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

SECR Software vs Carbon Accounting for UK PLCs

Most UK PLCs do not have a SECR problem. They have a data problem that shows up once a year in the annual report. Streamlined Energy and Carbon Reporting (SECR) sets the legal minimum for quoted companies: global Scope 1 and 2 emissions, energy use, an intensity ratio...

Who Can Help With CSRD Compliance in the UK

The EU's Omnibus I package has cut the number of companies caught by the Corporate Sustainability Reporting Directive (CSRD) by roughly 90%. For UK businesses, that has turned the question around. It is no longer "how do we comply?" but "do we need to, and if so, who...

How to Build a Supplier PCF Data Survey in 2026

Most supplier data surveys fail in a predictable way. You send a request to four hundred suppliers. Ninety reply. Of those ninety, a third send a corporate emissions figure instead of a product one. Several attach an environmental product declaration for a similar but...

SORP 2026: What The New ESG Reporting Rules Mean For Your Charity

If your charity's financial year started on or after 1 January 2026, your first SORP 2026 reporting year is already underway. That matters, because the data your trustees will need to report is being created right now. It's sitting in your energy bills, travel claims,...

SECR Software vs Carbon Accounting Platforms: Which Should UK Manufacturers Choose?

If SECR is the only emissions obligation your business will ever face, dedicated SECR software will do the job. Very few UK manufacturers are still in that position. Customers are sending Scope 3 questionnaires. EU buyers want embedded emissions data. Public sector...

Blues Go Green: Measuring the Carbon Footprint of a Birmingham City Matchday

Ask most football clubs how much carbon a matchday produces, and they could probably give you an estimate. However, very few could give you a measured number. Blues Go Green set out to change that. What is Blues Go Green? Blues Go Green is a partnership between...

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...
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
+