ESOS currently just covers energy consumption, but Phase 4 will introduce a wider ‘net zero element’ to ESOS audits. Reports will need to include an assessment of actions needed to meet future net zero commitments. The government is currently working with BSI on the production of a new net zero audit PAS standard to facilitate this. As well as this, we’ll see the following updates:
- Changing the ESOS balance sheet and turnover thresholds to align with SECR. Organisations would be in scope of ESOS if they meet at least one of the SECR qualification criteria: at least 250 employees, a balance sheet of at least £18 million, or turnover of at least £36 million.
- Mandating action on audit recommendations. Firms will need to provide an explanation if targets and goals have not been met.
- ESOS reporting will be required to follow an existing auditing standard such as ISO 50002 or EN 16247.
- Display Energy Certificates (DECs) and GDAs will be removed as compliance routes for ESOS.
