ESOS Phase 4  Consultlancy

Exploration of Net Zero Commitments and Targets: Organisations may be required to thoroughly review and assess their Net Zero commitments, ensuring that clear, measurable targets are in place. This includes evaluating current carbon reduction strategies and identifying the necessary steps and actions needed to achieve these targets within specific timeframes. This process will likely involve regular monitoring and reassessment to ensure progress towards the Net Zero goal.

Identification of Risks in Transitioning to Net Zero: As part of their Net Zero journey, organisations will need to conduct risk assessments to identify potential challenges associated with transitioning to lower emissions. These could include financial, operational, and regulatory risks, as well as risks related to the adoption of new technologies and changes in market dynamics. Understanding these risks will enable organisations to plan mitigation strategies and ensure a smoother transition.

Support for Creating and Enhancing Carbon Reduction Plans (CRP): Organisations may receive detailed guidance on how to develop a comprehensive Carbon Reduction Plan (CRP) or how to update existing strategies. This support will be aimed at aligning organisational efforts with industry best practices and regulatory requirements, providing clarity on setting realistic carbon reduction targets and identifying key performance indicators to track progress.

Increased Clarity on Site Audit Sampling Requirements: Businesses will likely face stricter requirements regarding energy audits, with a focus on improving the accuracy and comprehensiveness of data. Organisations may be required to audit a minimum number of buildings or facilities and ensure that a certain percentage of their total energy consumption is covered in these audits. This will enhance the reliability of the data used for emissions reporting and strategic planning.

Mandatory Compliance with ISO 50002 or EN 16247 Auditing Standards: It is anticipated that energy audits conducted as part of the ESOS scheme will need to comply with internationally recognised standards such as ISO 50002 or EN 16247. These standards ensure that the auditing process is rigorous and follows best practices, thus improving the overall quality and credibility of the reports submitted under the scheme.

Removal of Display Energy Certificates (DEC) and Green Deal Assessments as Compliance Routes: Phase 4 is expected to eliminate the use of Display Energy Certificates (DEC) and Green Deal Assessments as valid routes to compliance with ESOS. Organisations will need to shift towards more comprehensive and detailed reporting methods that provide a clearer picture of their energy consumption and efficiency.

Development of an ESOS Web Portal for Annual Progress Reporting: For organisations not covered by SECR, a new web-based reporting platform may be introduced, allowing them to report on their annual progress towards carbon reduction targets. This portal could include a requirement for businesses to explain any failure to meet specified targets, increasing accountability and transparency.

Public Disclosure of Energy and Carbon Reduction Data: Following the example set by SECR, Phase 4 may require organisations to publicly disclose key data, such as energy consumption figures, carbon reduction targets, and progress on Net Zero initiatives. This increased transparency will help stakeholders, including customers and investors, assess a company’s sustainability efforts.

Improved Collection and Monitoring of Energy Data and Training: ESOS reports may require businesses to enhance their data collection and monitoring capabilities, ensuring that energy use is tracked more accurately. Additionally, recommendations for improved energy controls and staff training may be incorporated into audit findings, fostering better energy management practices throughout the organisation.

Consideration of Future Electricity Demand in Net Zero Planning: As part of the Net Zero assessment, businesses will likely need to evaluate their future electricity demand, particularly in the context of their impact on the overall energy system. This will encourage organisations to adopt strategies that reduce strain on the grid, such as increasing energy efficiency or investing in renewable energy sources.

Public Access to ESOS Submission Data: Similar to Phase 3, the data submitted under Phase 4 will likely be made publicly available. This increased transparency is intended to promote accountability and allow stakeholders to evaluate the energy performance and sustainability initiatives of organisations.

Requirement for More Comprehensive Data Submission: Phase 4 is expected to impose more rigorous data submission requirements, meaning that businesses will need to provide greater detail in their reports compared to previous phases. This will likely include more granular information on energy use, carbon emissions, and reduction strategies, ensuring that the reports are more insightful and actionable.