_Energy Savings Opportunity Scheme (ESOS): Action plan and Phase 4

A quick recap: What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a government initiative designed to enhance energy efficiency across large UK companies by auditing energy consumption and identifying cost-effective ways to reduce it.

The scheme runs in phases; phase 3 came to an end on 6th August 2024 after various extensions, but phase 4 had officially begun on 6th December 2023, with a reporting deadline of 5th December 2027.

From phase 3 onwards, additional compliance stages have been introduced, including annual reporting and action plan, which requires ESOS participants to demonstrate how their organisation plans to enhance energy efficiency and reduce carbon emissions, based on insights from energy audits. The plan should include a timeline and detail the specific human and financial resources required to deliver the proposed energy improvements.

In this article, we’ll explore why the action plan is needed, the detail and evidence that should be included, and the dates for submission. We’ll also look at the key changes to phase 4 and how Knight Frank can support you throughout the process.

Why is the action plan needed?

The action plan is a critical component for achieving energy efficient property assets and portfolios. It serves as a roadmap to identify and address areas that can significantly reduce energy consumption and carbon emissions, providing a clear framework for improving energy efficiency and achieving sustainability goals.

Assessing the energy intensity of processes, products and buildings means that areas of high energy consumption can be pinpointed. The action plan plays a crucial role in evaluating the effectiveness of energy management practices and the performance of existing energy-saving projects.

In addition, action plans can enhance and optimise existing Monitoring, Measurement, and Targeting (MM&T) systems, ensuring that energy data is captured and analysed effectively.

This focus on data and reporting enables actionable insights that can be shared with key stakeholders, supporting the implementation of targeted actions aimed at driving energy efficiency improvements and reducing carbon emissions.

What should be included in an action plan?

1. A detailed description of the actions or projects the organisation intends to implement to reduce energy consumption. This is usually transposed from the recommendations within an organisation’s energy audits or other source of improvement opportunity.

2. Clear timelines for each measure, including the predicted start and completion dates.

3. An indication of whether the measures were identified through the ESOS assessment or other audits and assessments.

4. The estimated energy savings for each measure should be quantified over the four-year action plan period.

5. Information must be included around how savings are going to be estimated.

This plan must be signed off by the Director which should be kept in an evidence pack that can be audited. Full details of what should be included in the evidence pack can be found on Gov.uk.

Timelines

The Environment Agency (EA) deadline for the action plan has been extended to 5th March 2025, when organisations must outline measures to improve energy efficiency during the compliance period ending 5 December 2027.

How can we help?

Knight Frank offers a comprehensive ESOS compliance service, ensuring your organisation meets all regulatory requirements while identifying energy-saving opportunities.

Our expert team offers:

• Guidance on ESOS legislation and its implications for your business.
• Analysis of company and energy data to determine ESOS requirements, including portfolio benchmarking and defining the scope of works.
• The development of tailored plans, including asset-specific ESOS level energy audits, transport, and process reviews to uncover cost-effective energy-saving measures.
• Specific ESOS level energy audits, including investment grade interventions with estimated carbon and financial savings.
• The opportunity to go beyond compliance, by targeting high-risk assets and aligning energy audits as part of a Net Zero pathway.
• Preparation of a corporate summary report and evidence pack with energy and carbon savings, presented for board-level sign-off.
• Completion and submission of ESOS compliance to the Environmental Agency.

Working alongside the experts will ensure your phase 4 work and action plan submission goes smoothly – get in touch with our experienced team today.