homenews and insights renewable energy carbon reporting

How renewable electricity can help your Streamlined Energy and Carbon Reporting

Gary Stalker
By Gary Stalker
20 April 2020

National Account Manager

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Beatrice Offshore Windfarm
Beatrice Offshore Windfarm

Nearly 12,000 organisations must address SECR in their annual reports and we can help.

This spring, many organisations will be turning their attention to Streamlined Energy and Carbon Reporting (SECR). This mandated requirement for organisations that qualify will provide transparency on energy choices made, supply contract adoptions and what actions are being taken to become more energy efficient.

We can help qualifying organisations with the following:

  • SSE Green Electricity – Report lower emissions with assured renewable energy
  • Clarity – View all your data in our online energy management platform so that you can evaluate your energy efficiency, then work out ways to cut your carbon footprint
  • Energy optimisation – Identify and implement energy efficiency measures, supported by a range of services that covers nearly all aspects of the energy and smart markets

SECR replaced the CRC (Carbon Reduction Commitment) Energy Efficiency Scheme from 1 April 2019, so large energy users must file their first reports from April 2020. From April 2021, businesses will also have to include figures from the previous year.

SECR applies to around 11,900 businesses, many more than CRC. As well as all UK-incorporated companies quoted on a stock exchange, it applies to qualifying unquoted UK-incorporated companies, registered or unregistered, and qualifying Limited Liability Partnerships (LLPs).

Report lower emissions with assured renewable energy

If you’ve selected an SSE Green 100% renewable power supply contract, your electricity emissions will be reflected in a positive way in your reports. Generated wholly from wind and hydro sources, SSE Green Electricity is matched to power used from the grid and is fully backed by Renewable Energy Guarantees of Origin (REGOs).

In addition, and of value for SECR, our renewable electricity contracts have third party verification by EcoAct. This satisfies the needs of organisations looking for a low carbon electricity product that meets Scope 2 emissions guidance from the GHG Protocol (2015), which many in the new era of SECR will be following.

SSE has worked hard to develop the broadest portfolio of renewable energy generating assets in the UK and Ireland and continues to invest in our green energy infrastructure. In fact, SSE Renewables has the largest offshore windfarm portfolio in the largest offshore windfarm market which is the UK.

SSE Renewables’ latest projects will generate over 20TWh of green energy annually, equivalent to nearly 7% of the UK’s current energy demand, making a significant contribution to the UK’s net zero climate change targets and contributing to SSE’s goal of trebling renewable energy output by 2030.

This is important as many organisations that are now reporting need to look above and beyond the fuel mix disclosure of a supplier to make their decisions on whether a supplier is truly investing in renewable energy supplies.

Better energy management and energy efficiency

All organisations to which SECR applies must include information about energy efficiency action taken in their financial year.

When considering energy efficiency strategies, the first step is to measure your electricity and gas usage so you can identify opportunities to save energy, carbon and money. Smart meters, coupled with the right energy management tool, put this data at your fingertips, saving time. Our powerful online energy management platform, Clarity standard solution is provided at no charge for organisations with SSE supply contracts.

We also work with SSE Enterprise, part of the SSE Group, to provide a range of services that covers nearly all aspects of the energy and smart markets.

Find out more about how Clarity and energy optimisation can help with SECR.

What qualifying organisations need to report – and how

For SECR disclosures, organisations must include the methodologies used to calculate them.

Many quoted companies already have established reporting practices using GHG accounting methodologies and programmes, such as the GHG Protocol Corporate Standard, ISO 14064-1 and CDP. These companies should satisfy themselves that their existing GHG accounting approaches cover the required emissions from activities for which they are responsible.

One step to consider is the requirements of the Directors’ Report, as this is the context in which energy use and greenhouse gas (GHG) emissions information must be reported.

Quoted companies must state annual GHG emissions from activities for which the company is responsible including combustion of fuel and operation of any facility; the annual emissions from the purchase of electricity, heat, steam or cooling by the company for its own use; and underlying global energy use.

Large unquoted companies and LLPs must state UK energy use – to include as a minimum purchased electricity, gas and transport – and the associated GHG emissions.

In addition, organisations must include at least one intensity ratio. To calculate this, you’ll need to divide your emissions by a metric – such as turnover, production output or floor space – that’s relevant to your sector.

You’ll find a lot of useful information on your bills and annual statement.

In summary, show what you’re doing to take climate action

We’ve all seen the impact of climate change around the world and with SECR there will be a greater level of scrutiny on the choices that organisations are making.

We’re happy to support and provide guidance on how you can make a difference and make a better world of energy for tomorrow.

If you’d like to discuss ‘location-based’ and ‘market-based’ reporting as identified within the GHG Protocol, please get in touch with your account manager or contact us.

You can read the SECR government guidelines here, and learn more about SECR at Streamlined Energy and Carbon Reporting.