As the UK intensifies its focus on carbon reduction and energy efficiency, energy compliance in 2025 demands businesses stay ahead of evolving regulations. Two key frameworks—Streamlined Energy and Carbon Reporting (SECR) and the Energy Savings Opportunity Scheme (ESOS)—form the backbone of this effort.
SECR Compliance: A Strategic Opportunity
Introduced in 2019, SECR mandates large UK companies—those meeting at least two of the following: 250+ employees, £36 million turnover, or £18 million in assets—to report their energy use and carbon emissions annually. Quoted and large unquoted companies, along with LLPs, must detail energy consumption, emissions, intensity ratios, and energy efficiency actions.
To excel, businesses should implement automated data systems, select meaningful intensity metrics, and use insights to drive operational improvements. Far from being a checkbox exercise, SECR offers an opportunity to demonstrate sustainability leadership.
ESOS Phase 4: What’s New in 2025
ESOS requires eligible businesses to conduct energy audits every four years. These audits uncover inefficiencies and guide energy-saving strategies. While net zero requirements have been delayed to Phase 5 (2027–2031), voluntary reporting using new PAS 51215 standards is encouraged in Phase 4.
Key updates include:
- Mandatory net zero planning postponed to Phase 5.
- Voluntary net zero assessments now available using BSI standards.
- Qualification criteria remain unchanged for Phase 4.
- New compliance measures, such as reporting on action plan progress, are set to be introduced.
Organisations must prepare now, with the current ESOS Phase 3 action plan deadline set for 5 March 2025, and Phase 4 compliance due by 5 December 2027.
By understanding and integrating these frameworks, UK businesses can future-proof operations, improve performance, and lead in sustainability.
