As part of the SECR requirements, qualifying organisations need to disclose their annual energy use (in kWh) relating to gas, purchased electricity and transport fuel, as well as their associated greenhouse gas emissions (in tonnes of carbon dioxide equivalent (CO2e)).
Businesses that are required to comply with Streamlined Energy and Carbon Reporting (SECR) must disclose certain information regarding their energy use and greenhouse gas emissions. This information is required under the SECR requirements. In this article, we will discuss the requirements in detail, including the minimum information that needs to be disclosed, the emissions intensity ratio, the methodologies used to calculate the required information, the narrative of measures taken to improve energy efficiency, and the prior year equivalent figures that need to be disclosed for comparison.
The Minimum Information that Needs to be Disclosed
As part of the SECR requirements, qualifying organisations need to disclose their annual energy use (in kWh) relating to gas, purchased electricity and transport fuel, as well as their associated greenhouse gas emissions (in tonnes of carbon dioxide equivalent (CO2e)). This information needs to be disclosed as a minimum requirement.
It is important to note that the energy use and emissions data should be reported for all the sites that the organisation operates. This includes all buildings that the organisation owns or manages. If the organisation purchases energy from third-party suppliers, the energy use and emissions data should also be reported.
Scope 1, 2 and 3 greenhouse gas emissions
The SECR regulations require businesses to report their scope 1, 2 and 3 greenhouse gas emissions. Scope 1 emissions are direct emissions from sources that are owned or controlled by the business, such as combustion of fossil fuels in on-site boilers. Scope 2 emissions are indirect emissions from the consumption of purchased electricity, heat or steam. Scope 3 emissions are indirect emissions that occur in the value chain of the business, such as emissions from the production of purchased goods or services.
To comply with requirements, businesses must report their scope 1 and 2 emissions, and if possible, their scope 3 emissions. This information must be provided in tonnes of carbon dioxide equivalent (CO2e) and must cover the reporting period.
Emissions Intensity Ratio
In addition to the minimum information, organisations also need to report an emissions intensity ratio. This ratio is used to compare emissions data with an appropriate business metric or financial indicators, to allow comparison over time or with other organisations. The emissions intensity ratio can be calculated using a variety of metrics, including revenue, square footage, or number of employees.
The emissions intensity ratio should be reported for the same period as the energy use and emissions data. This allows for a more comprehensive analysis of the organisation's energy and emissions performance.
Methodologies Used to Calculate the Required Information
To ensure accuracy and consistency in reporting, organisations need to disclose the methodologies used to calculate the required information. The methodologies used should be transparent and based on recognised industry standards and protocols.
The methodologies used to calculate the energy use and emissions data should consider any changes in the organisation's operations, such as new buildings or changes in energy supply. The methodologies used to calculate the emissions intensity ratio should be consistent over time and with other organisations.
Narrative of Measures Taken to Improve Energy Efficiency
Organisations also need to provide a narrative of measures taken to improve energy efficiency in the period of the report. If no measures have been taken, this should be stated. The narrative should include details of any energy efficiency projects undertaken, such as the installation of energy-efficient lighting or the implementation of a building management system.
The narrative should also include details of any targets that the organisation has set for improving energy efficiency and reducing greenhouse gas emissions. These targets should be specific, measurable, achievable, relevant, and time-bound (SMART).
Prior Year Equivalent Figures
Finally, organisations need to disclose the prior year equivalent figures for comparison. This allows for an analysis of the organisation's energy and emissions performance over time. The prior year equivalent figures should be calculated using the same methodologies as the current year's data.
In conclusion, organisations need to disclose certain information regarding their energy use and greenhouse gas emissions as part of the SECR requirements. This includes the minimum information, emissions intensity ratio, methodologies used to calculate the required information, narrative of measures taken to improve energy efficiency, and prior year equivalent figures. By reporting this information, organisations can demonstrate their commitment to sustainability and contribute to the UK's efforts to reduce greenhouse gas emissions.