The Difference Between ESOS and SECR

September 23, 2022 | Alex Dovey | Blog

The difference between Energy Saving Opportunity Scheme (ESOS) and Streamlined Energy Carbon Reporting (SECR) is what each regulatory scheme measure; ESOS is an audit on a company’s energy consumption, whereas SECR is focused on a company’s greenhouse gas emissions.

The ESOS report will present opportunities for a company to improve its energy efficiency, and those findings are not mandatory to implement. In comparison, SECR reports on actions that need to be implemented during the reporting year to reduce consumption and emissions to demonstrate compliance to the UK government’s net zero target.

Both ESOS and SECR have become part of the energy legalisation and compliance requirements for large companies and/or big energy users. Although the intentions of both schemes are to ensure organisations collect and analyse their energy usage data to work on energy saving strategies, the two schemes are separate from each other and have differences (although ESOS may be subject to change which might reduce some differences).

In our table below we highlight the main differences between the two schemes:

Factors	SECR	ESOS

Date of Launch	1st April 2019	17th July 2014
Aim	Replaced Carbon Reduction Commitment (CRC) and simplify carbon reporting and aid in meeting the Climate Change Act’s goal of reducing UK carbon emissions by 80% by 2050.	Reducing EU energy consumption by 20% by 2020
Reporting on	Energy usage and greenhouse gas emissions.	Energy usage, but there is no requirement to record emissions.
Who they apply to	Mandatory for UK organisations who are either: • A quoted company (listed on the stock exchange) Or • A large non-quoted UK Company and large Limited Liability Partnerships (LLPs) if they met two of the following: i) employ over 250 people ii) have a turnover of £36m and/or iii) an annual balance sheet in excess of £18m	Mandatory for “large undertakings” in the UK. This means companies who either: a) employ 250 or more people; or b) have an annual turnover above €50 million and a balance over €43 million. c) an overseas organisation with over 250 employees in the UK.
Overseas businesses	Does not apply to organisations that are not registered in the UK.	Applies to overseas companies if they have a UK-registered establishment with 250 or more employees.
Exempt Organisations	Large non-quoted UK Companies and LLPs if they are using less than 40,000 kWh per annum.	Public sector organisations although some universities with significant private funding may well be. Organisations is covered by ISO 50001 but ensure you submit a notification to the regulator.
Reporting requirements	Actions businesses have taken during the reporting year to cut energy use and emissions. No expectation to mention any planned/possible future actions. Must include at least one intensity ratio, comparing emissions with other metrics such as units of production. Included in Directors/Annual Report. No set template but gov.uk provide guidelines.	Identify opportunities for improving energy efficiency. No requirement to include an energy intensity ratio. Completed by qualified ESOS lead assessor and sent to Environmental Agency.
Deadlines/ Timelines	Annually as part of annual accounts submitted to Companies House.	Every 4 years and businesses choose a 12-month period within each 4 year phase. The next deadline is for Phase 3 on 5th December 2023.
Businesses in scope	Approximately 14,000 businesses.	Approximately 11,000 businesses.
Fines	Financial penalties for non-compliance.	No formal penalties in place.
Planned governmental review of regulation	Review of SECR planned for 2024.	Government is currently consulting on a wide-ranging set of changes to the scheme, changes are still in consultation and deadline for feedback closed in September 2021.

If you would like more information on the UK’s energy legalisation and carbon schemes then speak to one of our energy consultants who can support your business with both ESOS and SECR compliance.