Energy Savings Opportunity
Scheme (ESOS)

The ESOS assessment must cover all of an organisation’s UK operations over a twelve-month period. It requires participants to do the following:

1. Measure total energy consumption across buildings, transport, and industrial activities.
2. Conduct the following energy audits to identify cost-effective energy efficiency recommendations.
   • An ESOS-compliant energy audit
   • A Display Energy Certificate
   • A Green Deal Assessment or
   • A certified ISO 500001 Energy Management System
3. Report compliance to the Environment Agency

Companies must notify the Environment Agency of compliance before the end of the compliance period. The assessment must be reviewed by a board-level director and approved by a lead assessor.

A company is not required to participate in ESOS if:

• The organisation is not defined as a public body
• The undertaking is subject to an insolvency procedure
• The organisation does not meet the qualification criteria

If you do not qualify for ESOS but wish to undertake an ESOS assessment to identify ways to reduce energy consumption and to demonstrate your commitment to energy efficiency, you can voluntarily notify that you have complied with the requirements of ESOS through the ESOS notification process. You can then have your details published by the Environment Agency as part of the list of ESOS-compliant organisations.

Our experienced energy auditors at McGrady Clarke can help you meet ESOS compliance voluntarily by carrying out detailed ESOS energy audits across your sites.

• Introduced a standardised template for including compliance information in the ESOS report
  • This will generally comprise ESOS information that participants will already have available, e.g. corporate group structure, reasons for qualifying for ESOS, details of the audit
  • The template is not available yet and will be developed with stakeholders 
• A reduction of the 10% de minimis exemption to up to 5%
  • Helps organisations to identify further ways to reduce energy consumption, encourage greater coverage of the scheme and improve data quality
• Introduced an energy intensity metric in ESOS reports
  • Reports need to include an overall energy intensity metric within the overview section of the report (kWh/m2 for buildings, kWh/unit output for industry, kWh/miles travelled for transport)
  • Better aligns ESOS and SECR
• A requirement to share ESOS reports with subsidiaries
  • A review of the scheme found poor dissemination of information to subsidiaries from parent organisations, which became a barrier to action on energy efficiency
• A requirement for ESOS reports providing more information on the next steps for implementing recommendations
• A requirement for participants to set a target or action plan following the Phase 3 compliance deadline
  • Participants will need to report progress annually via the energy efficiency section narrative in SECR reports, or via the ESOS web portal
  • Meeting this target or completing an action plan will not be mandatory for the  Phase 3 compliance deadline, but from Phase 4 onwards a requirement will be introduced that if the goal has not been met, the participant must explain why
• Collection of additional data for compliance monitoring and enforcement
  • Including data on corporate structure, details of energy consumption and emissions, energy intensity metrics

• To increase the number of ESOS participants that take action to reduce energy use, by raising the quality of their ESOS audit
• To increase the carbon and cost savings from ESOS by increasing the number and scope of ESOS recommendations taken up by participants
• To ensure that ESOS recommendations stay consistent with the UK’s Net Zero commitments

Our Energy Auditors pinpoint anomalies in energy usage through analysis of site-specific operations and consumption trends. Using industry best practices, our on-site audits identify and quantify energy efficiency measures in line with ESOS and ISO 50001 guidelines. We follow BS EN 16427 and ISO 50002 to deliver our audits, ensuring the highest qualities are maintained. 

At McGrady Clarke, we view ESOS as an opportunity to assist our clients in expanding their environmental capabilities and strengthening their green credentials beyond minimum compliance.  We offer our clients the opportunity to realise the long-term benefits and cost savings related to energy and carbon reductions.