ESOS applies to UK organisations that meet the qualification criteria. An organisation normally qualifies if it employs 250 or more people, or has both annual turnover above £44 million and a balance sheet total above £38 million.
Corporate group rules also apply. If one UK undertaking within a corporate group qualifies, the wider UK group may also need to take part in ESOS. This means a smaller UK subsidiary can still fall within the scheme even if it does not meet the qualification thresholds on its own.
Public bodies that meet the relevant definition of a contracting authority are generally exempt from ESOS. However, an organisation should check its legal status rather than assume that receiving public funding makes it exempt.
