Organisations the world over are facing both volatile and rising energy prices, and for many energy represents one of the biggest single cost items. This comes at a time of increasing competitive pressure that is forcing companies to find new ways to reduce their total overheads. Additionally, there are mounting concerns about sustainability and the greenhouse gas emissions produced by organisations. Businesses across the world are also under pressure from a changing regulatory landscape.
In light of these growing multidimensional pressures, energy is now on the corporate agenda, in the search for potential savings and broader business benefits. Consequently, organisations must identify measures to manage energy use while at the same time communicating energy management efforts to an increasingly environmentally-conscious public. Effective energy management is therefore not only becoming more important to businesses, it is also evolving into an ever more complex corporate issue.
To manage energy consumption effectively, industry needs a consistent method that extends across all types of energy end users. This includes industrial plants as well as commercial and institutional buildings. Such a systematic energy management approach will enable organisations to successfully evaluate energy use and consumption, identify their significant energy uses, and consequently develop comprehensive strategies to improve energy performance.
ISO 50001 is suitable for every type of company, regardless of its size and industry. A voluntary international standard, it enables organisations to optimise energy performance and promote more efficient energy management. The ISO 50001 energy management system (EnMS) framework can improve bottom lines through systematic, data-driven and fact-based processes that improve energy efficiency and consumption, while enhancing a company’s reputation and environmental performance.
First released in 2011, ISO 50001 has gained wide global acceptance amongst companies wishing to raise awareness of resource efficiency. A revised edition of ISO 50001 standard was subsequently released in 2018, and following a three-year transition period, from 20 August 2021 ISO 50001:2011 certificates are no longer valid. The good news for those businesses which are already certified under ISO 50001: 2011 is that conversion to ISO 50001: 2018 can take place as part of a repeat audit or a scheduled surveillance audit.
ORGANISATION
ISO 50001:2018 is based on the High-Level Structure (HLS), which has been established as the common framework for ISO management system standards. The uniform architecture, along with the use of common terms and definitions, facilitates a smooth integration of new and existing management systems within an organisation.
The harmonisation of ISO management system standards through HLS ensures a stronger focus on common topics that are vital for the success of a management system. Examples include:
Role of top management – design and communication of policies and responsibilitiesContext of the company – internal and external issues which influence the organisationInterested parties – expectations of parties impacted by your organisationRisk and opportunity evaluation – broad approach to address risks and opportunities. Consequently, ISO 50001 now includes a greater emphasis on the responsibilities of top management and highlights the importance of instilling a cultural change in the organisation - elevating energy management into corporate management governance, just as quality and safety practices are.
ISO 50001:2018 provides a framework of requirements for organisations to:
Develop a policy for more efficient use of energyFix targets and objectives to meet the policyIdentify, measure, monitor and analyse the key characteristics of operations affecting energy performanceFacilitate data-based analysis and decisions about energy useMeasure the resultsReview how well the policy worksContinually improve energy performance and energy management system. REQUIREMENTS
The ISO 50001:2018’s requirements are described in six particular clauses.
Clause 4 – Context of the organisation
ISO 50001 requires that internal and external issues are considered as part of the organisation’s energy planning process. This includes understanding the relevant needs and expectations of interested parties (those impacted by the organisation) in relation to energy performance and the EnMS. The organisation must also ensure that it has access to and considers relevant legal and other requirements related to its energy efficiency, use and consumption.
Clause 5 – Leadership
ISO 50001 demands greater commitment from senior management. It must ensure the formation of an energy management team, and that roles, responsibilities and authorities are assigned and communicated. They must also ensure that the EnMS’s requirements are integrated across business processes and that it is compatible with the wider strategic direction. Unlike the old version of the standard, this responsibility can no longer be delegated.
Clause 6 – Planning
The energy planning and review process will help to identify the activities and processes that impact energy performance, and how this can be continually improved. Opportunities and risks must be identified, with the plan covering how they will be addressed, as well as their integration and implementation within the EnMS, and how effectiveness can be evaluated. This should include the establishment of objectives and energy targets, as well as conducting an energy review which must be updated regularly and in response to any major changes.
The organisation must also determine the energy performance indicators (EnPIs) that measure energy performance, so that improvements can be monitored. Data should include relevant variables for significant energy uses (SEUs) such as heating (boiler room pictured above right); energy consumption related to SEUs and the organisation; operational criteria related to SEUs; static factors; and data specified in action plans.
Clause 7 – Support
The appropriate resources must be available to establish, implement, maintain and continually improve energy performance and the EnMS. The EnMS must also be actioned by competent people. There is a requirement to retain evidence of workers’ competence, while ensuring appropriate education and training, as well as awareness raising about energy performance issues. There must also be a process for communicating information relevant to the EnMS, both internally and externally, as well as documented evidence of these practices.
Clause 8 – Operation
This covers the planning, implementation and control of the processes related to the SEUs identified in the energy review, and what is required to implement the actions during the objectives-setting phase.
To achieve this, a process criteria must include the effective operation and maintenance of facilities, equipment, systems and energy-using processes, where their absence can lead to a significant deviation from intended energy performance. These criteria must be communicated to the relevant people that are under the control of the organisation. The organisation must also ensure that the processes are controlled, as laid out in the criteria. Documented evidence must also be kept, to show that the processes have been carried out in accordance with the plan. The organisation must also ensure that outsourced SEUs or processes are controlled.
During the design of facilities, equipment, systems and energy-using processes, the organisation must consider if there will be any significant impacts on energy performance over the operating lifetime, to identify improvement opportunities and operational control. It must also establish criteria for evaluating the energy performance of any energy- consuming products, equipment and services that are procured, if this is expected to have a significant impact on the organisation’s energy performance.
Clause 9 – Performance evaluation
Organisations must ascertain what must be measured and monitored, by whom and with what frequency, to give an indication of how the energy management system is performing. This must include internal audits of the EnMS at planned intervals. Documented evidence must be retained.
Clause 10 – Improvement
Key to the success of an ISO 50001 management system is the ability to demonstrate continual energy performance improvement. Opportunities for improvement must therefore be identified, appropriate action taken and nonconformities reported.
For those transitioning between ISO 50001:2011 and ISO 50001:2018, an audit will enable organisations to focus on the key areas that require action. A gap analysis will identify nonconformities and differences, as well as weaknesses in terms of the requirements of the new standard.
Key to the success of an ISO 50001 management system is the ability to demonstrate continual improvement in energy performance, and you will be measured against this during your certification audit cycles. The decision to introduce the EnMS independently, or whether to integrate it into an existing management system, is at the discretion of the individual business. However, in most cases it is advisable to integrate the EnMS into an existing ISO 14001 environmental management system, or an ISO 9001 quality management system. In this way synergies can be exploited, allowing organisations to leverage their existing investments in management system compliance.
Organisations across all industries are faced with increasing cost of energy. It is now vital that they can objectively evaluate their energy consumption, to maintain or reduce costs and lessen their negative impact on the environment. ISO 50001 provides all kinds of organisation with a systematic approach to monitor and reduce their energy consumption, thereby increasing energy efficiency and improving profitability.