By Tim Polidori
Head of Construction, Focus Green · MSc in Building Surveying · MCIOB · NDEA
The Environment Agency (EA) is continuing to pursue organisations that have not completed their ESOS Phase 3 obligations. In its August 2026 compliance newsletter, as reported by ESOS assessors, the regulator said more than 86% of participants are now compliant with the scheme’s requirements and that enforcement remains ongoing for those still falling short.
Over the preceding nine months, 161 organisations received ESOS civil penalties, amounting to nearly £4 million in total — an average of almost £25,000 per organisation. The EA publishes penalties issued under climate change schemes, including ESOS, in its civil penalties dataset, which is updated quarterly and was last refreshed on 24 September 2026.
What the numbers mean
A compliance rate above 86% means that, roughly, up to one in seven participants still has something outstanding. That is not the same as one in seven being fined: many organisations are brought into compliance after contact from the regulator, and penalties are applied where breaches are confirmed. The 161 figure counts penalties issued in the period, not the total number of organisations under review.
The direction of travel is clear, though. The EA has moved from reminders to published penalties, and penalty data stays public for at least 12 months, which creates reputational as well as financial exposure.
Which Phase 3 obligations are being checked
Phase 3 required qualifying organisations (qualification date 31 December 2022) to submit a Notification of Compliance by the extended deadline of 6 August 2024, keep a complete evidence pack, submit an Action Plan by 5 March 2025, and file two annual progress updates — the first due 5 December 2025 and the second due 5 December 2026.
Gaps that commonly draw attention include missing or late notifications, action plans that were never submitted, a missed first progress update, and evidence packs that cannot support the energy figures, group boundary or audit decisions reported.
The next deadline: 5 December 2026
The second Phase 3 progress update falls due on 5 December 2026 — five weeks from publication of this article. Organisations that missed the first update, or whose action plan has changed, should resolve that position now rather than adding a second missed milestone.
If you have received correspondence from the EA, respond promptly. The regulator advises organisations with outstanding requirements to contact it as soon as possible to discuss next steps.
Phase 4 is already open
Enforcement on Phase 3 is running alongside Phase 4. The Phase 4 qualification date is 31 December 2026 and notification is due by 5 December 2027, under updated EA guidance published on 30 July 2026. Lessons from Phase 3 enforcement — evidence quality, clear ownership and early engagement — apply directly. See our Phase 4 evidence pack guide and qualification-date guide.
A practical compliance check
Confirm the NOC was submitted and accepted; confirm the action plan was submitted and approved at board level; check the 5 December 2025 update was filed; prepare the 5 December 2026 update with measured results; and test the evidence pack against the reported group structure and energy data. Our ESOS service can review your position independently.
Frequently asked questions
- How many organisations have been fined for ESOS non-compliance?
- Reported Environment Agency figures show 161 organisations received ESOS penalties in the nine months to August 2026, totalling nearly £4 million. Check the EA civil penalties dataset for the published records.
- What is the current ESOS compliance rate?
- The Environment Agency’s August 2026 newsletter reported that more than 86% of ESOS participants are compliant, with enforcement continuing for the remainder.
- When is the next ESOS Phase 3 deadline?
- The second annual progress update is due on 5 December 2026.
- What should I do if the Environment Agency has contacted us?
- Respond promptly, establish which obligations are outstanding, and get a Lead Assessor to review the evidence. The EA advises contacting it as soon as possible to discuss next steps.
Source: Environment Agency — Climate change civil penalties dataset