Streamlined energy and carbon reporting for college corporations
Joseph Sale · Posted on: October 24th 2024 · read
ESG Reporting
In October 2024, the ESFA issued guidance on Streamlined energy and carbon reporting for college corporations - GOV.UK. It is important to note that, as corporations (and not registered Companies), Colleges do not fall within the mandatory reporting rules so compliance with Streamlined energy and carbon reporting (SECR) reporting is still voluntary. However, the ESFA acknowledges that this is a government backed initiative and there is growing expectations from College stakeholders that Colleges will be assessing and monitoring their environmental impact.
The College Accounts Direction and the Casterbridge Financial Statement model (kindly offered by the AoC) includes details on the disclosure requirements of SECR and how these can be included within the College's Financial Statements. This new guidance offers a practical guide as to how a College can measure its various energy requirements. However, the new guidance does suggest that instead of containing the disclosures within the financial statements, the College can provide this information on its website which would be more accessible to stakeholders.
ESOS Reporting
In a similar vein, the Department for Environment, Food and Rural Affairs (DEFRA) overseas the Energy Savings Opportunity Scheme (ESOS). Colleges are required to comply with this Scheme if they:
- Employ 250 or more people; or
- Have a turnover which exceeds £44.1m and a Balance Sheet total which exceeds £37.9m
However, public sector organisations do not usually need to comply with ESOS, and those organisations which meet the definition of a ‘public body’ need not comply.
The Public Contracts Regulations broadly state that organisations are public bodies if:
- they are established for the specific purpose of meeting needs in the general interest, not having an industrial or commercial character;
- they have legal personality;
- they have any of the following characteristics:
- they are financed, for the most part, by the State, regional or local authorities, or by other bodies governed by public law
- they are subject to management supervision by those authorities or bodies, or
- they have an administrative, managerial or supervisory board, more than half of whose members are appointed by the State, regional or local authorities, or by other bodies governed by public law
DEFRA openly admit that it is not straightforward to determine whether or not an organisation meets the definition of a public body, and recommend that specialist legal or tax advice is sought.
Our interpretation (which should not be taken as professional advice) of section 3) above is that most FE Colleges are public bodies on the basis that over 50% (“for the most part”) of their income will derive from the ESFA (“the State”).
Higher Education Institutions (HEIs) should arguably consider whether they can reasonably be defined as public bodies more closely, however, as we understand that tuition fees received from Student Loans Company, privately from individuals, or from the award of bursaries from privately-funded endowment funds represent ‘commercial’ sources of income and thus do not fall under section 3) above.
DEFRA openly admit that it is not straightforward to determine whether or not an organisation meets the definition of a public body, and recommend that specialist legal or tax advice is sought.
