The Energy Saving Opportunity Scheme (ESOS) assesses all energy used by buildings, processes and transport. With an unrivalled knowledge of a firm’s operations, facilities managers are often responsible for taking the lead on ESOS submissions and ensuring the assessment process is followed correctly according to Bureau Veritas, a world leader in testing, inspection and certification

Organisations that qualify for ESOS must carry out assessments every four years and for this latest phase, should submit its compliance notification to the Environment Agency (the scheme’s administrator in England) by 5 December 2023. These include audits on the energy used by a business’ buildings, industrial processes, and transport to identify cost-effective energy saving measures.

Last year, the Government released the outcomes of its ESOS consultation, aimed at raising the ambition and standard of ESOS reporting, to make it a greater driver for energy efficiency action and align it with UK decarbonisation goals.

Key introductions include a reduction in the amount of energy that can be excluded from the assessment – known as the Total Energy Consumption (TEC) – from 10% to 5%, meaning 95% of total energy used across buildings, processes and transport must now be assessed, leaving a much tighter margin when it comes to data collection. There are also new compulsory action plans, which participants must set following the phase three compliance deadline and report progress annually as part of its Streamlined Energy and Carbon Reporting framework; however, meeting these targets won’t become mandatory until phase four. ESOS has also introduced an energy intensity metric whereby a business will need to detail kWh/m2 for buildings, kWh/unit output for industry and kWh/miles travelled for transport.

Whilst businesses still have nine months to comply with the latest changes, Bureau Veritas is on-hand to support facilities managers to file their submission sooner rather than later. Every business that must complete an ESOS assessment has the same deadline, which results in resource scarcity as the deadline approaches, therefore achieving compliance sooner could be more cost-effective and offer more choice when it comes to appointing a lead assessor – driving additional benefits for the business.

David Murray, Business Unit Manager – Sustainability at Bureau Veritas, comments: “Whilst ESOS reporting must only be carried out every four years, it’s vital that businesses get ahead of the curve to ensure any required audits are completed and submitted ahead of the strict 5 December 2023 deadline. Penalties for non-compliance can be up to £50,000 fines plus £500 per day, so as well as the opportunities to reduce energy usage and better a business’ carbon footprint, there are clear financial gains to be had from early compliance.

“Facilities managers form a key part of the ESOS process, given they have vast knowledge of a businesses’ operations, including buildings, processes and transport, and a solid over-arching view of the company’s corporate structure – an imperative aspect of filing an ESOS submission.

“Phase three has introduced a number of key changes, most notably the tighter scope on energy reporting, new metrics and the requirement for an energy efficiency action plan to be drawn up. It’s important for facilities managers involved in this process to ensure they understand the full scope of the new strengthened requirements, engage a lead assessor early on, and have a understanding of the data collection requirements.”

Bureau Veritas is also urging facilities managers who may not have previously had to report to get ahead for their first assessment. Companies which qualify for the mandatory assessment under ESOS include those which employ 250 or more people, have an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million.

David continues: “The ESOS qualification criteria are complex and many organisations will need to take significant steps in order to comply with all requirements. Furthermore, businesses which may not have had to report under phase two of ESOS but have since met the criteria to comply with the reporting scheme this time around, may be in the dark when it comes to what they need to do first, and the business drivers to push forward with the process.

“There are clear benefits to ESOS, other than compliance – although this is the main driver for many. Firms that have a clear vision when it comes to sustainability and sustainable policy are able to have an increased awareness of energy issues within their business, save money when ESOS recommendations are implemented, support the business’ net zero transition, and improve their corporate sustainability reporting.

“As an independent third-party with experience helping many clients comply with the ESOS regulation in the UK, we’re able to support businesses with UK and European operations to take action towards compliance. Our global network of energy experts offers a wealth of knowledge to help your company achieve compliance in a cost-effective manner. In many cases, going beyond compliance can also maximise the business benefits that can be gained from reducing and optimising energy consumption.”

With vast experience and technical expertise in energy assessment and verification, Bureau Veritas is uniquely placed to help organisations achieve compliance with the ESOS regulations and take advantage of energy savings opportunities. With qualified Lead Energy Assessors available to guide the process, Bureau Veritas can support businesses through every step of its energy efficiency journey, starting with full ESOS compliance.

To further support businesses in meeting phase three of ESOS regulations, Bureau Veritas has released a brand new downloadable guide, to help navigate the process.

For further information on ESOS and how Bureau Veritas can support your business on its energy efficiency journey, get a free quote.

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