Large companies will have to report their energy use and emissions to the public from 2019, with the government also looking for new ways to improve energy efficiency in smaller businesses.
Following a lengthy consultation period, a new Streamlined Energy and Carbon Reporting (SECR) framework for large businesses will take effect from April 2019.
Large unquoted companies will now have to report their UK energy and emissions from gas, electricity and transport in their public annual reports, while companies listed on the stock exchange will also have to report their global emissions and energy use.
The new reporting requirements are designed to be simpler and more streamlined compared to outgoing rules.
Action from ‘all businesses’
The change is part of a wider move towards the government’s stated goal of improving business energy efficiency by 20 per cent by 2030.
The improvement is expected to require an investment of £23 billion by the private sector.
In a newly published consultation seeking additional measures that could be taken to encourage energy efficiency, the government states that action will be needed from businesses of all sizes and sectors.
According to government figures, SMEs account for over 50 per cent of business energy use, with approximately half of the £23 billion investment needed in this area.
The majority of the estimated £6 billion annual energy savings that could be made are expected to come from commercial and industrial buildings, where fast payback measures such as improved insulation, ventilation, lighting and controls could save 40,000GWh of energy annually.
To read more about the government’s plans, click here.