The deadline for the 3rd iteration of ESOS is December 2023. So, what is the Government doing to improve it?
In short, the Government have left it too late to implement many of the proposed changes until the 4th iteration in 2027. The focus seems to be on standardising and improving the quality of the reports. This includes the introduction of an energy intensity KPI and the requirement for each customer to justify their choice of ESOS Assessor. Organisations that qualify for ESOS phase 3 must also outline an action plan for phase 4 compliance.
But, what parts of reform have been kicked down the road to 2027?
– Public disclosure of high-level findings.
– Forward-looking energy reduction targets.
– Annual progress reporting.
– Expansion of scope to include long term alignment with net zero, which would include identifying plans to reduce scope 1 and 2 emissions even if no technical solution currently exists.
– Net zero benchmarking
It is also worth noting that ESOS is due to be widened to include medium size companies.
The final big element is making the uptake of proposed savings measures mandatory. This seems to have been kicked even further down the road, pending how to be satisfied that ESOS Assessor calculations are accurate.
Our view is that ESOS appears to be drifting at a time when embracing energy efficiency measures should be of paramount importance, and the Government has missed a significant opportunity.