ISO 50001 & SEP Practitioners Guide

A Practitioner’s Guide
1
Implementing ISO 50001 Energy Management Standard, A Practitioner’s Guide, Copyright © 2011, UL DQS Inc.

TABLE OF CONTENTS

► 1 Introduction Energy Management System (EnMS) Practitioner’s Guide 2
► 2 ISO in brief 3
► 3 What is ISO 50001? 4
► 3 ISO Task Force Recommendation 5
► 4 Background 6
► 5 Origins of ISO 50001: 2011 7
► 6 Why an Energy Management Standard? 8
► 7 Energy Management Systems as Business Drivers 9
► 8 Statistics on energy savings from EPA.gov 10
► 9 How to use the ISO 50001 EnMS Practitioner’s Guide 11
► 10 How Do I Start? - Guide from www.energystar.gov 12
► 11 Energy Management System Requirements 17
4.1 General Requirements 17
4.2 Management Responsibility 18
4.3 Energy Policy 20
4.4 Energy Planning 22
4.5 Implementation and Operation 29
4.6 Checking 35
4.7 Management Review 39

► 12 UL DQS Sample Certificate for ISO 50001:2011 41
► 13 Correspondence between ISO 50001:2011, ISO 9001:2008, ISO 14001:2004 and
ISO 22000:2005 43
► 14 References 46
► 15 Acronyms and Definitions 47
► 16 Contact UL DQS Inc. 48

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to UL DQS Inc.

1

1 INTRODUCTION
ENERGY MANAGEMENT SYSTEM (EnMS) PRACTITIONER’S GUIDE

“
All societies require energy to meet basic human
needs (e.g., lighting, material processing, space Reducing energy use and increasing
comfort, mobility and communication) and to serve energy efficiency is a proven strategy
productive processes. Since 1859, global use of fossil
for cutting and controlling costs with
fuels (coal, oil and gas) has increased, leading to rapid
good returns.
growth in carbon dioxide (CO2) emissions.1

In order for industry to make significant gains in EPA, 2011
energy efficiency, there must be greater awareness
and knowledge sharing about programs, resources Energy management, a topic once “owned” by
and practical methods that can help industrial plants environmentalists, is increasingly one that ranks
identify, develop and document energy efficiency/ as “urgent” by senior executives from various
intensity improvements. Historically, energy saving industries. There has been a significant shift in
efforts have been delegated to plant engineers, business attitudes globally regarding climate change
frequently with assistance from consultants or and energy. Companies are beginning to identify the
suppliers with highly specialized technical skills, true costs of carbon-centric energy consumption
often one project at a time. Quantifying results and patterns. This congruence of concerns around cost,
measuring progress relies heavily on the presence supply, reliability and environmental impacts of the
of individual energy efficiency “champions” within a energy needed to sustain our economies and way of
company and their access to consultants or suppliers. life are increasingly influencing business and planet
Drawbacks to this approach are that achievements decisions at the highest levels.11
are often not well understood by those without
specialized expertise, replication occurs slowly in As a result of this rapid change in perceptions,
the market, not a risk based approach over time, and corporate America has reached a tipping point, with
benefits (ROI) may disappear if the champion leaves companies across a host of industries now making the
the company or is relocated. cost, availability and environmental impact of their
end-to-end energy consumption a strategic priority.
Energy is an operational expense that has a direct They are now frequently viewing energy management
impact on profitability. While the old business as a form of risk management. What once was
model says, “It is a cost of doing business,” the managed as a cost is increasingly being managed as
implementation of an EnMS replaces this model a strategic risk – and as a source of new value and
with, “How can we be more cost-effective in energy opportunities.
performance, efficiency and service?”

The bottom line — good energy management is good business, and adopting an energy management
strategy is a business decision you cannot afford to ignore.
EPA, 2011

2

2 ISO IN BRIEF
The International Organization for Standardization
(ISO) has a membership of some 160 national
standards bodies from countries large and small,
industrialized, developing and in transition, in all

“
regions of the world. ISO’s portfolio of over 18,600
standards provide business, government and
society with practical and vetted tools for all three ISO 50001 is based on the ISO
dimensions of sustainable development: economic,
management system model familiar
environmental and social. ISO standards make a
positive contribution to the world we live in. They
to more than a million organizations
facilitate trade, spread knowledge, disseminate worldwide who implement standards
innovative advances in technology, and share good such as ISO 9001 (quality management), ISO 14001
management and conformity assessment practices. (environmental management), ISO 22000 (food safety),
ISO standards provide solutions and achieve benefits
ISO/IEC 27001 (information security). In particular, ISO
for almost all sectors of activity, including agriculture,
construction, mechanical engineering, manufacturing,
50001 follows the Plan-Do-Check-Act process for continual
distribution, transport, medical devices, information improvement of the energy management system.
and communication technologies, the environment,
energy, quality management, conformity assessment These characteristics enable organizations to integrate
and services. ISO only develops standards for which energy management now with their overall efforts to improve
there is a clear market requirement. The work is quality, environmental management and other challenges
carried out by experts in the subject drawn directly
addressed by their management systems.
from the industrial, technical and business sectors
that have identified the need for the standard, and
which subsequently put the standard to use. These
ISO 50001 provides a framework of requirements enabling
experts may be joined by others with relevant organizations to:
knowledge, such as representatives of government ● Develop a policy for more efficient use of energy
agencies, testing laboratories, consumer associations ● Fix targets and objectives to meet the policy
and academia, and by international governmental ● Use data to better understand and make decisions
and nongovernmental organizations.17
concerning energy use and consumption
● Measure the results
● Review the effectiveness of the policy
● Continually improve energy management.

