ESOS is the mandatory UK Energy Savings Opportunity Scheme. All large UK organisations (non-public sector) must comply with these regulations.
They are the UK’s transposition of Article 8 of the EU Energy Efficiency Directive, dictating that companies in the UK undertake comprehensive assessments of energy use and efficiency opportunities at least once every four years.
The ESOS Phase 1 deadline was 5th December 2015, and we are now in Phase 2. All qualifying organisations must measure their total energy consumption for buildings, industrial processes and transport, conduct audits, and report compliance by the 5th December 2019.
With ESOS comes a number of risks and opportunities for business.
During Phase 1, we supported 49 clients through 300 audits, in addition to DECs, ISO 50001 and Article 8 guidance. Through this, we identified £31m of savings on energy.
We recently hosted a webinar where we asked organisations involved in Phase 1, what cost savings they achieved. This was the outcome:
Evidently ESOS Phase I was not a runaway success.
It was viewed as a tick-box exercise and not recognised and utilised as an opportunity to drive cost savings for businesses.
Our work with Village Hotels highlights what could be achieved – we enabled £460,000 in energy savings in 2017.
In addition to energy cost savings, there are opportunities to be strategic about your method of compliance. For example, if you submit to GRESB (Global Real Estate Sustainability Benchmark), you can increase your points in the Building Assessments questions by either opting for ISO 50001 or maximising asset coverage through your audits. Therefore you can seize an opportunity to kill two birds with one stone.
Cost saving opportunities lie with your choice of pathways. We explain the pathways in our guide, but in summary, there are three approaches available to you: low-cost compliance; high-value audits; or ISO 50001.
We can help you decide which path is best for your organisation.
The path you choose will depend on your ambitions for the ESOS process. It’s important to consider these options and how your business wants to approach ESOS – is it about compliance, or performance? Starting earlier will help ensure that all options are available.
In our recent webinar, we heard that 50% of our audience were likely to opt for the ‘performance’ route for ESOS Phase 2, 38% will ‘comply’ at minimal cost, and 12% will go for ISO 50001.
We are hoping the attitude and approach to ESOS changes this time through Phase 2.
Our challenge to you is this: are you going to do the same thing as first time around, or are you going to work strategically to identify your opportunities and make a change, as Village Hotels did?
If you’d like to have a conversation about which path is right for you and how you can start to prepare, please get in touch with our team.
Or download our Quick Guide to ESOS Phase 2 Compliance – Make ESOS work for you