What is SECR? Streamlined Energy and Carbon Reporting explained

What is SECR?

SECR stands for Streamlined Energy and Carbon Reporting. It was introduced by The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (SI 2018/1155), and requires large UK businesses to disclose their energy use, greenhouse gas emissions and related information in the annual reports they file at Companies House.

It applies to financial years beginning on or after 1 April 2019.

Who has to report under SECR?

• Quoted companies, of any size.
• Large unquoted companies, including charitable companies.
• Large limited liability partnerships (LLPs).

An unquoted company or LLP is exempt if it meets two or more of these conditions: turnover of not more than £36 million, a balance sheet total of not more than £18 million, and not more than 250 employees. Groups have their own version of the test (£36 million net or £43.2 million gross turnover, £18 million net or £21.6 million gross balance sheet, and 250 employees).

“Quoted” means a company whose equity is listed on the main market of the London Stock Exchange or in an EEA State, or admitted to dealing on the New York Stock Exchange or NASDAQ. Companies incorporated outside the UK are not in scope.

Did the April 2025 company size changes affect SECR?

From financial years beginning on or after 6 April 2025, the Companies Act limits for medium-sized companies rose to £54 million turnover and a £27 million balance sheet (SI 2024/1303). That instrument does not amend the SECR schedule, which still sets out the £36 million, £18 million and 250 employee test. The government’s 2026 review of SECR also still quotes those figures. If you are close to the thresholds, check how they apply to you with your adviser.

What is the 40,000 kWh exemption?

If a company used 40,000 kWh of energy or less in the UK during the period, it does not have to disclose the energy and emissions figures. Its report must say that the information has not been disclosed for that reason.

What do you have to report?

Where information is not practical to obtain, it can be left out, as long as the report says what was left out and why.

Where does the SECR report go?

Companies include it in the directors’ report. LLPs include it in an Energy and Carbon Report. The government’s “Modernising corporate reporting” consultation, published on 7 September 2026 and open until 30 November 2026, proposes removing the directors’ report, in which case SECR disclosures could sit anywhere in the first half of the annual report.

Is SECR changing?

The government’s post-implementation review of SECR, dated 15 May 2026, recommends keeping it with amendments. It found 19,900 companies and LLPs in scope, against an original forecast of 11,300. The review says possible changes will be explored in a planned 2026 consultation and that they are not final decisions.

Separately, the UK Sustainability Reporting Standards (UK SRS S1 and S2), based on the ISSB’s IFRS standards, were published on 25 February 2026 and are available for voluntary use. For listed companies, the FCA’s policy statement PS26/19 requires reporting against UK SRS on a comply-or-explain basis for accounting periods starting on or after 1 January 2027.