A practical guide to SECR for UK businesses

Thesis

Effective SECR compliance is not a mere regulatory checkbox; it is a strategic lever that can cut energy spend, improve carbon performance and future‑proof your business against evolving market rules.

What SECR is and why it matters

The Streamlined Energy and Carbon Reporting (SECR) framework, introduced by DESNZ in 2019, requires quoted companies, large unquoted firms and large LLPs to disclose annual energy use, associated GHG emissions and energy efficiency actions in their Directors' Report. The aim is to increase transparency, drive cost‑effective efficiency and support the UK’s net‑zero target.

Who is in scope?

Criterion	Threshold
Turnover	> £36 million
Balance sheet total	> £18 million
Number of employees	> 250
A business meeting any one of these three tests must submit SECR. Most mid‑sized manufacturers, distribution centres and data‑centre operators fall into the ‘large unquoted’ category.

Core data you must disclose

1. Total energy consumption – electricity (kWh), gas (kWh), oil, renewable heat, etc.
2. Associated CO₂e emissions – calculated using UK Government conversion factors (2023).
3. Energy intensity – energy per unit of output (e.g., kWh per tonne of product).
4. Energy efficiency actions – description, estimated savings and implementation dates.

Building the evidence trail

1. Centralise metering data

Collect half‑hourly (HH) data from your utility bills or directly from the supplier’s portal. Where you have smart meters, pull data via the API into a single repository. TUS’s Yolk portal integrates with over 30 suppliers, giving you a single view of consumption and an average 27 % switching saving when you optimise contracts.

2. Map to Scope 1 and Scope 2

• Scope 1 – direct emissions from on‑site fuel combustion (e.g., boiler gas, diesel generators). Capture fuel purchase invoices and log fuel‑type conversion factors.
• Scope 2 – indirect emissions from purchased electricity and heat. Use the UK grid emission factor (currently 0.233 kg CO₂e/kWh) for electricity, adjusting for any on‑site renewable generation.

3. Document efficiency actions

For each action (e.g., LED retrofit, variable‑speed drives, voltage optimisation) record:

• Baseline consumption
• Expected reduction (use TUS’s benchmark of 5‑15 % saving for voltage optimisation with a 2‑3 year payback)
• Implementation date
• Post‑implementation monitoring method

4. Retain supporting records

Keep bills, contracts, installation certificates and monitoring logs for at least six years. Auditors often flag missing meter‑reading logs or unverified conversion factors as high‑risk findings.

Common audit findings and how to avoid them

Finding	Typical cause	Mitigation
Inconsistent HH data	Multiple spreadsheets, manual entry errors	Use a centralised data platform – TUS’s flex‑management service already handles 150 + GWh of HH data, reducing manual reconciliation.
Emissions factors not up‑to‑date	Relying on outdated GHG Protocol tables	Subscribe to the latest UK Government factor set (updated annually).
No evidence of efficiency actions	Missing installation certificates	Store all certificates in a cloud folder linked to the SECR submission spreadsheet.
Over‑optimistic savings claims	Using supplier projections rather than measured data	TUS consistently beat supplier projections by 20 % in the last 12 months; use measured post‑implementation data wherever possible.

Aligning SECR with the GHG Protocol

The GHG Protocol’s Corporate Standard defines Scope 1, 2 and 3 emissions. SECR only requires Scope 1 and 2, but aligning both frameworks simplifies reporting for investors and supply‑chain partners.

• Step 1: Map SECR energy categories to GHG Protocol activity data.
• Step 2: Apply the same emission factors across both reports to ensure consistency.
• Step 3: Use the GHG Protocol’s calculation tools to generate a reconciled emissions statement that can be attached to the Directors’ Report.

How TUS can streamline your SECR journey

Data aggregation

TUS’s Yolk portal pulls consumption data from a 30+ supplier panel, normalises it and stores it securely. This eliminates the need for manual spreadsheet consolidation.

Flex management

With 150 + GWh under flex management, TUS can shift load to off‑peak periods, delivering real‑time cost savings that directly improve the energy intensity metric required by SECR.

Voltage optimisation

Deploying TUS voltage optimisation typically yields 5‑15 % electricity savings, delivering a 2‑3 year payback and providing verifiable data for the ‘energy efficiency actions’ section.

Audit readiness

Our platform archives all contracts, meter‑reading logs and efficiency‑action evidence, ensuring you have a complete audit trail at the press of a button.

Practical timeline for a SECR submission

Phase	Duration	Key activities
Data collection	4‑6 weeks	Gather HH data, fuel invoices, verify conversion factors
Analysis & calculation	2‑3 weeks	Compute energy intensity, draft emissions tables
Action documentation	2 weeks	Record efficiency measures, estimate savings
Review & sign‑off	1‑2 weeks	Internal audit, senior sign‑off, upload to Companies House
Post‑submission monitoring	Ongoing	Track realised savings, update internal dashboards

Bottom line

SECR is a compliance requirement, but when approached methodically it becomes a catalyst for cost reduction and carbon leadership. By centralising data, aligning with the GHG Protocol and leveraging TUS’s proven tools – from the Yolk portal to voltage optimisation – a mid‑sized UK business can meet its reporting obligations, demonstrate real‑world savings and position itself for the next wave of energy market reforms.