ISO 50001 can be implemented individually or integrated
with other management system standards.”

ISO, 2011

An ISO International Standard represents a global consensus
on the state of the art in the subject of that standard.

ISO, 2011

3

3 WHAT IS ISO 50001?
ISO 50001:2011 is an ISO standard that specifies The EnMS applies to all variables affecting energy
requirements for establishing, implementing, performance that can be monitored and influenced
maintaining and improving an energy management by the organization. ISO 50001 does not prescribe
system, whose purpose is to enable an organization to specific performance criteria with respect to energy,
follow a systematic approach in achieving continual i.e. 10% savings. The ISO 50001 standard for energy
improvement of energy performance, including: management systems has been designed to be used
energy efficiency, energy use and consumption. independently, but it can be aligned or integrated
It specifies requirements applicable to energy with other management systems. It is applicable to
use and consumption, including measurement, any organization, building, or manufacturing process
documentation and reporting, design and that wishes to ensure its conformity to its stated
procurement practices for equipment, systems, energy policy and wishes to demonstrate this to
processes and personnel that contribute to energy others. Such conformity can be confirmed by means
performance. of self-evaluation and self-declaration of conformity
or by certification of the energy management system
by an external organization.8

4

ISO TASK FORCE RECOMMENDATION

“
National energy management standards have been developed and are in use in various countries,
resulting already in signiﬁcant savings in energy consumption and reductions in GHG emissions.
Regional and national standards development is underway in Europe, China, USA and other countries.
The increasing interest in this ﬁeld and the explicit requests received by ISO, have led the Technical
mangement Board (TMB) to already address the matter and the Task Force recommends that ISO
moves forward expeditiously.”

International Energy Agency, 2009

5

4 BACKGROUND
There is a long history to the development of energy These countries include Denmark, Ireland, China,
management. The American standard on energy Korea, Japan, Spain, Thailand, Germany, Sweden,
management was the first voluntary standard United Kingdom, leading to a ground swell of energy
published in 2000. The stakeholder process was management standards that were developed or are in
expanded to include Italy, Germany and Switzerland the process of being developed by each country. This
in 2005. These discussions continued and further includes the US version “Management System for
expanded in 2006 with Ireland, China, and Korea. In Energy” (MSE).
2007, through an expert meeting hosted by UNIDO
in March a resolution was issued that indicated an Energy issues are globally recognized to be a pertinent
International Standard should be established. This concern. Energy management today is a business
resolution was reviewed by the US experts and work decision to reduce per unit consumption which
began on proposal begun. UNIDO is the United affects operational costs, quality, productivity and
Nations’ specialized industrial agency, mandated to GHG emissions by reducing their carbon footprint.
promote industrial development and international To support this purpose, ISO 50001:2011 has been
industrial cooperation.9 developed with a persuasive energy management
philosophy.
Industrial energy use represents more than one-third
of both global primary energy and energy related EnMS offers a systematic and structured approach to
carbon-dioxide emissions. For developing countries, identify, measure, and manage critical energy inputs
this is often in excess of 50% of the total and can to our workplace. This approach includes dissection
produce supply problems. Developing economies of energy quality in order to prioritize and improve
lead growth in both industrial energy use and carbon- an organization’s energy performance. The standard
related emissions. is flexible, fitting any size or type of organization,
manufacturing, or service industry. It provides a built
In industry, a missed opportunity for energy efficiency in mechanism for continual improvement of energy
may not reoccur- for decades or at all until the original management.
installation fails or becomes obsolete.

Many countries have developed energy management
system standards or other types of national programs
to help their industry.

► INTEGRATION OF EnMS

Please refer to reference number 6.

