Jun 25

2026

Surviving the SECR 2026 review: a practical guide to energy reporting for UK companies

The government’s 2026 post-implementation review of Streamlined Energy and Carbon Reporting concluded that SECR should stay, with targeted improvements rather than abolition. If you run a quoted company, large unquoted company or large LLP, you should expect to keep reporting energy use and carbon emissions in your annual accounts.

A consultation on streamlining energy and emissions reporting is planned for 2026. The possible direction includes clearer guidance, better templates, less duplication with other frameworks and some light-touch forward-looking information. Nothing has been scrapped, so the practical job is to keep complying while the detail settles.

SECR has applied to financial years beginning on or after 1 April 2019. It replaced the old Carbon Reduction Commitment Energy Efficiency Scheme and sits in the same widening reporting landscape as the updated EU sustainability reporting rules that now reach UK businesses with relevant EU activity.

Who actually has to report

You are in scope if you are a quoted UK company, or a large unquoted company or LLP. For unquoted companies and LLPs, large usually means meeting at least 2 of the 3 thresholds below.

There is one useful exemption. If your organisation uses 40,000 kWh or less during the reporting period, you do not need to make the full detailed disclosure, but you should still state that you are relying on the low-energy exemption.

The information normally goes in the directors’ report and is filed with your annual accounts. That is why auditor’s expectations matter. If the disclosure is weak, missing or hard to evidence, it becomes an accounts issue rather than a side admin task.

What the 2026 review found

The headline conclusion is that SECR has broadly worked, but not perfectly. The review found that SECR improved transparency and consistency in company-level energy and carbon reporting. It also identified room to simplify the framework and make it more useful.

The figures are worth noting. The review estimated energy saving benefits of around £4.8 billion over the review period, with electricity and gas use among in-scope firms falling by around 4.5% in 2020 and 6.2% in 2021. But behaviour change was less consistent. Only 33% of SECR-compliant organisations agreed that reporting had increased internal pressure to reduce energy use and emissions.

Compliance is also uneven. The review estimated that actual non-compliance is likely to sit between 14% and 23% of in-scope organisations. Many businesses still treat SECR as a tick-box exercise, which is exactly the weakness the planned reforms are meant to address. Strong reporting still earns its keep, as our note on how quality external audit builds trust with lenders and investors explains.

What is likely to change

The review points to refinements rather than a complete rebuild. Expect discussion around clearer eligibility rules, group boundaries, site inclusion, standardised templates and better alignment with other reporting frameworks.

The cost picture is part of the reason. The review estimated the average ongoing annual compliance cost at around £7,100 per business, including external spend. Tightening your data process, including the automation covered in our piece on how AI is changing accountancy, is the obvious response.

The Ireland and Northern Ireland angle

SECR is a UK regime, so it applies across the UK, including Northern Ireland. It does not apply in the Republic of Ireland, where sustainability reporting follows Irish and EU rules instead.

If your group has both UK and Irish entities, you may be running different reporting regimes side by side. Our cross-border accounting and tax specialists deal with this regularly. The same care over scope shows up in any due diligence exercise.

Practical steps to take now

Start by confirming whether you have crossed the large-company thresholds after a strong trading year. Then map your group structure from the top UK parent down, so you know which entities report and which can be covered by a group disclosure.

Pin down your energy data sources early, including electricity, gas, transport fuel and any landlord or tenant data that affects your position. Choose an intensity ratio that suits your business and use it consistently year on year.

A quick example. Picture a manufacturer that tips over the turnover and balance sheet thresholds for the first time. It files its accounts, then realises the directors’ report needed an energy and carbon section. That scramble is avoidable.

If rising energy costs are squeezing the business itself, our recovery and restructuring support can help you manage the pressure, while our forensic accounting specialists can check that the figures behind your disclosures stand up. You can read the government’s findings on GOV.UK’s post-implementation review page.

Frequently asked questions

Is SECR being scrapped?

No. The 2026 review recommended keeping SECR with targeted amendments, not removing it.

Is SECR mandatory?

Yes, for quoted companies and large unquoted companies and LLPs that meet the thresholds, unless the low-energy exemption applies.

What is the difference between SECR and ESOS?

SECR is annual energy and carbon reporting in your accounts. ESOS is a separate energy assessment scheme for large organisations, submitted on a 4-year cycle.

What happens if I miss the SECR disclosure?

Your SECR information forms part of your statutory reporting. Missing or incomplete disclosure can create accounts filing, audit and governance issues.

Get your reporting in order before year end

If SECR applies to you, sort your data and scope now rather than in the final weeks before filing. The team at SCC Chartered Accountants can check your obligations, tidy your reporting process and keep you ready for the reforms ahead. Get in touch for a straight assessment.