Sustainability is no longer just a buzzword—it’s a legal requirement for thousands of UK organisations. Two major frameworks shaping how businesses measure and report their energy use and carbon emissions are SECR (Streamlined Energy and Carbon Reporting) and ESOS (Energy Savings Opportunity Scheme).
If you’re unsure about the difference between SECR and ESOS—or whether your business needs to comply—this simple guide from Scalex Technology breaks it down clearly.
What is SECR?
SECR (Streamlined Energy and Carbon Reporting) is a UK government framework introduced in 2019. It requires large UK businesses to disclose energy use and carbon emissions as part of their annual financial reporting.
✅ Who Needs to Comply with SECR?
You must comply with SECR if your business is:
- A quoted company on a stock exchange, or
- A large unquoted company or LLP that meets two of the following:
- £36m+ annual turnover
- £18m+ balance sheet total
- 250+ employees
📄 What Must Be Reported?
- UK energy use (electricity, gas, transport)
- Associated greenhouse gas (GHG) emissions
- Energy efficiency actions taken during the reporting year
- Carbon intensity metrics (e.g. tonnes of CO₂ per £ turnover)
What is ESOS?
ESOS (Energy Savings Opportunity Scheme) is a mandatory energy assessment scheme for UK organisations. The current cycle—ESOS Phase 3—has a compliance deadline of 5th June 2024.
✅ Who Needs to Comply with ESOS?
You must comply with ESOS if your organisation:
- Has 250+ employees, or
- Has a turnover of £44 million+ and a balance sheet total of £38 million+
🔍 What Does ESOS Require?
- A full audit of your total UK energy consumption (buildings, transport, industrial processes)
- Identification of cost-effective energy-saving opportunities
- Assessment carried out or reviewed by a qualified Lead Assessor
- Evidence of director-level sign-off
SECR vs ESOS: What’s the Difference?
| Feature | SECR | ESOS |
|---|---|---|
| Focus | Reporting energy & carbon data | Identifying energy-saving opportunities |
| Reporting Frequency | Annual (via company accounts) | Every 4 years |
| Applies To | Large quoted/unquoted companies | Large undertakings (as defined by ESOS) |
| Enforcement Body | Companies House / HMRC | Environment Agency |
Why Compliance Matters for UK Businesses
Failure to comply with SECR or ESOS can result in financial penalties and reputational damage. More importantly, energy and carbon reporting helps you:
- Reduce operating costs
- Improve sustainability credentials
- Meet net zero goals
- Strengthen investor and stakeholder confidence
How Scalex Technology Supports Energy & Carbon Compliance
At Scalex Technology, we help UK businesses navigate SECR and ESOS compliance with confidence. From data collection and report preparation to engaging certified Lead Assessors, we simplify every step of the process.
Whether you’re new to energy reporting or preparing for ESOS Phase 3, our team ensures you’re fully covered—without the complexity.
💼 Need Help with SECR or ESOS?
Let Scalex Technology streamline your energy and carbon compliance.
Contact us today to speak with one of our experts.