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5 ORIGINS OF ISO 50001: 2011

► ISO 50001 TIMELINE

ISO 50001 was formally released June 14, 2011

7

6 WHY AN ENERGY MANAGEMENT STANDARD?
Most energy efficiency is achieved through changes ● Leverages existing continual improvement
in how energy is managed in an industrial facility, processes
a LEED certified Green Building or manufacturing ● Develops a baseline of energy use
process, rather than through installation of new ● Actively manages energy use and costs
technologies. An energy management standard, such ● Reduce emissions without a negative impact
as ISO 50001, provides a tool for integrating energy on operations
efficiency into existing organizational management ● Continual improvement of energy use versus
systems for continuous improvement. Companies product output over time
who have voluntarily adopted an energy management ● Potential for savings to be used for emission
plan (a central feature of an EnMS) have achieved credits
major energy intensity and use improvements. It
In addition, most countries offer financial incentives
is also applicable to commercial, institutional, and
for compliance, usually as part of a target-setting
transportation sectors. All existing and planned
agreement, provide training on standards compliance
energy management standards are compatible with
and provide opportunities for companies to network
ISO 9001 and ISO 14001.
and learn from each other. Several countries also
There are many benefits to an organization for offer system optimization training.
implementing an EnMS:
The end product of the EnMS standard is to provide
● Broad applicability measureable results. Improvements are achieved in
● Applies to all sectors of business changes to how energy is managed. Organizations
● Applies to all sizes of organizations who have adopted energy management plans have

“
● Leverages existing management systems achieved major improvements.

The value of strong energy management as a proxy for overall organizational management is
increasingly recognized by financial analysts.

Energystar.gov, 2011

► MOST IMPORTANT ASPECTS OF AN EnMS


8

7 ENERGY MANAGEMENT SYSTEMS AS BUSINESS
DRIVERS
Management Systems favor shareholder value by ● It reduces carbon control investment and
driving ROI (Return On Investment). Thus, it is always alternatives without negative effects on
advantageous for any organization implementing operations.
it because: ● Provides continual improvement of energy
● It provides a process in the level of execution intensity and use.
critical to performance. ● It values both avoidance & savings for internal
● It continuously manages energy processes. and external metrics (e.g. emissions, utility
● It reduces exposure to energy costs (Internal credits, reduced labor intensity, CAPEX, etc.)
hedging and volatility management) over time rather than one off projects

► CONTINUOUS COST REDUCTION WITH EnMS


► PRACTICAL EXAMPLES ON ENERGY CONSERVATION IN COMPANIES FROM
DIFFERENT SECTORS

Investment in Cost Reduction in Payback time Savings in Mwh
Measures Sectors
USD USD per year (statistics) and tons of CO

Installation of heat Construction material 925,000 around 450,000 around 2 years 3,225 t CO2
exchanging device at industry / Brick
different locations production
Checking the Mail order selling 0 5,500 0 48 MWh and 30t
lighting situation in CO2
the furniture hall
buildings


9

8 STATISTICS ON ENERGY SAVINGS FROM EPA.GOV
Even with good returns, energy waste is still prevalent throughout organizations. Consider that:
● A 400% variation in energy use intensity of buildings in the United States exists that is not explained by
age, technology, hours, size, climate.
● Little improvement of overall energy consumption has been seen although building components are
30% more efficient since 1980.
● Oversizing building fan systems, on average, occurs by 60%.
● Most chillers are oversized by 50–200%.

Unfortunately, capturing energy waste has been hampered by a lack of focus on energy management. Too often
energy management is characterized as:
● Decentralized
● Poorly-coordinated
● Focused on paying bills & running the powerhouse
● Reactive
● Undervalued
● Considered capital intensive

Organizations that have adopted effective energy management strategies and built successful energy programs
have had different results. Consider the following:
● Ford Motor Company has saved over $75 million through effective energy management.
● USAA Real Estate has realized a 5% annual energy savings and increased the asset value of a California
building by $1.5 million due to energy efficiency upgrades.
● Eastman Kodak saved more than $8.6 million in operating costs in 2002 from its energy management
efforts.
● Hines estimates the difference in operational costs between its energy efficient buildings and inefficient
buildings at more than $13 million.
● Fairfax County Public Schools estimates an annual energy savings of $4.5 million from energy efficiency
improvements.

Recent studies by Innovest Strategic Value Advisors (see below) found that leaders in energy management
achieved superior stock and financial performance over laggards in energy management.The difference between
the leaders and laggards is significant:
● Real estate investment sector — over 3,400 basis points difference
● Retail food sector — 1700 basis points difference
● Retail merchandising — 7100 basis points difference

10

9 HOW TO USE THE ISO 50001 EnMS
PRACTITIONER’S GUIDE
This Practitioner’s Guide is intended to help organize Please be aware that although the following sections
and streamline an organization’s effort to become include all requirements of the EnMS Standard,
an ISO 50001 Energy Management System (EnMS) they do not necessarily cover how the requirements
Registered Firm. The information gathered here may of the Standard relate speciﬁcally to your facility or
be useful in determining the organization’s state of organization. Use of this guide is meant to provide a
readiness for an EnMS evaluation. sample of the effectiveness of your EnMS.

The use of this guide is to increase the understanding The following section, section 10 presents a strategy
of ISO 50001 as it applies to organizations. We for preparing your organization for ISO 50001. It
encourage you to share this within your organization provides a basis for understanding how your system
to enhance everyone’s understanding of EnMS may conform to the Standard. Only the requirements
requirements and the assessment process. as shown within Clause 4 of the EnMS standard,
section 10 of this guide, are auditibable.

