_Energy Savings Opportunity Scheme (ESOS): The latest for phase 3
What is ESOS?
The Energy Savings Opportunity Scheme (ESOS) is a government programme aiming to boost UK businesses' energy efficiency. It is a mandatory reporting scheme that applies to large UK companies that meet certain headcount and turnover thresholds.
Any qualifying business must review and report their energy usage across their buildings, transport and processes. A certain amount of this will need to be audited to help identify and find cost-effective ways to cut consumption.
The scheme runs in four-year phases, and we are currently in phase 3 with a deadline of 5 December 2023. With this countdown to the compliance date, here is how your organisation can get ready and how Knight Frank can help.
What are the qualifying standards, and does ESOS impact my organisation?
ESOS applies to companies in the UK that meet specific criteria on 31 December 2022, and you will need to comply if you have:
• More than 250 employees in the UK
• A turnover greater than £44.1m or a balance sheet over £37.9m
• Your company is part of a larger organisation that falls into the above.
• Whole corporate groups also qualify if at least one UK group company meets these measures.
• If you took part in the previous phases of ESOS, then you'll likely qualify for phase 3 participation. The full government guidance can be checked online.
My company qualifies for ESOS. What do I do now?
The compliance phase for phase 3 is from 6 December 2019 to its deadline of 5 December 2023, but it is never too early to get started with your ESOS compliance.
ESOS is a multi-staged assessment - from measuring energy use to Environment Agency reporting and recordkeeping. Working with Knight Frank as a trusted ESOS Lead Assessor can help navigate the process and ensure your submission complies with ESOS guidance.
Throughout your review, we will help you collate data for your building, transport, and process energy use, analyse the data, and review your portfolio. We will carry out your building's energy surveys, produce the ESOS survey reports and ensure you can maximise the benefits of the scheme by conducting the ESOS review, verification and sign-off.
From compliance to net zero
The requirements of ESOS phase 3 have been strengthened following a public consultation from the government. The response has been measured to minimise the impact on phase 3 compliance, with more wide-reaching changes expected for phase 4. One of the main changes includes recommending that net zero is included in phase 3 before it becomes mandatory in later phases.
Ambitious companies should look to use their ESOS phase 3 application to begin their net zero journeys and use it as a stepping stone for larger net zero strategies and goals.
While there is a cost of compliance, smart businesses should recognise that this is an opportunity for something greater and go beyond standard ESOS compliance.
Our ESOS support will ensure you meet The Environment Agency requirements and transform energy use for the long term.
If you’d like to find out how we can support you with your ESOS requirements, please get in touch.