ESOS: What Every Fleet Can Learn From The Energy Savings Opportunity Scheme

The Energy Savings Opportunity Scheme, or ESOS, is a mandatory energy assessment and saving scheme brought in by the UK government in 2014. It applies to all private sector businesses and not-for-profit organisations that meet either one or both of the following conditions:

1. 250 or more employees
2. An annual turnover in excess of £44 million and an annual balance sheet total in excess of £38 million

Businesses covered by the scheme must measure and report on energy consumption across their entire operations, including transport, and identify any opportunities to increase energy efficiency. Each assessment period covers 4 years – we are currently in Phase 4, with Phase 5 set to begin in 2027.

For fleets that fall under the scope of ESOS, this means carrying out regular audits to calculate the energy used for business miles travelled by all vehicles – company cars, commercial vehicles, and grey fleet too – in order to comply with the legislation.

However, even for those fleets that don’t need to undertake ESOS reporting, the scheme can provide several valuable lessons when it comes to improving energy efficiency, reducing costs, and lowering carbon emissions. Here are the key takeaways that every fleet should be aware of:

1. The importance of data-driven fleet insights

As part of ESOS, fleets must continually conduct audits so as to manage their energy use more effectively. This highlights the value of routine data analysis to help optimise all areas of your fleet operations – not just fuel consumption.

To do so, businesses should have an advanced fleet management system in place that can collate any and all fleet data for easy reporting. By improving data collection, identifying trends, and setting internal targets, you will gain better visibility of your fleet’s overall performance and can then focus your time on the areas that need the most attention.

Implementing telematics technology across your fleet is also essential when it comes to making more informed decisions, as these in-cab solutions can help you monitor fuel usage, fleet emissions, vehicle health, driver behaviour, and more in order to consistently improve your fleet’s efficiency.

2. Tried-and-tested methods for increasing fleet fuel efficiency

Whether you’re reporting your annual fuel consumption to an ESOS auditor or not, improving MPG is always going to be a top priority when operating a fleet. Identifying ways to save fuel and implementing these in a fleet-wide strategy will help you take positive steps towards a more cost-effective and efficient fleet, whilst also reducing your business’s environmental impact.

Key considerations include:

• Driver behaviour – Your fleet vehicles are only ever going to be as efficient as your drivers are. Fuel-hungry habits such as rapid acceleration, harsh braking, speeding, and idling are all too common, even amongst those who drive professionally, and will end up affecting your fleet’s bottom line. Consider implementing driver coaching technology that can help raise awareness and guide your drivers towards a more efficient style of driving in real time.

• Routing and scheduling – Getting smart about your fleet scheduling can make a big difference to fuel consumption. Make sure you are sending drivers on the most fuel-efficient routes that avoid unnecessary mileage by covering the shortest distances and steering clear of traffic hotspots and congestion. You should also check that vehicles are fully loaded for every trip to help prevent extra journeys and empty runs, and always use the right size vehicle for the job.

• Vehicle maintenance – Keeping vehicles in good working order will also help you to maximise fuel efficiency within your fleet. Stay on top of proactive maintenance with regular servicing and vehicle checks to ensure that everything is working as it should, and in particular keep an eye on tyre pressure, as underinflated tyres have a higher rolling resistance on the road, leading to greater fuel consumption.

3. How and when to transition to a greener fleet

A more energy-efficient fleet is a more sustainable fleet. Just as ESOS encourages businesses to explore alternative energy solutions, now is also a critical time for fleets to be thinking about viable alternatives for their petrol and diesel vehicles.

Tracking fleet CO₂ output is already a necessity for many fleets as they work towards ESG objectives and longer-term net zero goals, and by applying a data-driven approach in line with ESOS auditing, you will be able to streamline your fleet processes whilst making efficiency and sustainability core considerations throughout your fleet operations.

For example, using real-world driving data from your fleet can help you assess which of your fleet vehicles – and drivers – are ready to make the switch to EV, taking into account factors such as average mileage, vehicle usage, and available charge points. Where going electric is not yet feasible, you could instead look at training your drivers to travel in a more sustainable fashion using in-cab driver coaching technology that helps to reduce overall fleet emissions.

4. The value in employee advocacy

Complying with ESOS helps businesses to build a culture of energy efficiency and sustainability. By promoting a similar energy-saving awareness across your organisation, you can engage drivers with green initiatives, putting your fleet on the path towards long-term environmental savings and improved performance.

Communicating openly with drivers about your company’s net zero ambitions and progress, as well as encouraging employee feedback and ideas can help to create a more collaborative environment where people feel inclined to take responsibility for their energy consumption.

You can also focus on recognising and rewarding drivers who demonstrate a commitment to reducing fuel use and lowering their carbon emissions by driving in a more eco-friendly way. Through dedicated driver coaching and rewards technology, your drivers can measure their performance, compete against colleagues for a top spot on the leaderboard, and win prizes for being a more sustainable driver, leading to substantial savings across the fleet.

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So, whilst your fleet may not be subject to ESOS compliance, there is certainly a lot you can learn from it. By applying these lessons, your business will be able to benefit by significantly reducing fleet energy usage, cutting costs, improving efficiency, streamlining processes, and furthering its commitment to a more sustainable future.

How Lightfoot can help:

If you are looking for effective energy saving measures within your fleet as part of your ESOS assessment or just want a hand in improving fleet performance across safety, savings, and sustainability, Lightfoot is the solution you’ve been searching for.

Our award-winning fleet management system helps fleets like yours to reduce fuel consumption by as much as 15% in petrol and diesel vehicles, increases EV range by up to 17%, lowers vehicle wear and tear by 45%, cuts collision rates by up to 40%, and prevents around 15% of carbon emissions. All of this is achieved through real-time driver coaching, with regular incentives and rewards to create a positive, engaged culture where fleet improvements stand the test of time.

You can experience our innovative fleet technology for free by signing up for a Lightfoot trial, which gives you the opportunity to try our solution out within your fleet, see the savings you could achieve first-hand, and make an informed decision about whether Lightfoot is the right fit for your business.

Alternatively, contact our expert team to learn more about how Lightfoot creates safer, more sustainable fleets.