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10 HOW DO I START?
GUIDE FROM WWW.ENERGYSTAR.GOV
Step
Commit to Continuous Improvement
1
Organizations seeing the financial returns from to allocate staff and funding to achieve continuous
energy management continuously strive to improve improvement. To establish their energy program,
their energy performance. Their success is based leading organizations form a dedicated energy
on regularly assessing energy performance and team and institute an energy policy. Effective
implementing steps to increase energy efficiency. implementation of an EnMS requires full support and
No matter the size or type of organization, the commitment from the highest levels. If employees
common element of successful energy management perceive management is not fully committed to energy
is commitment. Organizations make a commitment management, there is a high potential for failure.

Step
Form a Dedicated Team
2a. Appoint an Energy Director: Sets goals, c. Empower energy staff to fulfill fundamentals.
tracks progress, and promotes the energy Push for strong energy efficiency from all parts
management program. of the business. Enable energy investments by
b. Establish an Energy Team: Executes energy valuing them differently from other projects.
management activities across different parts Educate customers on the value of energy
of the organization and ensures integration of performance in products. Involve yourself.
best practices.

► EXAMPLE OF AN INTERNAL JOB DESCRIPTION FOR AN ENERGY MANAGER

Tasks Qualities

Setting up and leading the energy team in the company Good knowledge of the operating procedures
Planning and implementing the projects (according to budget, time Excellent capabilities in project management, in organisation and
and quality) communication
Acquisition, processing and communication of energy-related Sound knowledge of ISO 50001
information
Delegating tasks and setting time limits Basic technical understanding
Supporting the involvement and recognition of the top management Trust and respect of co-workers
Attaining staff support beyond individual areas and functions Involvement and enthusiasm for the subject of energy management
Regularly reporting to the top management Ability to listen to others who, in some cases, have a different opinion
and other ideas

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Step
Assess Performance
3
Understanding current and past energy use is how d. Technical assessments and audits: Evaluate
many organizations identify opportunities to improve the operating performance of facility systems
energy performance and gain financial benefits. and equipment to determine improvement
Assessing performance is the periodic process of potential.
evaluating energy use for all major facilities and
functions in the organization and establishing a Assessing your energy performance helps you
baseline for measuring future results of efficiency to:
efforts. ● Categorize current energy use by fuel type,
operating division, facility, product line, etc.
Key aspects include: ● Identify high performing facilities for
a. Data Collection and Management: Collect recognition and replicable practices.
energy use information and document data ● Prioritize poor performing facilities for
over time. immediate improvement.
b. Baseline and Benchmarking: Determine ● Understand the contribution of energy
the starting point from which to measure expenditures to operating costs.
progress. Compare the energy performance ● Develop a historical perspective and context
of your facilities to each other, peers and for future actions and decisions.
competitors, and over time to prioritize which ● Establish reference points for measuring and
facilities to focus on for improvements. rewarding good performance.

c. Analysis and Evaluation: Understand your
energy use patterns and trends.

Step
Set Goals
4
Performance goals drive energy management To develop effective performance goals:
activities and promote continuous improvement. a. Determine scope: Identify organizational and
Setting clear and measurable goals is critical for time parameters for goals.
understanding intended results, developing effective
b. Estimate potential for improvement: Review
strategies, and reaping financial gains. Well-stated
baselines, benchmark to determine the
goals guide daily decision-making and are the basis
potential and order of upgrades, and conduct
for tracking and measuring progress. Communicating
technical assessments and audits.
and posting goals can motivate staff to support energy
management efforts throughout the organization. c. Establish goals: Create and express clear,
The Energy Director in conjunction with the Energy measurable goals, with target dates, for the
Team typically develops goals. entire organization, facilities, and other units.

13

Setting goals helps the Energy Director: ● Foster ownership of energy management,
● Set the tone for improvement throughout the create a sense of purpose, and motivate staff
organization ● Demonstrate commitment to reducing
● Measure the success of the energy environmental impacts
management program ● Create schedules for upgrade activities and
● Help the Energy Team to identify progress and identify milestones
setbacks at a facility level

→ SUGGESTIONS
When setting goals, be sure to use the Energy Team’s wide range of knowledge to help set aggressive, yet
realistic goals. Have management review your goals to enlist their feedback and support.

Step
Create Action Plan
5
With goals in place, your organization is now poised to on the organization, the steps below outline a basic
develop a roadmap to improve energy performance. starting point for creating a plan:
Successful organizations use a detailed action plan a. Define technical steps and targets
to ensure a systematic process to implement energy
b. Determine roles and resources: Get buy-in
performance measures. Unlike the energy policy, the
from management and all organizational areas
action plan is regularly updated, most often on an
affected by the action plan before finalizing it.
annual basis, to reflect recent achievements, changes
Work with the Energy Team to communicate
in performance, and shifting priorities. While the
the action plan to all areas of the organization.
scope and scale of the action plan is often dependent

→ SUGGESTIONS
Creating an inclusive strategy that establishes roles and actions throughout the organization can help to
integrate good energy management practices. When developing an action plan, consider:
● Brainstorming with various departments to identify ways they can contribute.
● Holding a competition to seek ideas for energy efficiency from across the organization.
● Gathering recommendations from the Energy Team and other key personnel.

