There are several grey areas for businesses when it comes to ESOS. Transport is one of them, given that it definitely uses energy – but is off-site by definition. In this post, we’ll clear things up when it comes to ESOS and transport.
To get a better idea of what’s required for ESOS, here’s a rundown of the obligations for eligible businesses:
In short, yes it does. The second point on that list explains that activities involving company assets need to be taken into account. In other words, energy used by company vehicles contributes to your total. That’s reiterated by the government’s guidance, which explains that these audits cover energy used by “buildings, industrial processes and transport”.
No particular fuel type is exempt from ESOS. However, you don’t need to include transport from procured services that include indirect payment for fuel consumption. So, an outsourced delivery service or freight carrier would be classed as a separate entity rather than counting towards your company assets or activities.
The next question is how you figure out what to include for transport on your ESOS assessment. It’s a little trickier than checking your electricity or gas usage, but it’s not impossible. If you don’t have actual usage data, the government allows for reasonable estimations as long as they’re based on verifiable information.
One example of this would be using expenditure data. To do so, you’d need to use the government’s standard conversion factors for company reporting or another reputable source of conversion factors. That allows you to convert expensed mileage into energy use.
If you’re including estimates for transport in your ESOS assessment, make sure you document the reason for using estimates, methods used, and the required proof of figures in your evidence pack.
Here’s a hypothetical example to demonstrate how it works:
Transport is an important part of your ESOS audit. But as you can see above, things can get a little complicated. It’s much easier and more assuring to leave it to the experts. At Volta Compliance, we have a wealth of experience helping companies throughout Yorkshire with every step of the ESOS process.
From auditing transport and other energy usage to planning and implementing changes to reduce your output, we’ll make sure you’re fully compliant and as energy efficient as possible going forward. Call us on 0113 397 1361 or email [email protected] to get started.