ESOS: Everything you need to know

In today’s world, businesses are constantly seeking ways to reduce their carbon footprint and operate more sustainably, and one initiative aimed at achieving these goals is the Energy Saving Opportunity Scheme (ESOS). In this blog, we aim to provide you with a clear understanding of ESOS, the eligibility criteria and compliance requirements.

What is the Energy Saving Opportunity Scheme?

ESOS is a mandatory energy assessment scheme established by the UK government, requiring large businesses to conduct regular energy audits and identify energy-saving opportunities within their operations. Enacted as part of the EU Energy Efficiency Directive, ESOS aims to promote energy efficiency, reduce greenhouse gas emissions and ultimately contribute to the fight against climate change.

Does my organisation qualify for ESOS?

Determining whether your organisation qualifies for ESOS is essential for starting the journey towards compliance. Generally, ESOS applies to large businesses with over 250 employees or an annual turnover exceeding £44 million and an annual balance sheet total in excess of £38 million. Additionally, certain public sector bodies and non-profit organisations may also fall under the scope of ESOS. It’s essential to assess your organisation’s size and financial status to determine eligibility accurately.

If you are uncertain whether your business needs to comply with ESOS, Amber’s expert team is here to help. Feel free to speak to one of our advisors to find out whether you need to consider ESOS as part of your business activity.

How do businesses comply with ESOS?

There are several steps to complying with ESOS, starting with the appointment of a Lead Assessor, who will be responsible for overseeing the audit process. Businesses must then conduct a thorough energy audit of their operations, identifying areas of significant energy consumption and potential efficiency improvements. These audits must be conducted every four years, with the findings reported to the Environment Agency (or equivalent body in devolved administrations).

Are there benefits to complying with ESOS?

Participating in ESOS offers numerous benefits beyond regulatory compliance. By identifying and implementing energy-saving measures, businesses can significantly reduce their energy costs as well as enhancing operational efficiency.

By making the changes to meet ESOS requirements, you are likely to naturally improve your environmental sustainability credentials. By being proactive with energy management, businesses have an opportunity to strengthen their position in the market and reinforce their reputation around sustainability. By prioritising sustainability and green credentials, you can attract environmentally conscious customers and investors.

Conclusions

ESOS presents a valuable opportunity for businesses to enhance their energy efficiency and contribute to a more sustainable future. Understanding the scheme’s requirements will help businesses assess their eligibility and begin the process of acting on energy-saving initiatives. ESOS could be an avenue for businesses to not only meet regulatory requirements but simultaneously unlock significant long-term benefits for their operations and the environment.