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Step
Implement Action Plan
6
People can make or break an energy program. Gaining b. Raise awareness: Build support all levels of
the support and cooperation of key people at different your organization for energy management
levels within the organization is an important factor initiatives and goals.
for successful action plan implementation in many c. Build capacity: Through training, access to
organizations. In addition, reaching your goals information, and transfer of successful
frequently depends on the awareness, commitment, practices, procedures, and technologies, you
and capability of the people who will implement the can expand the capacity of your staff.
projects.
d. Motivate: Create incentives that encourage
To implement your action plan, consider staff to improve energy performance to
taking the following steps: achieve goals.

a. Create a communication plan: Develop e. Track and monitor: Using the tracking system
targeted information for key audiences about developed as part of the action plan to track
your energy management program. and monitor progress regularly.

Step
Evaluate Progress
7
Evaluating progress includes formal review of both performance and the effectiveness of energy
energy use data and the activities carried out as part management initiatives also allows energy
of the action plan as compared to your performance managers to:
goals. Evaluation results and information gathered ● Measure the effectiveness of projects and
during the formal review process is used by many programs implemented
organizations to create new action plans, identify best ● Make informed decisions about future
practices, and set new performance goals. energy projects
● Reward individuals and teams for
Key steps involved include:
accomplishments
a. Measure results: Compare current ● Document additional savings opportunities
performance to established goals. as well as non-quantiﬁable beneﬁts that
b. Review action plan: Understand what worked can be leveraged for future initiatives.
well and what didn’t in order to identify
best practices. Regular evaluation of energy

15

Step
Recognize Achievements
8
Providing and seeking recognition for energy a. Providing internal recognition: to individuals,
management achievements is a proven step for teams, and facilities within your organization.
sustaining momentum and support for your program. b. Receiving external recognition: from
Providing recognition to those who helped the government agencies, the media, and other
organization achieve these results motivates staff and third party organizations that reward
employees and brings positive exposure to the energy achievement.
management program. Receiving recognition from
c. Partners are also encouraged to promote this
outside sources validates the importance of the energy
notable achievement internally and externally
management program to both internal and external
through newsletters and local media.
stakeholders, and provides positive exposure for the
organization as a whole. Key steps in providing and
gaining recognition include:

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11 ENERGY MANAGEMENT SYSTEM REQUIREMENTS
Section 11 is a discussion of the standard focused on review and evaluate its energy management system
section 4 of the EnMS standard, the auditable clauses. to identify opportunities for improvement and their
Each clause will have four discussion points: implementation. The organization is given flexibly in
how it implements the EnMS.
1. Introduction
2. Requirements of the standard For example:
3. Examples or learning points; and a. The rate, extent and timescale of the continual
4. Action items improvement process are determined by the
organization
Specific clauses may have and introduction or opening
b. The organization can take into account
paragraph. Throughout this section, we will be using a
economic and other considerations when
mythical company called “ABC Company (ABCCO).”
determining the rate, extent and timescale of
The company has three buildings: warehouse;
the continual improvement process
administration building and manufacturing. The
following sections are numbered as presented in the c. The concept of scope and boundaries allows
EnMS Standard. Only Clause 4 is auditable. flexibility to the organization to define what is
included within the EnMS
For the example used in this Guide, the following
information will be useful: The concept of energy performance includes energy
use, energy efficiency and energy consumption. The
organization can choose from a wide range of energy
Energy Source BTU kWh
performance activities. For example, the organization
Barrel (42 gal) crude oil 5,800,000 1,699.9
could reduce peak demand, utilize surplus or waste
Gallon gasoline 124,238 36.4
energy, or improve the operations of its systems,
Gallon diesel fuel 130,500 38.2 processes or equipment. The intent of this section is
Gallon heating oil 138,690 40.6 to provide a high altitude overview and set the stage
Barrel residual fuel oil 6,287,000 1,842.6 for the EnMS. It does not require specific processes
Cubic Foot of natural gas 1,027 0.3 or procedures, other than to define and document the
Gallon propane 91,033 26.7 scope of your EnMS.
Short ton of coal 19,977,000 5,854.9
KW-hour electricity 3,412 1.0 REQUIREMENTS OF THE STANDARD
The organization shall:
4.1 General Requirements a. Establish, document, implement, maintain
and improve an EnMS in accordance with the
INTRODUCTION:
INTRODUCTION: requirements of this International Standard
General Requirements set the stage or foundation for b. Define and document the scope and boundaries
the entire EnMS system. Management must consider of its EnMS
how it will address all of the EnMS requirements,
c. Determine how it will meet the requirements
develop a strategy and define and document its scope.
of this international standard in order to
Much like ISO 14001, the scope is a critical part of the
achieve continual improvement of its energy
EnMS, as it defines its bounds and limits.
performance and of its EnMS
The implementation of an EnMS is intended to result in
improved energy performance. This standard is based
on the premise that the organization will periodically

