Does ESOS Include Transport?

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.

What’s covered by ESOS?

To get a better idea of what’s required for ESOS, here’s a rundown of the obligations for eligible businesses:

• Appoint an ESOS-approved lead assessor internally or hire an approved external contractor.
• Calculate all energy used by your business, including any activities involving your company’s assets.
• Identify areas of significant energy consumption, which account for 90% or more of your total.
• Maintain accessible records of audits and reports to prove compliance.
• Notify the Environment Agency of your compliance.

So, does that include transport?

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.

Calculating ESOS transport figures

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:

• Your total mileage figure is estimated at 5,000,000 miles
• The fuel used was petrol with an average biofuel blend (that includes the standard E10 petrol)
• The standard conversion factor (gross calorific value) is 0.2298 kg CO2e
• 5,000,000 x 0.2298 kg CO2e per mile = 1,149,000 kg CO2e
• The fuel property conversion factor for CO2e is 0.251355 kg per kWh
• 1,149,000 ÷ 0.251355 = 4,571,224 kWh – the final figure for energy use!

Need a hand?

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 436 0402 or email [email protected] to get started.