Trees absorbing carbon as part of SECR

The Streamlined Energy and Carbon Reporting (SECR) framework aims to improve how organisations report on their energy use and carbon emissions.

SECR is a regulatory requirement and serves as a guide for organisations towards adopting more sustainable practices. This is especially important in the private equity industry, where considering environmental, social and governance (ESG) factors in investment decisions is becoming more essential. For private equity firms, adopting SECR provides an opportunity to align with the increasing demand for responsible investment. This alignment helps position these firms as leaders in sustainability and as appealing options for investment.


Understanding SECR’s Impact on Private Equity Investments

The SECR framework enables a detailed review of energy use and emissions during the due diligence phase, identifying areas where operational enhancements can be made. These improvements can lead to a more sustainable business approach and offer significant cost savings, providing financial gains along with environmental benefits. Therefore, compliance with SECR becomes a crucial factor in determining the value and overall appeal of private equity investments, combining financial success with sustainable practices.


Challenges and Considerations

Navigating SECR poses several challenges and considerations for private equity firms. A key difficulty lies in bringing a diverse set of portfolio organisations into alignment with SECR requirements. Differences in preparedness and the availability of resources among organisations can make uniform compliance complex, requiring customised approaches to ensure all investments adhere to the necessary standards.

To tackle these challenges, private equity firms often utilise consulting services. This expertise simplifies the SECR compliance process, from the initial assessment to complete implementation, by seeking expertise it allows organisations to ease the compliance burden on individual portfolio companies. Furthermore, the use of external consulting services can offer the essential insights and advice needed to manage the intricacies of environmental reporting, ensuring that firms meet current regulations and well-equipped to adjust to future developments in sustainability reporting standards.


How We Can Help

We offer specialised assistance to firms in managing the complexities of SECR compliance. Our services cover everything from initial evaluations to comprehensive implementation, ensuring that your investments are profitable and sustainable. With our expertise, firms can effectively tackle the challenges of SECR compliance, fine-tuning their portfolios for both environmental and financial success.

Contact us today for a consultation about SECR.