Understanding SECR and CSRD: A quick guide to compliance in 2025

In today’s business landscape, carbon accounting is no longer just a corporate responsibility — it’s a legal requirement. Companies operating in the UK and EU must navigate complex regulatory frameworks like the Streamlined Energy and Carbon Reporting (SECR) and the Corporate Sustainability Reporting Directive (CSRD) to ensure compliance and enhance transparency. But what do these regulations mean for your business, and how can you simplify the process?

Our e-book, "A quick guide to completing your annual carbon accounts" provides a practical roadmap to help you comply with SECR and CSRD while unlocking the business benefits of carbon accounting. Here’s a brief overview of what you need to know.

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SECR: What you need to know

SECR is a UK regulation that requires large companies to report their energy usage and carbon emissions in their annual filings. If your company meets two or more of the following criteria, you must comply:

• More than 250 employees
• Annual turnover exceeding £36 million
• Balance sheet total above £18 million

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SECR reporting includes:

• Total energy consumption (electricity, gas, transport, etc.)
• Greenhouse gas emissions from Scope 1 (direct emissions) and Scope 2 (purchased electricity)
• At least one emissions intensity ratio (eg., emissions per revenue or per employee)
• Measures taken to improve energy efficiency during the reporting period

Failing to comply can result in fines, reputational damage, and increased scrutiny from regulators and investors.

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CSRD: Expanding sustainability reporting in the EU

The CSRD builds on existing sustainability reporting frameworks in the EU, significantly expanding the scope and depth of disclosure requirements. It applies to large and listed EU companies that meet at least two of these criteria:

• More than 250 employees
• Net turnover over €40 million
• Balance sheet total exceeding €20 million

From 2026, non-EU companies generating over €150 million in the EU will also need to comply.

The European Commission recently proposed the Omnibus Package to simplify the CSRD, but these changes have not yet been accepted or implemented. Key proposals include removing sector-specific ESG standards and raising the company size threshold to 1,000+ employees. If adopted, this would remove over 80% of companies from scope and delay reporting for many by another two years.

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CSRD reporting requirements include:

• Broader sustainability disclosures aligned with European Sustainability Reporting Standards (ESRS)
• Double materiality assessment (how sustainability affects the company and vice versa)
• More detailed Scope 3 emissions reporting (indirect emissions from supply chains and other activities)

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Simplifying compliance with automation

Both SECR and CSRD demand accurate, auditable and timely data — something that can be overwhelming without the right tools. This is where automated carbon accounting solutions come into play. Platforms like Ideagen Carbon Accounting streamline data collection, ensure compliance and provide valuable insights into your carbon footprint. By adopting automation, companies can:

• Save 70% of time on reporting tasks
• Improve data accuracy and auditability
• Gain deeper insights into supply chain emissions
• Easily generate SECR and CSRD-compliant reports

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Get your free e-book and take the next step

Understanding SECR and CSRD is the first step towards compliance, but knowing how to complete your annual carbon accounts efficiently is key to long-term success. Our e-book "A quick guide to completing your annual carbon accounts" walks you through:

• The basics of carbon accounting (Scope 1, 2 and 3 emissions)
• SECR and CSRD compliance requirements
• A step-by-step guide to completing your carbon accounts
• How automation can make reporting faster and easier

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Download your free copy today and take control of your carbon accounting.