17

EXAMPLES OR LEARNING POINTS
EXAMPLE OR LEARNING POINTS c. Providing the resources needed to establish,
implement, maintain and improve the EnMS
Scope 1. The energy management system of
and resulting energy performance
ABCCO, associated with the manufacture
Note: Resources include human resources,
of advanced widget component parts,
specialized skills, technology and financial
located in Anywhere, AZ, USA. resources
Scope 2. All energy related activities, products and d. Identifying the scope and boundaries to be
services of ABCCO, within the bounds of addressed by the EnMS
its property in Anywhere, AZ, USA.
e. Communicating the importance of energy
Scope 3. The ABCCO energy activities at its 123 management to those in the organization
Main Street, Anywhere, AZ, USA site.
f. Ensuring that energy objectives and targets are
ACTION ITEMS established
g. Ensuring that EnPIs are appropriate to the
● Define and document the Scope of your EnMS
organization
● Determine how you will meet the
requirements of the Standard. h. Considering energy performance in long-term
● Establish your EnMS. planning
i. Ensuring that results are measured and
4.2 Management Responsibility reported at determined intervals
j. Conduct management reviews
4.2.1 Management Responsibility
INTRODUCTION:
1. Meeting minutes where Top Management’s
Top Management or their representative, when commitment to the EnMS process is
communicating to the organization, can support documented
energy management through employee involvement 2. All hands kick-off meetings held by ABCCO
activities such as empowerment, motivation, where commitments are publicly made by Top
recognition, training and rewards and participation. Management, EnMS team introduced and
When communicating long-term energy management support provided by management
targets, topics may include: energy sources, energy
3. “Energy Day” celebration to kick off the start of
performance, and energy performance improvements
the EnMS
in planning activities.
ACTION ITEMS
REQUIREMENTS OF THE STANDARD
● A demonstration of Top Management’s
Top management shall demonstrate its commitment commitment to EnMS (See clause 4.2)
to support the EnMS and to continually improve its ● Define, establish, implement and maintain an
effectiveness by: energy policy (See clause 4.3)
a. Defining, establishing, implementing, and ● Appoint a management representative
maintaining an energy policy and approve the formation of an energy
management team (See clause 4.2.2)
b. Appointing a management representative
● Providing the resources needed to establish,
and approving the formation of an energy
implement, maintain and improve the EnMS
management team
and resulting energy performance (See clause
4.2.1 and 4.3)

18

● Identify the scope and boundaries addressed and communicated to all persons working for, or on
by the EnMS (See Clause 4.1) behalf of the organization, to ensure that “authority”
● Communicate the importance of energy is defined, documented and communicated.
management to the organization (See Clause
4.5.3) REQUIREMENTS OF THE STANDARD
● Ensure energy objectives and targets are
Top management shall appoint a management
established (See Clause 4.4.6)
representative(s) with appropriate skills and
● Ensure EnPIs are appropriate to the
competence, who, irrespective of other responsibilities,
organization (See Clause 4.4.5)
has the responsibility and authority to:
● Consider energy performance in long-term
planning (See Clause 4.2.1) a. Ensure the EnMS is established, implemented,
● Ensure results are measured and reported at maintained, and continually improved in
determined intervals (See Clause 4.6.1) accordance with this International Standard
● Conduct management reviews (See Clause 4.7) b. Identify person(s), authorized by an
appropriate level of management, to work with
4.2.2 Roles, Responsibility and Authority the management representative in support of
energy management activities
INTRODUCTION:
c. Report to top management on energy
Successful implementation of an EnMS calls for performance
commitment from all persons working for the
d. Report to top management on the performance
organization or on its behalf. Energy roles and
of the EnMS
responsibilities therefore should not be seen as
confined to the energy management function, but e. Ensure that the planning of energy
can also cover other areas of an organization, such management activities is designed to support
as operational management or other staff functions. the organization's energy policy
This commitment should begin at the highest levels of f. Define and communicate responsibilities and
management. Accordingly, Top Management should authorities in order to facilitate effective energy
establish the organization's energy policy and ensure management
that the EnMS is implemented. g. Determine criteria and methods needed to
ensure that both the operation and control of
As part of this commitment, Top Management should
the EnMS are effective
designate a specific management representative(s)
with defined responsibilities and authority for h. Promote awareness of the energy policy and
implementing the EnMS. In large or complex objectives at all levels of the organization
organizations, there may be more than one
designated representative. In small or medium-sized EXAMPLES OR LEARNING POINTS
enterprises, these responsibilities may be undertaken At this point in the process, specific job and
by one individual. Management should also ensure implementation requirements are established. It
that appropriate resources, such as organizational is important to assign the task of “Management
infrastructure, are provided to ensure that the Representative” to one or more people, who are
EnMS is established, implemented and maintained. competent in the ability to execute the program. A
Examples of organizational infrastructure include common failure point of many management systems
buildings, communication lines, underground is to appoint a person (or team) who either does
tanks, drainage, etc. It is also important that the not have the knowledge, competency, management
key EnMS roles and responsibilities are well defined support or understanding of the organization.

