The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Business Energy Reporting –  Are you Combining ESOS and SECR?

Business Energy Reporting –  Are you Combining ESOS and SECR?
05 May 2022
 

When it comes to energy and emissions reporting, there are ways to streamline both the work and cost involved in being compliant.

TEAM Energy, who helps organisations achieve their net-zero ambitions and deliver compliance, explains how combining The Energy Savings Opportunity Scheme (ESOS) and Streamlined Energy and Carbon Reporting Scheme (SECR) can help businesses save money.

The ESOS and SECR have become part of the regulatory landscape since coming into force in 2014 and 2019, respectively. These separate schemes are both mandatory for large businesses that meet the scope, but many may not realise that some parts of the compliance overlap. This means that companies who split out their ESOS and SECR are missing the opportunity to streamline both the work and cost involved in meeting the compliance. 

 

What are ESOS and SECR?

 

ESOS is a mandatory piece of EU legislation requiring large companies to submit an energy report to the Environment Agency every four years. An ESOS report analyses a company's energy data over a 12-month consecutive period. As of yet, there is no requirement to record emissions.

SECR is a mandatory UK government framework that, in part, replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme in April 2019. Its aim was to simplify the reporting process for companies and reduce emissions by requiring businesses to calculate and report on their energy usage and greenhouse gas emissions.

 

"Because ESOS spans a four-year cycle, it can often be left to the last minute. In our experience, companies who do this run the risk of missing the compliance deadline and gaining a financial penalty. We encourage companies to start their ESOS as much as they can, as soon as they can."

 

What is the Difference Between ESOS and SECR?

 

At the most basic level, the difference between ESOS and SECR is what they measure; ESOS examines energy use, while SECR focuses on a company's emissions. 

ESOS requires businesses in scope to identify opportunities for improving their energy efficiency and list these in their report. However, SECR requires businesses to report on what actions they have taken during the reporting year to cut energy use and emissions but does not expect them to mention any planned or possible future actions.

There are roughly 11,000 businesses considered "large undertakings", that fall into scope for ESOS, in the UK. This means companies that either employ 250 or more people or have an annual turnover above £44 million and a balance over £38 million. This is larger than the size threshold for SECR, which has roughly 14,000 businesses in scope. SECR affects three types of UK organisations: Companies listed on a stock exchange; Companies that qualify as Large (using the definition in the Companies Act) and Limited liability partnerships (LLPs) that qualify as large.

 

Image

 

ESOS does apply to overseas companies if they have a UK-registered establishment with 250 or more employees, however, SECR does not apply to organisations that are not registered in the UK.

Both schemes have been designed to help businesses. ESOS helps raise awareness of energy consumption issues, and ensures that your company is running as energy efficiently as possible. This has two significant benefits; helping to reduce your carbon emissions and lower your energy bills.

SECR aims to bring the benefits of carbon and energy reporting to more businesses. The reporting framework is intended to encourage the implementation of energy efficiency measures, with both economic and environmental benefits, supporting companies in cutting costs and improving productivity at the same time as reducing carbon emissions.

 

Benefits of Combining ESOS and SECR

 

It is easy to assume that with all the differences between ESOS and SECR that each should be undertaken separately, however, the principles of collecting, processing and understanding the data is the same.

So, if your business is in scope to comply with both, here are a few reasons why it is smart to combine them:

 

  1. Because ESOS spans a four-year cycle, it can often be left to the last minute. In our experience, companies who do this run the risk of missing the compliance deadline and gaining a financial penalty. We encourage companies to start their ESOS as much as they can, as soon as they can. The most time-consuming task is the audit process, so by collecting the data with both schemes in mind you effectively "kill two birds with one stone" and then you can focus on the audits involved in the ESOS.
  2. SECR and ESOS responsibilities may belong to different people or departments. By engaging with colleagues across the business, the collaboration will ensure there is no duplication when it comes to data collection, energy profiling or benchmarking.
  3. Your annual SECR processes will help to phase the workload for an ESOS schedule. For example, by collating SECR data annually, you will already have all the data, including the hard to gather data, ready for your ESOS report.
  4. By using the SECR data you already have in your energy management database, not only will you find it easier to create reports for ESOS, it will provide insights on what data you should focus on collecting.
  5. Completing ESOS surveys can help businesses identify energy efficiency projects which can positively feed into your SECR reporting.
  6. Joining up these compliance processes helps you to approach net-zero with a single focussed strategy rather than in a series of compliance box-ticking.

 

Picture: a graphic showing a laptop with graphs on the screen. Image Credit: PX Fuel

Article written by TEAM Energy | Published 05 May 2022

Share



Related Articles

Efficient Energy Management Starts With Quality Data

Tom Anderton explains why his company puts quality data at the heart of their digital energy management solutions - and so should you. Anderton writes, utility costs...

 Read Full Article
Government Introduces Energy Bills Discount Scheme for Businesses

A new package to help UK businesses manage rising energy costs is set to replace the current Energy Bill Relief Scheme. The Treasury's new Energy Bills Discount...

 Read Full Article
Datore  – EMEX 2022 | Focus Interview

Datore is a business intelligence platform that provides visual analytics and AI solutions to allow companies to optimise their energy usage and sustainability...

 Read Full Article
Johnson Controls and Asset+ – EMEX 2022 | Focus Interview

Johnson Controls and Asset+ recently partnered with Hounslow Council and achieved a 50 per cent reduction in carbon emissions in schools and public...

 Read Full Article
10 Ways Workplaces Can Save Energy

Ulla Riber, Head of Group Workplace Management at ISS, looks at energy management in workspaces through the lens of employee morale and wellbeing. Ulla is supporting...

 Read Full Article
Space4Climate – EMEX 2022 | Focus Interview

Space4Climate is chaired by the UK Space Agency and unites those with expertise in the development of satellites, analysis and exploitation of data they gather, and...

 Read Full Article
EcoSync Close to £1m Funding Target for Commercial Building Energy Solution

A tech start-up that provides room-by-room energy management solutions for commercial buildings has raised close to £1 million in its second seed funding...

 Read Full Article
CHAS Acquired by Veriforce

CHAS 2013 Ltd, the provider of compliance and risk management solutions, is to be acquired by supply chain risk company Veriforce for an undisclosed fee. Established...

 Read Full Article
EVO Partners With Not-For-Profit Housing Company to Tackle Homelessness in London

Not-for-profit company Capital Letters has partnered with property maintenance business EVO Digital Technologies to digitalise its repairs, maintenance and compliance...

 Read Full Article
From Net-Zero to Energy Transitioning – The UK’s Climate Data From Space Community Points the Way

Space4Climate gathers the UK’s Earth Observation community focussed on researching and delivering trustworthy environmental data in support of climate action. We...

 Read Full Article