Government launches new tool for digital Streamlined Energy and Carbon Reporting
A new tool has been launched to enable businesses to digitally report energy and carbon data in the same way as financial information.
The Streamlined Energy and Carbon Reporting (SECR) taxonomy allows businesses to report their energy and carbon data when they file digital accounts with Companies House.
The tool has been developed by the Financial Reporting Council (FRC) in collaboration with Companies House and the Department of Business, Energy and Industrial Strategy (BEIS) and enables businesses to report information in XBRL format. Many companies already submit accounts using XBRL, but this is the first time it has been utilised to capture environmental data in annual reports.
SECR legislation, which came into force on 1 April 2019, requires all large UK companies and large LLPs, as well as all quoted companies, to report on their annual energy use, greenhouse gas emissions and energy efficiency actions they have taken.
Companies within scope need to collect and measure their energy and carbon information – and submit this as part of their annual accounts filed with Companies House.
While the new tool allows companies to submit the data in a way which is aligned with existing financial reporting, it does not help with the data collection itself. Many companies are seeking the help of external consultants to manage the data collection process, as well as analysis of the findings to identify energy saving opportunities.
Director of Digital at Companies House Ross Maude said:
“This is a fantastic example of cross-government working to deliver a digital service that addresses an important issue.
“Understanding the role businesses have in reducing energy and carbon emissions is central to delivering the UK’s ambition to reach net zero by 2050.”
Project Director for Taxonomies at the FRC, Jennifer Guest, said:
“Enabling companies to file their SECR reports digitally within their annual financial report is an important step in improving transparency of companies’ energy reporting.
“The SECR taxonomy has been carefully designed so it can be used with other accounting taxonomies making it simple and easy to use.”