SECR Reporting: What business leaders need to know before it’s too late

When it comes to ESG reporting, the Streamlined Energy and Carbon Reporting (SECR) framework is still flying under the radar for many accountants, Finance Directors (FDs), and Chief Financial Officers (CFOs). Despite being in force since April 2019, we’re still having conversations with businesses and professional advisers who are completely unaware that they have already met or are on the cusp of meeting the threshold for mandatory SECR reporting. This oversight is not merely a compliance gap. but a missed opportunity to lead on sustainability, de-risk the business, and meet growing stakeholder expectations. 

For FDs or CFOs, it is critical that you understand your legal responsibility in relation to ESG reporting. If you’re an accountant or finance professional advising clients, you have a duty of care to ensure they do not fall foul of the legislation. As a trusted sustainability partner Wylde Connections is committed to supporting businesses at every stage of their journey and part of our mission is to share insight into the ever-changing ESG landscape. This article is an essential briefing on what SECR is, who needs to comply, the risks of ignoring it, and how our consultancy services and diagnostic tool Enveglas can simplify the process.

What is SECR?

SECR (Streamlined Energy and Carbon Reporting) was introduced by the UK government to improve the transparency of carbon and energy performance in businesses. It is a mandatory reporting framework that replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and expanded reporting obligations to a wider set of businesses. Its purpose is to embed carbon and energy considerations into business decision-making and encourage organisations to reduce emissions in line with Net Zero targets.

Who Needs to Comply?

Businesses that meet the qualifying criteria are required to disclose their energy use and associated carbon emissions annually within their Directors’ Report, either as part of their annual accounts or within a strategic report depending on company structure. 

SECR applies to quoted companies, large unquoted companies (including LLPs) that meet the thresholds and some public interest entities. Your business must comply with SECR if it meets at least two of the following three criteria:

• • • More than 250 employees
    • Annual turnover greater than £36 million
    • Annual balance sheet total over £18 million

If your business is teetering on the edge of these thresholds, you need to be proactive and be ready for what is to come. Waiting until you have already crossed thresholds leaves no time to prepare a compliant report.

What needs to be reported?

Businesses must report:

• UK energy use (gas, electricity, transport)
• Associated GHG emissions (Scope 1 and Scope 2 as a minimum)
• At least one emissions intensity metric
• Methodology used for calculations
• Narrative on energy efficiency actions taken during the reporting year

For quoted companies, global energy use and Scope 1 and 2 emissions must be included. Scope 3 reporting is not mandatory under SECR, but businesses are increasingly choosing to report these voluntarily, especially where there is supply chain pressure or investor scrutiny.

What happens if you fail to comply?

There are both regulatory and business risks associated with non-compliance. From a legal standpoint, the Conduct Committee of the Financial Reporting Council (FRC) can sanction non-compliance. Penalties can include fines, mandatory restatement of accounts and reputational damage in financial audits. 

From a business perspective, falling foul of SECR sends out a signal that you are behind the curve and raises red flags for stakeholders. We are seeing more and more supply chain contracts ask about SECR compliance as a minimum within tenders and contract renewals. Similarly, institutional investors and lenders are demanding that ESG is a top priority, whilst in a time of skills shortages and prospective and existing employees want to see that you are committed to understanding and managing your impacts.

How to respond 

Whether you are an FD reviewing your company’s obligations or an accountant supporting a portfolio of clients, you need to:

• Check whether you (or your clients) meet the SECR thresholds
• Identify who in the organisation is responsible for data gathering
• Review energy and transport data collection processes
• Commission a carbon footprint baseline if not already done
• Ensure the methodology used is robust and auditable
• Draft the narrative around energy efficiency measures

How we can help 

We understand that many businesses lack the skills, confidence and know-how to get started. Negotiating ESG can feel overwhelming, especially if your finance team lacks the in-house carbon expertise. That’s where Wylde Connections comes in. 

Our ESG diagnostic tool and GHG reporting platform Enveglas is designed to support businesses through SECR and beyond. It will:

• Collect and analyse your energy and carbon data
• Flag gaps and risks in compliance
• Offer diagnostic tools to help you understand where you stand
• Creates clear, auditable reports aligned with SECR and wider ESG expectations
• Scale with you as your business grows, so you are ready when other reporting requirements like CSRD or UK sustainability disclosures kick in 

Whether you are just starting out or looking to professionalise your ESG reporting, Enveglas provides the support you need.

Take the lead 

FDs and CFOs are legally responsible for SECR compliance. There is no time to waste in assessing your current position and engaging a specialist to take you beyond compliance. For Accountants and Financial Advisers advising limited companies approaching these thresholds, SECR must be part of your year-end checklist. Failure to flag it is professional negligence. Take this opportunity to upskill your practice and offer added value to clients.

Book a discovery call with our team to explore how our SECR support and Enveglas platform can take the pain out of compliance and help you use ESG as a strategic advantage. For more information about regulations that might affect you or your clients, click here to read our eBook – Navigating Sustainability Reporting and Taxation 2025.