What is SECR reporting, and why might it not only be relevant for large companies?
As we head into 2026, some SMEs are finding themselves caught by reporting requirements, often realising too late that they don’t have the data or systems in place to respond confidently.
One of the most common of these is SECR (Streamlined Energy and Carbon Reporting). Introduced in 2019, SECR was designed to improve transparency around energy use and carbon emissions in UK businesses. It requires qualifying organisations to include energy and carbon information within their annual reports.
SECR is now a well-established compliance requirement and increasingly linked to wider sustainability expectations from clients, investors, and regulators. Understanding whether SECR applies to your organisation, and preparing early, can prevent last-minute pressure and ensure your environmental data is accurate and credible.
What is SECR?
SECR stands for Streamlined Energy and Carbon Reporting. It is a UK government framework that requires certain organisations to report on:
- Energy use
- Greenhouse gas emissions
- Energy efficiency actions
The aim is to help organisations better understand how they use energy, identify opportunities to improve efficiency, and increase transparency around environmental performance.
SECR applies to large unquoted companies, LLPs, and quoted companies, with disclosures included within statutory accounts. While it is technically a reporting requirement, its impact goes far beyond paperwork and influences how organisations monitor and manage environmental performance.
Who needs to comply with SECR?
Your business is likely to fall within the scope of SECR if it meets at least two of the following criteria:
- More than 250 employees
- Annual turnover above £36 million
- Balance sheet total over £18 million
Quoted companies also have SECR obligations, with broader disclosure requirements.
For many SMEs, the challenge is growth. Businesses can cross these thresholds quickly and often only realise they are in scope during year-end reporting. This leaves limited time to gather accurate energy and emissions data.
Even where SECR does not yet apply, many SMEs are choosing to prepare early to avoid disruption and strengthen their environmental reporting processes.
What information does SECR require?
SECR reporting focuses on three main areas.
Energy consumption
This includes energy used from:
- Electricity
- Gas
- Transport fuel used for business purposes
Data may need to be collected across multiple sites, vehicles, and operational activities, which can be challenging without structured internal processes.
Greenhouse gas emissions
These include:
- Scope 1 emissions – direct emissions from owned or controlled sources
- Scope 2 emissions – indirect emissions from purchased electricity
Additional emissions, such as business travel in employee-owned vehicles, may also be included depending on circumstances.
Energy efficiency actions
Organisations must describe the measures taken to improve energy efficiency during the reporting year. This is often where difficulties arise, particularly where energy management has not previously been formalised.
Why SECR is increasingly relevant for SMEs
Even for organisations not legally in scope, SECR is becoming part of the wider business landscape. Many SMEs are already being asked to provide energy and carbon data as part of:
- Tender submissions
- Supply chain sustainability requests
- Client due diligence processes
- ESG questionnaires
Larger organisations with their own reporting obligations increasingly expect environmental transparency from suppliers. Having systems in place makes responding to these requests far more efficient and reduces ongoing administrative burden.
Preparing with Environmental Management Systems ensures data is reliable, consistent, and readily available.
How SECR links to Environmental Management Systems
SECR relies on consistent processes for collecting, managing, and reviewing environmental data. This is where an Environmental Management System (EMS) becomes particularly valuable.
An effective EMS helps organisations to:
- Track energy use across sites and activities
- Monitor environmental impacts
- Set objectives and improvement targets
- Maintain accurate records
- Review performance on an ongoing basis
An EMS provides the structure needed to support SECR reporting in a practical and manageable way.
The role of ISO 14001 in supporting SECR
ISO 14001 is the internationally recognised standard for environmental management systems. It provides a structured framework for managing environmental responsibilities consistently.
From a SECR perspective, ISO 14001 supports:
- Identification of energy and environmental aspects
- Performance monitoring and measurement
- Management review and continual improvement
- Clear roles, responsibilities, and documentation
Aligning SECR with ISO 14001 reduces duplication, improves data quality, and ensures reporting is supported by robust systems.
How Integrated Management Systems can help
For organisations operating multiple standards such as ISO 9001, ISO 14001, and ISO 45001, an Integrated Management System can simplify SECR compliance.
An IMS allows organisations to:
- Align environmental, quality, and health & safety processes
- Share data and monitoring systems
- Reduce duplication and admin
- Improve governance and oversight
An integrated approach supports efficient compliance while strengthening overall operational performance.
How Little Green Consulting can support
At Little Green Consulting, we help organisations build the foundations that make SECR compliance straightforward and sustainable.
Our support includes:
- Environmental Management System implementation and improvement
- ISO 14001 certification and ongoing compliance
- Environmental reviews and audits
- Integrated management system support
Our team has over 15 years’ experience in environmental consultancy, supporting businesses to meet regulatory requirements while embedding meaningful sustainability practices.
Ready to strengthen your SECR and environmental reporting?
Call us on 01379 783918 or email
lgcl@littlegreenconsulting.com.
