FOCUS ENERGY MANAGEMENT
The international report by the
Intergovernmental Panel on
Climate Change (IPCC) identified
that energy e iciency could
contribute 45 per cent of the energy
reductions needed to keep the global
temperature rise to below 1.5°C.
This, coupled with commercial cost
savings, has meant that energy
e iciency is rapidly climbing the
business agenda. Political and
commercial pressures will remain
on businesses to ensure increased
momentum, with further legislation
likely to be introduced.
The launch in 2014 of the Energy
Savings Opportunity Scheme (ESOS), a
mandatory energy assessment scheme
for qualifying companies, was born
from the UK’s legal obligation to reduce
our carbon footprint. Apart from the
obligation to comply with legislation,
there is, where audits are carried out
e ectively, the opportunity for costed
energy e iciency measures to be
considered seriously at board level.
Any reductions in cost as a result can
lead to gains in competitive advantage.
ESOS applies to larger UK businesses
with an annual turnover in excess of
£44,845,000 and a balance sheet of
£38,566,706, or employing over 250
sta . Qualifying organisations are
30 MAY 2019
obliged to carry out ESOS assessments
every four years, with the first having
taken place in 2015 and the deadline
for completing the second assessment
set for 5 December 2019.
An Environment Agency audit of
ESOS phase 1 revealed that only 16 per
cent of participants were compliant,
leaving 75 per cent compliant but with
remedial actions and five per cent still
non-compliant. As we progress through
phase 2, businesses should be far more
aware of the requirements and should
be starting to see the opportunities the
scheme a ords. (Non-compliance has
led to fines for high-profile companies
such as eBay and Gumtree, with Amdoc
(UK) being fined £45,000.)
Many FMs tasked with meeting
ESOS requirements regard ESOS as
a compliance issue rather than an
opportunity. The surveys can become
a tick-box exercise, but when executed
e ectively they become an agenda
for positive change, e iciency and cost
reduction. O en FMs’ access to board
directors is limited and it’s a challenge
to bring ideas for energy e iciency
improvements to the attention of the
highest levels within the business.
ESOS o ers the opportunity for
FMs to have their ideas evaluated by
a qualified assessor and reviewed at
board level as statutory compliance.
Where FMs have had long-held
ambitions around driving better
energy e iciency, but without the
budgets to do so, ESOS and now
SECR (streamlined energy and carbon
reporting) can be the impetus to
demonstrate a return on investment
and obtain commitment.
Boards now appreciate that
business and consumer chains are
more environmentally focused than
ever before, and CSR is more than a
buzzword. Even if your organisation
does not currently meet the criteria for
compliance, it is a good idea to examine
the ethos of ESOS and be prepared for
future legislative change, so that you’re
ready if and when your business may
need to comply.
NAVIGATING THE PROCESS
While some FMs will have already been
through ESOS phase 1 and know what
is involved, many will have joined part
way through and may be unfamiliar
with the requirements. So, what are
the stages involved in ESOS phase 2
compliance?
1. Appoint a lead assessor. The
first step is to identify a certified lead
assessor and energy manager with
experience in helping companies
achieve ESOS compliance, and who is
a member of an approved professional
body register (such as CIBSE or
the Energy Institute). Ask your
connections in the FM world to refer
proven assessors with whom they’ve
worked. Just as importantly, pick an
assessor who will listen and work with
your business to provide compliance
and added value by being open to your
ideas.
2. Arrange a scoping meeting. Any
lead assessor will either provide a free
scoping meeting via teleconference, or
charge for a site meeting. At this point
decide if you want to tick boxes or carry
out an e ective energy survey, and set
this out in your meeting. A qualified
energy manager will be more than
happy to provide real value.
3.Measure and assess. To save costs
get your data ready in advance; your
lead assessor will then collate data and
follow the audit process to BS EN 16247.
Assessment depends on the number
of sites to be covered and the scope of
your emissions.
4. Report. With an e ective energy
survey, the ESOS report is a by-product
of your agenda for e iciency changes.
The lead assessor will provide the full
report for review by you and the board
of directors.
At this point, your ideas as to how
to improve your business’ energy
e iciency can truly be realised at board
level. In practice, this may mean your
agenda for e ective sub-metering or
lighting controls can be progressed,
saving your business more money than
‘generic ESOS’ recommendations.
It’s important for everyone to
understand that energy costs will
rise unless further legislation around
energy e iciency is wholeheartedly
embraced at board level. This is where
ESOS can prove valuable. First, it can
be used to bridge the gap between
FMs and the board, ensuring great
ideas for improved energy e iciency
do not remain an operational matter
but become part of a company’s
strategic plan.
Second, a business can actively
seek ways to reduce spend on energy
via the ESOS compliance process
and work towards improving cost
e iciency, demonstrably improving
the organisation’s CSR agenda
and delivering a competitive edge.
Increased pressure on the board with
the new SECR legislation has escalated
the relevance of ESOS, and when used
together will give FMs greater scope for
improvements.
ESOS and SECR need not be seen
as a compliance issue. Embracing
the opportunities that arise from
reviewing your organisation’s existing
energy usage, formulating ideas for
improved e iciencies, and having the
communications channel available to
formally present these at board level
can help FMs increase their influence in
shaping the future of their business.
ESOS and SECR legislation should not be
regarded as a burden but an opportunity to make
the case for serious energy-saving action, argues
Richard Dormer, MD of BCR-ECS
ESOS off ers the
opportunity for FMs to have
their ideas evaluated by a
qualifi ed assessor and reviewed
at board level as statutory
compliance.”