ESOS Phase 3: Who needs to comply with it?

March 25, 2024

ESOS Phase 3 compliance is just around the corner. All companies that qualify, need to set up an account on the system by the 5th of June 2024 and file their report by the 6th of August 2024.

Days Hours Minutes Seconds

Who needs to comply with ESOS Phase 3?

First off, the government thinks everyone should be on board with ESOS Phase 3, and in theory, it’s a voluntary scheme, despite the government’s stance, only a handful of companies voluntarily participated in Phase 2 out of thousands eligible. So, while it’s technically voluntary, not many are jumping at the chance.

So, who needs to comply? Here’s the rundown:

  • UK Companies: If you’re operating outside the UK, ESOS compliance isn’t on your to-do list.
  • Size Matters: You need to meet certain size criteria, which means having either a turnover of £47 million or balance sheet assets of £43 million. You need to meet both criteria, not just one.
  • Staff Count: If you have over 250 staff members. Remember, this count is based on an average headcount, so part-time employees count too.
  • Group Affiliation: If you’re part of a larger corporate group where one subsidiary qualifies for ESOS, then all subsidiaries within the group must comply.
  • Consistent Eligibility: You must meet the criteria for two consecutive reporting periods. So, consistency is key.

If you slip below the threshold due to unforeseen circumstances like the COVID-19 pandemic, you’ll still need to comply if you bounce back over the limit. It’s a two-year commitment.

Potential Changes on the Horizon

Now, here’s where things get interesting. Rumour has it that the criteria might change. There’s talk of lowering the thresholds to 50 staff members and £5 million, potentially capturing a lot more companies in the ESOS net.

While this might mean more work for businesses, it aligns with the urgent need to curb carbon emissions. After all, we can’t keep business as usual if we want to tackle climate change head-on. Plus, the more companies that go through the ESOS process, the more awareness we raise about energy efficiency and sustainability. So, will these changes materialise?

ESOS compliance might seem like a hassle, but it’s a crucial step towards a more sustainable future. And if you ever have questions or need guidance on navigating the ESOS process, we are here to help.

Find out more information about the new law changes check our YouTube channel “Carbon College“. And if you have any questions or need further assistance, feel free to reach out.

Book a demo

Talk to our team to:

  • Explore how Enistic is effectively used by companies to track, analyse, and report their carbon emissions.
  • Discover seamless methods for data gathering and integrating Enistic into your team's daily workflow with minimal disruption.
  • Seek custom solutions and receive tailored support.
  • Explore pricing options suitable for your company and your needs.

Our Latest Blog Posts

How To Get Supplier PCF Data for EPDs and LCAs

You have commissioned an EPD. Data has been collected. The LCA practitioner starts building the model and comes back with a list: this supplier figure covers different modules, that one was calculated under the previous version of the standard, this one has expired,...

ESOS Phase 4 Costs and Deadlines in the UK for 2026

Most organisations think of ESOS as just an audit, a signature, or a notification, often filed and forgotten for four years. The ones getting value from it treat the audit as the input to something else. Phase 4 asks you to identify cost effective energy savings...

How to Measure Supply Chain Emissions for CSRD

Measuring your supply chain emissions and producing a CSRD ready disclosure are two different jobs, and the second one is where most programmes stall. A number in a spreadsheet is not a disclosure. Under CSRD you have to justify why you reported that category at all,...

What Is Scope 3 Emissions Measurement in 2026

Scope 1 and Scope 2 are, by comparison, easy. You own the boilers. You pay the electricity bills. The data exists somewhere in your organisation and someone can go and find it. Scope 3 is different, because it sits almost entirely in other people's businesses. Your...

How to Align SBTi Target Setting With CSRD in the UK

Most UK sustainability leaders are running two projects that should be one. On one side, a science based target: baseline, boundary, validation submission, a decarbonisation plan the board will actually fund. On the other, a CSRD data request from a European parent or...

How to Choose SECR Software for UK Groups in 2026

If you handle SECR for a group with multiple subsidiaries and sites, you already know the disclosure itself is not the difficult part. It is a handful of figures and a short narrative in the directors' report. The difficult part is pulling clean, consistent,...

How Enistic Keeps Your Emission Factors Current

Carbon calculations are only as reliable as the emission factors behind them, the figures that convert a litre of fuel or a kilowatt-hour of electricity into a CO2 equivalent number. These factors change over time as governments update their methodology and underlying...

How Enistic AI Calculates Your Carbon Footprint

"What's our carbon footprint?" sounds like a simple question. Getting a reliable answer is not simple at all, it depends on gathering the right data, applying the right emission factors, and adding it all up correctly across every scope. This post explains, in plain...

How Your ESOS or SECR Report Gets Signed Off

By the time a report reaches its final form, whether for ESOS, SECR, or another framework, it has been through data collection, calculation, and review. But before it's ever submitted, one more step happens: sign-off by a qualified person. This post explains what that...

How Enistic Keeps Your Data Secure

If you are trusting a platform with your organisation's energy, emissions and supplier data, security is not a nice-to-have question, it is the first one. Before any business commits to automating its carbon reporting, it needs to know where that data goes, who can...
Loading...
BICS Application £35 to £40 per MWh off your electricity bill, every year for five years. Government relief for UK manufacturers. Applications run from 1 October to 30 November 2026.Check if you qualify
+