19

For purposes of this Guide, the Energy Team is resources to achieve objectives and targets
William Robert and Joseph Ray. The both have direct d. Includes a commitment to comply with
reporting responsibility to the VP of Paperclips and applicable legal requirements and other
dotted line responsibility to the CEO. requirements to which the organization
subscribes related to its energy use,
ACTION ITEMS consumption and efficiency
Top Management has to appoint a Management e. Provides the framework for setting and
Representative or Energy Team, with the reviewing energy objectives and targets
responsibilities and activities noted above in the f. Supports the purchase of energy-efficient
Requirements section. products and services, and design for energy
performance improvement
4.3 Energy Policy g. Is documented and communicated at all levels
within the organization
INTRODUCTION:
h. Is regularly reviewed, and updated as necessary
The energy policy is the driver for implementing
and improving an organization's EnMS and energy
performance within its scope and boundaries. The
policy may be a brief statement (high level overview
of management’s intent) that members of the
organization can readily understand and apply to
their work activities. The energy policy dissemination
can be used as a driver to manage organizational
behavior.

Where transportation is procured or used by the
organization, the energy use and consumption of
transport can be included in the scope and boundaries
of the EnMS.

The energy policy shall state the organization's
commitment to achieving energy performance
improvement.

Top management shall define the energy policy and
ensure that it:
a. Is appropriate to the nature and scale of the
organization's energy use and consumption
b. Includes a commitment to continual
improvement in energy performance
c. Includes a commitment to ensure the
availability of information and of necessary

20


► EXAMPLE 1 (FORMAL)

Our Energy Policy: We, the company ABCCO, hereby commit ourselves to the long-term reduction of
our energy consumption and to the improvement of our energy efficiency in a continuous improvement
process. To fulfill these objectives, we are implementing an energy management system according to ISO
50001 standard. We thereby ensure that all the requirements of this standard are correctly implemented
and that there is a continuous improvement of all processes within this energy management system. In
addition, we will regularly review that
● the required financial and structural preconditions are met; all employees are integrated into
the implementation and operation of the energy management system and responsibilities are
established;
● relevant legal obligations and other requirements are taken into consideration;
● energy aspects/energy data are regularly determined and assessed;
● programs promoting energy-efficiency are correctly introduced and conducted;
● the results are measured and evaluated by means of a regular audit;

Date : Place :
Name :
Position :

► EXAMPLE 2 (ACRONYM)

The ABCCO Energy Policy is as follows:
A – Assure we comply with all our legal and other requirements related to energy
B – Be sure information and resources are available to meet out objectives and targets
C – Continually improve our efficient use of energy
C – Cascade our activities to set and review objectives and targets
O – Obtain and purchase energy efficient products and services
CEO : Date :

► EXAMPLE 3 (INFORMAL)

The ABCCO energy policy is to: do better in energy use all the time; meet out regulatory and corporate
issues; do what is necessary to set, review and achieve the stated objectives and targets; and only buy the
highest level energy efficient items.

Approved : Revision :

ACTION ITEMS
Define and document your energy policy

21

4.4 Energy Planning and relating energy performance data of comparable
activities with the purpose of evaluating and
comparing performance between or within entities.
INTRODUCTION:
INTRODUCTION: Different types of benchmarking exist, ranging from
Figure 1 is a conceptual diagram intended to improve internal benchmarking for the purpose of highlighting
understanding of the energy planning process. This good practices within the organization to external
diagram is not intended to represent the details benchmarking to establish the "best in industry/
of a specific organization and there may be other sector" performance of an installation/facility or a
details specific to the organization or particular specific product/service in the same field or sector.
circumstances. The benchmark process can be applied to any or all
of these elements. Provided relevant and accurate
This section of the standard focuses on the energy data is available, benchmarking is a valuable input
performance of the organization and tools to maintain to an objective energy review (4.4.3), and consequent
and continually improve energy performance. setting of energy objectives (4.4.6) and energy targets
Benchmarking is the process of collecting, analyzing (4.4.6).

► FIGURE 1 : ENERGY PLANNING PROCESS CONCEPT DIAGRAM


4.4.1 General be consistent with the energy policy and shall
lead to activities that continually improve energy
INTRODUCTION: performance. Energy planning shall involve a review
of the organization's activities that can affect energy
Consistent with the standard, this section states the performance.
need to establish processes for energy planning. NOTE 1: A concept diagram illustrating energy planning
is shown in Figure 1.
REQUIREMENTS OF THE STANDARD NOTE 2: In other regional or national standards, concepts
such as identification and review of energy aspects or the
The organization shall conduct and document an concept of energy profile, are included in the concept of
energy review.
energy planning process. Energy planning shall

