Doing SECR for the first time may seem daunting because the official guidance is quite involved. However, the tips below help you get you through your first report.
Mindset
Before doing SECR for the first time, here are a few things to consider:
- Are you looking at SECR being the start of a strategic approach to reducing CO2 emissions and energy costs? If so, then this is ideal as there are numerous financial benefits for doing so
- Is your organisation treating SECR purely as a compliance tick-box – that’s fine and you can do the bare minimum to be compliant
- No matter what, the first time you do SECR will seem like a research project as you seek out new data about your organisation’s energy usage
Decision time
Next you need to decide how your organisation wants to proceed:
In-house – There’ll be plenty of in-house learning along the way. The in-house approach is currently allowed although there are moves afoot to use qualified carbon accountants.
Use an external environmental consultancy – for example working with SHIFT Environment gives you:
- Experience of having done hundreds of SECR’s which means we are quick at navigating the guidance and other datasets required
- We can help you get the best out of SECR to suit your organisation’s mindset
- We can guide you through multiple other compliance and environmental issues
Gathering and Reporting Data
Crucial to the SECR is the data. Here is what we find works best:
- Have data collection templates – these organise the primary data needed in a clear and traceable format. The trick is to balance between minimal meaningful data and too much onerous data. Typically usage of fuel, gas and electricity is required as well as business mileage claims. But different organisations may require extra data.
- Identify the correct conversion factors – Defra produce a list of factors that allow you to convert primary data into CO2 emissions. It is a big list but does not cover every eventuality.
- Reporting templates –although there are no formal reporting templates, the SECR guidance does offer a suggested template.
- Audit trail – ensure you can trace the figures in your final SECR statement to the primary data and correct conversion factors.
Submission
Just three things at this stage:
- If you have done SECR in-house, consider external assurance from a third party.
- Pre-submission audit – your accountants may choose to audit your SECR statement at the same time as your financial accounts.
- Final submission – the SECR statement is added to your financial directors report to Companies House.
Hopefully you found these insights useful. If you would like help with SECR or any other environmental reporting, please be in touch.