SECR Review 2026: Is UK carbon reporting driving real impact?
On 26th May 2026, the UK Government (Department for Energy Security and Net Zero) published the Post-Implementation Review of the Streamlined Energy and Carbon Reporting (SECR) regulations. The review assessed the impact of the SECR regulations since being implemented in 2019; highlighting objective attainment, limitations and challenges, and stakeholder feedback across a range of factors.
Concluding that SECR is likely to remain in place, the review recommends a series of improvements to simplify reporting requirements and enhance effectiveness of the scheme. The reforms due to be discussed as part of the planned consultation on streamlining energy and emissions reporting in 2026 include improvements on clarity, reducing duplication and burden, and the introduction of forward-looking targets.
SECR Post-Implementation Review: Key Findings
Has SECR improved transparency and awareness?
Two of SECR’s key aims were to enhance transparency through the mandatory reporting of energy consumption and greenhouse gas emissions, and to increase awareness of energy costs among key decision-makers. Evaluating whether SECR has met these goals, the review concluded that both goals had been met, with findings including:
- 79% of businesses reported disclosing information they would not have otherwise published without the legal enforcement of SECR.
- 61% of businesses reported an increase in board-level interest.
However, despite largely meeting these objectives, concerns were raised around SECR’s backward-looking approach and lack of targets, in comparison to frameworks such as the Science Based Targets Initiative (SBTi), Task Force on Climate Related Financial Disclosures (TCFD), and Corporate Sustainability Reporting Directive (CSRD). With only 33% of organisations noting an increase in internal pressure to reduce energy use and emissions, the regulation’s ability to translate into meaningful action was questioned, with many viewing it as a tick-box exercise rather than an effective tool for decarbonisation.
What impact has SECR had in reducing corporate energy use?
The review highlighted several significant achievements, indicating SECR’s key contribution to energy reduction, including:
- Electricity and gas use amongst obligated companies fell by 4.5% in 2020, and 6.2% in 2021.
- The average annual energy savings between 2020-2025 was a significant 8 TWh – over 3 times the projected 2.4 TWh saving estimated when the legislation was developed.
- Total monetised energy savings of £4.8 billion between 2020-2025, compared to the estimated £1.1 billion.
However, the evaluation notes that attributing organisational savings solely to SECR is challenging due to coinciding factors such as market conditions, Covid-19, and the introduction of other carbon reporting schemes, particularly with savings becoming less apparent over time.
How has SECR performed on reporting consistency and compliance?
Compliance with the SECR regulations was found to be generally high, with the review estimating 14-23% of in-scope organisations to be non-compliant with the mandatory legislation – an issue most prevalent among private companies and LLPs, due to challenges around awareness, enforcement, and clarity of eligibility and group criteria.
The evaluation concluded that the absence of a standard reporting template under SECR remains a barrier. Organisations use a variety of different reporting formats, leading to inconsistencies between organisations and making comparison difficult. On the other hand, this allows for more flexibility and reduced reporting burden, particularly for those integrating SECR data into overlapping frameworks such as ESOS (Energy Savings Opportunities Scheme), TCFD, and CSRD.
What’s next for SECR?
The Post-Implementation Review concluded that SECR has largely achieved its objectives and delivers measurable benefits towards the decarbonisation of the UK. Despite its limitations, removing of the SECR requirements would significantly reverse progress.
The recommendation is therefore to retain SECR requirements, but implement amendments aimed at increasing its effectiveness; improving clarity, reducing duplication and burden, and sustaining behavioural impact by introducing forward-looking elements such as targets. Such improvement areas are due to be explored through the planned consultation on streamlining energy and emissions reporting in 2026.
How can Beyondly help?
We provide a comprehensive solution to SECR compliance; helping you meet your obligation with ease, whilst empowering you to drive measurable impact for both your business and the planet. Get in touch with our friendly Solutions team at [email protected] or 01756 794951 to find out more or to request your no-obligation proposal today.
