ESD was formed in 1989 with a mission "to disseminate energy services and technologies that provide a positive benefit for future generations". The company's headquarters is in the converted outbuildings of a 16th century farm about 9 miles east of the city of Bath.

Whilst the Company has altruistic ambitions it believes that these are best obtained through businesses working in partnership with public bodies. There is no conflict between a business needing to make a profit and a more sustainable society; indeed many aspects of sustainable energy use can provide businesses and public institutions with cost savings.

ESD is a private limited company and has its own targets for creating financial value for its shareholders and partners together with targets for environmental and social development.

ESD establishes subsidiary companies to take forward specific technologies and project areas. These, like ESD Biomass, are typically established as 50:50 joint ventures and set their aims and objectives to reflect shareholder intent.