Environment Agency continues ESOS enforcement with 161 organisations fined for non-compliance

The Environment Agency (EA) has confirmed that it is continuing to monitor ESOS Phase 3 compliance, with more organisations being brought into compliance as enforcement activity continues.

In its latest newsletter (August 2026), the EA says over 86% of ESOS participants are now compliant with the scheme’s requirements. Hundreds of organisations have been required to take action after falling short of their obligations – and the EA has made it clear that enforcement remains ongoing.

If you are unsure whether your organisation is eligible for Phase 3 or has completed everything required for Phase 3, now is a good time to check.

Is my organisation in scope of ESOS?

ESOS applies to “large UK undertakings” and their corporate groups. This means businesses, not-for-profit bodies and other non-public-sector organisations that:

• employ 250 or more people, or
• have an annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million

If your organisation met this threshold on the ESOS Phase 3 qualification date (31 December 2022), you are likely to be in scope.

What organisations should have submitted for Phase 3

ESOS Phase 3 legislation requires you to:

• Submit a Notification of Compliance (NOC) (this was due on 6 August 2024)
• Keep an evidence pack, including information relating to eligibility, audit strategy, energy audits and Action Plans
• Submit an Action Plan (this was due on 5 March 2025) and two annual Progress Updates (due on 5 Dec 2025 and 5 Dec 2026).

Organisations that have not met these requirements are being investigated by the relevant compliance bodies – the EA in England, alongside regulators in Scotland, Wales and Northern Ireland.

Penalties for ESOS non-compliance

The EA publishes details of organisations that have been fined for ESOS breaches. In the last nine months, 161 organisations have received penalties, amounting to nearly £4 million in fines. The average penalty is almost £25,000 per organisation.

For organisations that have not yet addressed outstanding ESOS requirements, the EA advises contacting it as soon as possible to discuss the next steps.

Advice and support

Concept has helped organisations who have been contacted by the EA to review their ESOS position, identify gaps and resolve compliance issues before they escalated further.

Whether you’ve received correspondence from the Environment Agency, aren’t certain your submissions are complete, or simply want confidence that your evidence would stand up to scrutiny, an independent review can provide peace of mind.

Our accredited ESOS Lead Assessors have supported organisations with the scheme since it launched in 2014. We can help you:

• Review your ESOS compliance position
• Identify and address any outstanding requirements
• Respond to Environment Agency enquiries
• Strengthen your evidence pack and documentation
• Get ahead for ESOS Phase 4 – the compliance window is open now.

Get in touch for more information and advice.