With the recent publication of the UK Government’s response to the Streamlined Energy and Carbon Reporting (SECR) consultation, we now have some indication of what the proposed alternative to the Carbon Reduction Commitment (CRC) reporting element might look like, and what it will mean for your business.
It’s been clear for a while now that the financial element of CRC will be rolled into the Climate Change Levy from April 2019 onwards and the consultation provides some guidance on how things may change for you and your business.
The main point at this stage is that the scope of SECR will be wider than the CRC, making it applicable to all quoted companies and large UK incorporated unquoted companies with at least 250 employees or annual turnover greater than £36,000,000 and annual balance sheet total greater than £18,000,000.
While an opt-out option exists for organisations that use less than 40,000 kWh per annum, BCC expects the number of companies falling under the scheme to jump up to around 12,000, from approximately 1,200 which are currently required to report similar data under the Greenhouse Gas Emission reporting scheme.
The data to be reported now includes transport related emissions which were previously not included in CRC and which may require additional time and effort to collate and analyse. This and the fact that the system of reporting is expected to be through annual company accounts, means consideration of how to standardise the calculation methodology used and presentation of figures will be needed to ensure compliance and create a level playing field between different organisations.
We expect further clarification and comment from the UK government in the run up to April 2019 but now might be a good time to consider how these changes may impact on your operation.
BCC are a UK-based utility consultancy and have been supporting our diverse client base to minimise their costs, increase compliance and minimise their environmental impact for over 23 years. Speak to our expert consultants about how we can make your transition to SECR as smooth as possible.