How the ESOS Action Plan can lay the foundation for your net zero transition

For organisations that have been required to comply with the Energy Savings Opportunity Scheme (ESOS), as part of Phase 3 of the scheme, they will also need to submit an ESOS action plan by the 5 March 2025.

The ESOS action plan aims to encourage organisations to outline how they plan to improve their business energy efficiency and reduce carbon emissions. The plans must include the estimated kWh savings achievable for all energy saving projects and a timeline on how and when organisations plan to implement these savings.

In addition to their action plan, organisations will be expected to submit an annual progress update, including how well they are achieving the goals set out in their action plan. The report must include a list of all the energy saving actions the organisation has implemented in the last year and a list of energy saving actions they did not successfully implement. The update must also include an estimate of total energy savings achieved and whether these savings and actions were implemented in line with the dates set out in their action plan.

How will this help organisations with their net zero plans?

For organisations, identifying initial steps to reduce carbon emissions and improve energy efficiency can be challenging. With an energy action plan, you are in charge of setting the goals you want to achieve. This plan can be used as a roadmap to support an organisation’s transition to net zero, whether this includes targets like changing all lighting in the business’ buildings to LED lights, introducing electric vehicle charging to your organisation or implementing an energy sustainability change programme for all colleagues and stakeholders.

These changes whether they are small projects or larger initiatives can be easily tracked and kept on target through the annual progress update. Aligning your business with focused goals and a timeline for completion can support your organisation on its journey to successful carbon reduction.

However, it is important for organisations to keep their targets realistic and achievable for their own business requirements and capabilities. With a feasible strategy throughout the action plan, your business can still yield considerable energy and cost savings whilst remaining on track for net zero.

Celebrating your business achievements

The energy action plans, and progress updates written and created by organisations will be published publicly, meaning businesses that set goals and achieve these can stand out amongst their competitors as committed to sustainable development.

That being said, if an organisation that is required to submit these plans does not, or fails to meet their goals, this will also be made public, risking a business’ reputation.