Compliance Frameworks
Helping UK Organisations Stay Compliant and Competitive
The Energy Advisory Agency (EAA) supports businesses and public bodies in meeting mandatory energy and carbon reporting requirements — ensuring full compliance, cost efficiency, and alignment with the UK’s Net Zero 2050 strategy.
A Regulated Approach to Energy and Carbon Management
The UK Government has introduced several frameworks to promote transparency, accountability, and progress toward national climate objectives. These frameworks require organisations to measure, report, and reduce their energy use and emissions.
EAA provides independent guidance across all major frameworks, including:
- SECR – Streamlined Energy and Carbon Reporting
- ESOS – Energy Savings Opportunity Scheme
- Net Zero 2050 Strategy – National decarbonisation commitment
SECR — Annual Energy and Emissions Reporting
The Streamlined Energy and Carbon Reporting (SECR) framework ensures large UK companies and LLPs report their energy use, greenhouse gas emissions, and efficiency measures annually.
Who it applies to:
- Quoted companies
- Large unquoted companies and LLPs meeting at least two of:
- 250+ employees
- £36m+ turnover
- £18m+ balance sheet total
What’s required:
- Annual disclosure of UK energy use and associated emissions
- Description of energy efficiency actions taken
- Methodology used for data calculations
- Inclusion within the Director’s Report of the organisation’s annual accounts
Penalties for non-compliance:
- Enforcement by the Financial Reporting Council (FRC) under the Companies Act 2006
- Rejection or re-filing of accounts by Companies House
- Possible director accountability and reputational exposure through public record
EAA helps organisations compile accurate SECR data, prepare compliant reports, and strengthen transparency in corporate reporting.
ESOS — Mandatory Energy Audits for Large Organisations
The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment and audit programme administered by the Environment Agency. It requires qualifying organisations to measure energy consumption and identify cost-effective energy-saving opportunities every compliance phase (typically every four years).
Who it applies to:
- UK organisations with:
- 250+ employees, or
- £44 million+ turnover and £38 million+ balance sheet total
What’s required:
- Measurement of total energy use across buildings, transport, and processes
- Energy audits covering at least 90% of total consumption
- Review and sign-off by an accredited Lead Assessor
- Notification of compliance to the Environment Agency
Penalties for non-compliance:
Under the Energy Savings Opportunity Scheme Regulations 2014, penalties include:
- Failure to notify compliance: up to £5,000, plus £500 per day (up to 80 days)
- Failure to maintain records: up to £5,000
- Failure to conduct an audit: up to £50,000, plus daily fines
- Non-compliance notice publication on the Environment Agency website
Net Zero 2050 — The UK’s Long-Term Climate Commitment
The Net Zero by 2050 target, set out in the Climate Change Act 2008 (as amended), legally commits the UK to reducing greenhouse gas emissions to net zero by 2050.
This framework drives national decarbonisation policy and underpins all UK energy and carbon regulations — including SECR, ESOS, and new initiatives such as the UK Emissions Trading Scheme (UK ETS) and the forthcoming Carbon Border Adjustment Mechanism.
Who it applies to:
All UK organisations contribute through compliance with related frameworks, sustainability reporting, and carbon reduction planning.
Consequences of non-alignment:
- Reduced eligibility for government funding or public contracts (via Procurement Policy Note 06/21)
- Reputational risk and investor scrutiny
- Missed opportunities for low-carbon finance and innovation incentives
EAA supports organisations in developing Net Zero strategies, setting reduction targets, and monitoring progress in line with UK policy.
| Framework | Enforcing Body | Key Obligation | Non-Compliance Penalties |
|---|---|---|---|
| SECR | Financial Reporting Council / Companies House | Annual energy and carbon disclosure in company reports | Enforcement notices, re-filing, director accountability |
| ESOS | Environment Agency | 4-yearly energy audit and compliance submission | £5,000–£50,000 fines, daily penalties, public exposure |
| Net Zero 2050 | Department for Energy Security & Net Zero | Long-term decarbonisation alignment | No direct fines, but reputational, funding, and procurement impacts |
EAA’s Role in Compliance
Independent Guidance, Practical Support
The Energy Advisory Agency provides independent, data-driven support to help organisations: