This article is provided by BRC Associate Member and Partner, Amber.
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Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and energy-saving scheme for large organisations in the UK. In this next stage, Phase 4, ESOS presents an opportunity for businesses to assess their energy use and make meaningful changes.
What is ESOS Phase 4?
ESOS is a mandatory energy assessment scheme for large organisations in the UK, aimed at identifying opportunities to improve energy efficiency and reduce costs. Managed by the Environment Agency, ESOS is divided into phases, with each phase requiring eligible companies to assess their energy usage, report on findings, and identify ways to save energy.
Phase 4, expected to run from June 2024 to December 2027, builds on the previous foundations with an increased focus on aligning energy audits with Net Zero targets and carbon reduction. Phase 4 offers businesses an opportunity to reduce energy costs, enhance sustainability, and play a part in the UK’s climate commitments.
What are the key differences between ESOS Phase 3 and Phase 4?
Phase 4 of ESOS is expected to introduce significant changes, reflecting a stronger commitment to sustainability and carbon reduction compared to Phase 3. One of the key differences is the emphasis on aligning energy efficiency audits with broader Net Zero goals. This change is aiming to encourage businesses to consider their carbon footprint alongside energy savings. Phase 4 also aims to push organisations towards implementing concrete measures that contribute to their decarbonisation strategies.
Phase 4 is a shift designed to encourage businesses to move beyond identifying energy-saving opportunities and towards demonstrating the impact of their actions. This new phase may introduce mandatory implementation of low-cost, high-impact recommendations, ensuring that audits lead to tangible changes rather than remaining theoretical exercises.
How can your business stay compliant?
Compliance with ESOS Phase 4 begins by confirming your business’s eligibility and appointing a qualified ESOS Lead Assessor to oversee the process, review audits, and identify energy-saving opportunities. You should look to:
- Measure your total energy consumption across buildings, processes, and transport using 12 months of data within the compliance phase.
- Conduct energy audits covering at least 95% of your total energy use, focusing on high-impact areas, and align findings with net zero goals.
- Compile the audit results, have them reviewed by your Lead Assessor, and submit your compliance report to the Environment Agency by the deadline, ensuring accuracy to avoid penalties.
To ensure ongoing compliance, stay updated with the latest ESOS guidance and involve key stakeholders to maintain a collective effort towards meeting energy efficiency and sustainability goals.
Why is getting ahead of the curve important for Phase 4?
For Phase 4, early action and getting ahead is key. Preparing now will not only help you meet compliance obligations but also unlock energy-saving opportunities that can boost your business’s bottom line. By integrating ESOS into your broader energy management strategy, you can turn compliance into a catalyst for meaningful change. Utilising Phase 4 beyond compliance makes it more than a regulatory requirement but instead a chance to lead the way in energy efficiency and sustainability.
How can Amber support you?
We can help manage your business’s ESOS submission through a four-step process designed to ensure your compliance. Please get in touch to find out how we can support you.