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

SECR is a mandatory framework which has replaced the CRC (Carbon Reduction Commitment) scheme by simplifying the process for companies to report and reduce emissions. ESOS is a mandatory EU legislation which affects large companies. A report, completed by a Lead Assessor, is completed every four years.

SECR is to be reported annually in company public statements reflecting the company financial year whilst ESOS has a four-year cycle with the next deadline being December 2023.

ESOS & SECR Compliance Approach

For ESOS, a consecutive 12 months of verifiable energy consumption data (including transport fuel) that overlaps the qualification date (31st December 2022) will be required, this can be any 12-month period provided it includes this date.  Transport energy may be over 10% of total energy consumption and therefore a transport audit will be carried out as part of ESOS Phase 3 works.

For SECR, a consecutive 12 months of verifiable energy consumption data (including transport fuel) for the reporting financial year will be required.  An intensity ratio is calculated against an agreed benchmark such as production tonnes, revenue or number of staff to

Who is captured?

SECR applies to:

  • Quoted companies of any size that are required to prepare a Directors’ Report
  • UK registered, unquoted large companies as defined in the Companies Act 2006. This refers to companies that fulfil at least two of the following three conditions in the financial year for which they are reporting:
    • at least 250 employees
    • an annual turnover of £36m or more and/or
    • an annual balance sheet total greater than £18m

ESOS applies to large companies with two of the following three conditions:

  • More than 250 employees or
  • An annual turnover of more than €50 million
  • an annual balance sheet total of more than €43 million
  • There is currently an on-going consultation which may widen the criteria for businesses who qualify for ESOS

Reporting Format

Streamlined Energy and Carbon Reporting must be included in Directors’ Reports for all financial years starting on or after the 1st April 2019. Therefore, the deadline will depend on a company’s financial year.

The first reports were due for the financial year 1st April 2019 – 31st March 2020.

Companies which qualify for ESOS are required to submit an ESOS report to the Environment Agency every four years. The deadline for Phase 3 is 5th December 2023.

Here at GLEG we manage both ESOS and SECR on behalf of our clients, using data from these projects to create and implement carbon reduction, sustainability and Net Zero strategies.  For more information, please contact