Who has to report?
Every quoted company, and any unquoted company or LLP that is "large", meaning it meets at least two of: an average of more than 250 employees, turnover of more than £36 million, or a balance sheet total of more than £18 million. These figures did not change when the Companies Act size thresholds rose for financial years starting on or after 6 April 2025: SECR still uses the earlier thresholds. If you used 40,000 kWh or less in the UK in the year, you only need to state that you are a low energy user.
Not sure? Our SECR checker gives you an answer in under a minute. For the other rules that may ask a business to report carbon, such as UK SRS, PPN 006 and the NHS requirements, see UK carbon reporting requirements.
What must the report include?
| Item | Unquoted companies and LLPs | Quoted companies |
|---|---|---|
| Energy use | UK gas, electricity and transport fuel, in kWh | Global energy use, and the UK share |
| Emissions | From that UK energy use, in tCO2e | Global Scope 1 and Scope 2 |
| Intensity ratio | At least one | At least one |
| Prior year | From the second year of reporting | From the second year of reporting |
| Methodology | A short statement | A short statement |
| Energy efficiency action | The main measures taken in the year | The main measures taken in the year |
A worked example
A 300-person manufacturer with a £45 million turnover, one factory and a small diesel fleet. Its year runs January to December 2026, so it uses the DESNZ 2026 factors.
| Source | Energy (kWh) | tCO2e | Scope |
|---|---|---|---|
| Natural gas | 900,000 | 164.08 | 1 |
| Fleet diesel (40,000 litres) | 421,458 | 103.34 | 1 |
| Electricity | 1,200,000 | 157.15 | 2 (location-based) |
| Total | 2,521,458 | 424.57 | |
| Intensity ratio | 9.43 | tCO2e per £1m turnover |
Methodology statement (example): "We have followed the HM Government Environmental Reporting Guidelines and the GHG Protocol Corporate Standard, and used the UK Government GHG Conversion Factors for Company Reporting 2026. Energy use is taken from supplier invoices and fuel card records. Emissions are reported in tonnes of carbon dioxide equivalent."
Energy efficiency action (example): "During the year we replaced the factory lighting with LEDs and fitted variable speed drives to the compressors, and began moving our vans to electric."
If this business used the same electricity in 2025, its Scope 2 figure would have been 212.40 tonnes with the 2025 factor. The drop to 157.15 tonnes comes from a cleaner grid, not from anything the business did, so a good report says so. See our guide to the 2026 factors.
Where does it go, and when?
Companies put the SECR disclosure in the directors' report of their annual report and accounts, filed at Companies House with the accounts. LLPs prepare a separate energy and carbon report. It covers the same financial year as the accounts, so plan to collect your data as soon as the year closes.
What is changing?
The government published a post-implementation review of SECR in 2026. Nothing has changed for current reporting years. We will update this guide when any changes are confirmed.
Choosing SECR reporting software
Whichever tool you use, or a spreadsheet, check it can do these before you rely on it for the directors' report:
- Energy in kWh as well as emissions. SECR asks for both, including transport fuel converted to kWh, which some carbon tools leave out.
- The right factor year for your financial year, named in the methodology statement.
- An intensity ratio and last year's figures side by side, as the regulations ask from the second year.
- A trail your auditor can follow from each figure back to the bill and the factor.
- The full yearly cost, including any per-report fee. Our comparison of UK carbon reporting software lists each provider's published price, the date we checked it and the fees charged on top.
Software produces the figures; it doesn't make them independently verified. SECR doesn't require assurance, and our methodology sets out what a software report can and can't show.
How Carbon Recycling helps
Add your bills, fuel cards and mileage, and Carbon Recycling produces the SECR table above, the intensity ratio, last year's comparison and the methodology statement, ready to paste into your directors' report. Every figure shows the government factor and its ID, so your auditor can follow it. The SECR report is included on every plan, from £59 a month + VAT, with no per-report fee: see pricing.