April 1st 2019 saw the introduction of some significant legislation changes for UK registered companies, especially regarding the requirement to report on energy consumption, GHG emissions, and energy intensity within annual reports.
These changes are due to the Streamlined Energy and Carbon Reporting (SECR), which is a replacement scheme for the Carbon Reduction Commitment (CRC) which ended on the same day the SECR began.
It is hoped that the result of these changes will mean obligatory carbon reporting for at least 8,000 businesses from the CRC.
As well as this, at least 10,000 companies will be required to report their energy and emissions in their annual reports for the first time, due to the qualification criteria of the Energy Savings Opportunity Scheme (ESOS).
That opening paragraph might seem a little complicated, so allow us to break down what is being introduced.
UK Quoted Companies (MGHG)
UK listed companies with two of the below:
Unquoted companies who can prove that it is not practical to obtain their SECR information (in part or full) can apply for exemption
When Directors believe and can prove that SECR information disclosure could seriously negatively harm the business
Low energy users.