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How Energy And Environment Managers Can Make The Business Case For ESOS

For many organisations, energy management has historically taken a backseat to making ‘easy’ savings by buying energy at the best price.  However, ESOS provides an opportunity to put in place a long-term approach to energy savings and to think about the whole-life cost benefits of a formalised energy policy.

The challenge now is for energy and environment managers to help board-level colleagues to understand the significance of ESOS and why it’s important to take it seriously.

Sounds like a tall order, doesn’t it? Not necessarily! Luckily, there are plenty of incentives for your directors to get on board with ESOS; it’s just a case of presenting the significant opportunities of the scheme in the right way. Here’s some advice on making your case to the board.

Step by step works best

Taking a step-by-step approach may help when presenting ESOS to the board. At its simplest, you can break the process into three stages:

  • Firstly, you need to raise awareness of the scheme and its scope.
  • Next, you need to explain how ESOS will impact on the business.
  • Finally… you need to communicate the financial and operational benefits of the scheme.

Let the scheme speak for itself

Besides staff, energy bills are typically the biggest cost faced by businesses, so this is where the financial opportunities of ESOS become apparent. It’s been estimated that businesses stand to save 13.5 times the cost of reporting by implementing the recommended changes. Who wouldn’t want to get on board with that?

Because the savings will have been calculated and verified by an energy expert, they’ll be guaranteed to be in line with best practice for business. So instead of making the case all about energy, energy managers can focus on what’s best for the future of the company – and that’s something everyone can appreciate.

Talk their language

Talking to management requires communication in ‘their language’. In practice this means focusing on the financial savings that can arise from energy efficiency. The next step requires the presentation of these savings in a clear, accessible and meaningful way. As an accredited energy professional, your ESOS Auditor should be able to assist here if additional help is needed to present the arguments (and the data).

Find an advocate

According to a recent webinar hosted by 2Degrees, senior management will be much more likely to be receptive to ESOS if there’s an energy-savvy advocate in their ranks. It might be worth spending some time identifying and working with a member of the board before you make and build your case.

The fact is that ESOS can deliver significant savings which go straight to the bottom line, so making the scheme easy to understand is vital. Once you’ve done away with energy management jargon and presented the potential savings in clear terms, your board members will be much more likely to see the links between
energy reduction and their overall business goals.

Outline the consequences

If you’re still finding it hard to hammer home how important it is that your directors
get on board with ESOS, it might be a good idea to – tactfully! – outline the consequences if they don’t.

A statutory director is responsible for signing off the ESOS report and there are penalties attached to a failure to comply. In fact, the penalties are designed to be higher than the cost of completing the reporting. What’s more, the Environment Agency will be able to publish details of any organisations found to be non-compliant on their website.

Focus on the positives

However, once you’ve outlined all the benefits of ESOS, it’s not likely you’ll need to focus on the penalties for non-compliance. Once management can see what’s possible, they’ll be more than happy to get on board.

For more information about how Inenco can help your business with ESOS compliance, get in touch today.