As the UK pushes towards a net-zero future, businesses are under increasing pressure to monitor, report and reduce their energy usage. Two key government-led schemes—SECR and ESOS—play a central role in this shift. Both are designed to improve corporate energy transparency and efficiency, but they differ in scope, requirements and frequency.
Here's what businesses need to know.
What Is SECR?
SECR stands for Streamlined Energy and Carbon Reporting. Introduced in 2019, it replaced the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and forms part of the UK’s commitment to reducing greenhouse gas emissions.
Who Needs to Comply?
SECR applies to:
• Quoted companies of any size listed on the stock exchange
• Large unquoted companies and LLPs that meet two or more of the following:
250+ employees
£36 million+ annual turnover
£18 million+ balance sheet total
Organisations that use 40,000 kWh or less during the reporting year are exempt from most SECR disclosures.
What Does SECR Involve?
Under SECR, qualifying businesses must include energy use and carbon emissions data within their annual Directors’ Report. This includes:
• Total energy use (electricity, gas, transport)
• Associated greenhouse gas emissions
• An intensity ratio (e.g. tonnes of CO₂ per £million turnover)
• Energy efficiency actions taken during the reporting year
• Methodology used for calculations
SECR promotes transparency and accountability, helping stakeholders understand an organisation’s environmental impact.
What Is ESOS?
ESOS stands for Energy Savings Opportunity Scheme. It is a mandatory energy assessment and energy-saving identification programme introduced to comply with the EU Energy Efficiency Directive, and it remains UK law post-Brexit.
Who Needs to Comply?
ESOS applies to large UK undertakings and their corporate groups that meet either of the following:
• 250 or more employees
• An annual turnover in excess of £44 million and an annual balance sheet over £38 million
ESOS assessments must be carried out every four years. The next compliance deadline is for Phase 3, due on 5 December 2024.
What Does ESOS Involve?
Businesses must:
• Measure their total energy consumption across buildings, transport and processes
• Carry out energy audits for areas of significant consumption
• Identify practical energy-saving opportunities
• Have the assessment reviewed and signed off by a qualified ESOS Lead Assessor
• Notify the Environment Agency of compliance
Importantly, businesses are not obligated to implement the energy-saving recommendations—but they must identify them and report appropriately.
Why These Schemes Matter
Both SECR and ESOS are part of the UK’s wider strategy to increase business accountability in tackling climate change. For businesses, they offer not just a compliance obligation but an opportunity to reduce costs, improve operational efficiency, and enhance ESG credentials.
Non-compliance can result in enforcement action, reputational damage, and missed opportunities to reduce energy-related expenses.
How Elcomponent Supports SECR and ESOS Compliance
At Elcomponent, we provide the data tools and systems that businesses need to meet their SECR and ESOS obligations confidently and accurately.
Our offerings include:
• Smart metering and sub-metering systems to monitor energy usage at granular levels
• LoRaWAN-enabled devices for cost-effective monitoring across large or multi-site operations
• MW2 energy software for real-time reporting, visualisation and data export—perfect for inclusion in SECR submissions or ESOS audits
Whether you're starting from scratch or strengthening an existing energy strategy, our solutions help simplify compliance while identifying measurable opportunities for savings and improvement.
SECR and ESOS are more than just checkboxes for compliance—they are essential frameworks for managing energy consumption, reducing costs and driving environmental performance. As regulatory expectations grow, businesses that understand and embrace these schemes will be best placed to lead the way in sustainable, responsible growth.