SECR reporting (Streamlined Energy and Carbon Reporting)

What is SECR reporting?

SECR reporting is a legal duty to publish your energy use and greenhouse gas emissions in your annual report each year. It applies to UK quoted companies and to larger unquoted companies and limited liability partnerships (LLPs), for financial years starting on or after 1 April 2019.

SECR is a disclosure duty, not a reduction target. You must report:

• how much energy you used, in kWh
• the emissions linked to that energy, in tonnes of CO2 equivalent (tCO2e)
• at least one intensity ratio
• the method you used
• the main energy efficiency measures you took in the year

Companies put this in the directors' report. LLPs prepare a separate energy and carbon report and file it with their accounts. The rules sit in the Companies (Directors' Report) and LLP (Energy and Carbon Report) Regulations 2018, which amended company and LLP accounting rules.

Who must report under SECR: the current thresholds

You must report if you are a quoted company, or an unquoted company or LLP that is not exempt on size. You are exempt only if you meet at least two of: turnover of £36 million or less, balance sheet total of £18 million or less, and 250 employees or fewer.

The April 2025 threshold change does not apply to SECR

For financial years beginning on or after 6 April 2025, the Companies Act limits for a medium-sized company rose to £54 million turnover and £27 million balance sheet. SECR does not use those limits. Its own tests are written into Schedule 7, Part 7A of the accounts regulations and into the LLP regulations, and they were not amended. The government's September 2026 consultation describes SECR scope as using the "previous large definition" of £36 million turnover.

Watch out: A company now classed as medium-sized for its accounts can still be caught by SECR. Test against £36m, £18m and 250 employees, not the new Companies Act figures.

Two-year rule, groups and quoted status

• Your exempt status only changes once you meet (or fail) the tests in two consecutive years.
• A subsidiary is exempt if its parent's group report covers it.
• "Quoted" means shares on the UK official list, officially listed in an EEA state, or traded on the NYSE or Nasdaq. Companies traded only on AIM are not on the official list, so they are unquoted.

What to include in your SECR report

The disclosures differ slightly between quoted companies and everyone else. From your second year of reporting you must also show the previous year's figures.

Transport counts

Include fuel for company cars, fleet vehicles, and personal or hire cars used for business, including business mileage claims, where you are responsible for buying the fuel. Flights, taxis and trains you do not operate are not part of the mandatory figure.

Choosing an intensity ratio

Pick a ratio that fits your activity and keep it consistent, such as tCO2e per £1 million turnover, per square metre of floor space, or per tonne of product.

The SECR 40MWh low energy user exemption

If you used 40,000 kWh (40 MWh) or less in the reporting period, you do not need to make the detailed SECR disclosures. You must still say in your report that you are not disclosing the information for that reason.

• Unquoted companies and LLPs: count UK energy (including the offshore area) from gas, electricity and transport.
• Quoted companies: count energy across the group.

Few organisations big enough to meet the size tests fall below 40 MWh, so check your figures before relying on it. Separately, directors can leave out information that would be "seriously prejudicial" to the company, and quoted companies can omit information that is not practical to obtain. Both require a statement explaining the omission.

Methodology and conversion factors

You must state the methodology you used. The government's environmental reporting guidelines recommend a recognised standard such as the GHG Protocol Corporate Standard or ISO 14064-1:2018.

To convert energy into emissions, most businesses use the UK government conversion factors, which DESNZ updates every year. The 2026 set is now available. Use factors that match your reporting period and say which set you used.

Good practice for a defensible report:

1. Use meter readings and invoices rather than estimates where you can, and explain any estimates.
2. Keep the same organisational boundary as your financial statements.
3. Reuse data you already collect: you can cite ESOS data as a source, and UK ETS or climate change agreement monitoring can feed in, but check the boundaries match.
4. Keep workings so your auditors and the FRC can follow them.

SECR penalties and enforcement

SECR is enforced through company law, not an environmental regulator. Breaches can be criminal offences for directors or LLP members, and the Secretary of State or the FRC's Conduct Committee can go to court over a defective report.

The government's 2026 post-implementation review found compliance generally high but uneven, with gaps among private companies and LLPs, and enforcement light-touch.

