How can you get more value out of the ESOS process?

[Update July] Are you aware of the government’s response to the Streamlined Energy and Carbon Reporting (SECR) consultation?Published on 19th July 2018, it makes recommendations that will soon be written into legislation and come into force from April 2019.

If your organisation qualifies for ESOS, it’s very likely that it will also need to report under the new guidelines, as the qualification criteria are very similar (see our blog: UK Government announcement means energy & carbon reporting for many more companies in 2019). The SECR recommendations dovetail well with ESOS – firms will be required to report on energy consumption and energy efficiency actions – although there are additional requirements – reporting will be on an annual basis, in alignment with company reporting, and firms must also report on carbon emissions.

[Update June] Watch our ESOS Webinar replay:”Take a strategic approach to ESOS Phase 2; Why now is the time to choose the right path“.

How can you get more value out of the ESOS process?

With the second phase of ESOS (Energy Saving Opportunity Scheme) coming down the track in 2019, now is a good time to consider the best approach to get value out of the process.  

Phase 1 of ESOS resulted in a great many businesses taking a first positive step by undertaking energy audits but unfortunately many did not follow through on any of the recommendations made by their auditors.

Many of these audits were undertaken as tactical quick fixes to meet a compliance deadline.

In contrast, some businesses took a more strategic approach and delivered significant cost reductions on the back of the Phase 1 ESOS audits.  One example is Village Hotels who have now saved over £500k in energy costs, from starting with ESOS audits, identifying opportunities and then expanding to deliver an energy cost transformation strategy across the group.

As a result of the analysis undertaken for ESOS compliance, Village Hotels identified a series of risks associated with its current energy performance levels across its hotel portfolio as follows:

By identifying these risks, Village Hotels was able to take action to alleviate them.

The difference in their approach was their appetite to drive business value and not just tick a compliance box. This strategic intent led to a clear business case and importantly a commitment at board level to follow through to implementation.

How can you reach board level commitment?
A strategic approach can allow your business to identify a full spectrum of energy cost transformation. Using ISO 50001 is a good way to lay the foundation, but it is not the only way. A systematic approach to driving energy cost transformation, underpinned by a solid business case is essential to reaching board level commitment. We have found that energy cost transformation can be delivered through the following seven steps:

  1. Understand the current state and identify the gaps
  2. Create a long-term vision with senior level buy-in
  3. Build a prioritisation of opportunities to be captured
  4. Compile a clear business case
  5. Secure approval and board level commitment
  6. Put in place the right data management process to underpin the overall programme
  7. Initiate implementation and roll out projects

These steps can be tailored to your organisation. If you are aiming to reduce energy spend, achieve compliance at lower cost, and position your business to win new clients, then we think you should consider an energy cost transformation approach.

It will help you to achieve ESOS compliance at the same time. ISO 50001 can be a great platform to drive this transformation, but you need to consider how it will meet your organisation’s needs.

Our expert team is ready to help you comply with phase 2 of the Energy Savings Opportunity Scheme (ESOS) – and go beyond compliance to implement savings and drive real performance improvement.

Find out more about how we can help

Related blog posts

ESOS blog, part 1 – Phase 2. Are you ready?

ESOS Phase 1 Enforcement

Join our ESOS Webinar