SECR glossary

SECR borrows terminology from accounting standards, regulatory frameworks, energy management and financial disclosure. This glossary translates the terms into plain English, with cross-links to the full guides.

A B C D E F G H I K L M N O P R S T U V W Z

A

Activity-based methodology: A scope 3 calculation approach using physical activity data (kg of material, km travelled) multiplied by an emission factor per unit of activity. More accurate than spend-based and usually expected by year two.
AMR (Automated Meter Reading): Utility metering technology that transmits energy consumption data automatically. Standard on UK half-hourly metered electricity supplies and increasingly common on gas.
Anthropogenic emissions: Greenhouse gas emissions caused by human activity, as distinct from natural emissions.
Audit trail: Documentation showing how a SECR data point was derived, sourced and verified. Required by external auditors.

B

Baseline year: The reference year against which SECR year-on-year emissions changes are compared. Must be disclosed in the report.
Biogenic emissions: CO₂ released from recently grown biomass (wood, biogas, fermentation). Reported separately in the SECR narrative, not in fossil scope 1 totals.
Boundary: The organisational scope of SECR reporting, defined using either the operational-control or financial-control approach.

C

Carbon Reduction Plan (CRP): A document required by the NHS Net Zero Supplier Roadmap and certain UK public-procurement frameworks, disclosing supplier emissions and reduction targets.
CCC (Climate Change Committee): The UK's independent statutory advisor on climate policy, which publishes sector-by-sector decarbonisation pathways.
CHP (Combined Heat and Power): On-site generation producing electricity and useful heat simultaneously. Common in manufacturing, hospitals and district energy.
Companies Act 2006: The UK legislation under which SECR is mandated, via the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
Conversion factor: A coefficient that converts an activity (kWh, litre, km, kg) into a CO₂-equivalent emissions value. UK companies use DEFRA's annually published factors.
CSRD: Corporate Sustainability Reporting Directive — the EU sustainability disclosure regime, which affects UK companies with EU subsidiaries.

D

DEC (Display Energy Certificate): An operational energy rating displayed by public-sector buildings in the UK. A useful benchmark, but not the same as SECR data.
DEFRA factors: Annually published GHG conversion factors by the UK Department for Environment, Food & Rural Affairs (with DESNZ). The authoritative source for SECR scope 1 and 2 calculations.
Directors' Report: The annual report submitted to Companies House by the directors of UK companies. SECR data is published within this report.

E

Embodied carbon: Emissions released during the production of materials and products, separate from in-use emissions. Particularly material in construction and capital goods.
Energy intensity ratio: A SECR-required ratio of emissions per unit of activity (per £M turnover, per m², per FTE, per tonne of product). Companies choose the most relevant metric.
EPR (Extended Producer Responsibility): UK packaging regulation requiring producers to pay for the end-of-life management of their packaging. Data flows into SECR scope 3 category 12.
ESOS: Energy Savings Opportunity Scheme — a UK regime requiring energy audits every four years for large undertakings. It overlaps SECR but is distinct.

F

F-gas (Fluorinated greenhouse gas): Synthetic refrigerants with very high global warming potentials (HFCs, PFCs, SF₆, NF₃). Leakage from refrigeration is a significant scope 1 source in retail, hospitality, food and beverage, and healthcare.
FCA SDR: Financial Conduct Authority Sustainability Disclosure Requirements — UK regulation for financial-services firms and investment products.
Financed emissions: Scope 3 category 15 emissions from a financial institution's lending and investment portfolio. The PCAF Standard sets the methodology.
Financial-control approach: A boundary choice where the reporting entity reports emissions from operations it has the right to direct financially. An alternative to operational control; less common in UK SECR.

G

GHG Protocol: The Greenhouse Gas Protocol Corporate Standard — the global standard methodology underlying SECR calculations.
GWP (Global Warming Potential): A multiplier expressing how much more warming a greenhouse gas causes per kg than CO₂ over 100 years (GWP100). Used to convert all GHGs into CO₂-equivalent. DEFRA publishes GWPs alongside its conversion factors.

H

Half-hourly meter: An electricity meter recording consumption in 30-minute intervals. Standard on UK commercial supplies above roughly 100 kW peak demand.
HVO (Hydrotreated Vegetable Oil): A drop-in diesel replacement made from vegetable oils. It has a lower DEFRA emissions factor than fossil diesel, but not zero.

I

IEMA: The Institute of Environmental Management and Assessment — the UK professional body for environmental practitioners.
ISO 14064: International standard for GHG quantification and verification (parts 1, 2 and 3 cover organisational inventory, projects and verification).
ISO 50001: An energy-management standard, widely adopted in manufacturing and hospitality.

