ESOS (Energy Savings Opportunity Scheme).

ESOS (Energy Savings Opportunity Scheme).

What is ESOS Reporting?
ESOS reporting refers to the mandatory process under the UK’s Energy Savings Opportunity Scheme (ESOS), which requires large organisations to assess and report on their energy usage and identify opportunities for energy savings. The scheme is designed to encourage businesses to improve their energy efficiency and reduce carbon emissions.

ESOS applies to large UK undertakings and corporate groups that meet certain thresholds, such as:
• Having at least 250 employees, or
• An annual turnover exceeding £44 million and a balance sheet total over £38 million (for Phase 3; thresholds may differ in future phases).

What Does ESOS Reporting Involve?
The ESOS reporting process consists of several key steps:

• Energy Assessment: Organisations must carry out an audit of their total energy consumption, including buildings, industrial processes, and transport. The audit must cover at least 95% of the total energy use and identify cost-effective energy-saving opportunities.
• Action Plan and Progress Updates: From Phase 3 onwards, organisations must publish an action plan outlining how they intend to implement identified energy-saving measures and report progress annually.
• Director Sign-Off: The ESOS assessment and the compliance notification must be approved by a board-level director or equivalent senior manager.
• Notification of Compliance: After completing the assessment, organisations must notify the Environment Agency (or relevant scheme administrator) that they have complied with ESOS obligations. This includes submitting details about energy consumption, identified savings opportunities, and the compliance route used.
• Evidence Pack: Organisations must maintain an evidence pack documenting how they have met ESOS requirements, including data, calculations, and supporting records.