Comply with the Energy Savings Opportunity Scheme (ESOS)
Overview
The Energy Savings Opportunity Scheme (ESOS) is a UK government initiative designed to promote energy efficiency and reduce carbon emissions in large enterprises. Governed by the 2023 amended ESOS Regulations, ESOS requires qualifying organisations to conduct energy assessments and identify energy-saving opportunities within their operations. Compliance with ESOS is not only a legal obligation but also an opportunity for businesses to enhance sustainability, reduce energy costs, and contribute to environmental conservation.
The key requirements of updated ESOS include:
- Eligibility and Qualification: ESOS applies to “large undertakings” and their corporate groups based on specific criteria. Large undertakings are those with at least 250 employees, an annual turnover exceeding €50 million, or a balance sheet exceeding €43 million. Additionally, smaller organisations within corporate groups may qualify if the group as a whole meets the criteria.
- Energy Assessments: Qualifying organisations must conduct comprehensive energy assessments every four years. These assessments should cover total energy consumption, identify significant energy consumption areas, and propose energy-saving opportunities. The assessments must be conducted or overseen by accredited lead assessors.
- Compliance Notification: Organisations meeting the eligibility criteria must submit a compliance notification to the Environment Agency, detailing their adherence to ESOS requirements. This notification includes information on the lead assessor, methodologies used, and key findings from the energy assessments.
- Action Plans and Progress Updates: ESOS mandates the development of action plans based on the identified energy-saving opportunities. Businesses need to implement these plans and provide progress updates annually. The progress updates include the results of implemented measures and any adjustments to the action plan.
- Reporting and Publication: ESOS participants must publish their compliance, action plans, and progress updates. Non-compliance, if applicable, will be publicly disclosed. This transparency aims to encourage accountability and motivate businesses to actively pursue energy efficiency measures.
ESOS was updated on the 29th of November 2023 and applies to the United Kingdom.
Does the new ESOS affect my business?
Impacts on businesses under the new ESOS include:
- Cost Savings: Implementing energy-saving measures can lead to significant cost reductions. From adopting more efficient technologies to optimising operational processes, businesses can experience long-term financial benefits.
- Environmental Responsibility: Participating in ESOS reflects a commitment to environmental responsibility. By identifying and mitigating energy-related impacts, businesses contribute to national and global efforts to combat climate change.
- Competitive Advantage: ESOS compliance can be leveraged for competitive advantage. Consumers and stakeholders increasingly value eco-friendly and socially responsible practices. Demonstrating commitment to energy efficiency can enhance a company’s reputation and attract environmentally conscious partners and customers.
- Regulatory Compliance: Non-compliance with ESOS can result in penalties and public disclosure of failures. Adhering to the scheme ensures that businesses stay within legal boundaries and avoid potential financial and reputational damage.
Complying with ESOS is not just a legal requirement; it’s an opportunity for businesses to enhance sustainability, reduce costs, and demonstrate commitment to environmental responsibility. By conducting regular energy assessments, developing action plans, and providing progress updates, organisations can navigate the complexities of the scheme, reap financial benefits, and contribute to a greener future. As regulations evolve and environmental consciousness grows, ESOS compliance stands as a proactive step for businesses embracing energy efficiency.
Do I need ESOS in my ISO Compliance Register?
ESOS primarily targets large undertakings across various industries. Therefore businesses involved in manufacturing, retail, finance, and more will need ESOS in their ISO Compliance Registers. The criteria based on employee count, turnover, and balance sheet size help determine eligibility. Corporate groups need to consider the cumulative values of all entities within the group structure to assess qualification.
Legislation related to ESOS
Legislation related to ESOS includes:
- The Energy Savings Opportunity Scheme Regulations (ESOS) 2014
- Energy Act 2011
- Energy Act 2023
- The Energy Information Regulations 2011
More information
Visit the Comply with the Energy Savings Opportunity Scheme (ESOS) article on the legislation.gov.uk website.
Create an account in the ISO Compliance Register App and add this article (which is updated by the new ESOS) to your Register.
