Are you obligated for ESOS?
Obligated organisations must comply in phases and we are now in phase 3 of the scheme. Each phase has a qualification date (on which a company must assess whether they are obligated) and a compliance deadline (by which date an organisation must be compliant).
A UK organisation is obligated to comply with ESOS phase 3 if on the qualification date it either:
- Employs 250 or more people, or
- Has an annual turnover in excess of £44m and an annual balance sheet total in excess of £38m, or
- Is an overseas company with a UK registered establishment which has 250 or more UK employees (paying income tax in the UK)
Organisations obligated on the qualification date (31 December 2022), must comply with phase 3 of the scheme by 5 June 2024. This is an extension deadline due to recent changes made to the phase 3 requirements (initial deadline 5 December 2023).
Increasingly, businesses who don’t meet the above thresholds are conducting ESOS assessments voluntarily to support their carbon reduction commitments, going above and beyond to mitigate climate change. Following the ESOS scheme presents a real opportunity for businesses to improve energy and fuel efficiency, reduce carbon emissions and subsequently, reap financial benefits.