How SECR relates to ESOS and UK SRS, and what may change

SECR often overlaps with ESOS, but the two schemes do different jobs and use different size tests.

UK SRS

The UK Sustainability Reporting Standards, UK SRS S1 and S2, were published on 25 February 2026 for voluntary use. The FCA's final rules require in-scope listed companies to report against them on a comply-or-explain basis for accounting periods beginning on or after 1 January 2027. SECR continues to apply alongside. See our sustainability reporting guide.

Reforms: proposed, not law

• A May 2026 post-implementation review recommended keeping SECR with amendments, such as a standard template and clearer guidance.
• The "Modernising corporate reporting" consultation (7 September to 30 November 2026) proposes abolishing the directors' report and letting companies place SECR disclosures anywhere in the first half of the annual report.
• DESNZ has said it intends to consult on SECR and ESOS reform later in 2026.

Until new legislation is made, report under the current rules.

How it differs across the UK

E England

SECR applies in the same way across the UK because it sits in UK-wide company law. Summary fines for LLP members are unlimited in England and Wales.

W Wales

Same rules as England. Companies registered in England and Wales file with Companies House in the usual way.

S Scotland

Same SECR rules and thresholds. On summary conviction, fines for LLP members are capped at the statutory maximum in Scotland.

NI Northern Ireland

Same SECR rules and thresholds. On summary conviction, fines for LLP members are capped at the statutory maximum in Northern Ireland.

Key dates

• Q4 2026

  DESNZ consultation on SECR and ESOS reform expected (later in 2026)

  SECR reporters and ESOS participants EWSNI Proposed

• 30 Nov 2026

  Consultation closes: Modernising corporate reporting (includes proposal to move SECR disclosures out of the directors' report)

  Companies, LLPs, investors and advisers wishing to respond EWSNI

• 1 Jan 2027

  FCA UK SRS disclosure rules apply to listed companies (accounting periods beginning on or after this date)

  In-scope UK-listed issuers, including SECR quoted companies EWSNI

• 30 Jun 2027

  SECR: public companies with a 31 December 2026 year end file accounts and directors' report at Companies House

  Public companies (deadline is 6 months after year end) EWSNI Annual

• 30 Sep 2027

  SECR: private companies and LLPs with a 31 December 2026 year end file accounts and SECR disclosures at Companies House

  Private companies and LLPs (deadline is 9 months after year end) EWSNI Annual

Dates marked “Proposed” are announced or consulted on but not yet law. See the full deadlines calendar.

Penalties and enforcement

Where to do it: official services

• File your company's annual accounts with Companies House Report or submit

  File your annual accounts and reports, which carry your SECR disclosures. Companies House EWSNI

• Find and update company information Check a register

  View filed annual reports, including other companies' SECR disclosures for benchmarking. Companies House EWSNI

• Environmental reporting guidelines, including SECR Guidance

  Official guidance on who must report under SECR, what to disclose and recommended methods. DESNZ EWSNI

• Greenhouse gas reporting: conversion factors 2026 Tool or calculator

  Download the current emission factors for converting energy use into tCO2e. DESNZ EWSNI

The law behind this

• The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 EWSNI
• The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Schedule 7 EWSNI
• The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 EWSNI
• Companies Act 2006 EWSNI

Terms used in this guide

Quoted company

A company whose equity shares are on the UK official list, officially listed in an EEA state, or admitted to dealing on the NYSE or Nasdaq.

Unquoted company

Any company that is not a quoted company, including companies whose shares are traded only on AIM.

Low energy user

A company or LLP that used 40,000 kWh or less in the reporting period. It states this instead of making detailed SECR disclosures.

Intensity ratio

A figure relating your emissions to a measure of activity, such as tCO2e per £1 million turnover or per square metre.

Scope 1 emissions

Direct emissions from fuel you burn and facilities you operate, including company vehicles.

Scope 2 emissions

Indirect emissions from electricity, heat, steam or cooling you buy for your own use.

Energy and carbon report

The separate report an in-scope LLP prepares and files with its accounts to make SECR disclosures.

Conversion factors

Emission factors published each year by DESNZ for converting energy use and activity data into tCO2e.

Full glossary