Build carbon reporting on a repeatable evidence base.

SECR — the current statutory framework for many large UK businesses

SECR is mandatory for quoted companies and for qualifying unquoted companies and LLPs, subject to exemptions. For unquoted companies and LLPs, the framework uses the thresholds of more than 250 employees, turnover above £36 million and balance-sheet total above £18 million, with at least two of the three criteria met. Organisations using 40,000 kWh or less in the relevant period may qualify for the low-energy exemption.

What a robust carbon inventory needs

• A clearly defined organisational and operational boundary
• Consistent Scope 1, Scope 2 and relevant Scope 3 data
• Appropriate emission factors and documented methodology
• A defensible treatment of estimates and data gaps
• Intensity metrics that make sense for the organisation
• Year-on-year comparability and change controls
• Evidence of energy-efficiency actions and reduction activity

Scope 1, 2 and 3

Scope 1 covers direct emissions from sources the organisation owns or controls. Scope 2 covers purchased energy. Scope 3 captures other value-chain emissions. For many organisations, Scope 3 is the most complex area and should be approached proportionately by identifying the categories that are material to the business and the purpose of the report.

UK conversion factors

The UK government publishes greenhouse-gas conversion factors annually. Using the correct reporting-year factors and recording the methodology helps make the calculation reproducible and easier to update in future years.