SECR Intensity Ratio & Energy Efficiency Narrative: How to Get Them Right

Written by Calvin Lo, Founder of Aphelios Software | August 2026 | 6 min read

Two parts of the SECR directors’ report are easier to get wrong than the numbers themselves: the intensity ratio and the energy-efficiency narrative. Neither needs to be elaborate, but both must follow the SECR guidelines - and both are routinely weak in real filings.

Choosing a Meaningful Intensity Ratio

The guidelines require one intensity metric - emissions divided by a unit of business activity - chosen to be meaningful to the company. Common choices:

• tCO2e per £1m turnover - simple and comparable for most companies
• tCO2e per full-time employee - good for people-heavy businesses
• tCO2e per m² of floor area - useful for property operators
• tCO2e per unit produced - meaningful for manufacturers

There is no wrong answer as long as you say why you chose it and keep it consistent year on year. Switching ratios between years without explanation is a classic weakness.

The Energy-Efficiency Narrative

SECR asks in-scope companies to describe the energy-efficiency actions taken in the year, plus at least one planned for the next year. The minimum bar is explicitly low - at least one of each - but the actions should be real and specific. Examples that satisfy the narrative:

• Switching office lighting to LED
• Installing heating controls or smart meters
• Moving a vehicle fleet toward electric
• Consolidating servers or moving workloads to efficient infrastructure

Where software helps is being able to point at numbers: a narrative that says "we cut gas use by 8% this year" backed by your recorded activity data is stronger than a narrative with no evidence behind it.

Methodology Notes: The Forgotten Requirement

Your report must state the methodology used, the conversion factors applied, and how the figures were obtained (invoices, meter readings or estimates). Without this, an otherwise good report fails the guidelines. Recording the source type and methodology at activity level - as Aphelios does - means the note writes itself when you export the report.

Common Pitfalls

• Reporting no intensity ratio at all, or one that cannot be compared to anything
• Copying last year’s narrative verbatim, including planned actions already done
• Forgetting that the intensity ratio uses the same boundary as the rest of the report
• Missing the biogenic CO2 separation and the "excluding biogenic" statement

If you are deciding whether software or spreadsheets is the safer route for assembling all of this, our software vs spreadsheets comparison covers the difference in auditability. And if you are new to SECR entirely, start with the eligibility checklist and the scope guide.

Intensity Ratio FAQ

This guide is a planning aide, not legal advice. Confirm your reporting approach with your accountant before filing.