Businesses in scope need to disclose their energy and carbon emissions. Companies that fall within the following definitions must comply unless they meet certain exemption criteria: Quoted companies of any size that are already obliged to report under mandatory greenhouse gas reporting regulations. Unquoted companies incorporated in the UK that meet the definition of 'large' under the Companies Act 2006 will have new reporting obligations.

This applies to registered and unregistered companies. Note that the criteria for 'large' differs from the ESOS Regulations. 'Large' Limited Liability Partnerships (LLPs) will be required to prepare and file an 'Energy and Carbon Report'. Unquoted companies or LLPs are defined as 'large' if they meet at least two of the following three criteria in a reporting year, a turnover of £36million or more; a balance sheet of £18million or more; or250 employees or more.

Quoted companies must continue to report their global scope 1 and 2 GHG emissions in tonnes of carbon dioxide equivalent (including all seven gases included under the Kyoto Protocol), and a chosen emissions intensity ratio in their Directors reports for the current and previous reporting periods.

In addition, they will be required to report their underlying global energy use for the current reporting year. Furthermore, the split between UK and offshore energy use in other countries is required, and after the first SECR reporting year, a comparison with the previous year. Scope 3 reporting remains voluntary but is strongly recommended for material emissions sources.

Unquoted large companies and large LLPs will need to report, as a minimum, UK energy use from electricity, gas and transport fuel – as well as the associated GHG emissions – including at least one intensity metric.

Transport energy should include business usage where the company is supplied with the transport fuel, but not journeys where the fuel is paid for indirectly. For example, fuel consumed for business use in company cars, fleet and private/hire cars (including where employees are reimbursed for business mileage) and on-site vehicles are included. But this does not include fuel associated with air, rail or taxi journeys that the company does not operate, or fuel for the transportation of goods contracted to a third party.

Quoted and unquoted companies and LLPs all need to report energy use, GHG emissions and at least one emissions intensity metric for the current and previous financial years. The relevant report must include a narrative description of measures taken to improve the businesses' energy efficiency in that year. Where possible, resulting in energy saving from the actions reported should also be stated. If no measures have been taken this should also be included in the report.  The methodology used must be disclosed and although no methodology is prescribed, it must be robust, transparent and widely accepted. ​