K

kWh (Kilowatt-hour): The standard unit of energy consumption. SECR requires total UK energy consumption to be reported in kWh.

L

Like-for-like: A year-on-year comparison adjusting for portfolio changes (acquisitions, disposals, refurbishments). Required for a credible SECR trend narrative.
LLP (Limited Liability Partnership): SECR applies to large LLPs under the Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
Location-based scope 2: Scope 2 methodology using the average grid emissions factor for the geography. The UK average factor is published annually by DEFRA. Mandatory under SECR.

M

Market-based scope 2: Scope 2 methodology reflecting the emissions of the energy procured (green tariffs, REGOs, PPAs). An alternative to location-based; both can be reported.
Materiality: The principle that emissions sources should be reported when they could influence stakeholder decisions. Auditors use a 5% materiality threshold by default.

N

Narrative section: The qualitative part of the SECR report explaining methodology, year-on-year changes, energy-efficiency actions and the intensity ratio choice.
Net zero: A state where remaining emissions are balanced by removals. Distinct from SECR (an annual disclosure) but increasingly the strategic target for SECR-reporting companies.

O

Operational-control approach: The default SECR boundary methodology. The reporting entity covers emissions from operations it controls day to day. The most common UK SECR choice.

P

PAS 2080: Carbon management in buildings and infrastructure — a UK standard widely required by tier-1 infrastructure clients.
PCAF Standard: Partnership for Carbon Accounting Financials — the global methodology for financed-emissions calculation.
PPA (Power Purchase Agreement): A long-term contract to buy electricity directly from a renewable generator. Underpins market-based scope 2 claims; auditors check additionality.
Process emissions: CO₂ released by chemical reactions (e.g. limestone calcination in cement), separate from fuel combustion. Counted as scope 1 even though no fuel is burned.

R

Refrigerants (HFCs): Common HFC refrigerants such as R-404A, R-134a, R-410A, R-449A and R-452A have GWPs ranging from roughly 1,300 to 3,920. Leakage from chillers and refrigeration is a significant scope 1 source.
REGO (Renewable Energy Guarantees of Origin): Certificates evidencing renewable electricity generation. They underpin many UK green tariffs and are used to defend market-based scope 2 claims.

S

SBTi (Science Based Targets initiative): An independent framework validating corporate emissions targets against 1.5°C or well-below-2°C trajectories.
Scope 1: Direct emissions from sources owned or controlled by the reporting entity — combustion of fuel, refrigerant leakage, process emissions and owned fleet.
Scope 2: Indirect emissions from purchased electricity, steam, heating and cooling. Reported on a location-based and/or market-based methodology.
Scope 3: Other indirect emissions across 15 categories, upstream and downstream of operations. Voluntary for SECR but increasingly expected.
SDR (Sustainability Disclosure Requirements): A UK regulatory framework for sustainability reporting, including FCA labels for investment products.
SECR: Streamlined Energy and Carbon Reporting — the UK regime mandated by the Companies (Directors' Report) Regulations 2018, requiring large UK companies to disclose energy use and emissions in annual directors' reports.
Spend-based methodology: A scope 3 calculation approach using financial spend (£ purchased) multiplied by an industry emission factor per £. Lower data quality than activity-based but acceptable for year-one SECR.

T

TCFD: Task Force on Climate-related Financial Disclosures — a global framework underlying UK SDR. Premium-listed companies and large asset managers must disclose TCFD-aligned data; it overlaps with SECR.
Tonnes CO₂e (tCO₂e): The standard unit for SECR emissions reporting. It combines all greenhouse gases by their GWP into a CO₂-equivalent.
TRU (Transport Refrigeration Unit): A refrigeration unit on a refrigerated trailer or van. Its diesel and F-gas emissions are scope 1.

U

Upstream / downstream: The direction of scope 3 emissions relative to the reporting entity. Upstream is supplier-side; downstream is customer-side.

V

Verification: Independent assurance of SECR data. Not mandatory under SECR but increasingly expected by investors and lenders.

W

Well-to-tank (WTT): Upstream emissions from fuel production (extraction, refining, transport). DEFRA publishes WTT factors as a scope 3 component.

Z

Zero-emission vehicle: A vehicle producing no tailpipe emissions (battery electric, hydrogen fuel cell). The tailpipe is scope 1 zero; upstream electricity is scope 2 (for charging) or scope 3 (well-to-tank).