Alfa Energy has welcomed the release by the Department of Business, Energy and Industrial Strategy of a new tool to allow businesses to file energy and carbon data required by SECR in digital format with Companies House.
Nick Fedson, a sustainability analyst at Alfa Energy, said: “Digital reporting is currently not mandatory for SECR. This digital taxonomy may encourage more organisations to choose the optional route and may strengthen the case for making standardised digital reporting mandatory. It is also encouraging to see that the taxonomy includes entries for TCFD filings – a global standard for similar reporting that UK companies are increasingly using.”
The tool enables businesses to report information in XBRL format, in the same way as financial accounts. Many companies already submit accounts using XBRL, but this is the first time it has been utilised to capture environmental data in annual reports.
BEIS developed the taxonomy in collaboration with the Financial Reporting Council and Companies House. It is hoped the tool should make it more convenient for businesses to comply with SECR.
SECR legislation, which came into force on 1 April 2019, requires all large UK companies and large LLPs, as well as all quoted companies, to report on their annual energy use, greenhouse gas emissions, and energy efficiency actions they have taken. Other businesses can also include the disclosures on a voluntary basis.