensive energy records, SECR reporting may be relatively simple.

However, where businesses operate across multiple locations, have manufacturing processes, manage vehicle fleets or occupy leased premises, additional technical considerations can arise.

An experienced SECR consultant can provide independent expertise, help address reporting uncertainties and reduce the administrative burden on internal teams and help with:

• Identifying missing data: energy information may be held by different departments, sites or external suppliers. A structured review can identify gaps, omissions and inconsistencies that may otherwise affect the disclosure.
• Establishing a defensible reporting boundary: determining which legal entities, operational sites and activities should be included is fundamental to an accurate report- this is particularly important following acquisitions, disposals, restructuring or changes to an organisation's property portfolio.
• Checking data quality: energy records can contain estimated readings, duplicated information, missing periods or unexplained variations. Reviewing data quality helps improve confidence in the calculations and identify areas requiring further investigation.
• Applying the correct methodology: different energy sources require appropriate treatment, and conversion factors must be applied consistently. Specialist support can help ensure that calculations reflect the applicable reporting requirements and are supported by a documented methodology.
• Providing an independent sense-check: unexpected changes in energy consumption or emissions do not necessarily indicate errors, but they should be understood e.g. a significant reduction in factory electricity use could reflect improved efficiency, reduced production activity or incomplete data- an independent technical review can help determine whether the figures are reasonable.
• Reducing pressure on internal teams: SECR responsibilities often sit alongside existing roles within finance, sustainability, facilities management or compliance- external support can reduce the time spent collecting and validating information, undertaking calculations and preparing the final disclosure, allowing internal teams to maintain oversight without carrying the full technical workload.

SECR should also provide useful management information

While SECR is a statutory reporting requirement, the information collected can provide valuable insight into an organisation's energy performance.

For example, analysing the data may reveal:

• Significant differences in energy consumption between comparable manufacturing sites.
• Higher-than-expected overnight or weekend electricity use.
• Increasing building energy consumption despite lower occupancy.
• Opportunities to improve the efficiency of heating, cooling or compressed air systems.
• Changes in transport energy consumption or fleet performance.

For organisations also subject to the Energy Savings Opportunity Scheme (ESOS), there may be opportunities to use common energy datasets and identify improvements relevant to both reporting and energy management.

A well-managed SECR process can therefore provide useful information for identifying energy-efficiency opportunities, monitoring performance and informing longer-term carbon reduction plans. 

Common SECR challenges

Despite the relatively concise reporting requirements, organisations frequently encounter practical challenges when preparing their disclosures.

Identifying these issues early in the reporting cycle can help organisations avoid unnecessary work close to their annual reporting deadlines.

A simple SECR preparation checklist

Before completing an annual SECR disclosure, organisations should consider the following questions:

• Have we confirmed whether SECR applies to our organisation?
• Have we established the correct organisational and operational reporting boundaries?
• Do we understand which Scope 1, Scope 2 and relevant Scope 3 emissions must be included?
• Have we identified all relevant sources of energy consumption?
• Does our data cover the correct reporting period?
• Have missing information, estimates and assumptions been documented?
• Have we used an appropriate emissions calculation methodology?
• Have we selected a meaningful intensity ratio?
• Are our current and previous-year figures comparable?
• Have we recorded the energy-efficiency actions undertaken during the year?
• Have the calculations and final disclosure been adequately reviewed?

Where there is uncertainty over the data, methodology or scope of reporting, an independent review can help resolve potential issues before publication.

How JRP can help

JRP provides specialist energy and carbon reporting support to organisations across a range of sectors, helping them meet their SECR obligations accurately and efficiently.

Our experience in energy management, energy auditing, greenhouse gas reporting and ESOS compliance allows us to support organisations with both the technical and practical aspects of SECR reporting.

Our services include:

• SECR applicability and reporting-boundary reviews;
• Energy-data collection and validation;
• Identification of missing or inconsistent information;
• Scope 1, Scope 2 and relevant Scope 3 emissions calculations;
• Selection and application of appropriate calculation methodologies;
• Emissions intensity ratio development;
• Year-on-year analysis and reporting;
• Review of energy-efficiency activities;
• Independent technical review of existing disclosures; and
• Preparation of SECR-ready information for inclusion in annual reports.

We can provide a complete reporting service or targeted assistance with specific elements of the process, depending on the organisation's needs and internal resources.

Importantly, our wider energy-management expertise means we can also help businesses look beyond the reporting figures to identify potential improvements in energy performance and carbon reduction.

Need support with your SECR reporting?

Whether you are preparing your first SECR disclosure, reviewing an existing report or looking for support with more complex energy and emissions data, JRP Solutions can help.

Contact our team or book free consultation to discuss your SECR reporting requirements and find out how we can support your organisation.