What SECR means for your supply chain

If your business has turnover above £36 million, or you have more than 250 employees, you probably already know that the law requires that you declare your carbon emissions as part of your annual report. This is called SECR, which stands for Streamlined Energy and Carbon Reporting.

Carbon emission reporting in the supply chain

There is no legal requirement for companies to consider a supplier’s SECR as well as their own. However, it is good practice, for three reasons.

Firstly, we all have our own responsibility to the planet. If there is a choice of suppliers, we should support the one who follows eco-friendly practices.

Secondly, if a company incorporates figures from the supply chain into its annual report, working with low-emission suppliers will have a positive effect on the overall figures.

Lastly, it’s honest and transparent. Perhaps a company is carbon neutral but buys from other companies that aren’t. In other words, the first company is masking the true environmental impact of their industry.

What does this mean for suppliers?

Companies at the top of the supply chains are looking to do business with greener suppliers. This means it's a good idea for suppliers to set more ambitious environmental targets. This will ensure that the right suppliers maintain their reputation in the industry.

In some cases, this could lead to supply companies having to comply with SECR rules, even though the company is below the threshold for reporting. Suppliers should be aware of this to avoid getting caught out.

How can my company reduce its carbon footprint?

It’s clear that every link in the supply chain needs to lower their emissions. Businesses can do this by aiming for government targets and even setting their own, more ambitious ones.

To achieve your targets, one of the most effective steps you can take is to use green energy for your business premises. Whether your SECR shows that you need to do more to reduce emissions or if you just feel it’s the right thing to do, I can help. This is because I source green energy for companies nationwide, finding the best rates to ensure sustainable results.

To find out more about how I can help your business source green energy, please contact me, Paul Hughes, on 0800 954 5117.