The UK Government’s Energy Savings Opportunity Scheme (ESOS) is a policy aimed at promoting energy efficiency in large organisations. For all organisations that qualify*, the assessment is mandatory every 4 years with fines for non-compliancy. The core idea behind the scheme is that through better understanding of energy use, organisations can identify cost-effective ways to reduce energy consumption and, as a result, lower greenhouse gas emissions.  

Introducing the ESOS action plan

The scheme has introduced the ESOS action plan, which must be submitted by the newly extended deadline of March 2025. The ESOS action plan plays a crucial role in not only helping businesses meet their legal requirements but also enables them to unlock significant economic and environmental benefits 

While many may wish to avoid repeating the challenges of ESOS Phase 3, the action plan transforms energy audits from a compliance checklist into a strategic roadmap. It helps businesses boost efficiency, reduce costs, and fully integrate sustainability into their operations. The action plan will become an annual progress update in December 2026, meaning that reporting on your commitments will enable organisations to integrate energy action planning and decision-making to in-house roles.     

The ESOS action plan: bridging audits and implementation 

The ESOS action plan encourages organisations to go beyond mere compliance with the audits and take tangible steps toward improving energy efficiency. It represents the shift from theory (energy audits) to practice (actual energy savings). The audits reveal opportunities for reducing energy consumption, but without a structured plan, businesses might miss out on capitalising on these opportunities. 

The key elements of the ESOS action plan: 

• Prioritising energy-saving opportunities: Once an audit identifies areas where energy consumption can be reduced, the action plan helps organisations identify the actions it plans to take in the next 3 years.  

• Setting clear targets and goals: The plan encourages businesses to set quantifiable targets for energy savings. This could include reducing electricity consumption, optimising fuel use in transport, or upgrading inefficient machinery. 

• Allocating resources: Implementing energy-saving measures often requires investment, whether in new technologies, training for staff, or changes to existing processes. The action plan should specify where resources will be allocated, along with timelines for execution. 

• Monitoring and reporting: Continuous monitoring of energy consumption is critical to ensure that savings are realised and sustained. Regular reporting keeps stakeholders informed about progress and ensures accountability. 

• Engagement and culture: The success of an action plan depends on the engagement of staff at all levels. Encouraging a culture of energy awareness and providing training where necessary can drive ongoing improvements. 

Benefits of the ESOS action plan 

The benefits of developing and implementing an ESOS Action Plan extend beyond compliance. By reducing energy consumption, organisations can significantly lower operational costs. In an era where energy prices are volatile and likely to rise, this provides a hedge against future price increases. Moreover, demonstrating a commitment to energy efficiency can enhance an organisation’s reputation, especially in sectors where sustainability is increasingly valued by consumers and investors. 

When considering the bigger picture, The UK is aiming for net-zero carbon emissions by 2050, and increasingly companies are setting their own net zero targets and the action plans and strategies which sit alongside this. 

If you want to learn more or discuss completing an ESOS action plan, annual progress update or a net zero strategy, our team would be happy to talk you through these steps, click here to find out more. 

*If you are a large business with more than 250 employees or £44m and an annual balance of over £38m or an overseas organisation with over 250 employees in the UK, then you will be required to comply. 

Author: William Bourns, Senior Consultant, Simply Sustainable