--- title: "SECR Explained: Streamlined Energy and Carbon Reporting for Construction" description: "SECR explained: which companies must report, what energy and carbon data goes in the directors' report, and the low-energy exemption." metaTitle: "SECR Explained for Construction" ogTitle: "SECR Explained for Construction" ogDescription: "Who must report under SECR, what energy and carbon data is required, the low-energy exemption, and how it fits with PPN 06/21 and PAS 2080." category: "Compliance" date: "2026-07-22" dateModified: "2026-08-24" readingTime: "6 min read" cardDescription: "Which companies must report under SECR, what energy and carbon data goes in the directors' report, the low-energy exemption, and how it fits with your other carbon reporting." lead: "If your business is growing, there's a point where carbon reporting stops being optional and becomes a legal filing. That point is SECR — here's whether it applies to you and exactly what it asks for." ctaHeading: "Have your SECR numbers ready year-round" ctaBody: "VerdCore tracks energy and Scope 1/2/3 emissions on DEFRA factors as you work, so the figures your accountants need for SECR are ready when the accounts are due." footerNote: "This guide is general information, not legal or accounting advice. Thresholds and requirements change — confirm your obligations against the current SECR guidance on GOV.UK and with your accountant." faq: - q: What is SECR? a: Streamlined Energy and Carbon Reporting is a UK legal requirement for larger companies to disclose their energy use and carbon emissions in their annual accounts, in force for financial years starting on or after 1 April 2019. - q: Who has to report under SECR? a: Quoted companies, large unquoted companies and large Limited Liability Partnerships that meet at least two of three tests, 250 or more employees, £36 million or more annual turnover, or £18 million or more balance sheet total. - q: Is there an exemption from SECR? a: Yes, a low-energy exemption applies if your organisation consumes 40,000 kWh or less over the reporting period, though most active construction firms with plant and vehicles use far more than this. - q: How does SECR differ from PPN 06/21 and PAS 2080? a: SECR is a statutory annual disclosure of energy and Scope 1/2 emissions filed with your accounts. PPN 06/21 is a procurement gate requiring a Carbon Reduction Plan. PAS 2080 is a management standard for whole-life carbon on projects. --- ## What SECR is **SECR — Streamlined Energy and Carbon Reporting** — is a UK legal requirement for larger companies to disclose their **energy use and carbon emissions** in their annual reports, set out in [the government's Environmental Reporting Guidelines](https://assets.publishing.service.gov.uk/media/67161e8696def6d27a4c9ab3/environmental-reporting-guidance-secr-march-2019.pdf). It came into force for financial years starting on or after **1 April 2019**, replacing the older CRC scheme and widening the number of businesses that must report. Unlike [PPN 06/21](/resources/ppn-06-21-explained.html) (a *procurement* requirement) or [PAS 2080](/resources/pas-2080-for-contractors.html) (a *management standard*), SECR is a **statutory reporting** obligation — the figures go into the accounts you file, and directors are responsible for them. ## Does it apply to you? SECR applies to three groups: - **Quoted companies** (listed on a main exchange) - **Large unquoted companies** - **Large Limited Liability Partnerships (LLPs)** For the unquoted and LLP groups, "large" means meeting **at least two of these three** in a reporting year: | Test | Threshold | |------|-----------| | Employees | **250 or more** | | Annual turnover | **£36 million or more** | | Balance sheet total | **£18 million or more** | If you're a growing contractor, this is the threshold to watch — it's easy to cross the employee or turnover test after a few strong years and not realise SECR now applies.
Does SECR apply to you?
1
Check your company type
Quoted company, large unquoted company, or large LLP.
2
Run the two-of-three test
250+ employees, £36m+ turnover, £18m+ balance sheet — meet at least two.
3
Check the low-energy exemption
40,000 kWh or less over the period exempts you from detailed disclosures.
4
Report or exempt
If you meet the test and don't qualify for the exemption, SECR applies this year.
> **The low-energy exemption.** If your organisation consumes **40,000 kWh or less** of energy over the reporting period, you can state that it's a low energy user and are exempt from the detailed disclosures. Most active construction firms with plant and vehicles use far more than this, so don't assume it applies without checking. ## What you have to report For a large unquoted company or LLP, the disclosure in the directors' (or energy and carbon) report must cover: - **UK energy consumption** in kWh — from gas, purchased electricity, and transport - The associated **Scope 1 and Scope 2 greenhouse gas emissions** in tonnes of CO₂e - At least one **intensity ratio** (for example, tCO₂e per £m turnover, or per employee) so performance can be compared year to year - A summary of the **energy efficiency actions** taken during the year - The **methodology** used to calculate the figures **Quoted companies** report on a wider, global basis and include additional detail. Whichever category you fall into, the calculations should use the **GHG Protocol** and the **UK Government's DEFRA conversion factors** for the relevant year. ## Where it goes SECR disclosures sit in the **directors' report** within your statutory annual accounts — the same accounts filed at Companies House. That means the numbers are **public**, and they're the board's responsibility, so they need to be right and traceable, not estimated at the last minute. ## How SECR fits with your other carbon reporting The frameworks overlap more than they look: - **SECR** = the annual *legal* disclosure of your energy and [Scope 1/2](/resources/scope-1-2-3-emissions-construction.html) emissions. - **PPN 06/21** = the *procurement* gate needing a published [Carbon Reduction Plan](/resources/how-to-write-a-carbon-reduction-plan.html) (Scope 1, 2 and a Scope 3 subset). - **PAS 2080** = the *management standard* for whole-life carbon on projects. They all draw on the **same underlying data** — energy, fuel, materials and transport converted to CO₂e on DEFRA factors. Capture that data once, consistently, and each report becomes a formatting job rather than an annual scramble. ## How to prepare 1. **Check your status early** — track headcount, turnover and balance sheet against the two-of-three test so SECR doesn't surprise you. 2. **Measure all year** — record energy, fuel and transport as you go, not in a rush before the accounts. 3. **Use DEFRA factors** and keep the methodology documented so the figures are defensible. 4. **Pick your intensity ratio** and report it consistently year on year so the trend is visible. 5. **Give your accountant clean numbers** well before the filing deadline. The reporting itself is straightforward once the data exists. The firms that struggle are the ones reconstructing a year of energy use from scattered invoices in the final week — which is exactly the problem continuous tracking removes. Continuous tracking is exactly what [construction carbon reporting software](/construction-carbon-reporting-software.html) provides — energy, fuel and transport recorded as they happen, with DEFRA factors applied automatically.