Navigating ESOS and the European EED as a Private Equity Firm

May 30, 2019 | Guidance

The risks to private equity firms in failing to comply with the Energy Savings Opportunity Scheme (ESOS) and the European Energy Efficiency Directive (EED) are significant, however the benefits of a comprehensive compliance program can far outweigh the cost of compliance.

The Energy Savings Opportunity Scheme (ESOS) is a mandatory scheme obligating large UK organizations to undertake energy efficiency audits of their buildings, industrial processes and transport every four years.

ESOS is the UK’s interpretation of the EU Energy Efficiency Directive (EED) meaning there are equivalent schemes that require compliance across all EU member states.

Private equity firms managing funds with several portfolio companies are often regarded as the ‘highest parent’ company, and therefore compliance risk sits with them. For many funds, this definition of highest parent also means that if one portfolio company is captured by the EED then all others are obligated too.

We believe that a comprehensive EED compliance program can drive savings to the bottom line, increase performance capabilities and eliminate reputational risk – and that the opportunity far outweighs the likely costs.

To find out more about the benefits of compliance and our approach to supporting private equity clients through ESOS and the EED download our short guide:

Tim Clare
Director, UK

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