Relaxation of ESOS enforcement is a golden opportunity to go for energy management certification.
The clock has been ticking louder on the Energy Savings Opportunity Scheme (ESOS) with each passing month, counting down to the 5 December deadline for companies to complete their mandatory audit.
Given the low number of companies to have achieved ESOS so far, the Environment Agency's notification in October that they are willing to relax their approach to the deadline will no doubt come as a big relief to many firms who might otherwise have faced stiff penalties ranging from up to £50,000 then every day thereafter £500 per day (for a maximum of 90 days), alongside the risk of reputational damage of being "named and shamed".
More than that, though, the new timeframes present a golden opportunity for companies to satisfy ESOS requirements by taking things to the next level and securing accredited ISO 50001 energy management certification.
The agency has stated that for an organisation choosing ESOS audits as their route to compliance, it does not intend to take enforcement action for late notification provided it is received by 29 January 2016. Organisations choosing ISO 50001 certification as their route to compliance will have till 30 June 2016.
All firms still need to notify the agency by 5 December through its online portal, but now have enough time to gain certification, provided they have started the process with a certification body.
It's a development that allows for more flexibility in the route to compliance and a window of opportunity that will arguably be of greater benefit both to organisations and the environment.
The ESOS scheme requires organisations to conduct energy assessments of their buildings, industrial processes and transportation methods in order to identify whether improvements can be made.
Its aim is to cut Europe's total energy consumption by 20% within four years by improving efficiency in major corporations.
However, there is no requirement to implement the energy-efficiency recommendations identified through the ESOS assessments.
This seems like a wasted opportunity, given the cost savings, reduction in carbon emissions and other rewards that could be reaped by fully engaging with energy reduction. There is a danger that many companies may simply view ESOS as a box-ticking exercise rather than a transformational process.
ESOS is best viewed as a starting point: the impetus to implement the UKAS accredited ISO 50001:2011 energy management systems certification and fully embrace energy efficiency.
Accredited ISO 50001 certification goes right to the heart of energy use throughout an organisation, reinforcing good energy management behaviours, providing an in-depth and robust framework for making best use of energy and shaping an organisation's commitment to continually improving its energy efficiency.
It has the added benefit of being an internationally-recognised standard, so international companies can implement the standard at their offices throughout the world.
It is estimated that sound energy policies could bring a cost saving of £250 million per year to UK industry, even if a business only reduces their energy consumption by 0.7%.
There is also the wider reputational value to factor in. ISO 50001 clearly demonstrates an organisation's commitment to energy reduction, best practice and sustainability, sending out the right messages to customers, the supply chain, staff and other stakeholders, as well as improving brand reputation and increasing new business opportunities as a result.
The ESOS deadline is imminent and companies should act now and get fully on-board with energy efficiency through the effective delivery of an energy management system.
