How to Report Energy Consumption: Step-by-Step Guide

Energy consumption reporting is an essential practice for many organisations. This guide outlines a step-by-step approach to effective reporting of this metric.

Step 1: Understand reporting obligations

Different industries and jurisdictions have varying requirements for energy consumption reporting. In the UK, for example, this reporting is regulated by the Streamlined Energy and Carbon Reporting (SECR) framework. SECR is mandatory for companies that meet at least two of the following criteria in a financial year:

• ￡36m annual turnover,
• ￡18m balance sheet total, or
• 250 employees.?

In addition to SECR, there are widely used voluntary frameworks for energy consumption disclosure, including the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). For European businesses falling under the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) impose mandatory energy reporting requirements.

Below is a summary of the reporting requirements suggested by these key frameworks:

To ensure your energy reporting aligns with stakeholder expectations, engage investors, customers, and employees to determine what energy data they want to see and on a deeper level – what concerns they have over the impacts of energy consumption that can be addressed through reporting.

Step 2: Define your reporting scope

Define boundaries for your reporting. Decide which parts of your organisation (e.g., subsidiaries and joint ventures) are included. Include all energy sources relevant to your operations, such as electricity, natural gas, and fuel.

Align with recognised standards like the Greenhouse Gas Protocol to classify energy into energy consumed within the organisation and outside the organisation. To do this, you can use the upstream and downstream Scope 3 categories and identify which contribute significantly to the overall energy consumption.?

Upstream categories:

• Purchased goods and services
• Capital goods
• Fuel- and energy-related activities
• Upstream transportation and distribution
• Waste generated in operations
• Business travel
• Employee commuting
• Upstream leased assets
• Other upstream

Downstream categories:

• Downstream transportation and distribution?
• Processing of sold products
• Use of sold products
• End-of-life treatment of sold products 5. Downstream leased assets
• Franchises
• Investments
• Other downstream

Step 3: Collect accurate data

To collect energy consumption data, you can use invoices from your electricity, gas or other utility providers. These bills typically include information on the amount of energy consumed over a specific period.

For more precise data, install or utilise existing energy meters, which directly measure energy usage at your facilities. They will allow you to measure energy usage directly at your facilities, while energy management systems (EMS) will automate energy data collection and tracking.?

For energy consumed outside the organisation, it is more difficult to get consumption data, and you will need to outline how you calculate or estimate the energy consumption in each category.?

Step 4: Calculate and standardise key metrics

Total energy consumption should be reported in standard units like kilowatt-hours (kWh), megawatt-hours (MWh), or gigajoules (GJ) to provide a clear understanding of overall energy use.

Energy intensity usually measures energy consumption relative to business metrics such as production output or revenue.

The renewable energy share should indicate the proportion of energy sourced from renewables, reflecting progress toward sustainability goals.?

Step 5: Analyse energy performance and set targets

Start with a baseline comparison by evaluating current energy data against a baseline year to measure progress over time. Identify trends by analysing seasonal variations, spikes, or anomalies in energy consumption, which can reveal patterns or unexpected inefficiencies. To identify a clear trend, try to collect and report five years of data.?

To understand the context for a sustainability target, it is helpful to understand and reference globally recognised frameworks such as the United Nations Sustainable Development Goals.

Energy consumption directly relates to Goal 7 - Affordable and Clean Energy, and this disclosure specifically relates to Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.

To speak to your contribution to these globally recognised goals, we would recommend the following targets:

1. 100% renewable energy mix on or before 2030
2. Double the energy efficiency from the baseline year on or before 2030

Additionally, you can benchmark your energy performance against industry standards or peers. This will provide valuable context, helping you assess where your organisation stands out or identify gaps for improvement.

Step 6: Create your energy report

A well-structured report ensures that your energy data is accessible and actionable for stakeholders.?

To achieve this, organise your data effectively using tables, charts, and graphs to present energy metrics clearly and concisely. Provide context by explaining significant changes in energy use and highlighting any efficiency initiatives undertaken to improve performance.?

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?Additionally, include compliance statements to confirm alignment with relevant regulations and standards. A clear and comprehensive report not only enhances transparency but also supports stakeholder engagement and informed decision-making.

Clear goals and actionable plans will demonstrate your commitment to energy efficiency and continuous improvement.