22

EXAMPLES OR LEARNING POINTS 1. These may include:
a. National and international legal
As with many other clauses, this clause helps set the requirements
stage for the Planning Requirements. The planning b. State/provincial/departmental legal
process is an integral part of the Plan-Do-Check-Act requirements
Demming circle common to all management systems. c. Local governmental legal requirements
2. Examples of other requirements to which
the organization may subscribe include, if
applicable:
a. Agreements with public authorities
b. Agreements with customers
c. Non-regulatory guidelines
d. Voluntary principles or codes of practice
e. Requirements of trade associations
f. Agreements with community groups or
non-governmental organizations
g. Public commitments of the organization or
its parent organization
h. Corporate/company requirements

The determination of how legal and other
requirements apply to an organization's EnMS is
Please refer to reference number 17. usually accomplished in the process of identifying
these requirements. It may not be necessary,
ACTION ITEMS therefore, to have a separate or additional procedure
in order to make this determination.
Have a process in place, using the following clauses to
demonstrate your planning activities that continually
improve energy performance.
The organization shall identify, implement, and
4.4.2 Legal and Other Requirements have access to the applicable legal requirements
and other requirements to which the organization
INTRODUCTION: subscribes related to its energy use, consumption
and efficiency. The organization shall determine
Applicable legal requirements are those international, how these requirements apply to its energy use,
national, regional, and local requirements that apply consumption and efficiency and shall ensure that
to the scope of the energy management system. these legal requirements and other requirements to
Examples of legal requirements may include a national which it subscribes are considered in establishing,
energy conservation regulation or law. Examples of implementing and maintaining the EnMS. Legal
other requirements may include agreements with requirements and other requirements shall be
customers, voluntary principles or codes of practice, reviewed at defined intervals.
voluntary programs and others. The organization
needs to identify the legal requirements that are EXAMPLES OF US LEGAL REQUIREMENTS
OR LEARNING POINTS
applicable to its energy use.
a. Title V - Fuels and Emissions
b. Air and Boiler Regulations

23

c. Federal Tax Policy – Incentives and Penalties 4.4.3 Energy Review
d. Executive Orders, such as EO 13514
e. Utility Incentives INTRODUCTION:
i. Source The process of identification and evaluation of energy
ii. Capital Expenses use should lead the organization to define areas of
significant energy use and identify opportunities for
iii. Rate Reductions
improving energy performance.
f. DOT Fleet Requirements (≥ 10 vehicles)
g. Security and Access Regulations Potential sources of energy can include conventional
sources that have not been previously used by an
h. Rate Structure Issues (Interruptible Power
organization. Alternative energy sources can include
Rates v Non-Interruptible)
fossil or non-fossil fuels. Updating the energy
review means updating the information related
EXAMPLES OF OTHER REQUIREMENTS
EXAMPLES OF OTHER REQUIREMENTS to the analysis, determination of significance and
Examples of other requirements that encompass determination of improving energy performance
non-regulatory issues: opportunities. An energy audit or assessment
comprises a detailed review of the energy performance
a. Corporate Mandates
of an organization, of a process, or both. It is typically
b. Trade Associations based on appropriate measurement and observation
c. Voluntary Agreements of actual energy performance.

d. Non-regulatory Agreements with Utility or
Audit outputs typically include information on
other Energy Suppliers
current consumption and performance and can be
accompanied by a series of ranked recommendations
ACTION ITEMS
for improvement in terms of energy performance.
Identify and have access to your legal and other energy Energy audits are planned and conducted as part of
related requirements. There may be some value the identification and prioritization of opportunities
in taking the energy source, use and consumption to improve energy performance.
activities identified in the following clauses and cross
reference any legal and other requirements to them. REQUIREMENTS OF THE STANDARD
This approach can facilitate the identification of the
The organization shall develop, record, and maintain
requirements to what you are doing at your site.
an energy review. The methodology and criteria used
to develop the energy review shall be documented. To
develop the energy review, the organization shall:
a. analyze energy use and consumption based on
measurement and other data, i.e.
i. identify current energy sources
ii. evaluate past and present energy use and
consumption
b. based on the analysis of energy use and
consumption, identify the areas of significant
energy use, i.e.:

24

i. identify the facilities, equipment, systems, c. The facility has determined that propane
processes and personnel working for, or on forklifts, warehouse lighting and fuel oil use are
behalf of, the organization that significantly the significant energy uses
affect energy use and consumption
ii. identify other relevant variables affecting ACTION ITEMS
significant energy uses ● Opportunities may relate to potential sources
iii. determine the current energy performance of energy, use of renewable energy, or other
of facilities, equipment, systems and alternative energy sources such as waste
processes related to identified significant energy. The energy review shall be updated
energy uses at defined intervals and in response to major
iv. estimate future energy use and consumption changes in facilities, equipment, systems,
or processes.
c. identify, prioritize and record opportunities for
● What are your methods for energy reviews?
improving energy performance.
● What are your current energy sources
NOTE: Opportunities can relate to potential
(including any energy generated on-site)?
sources of energy, use of renewable energy, or other
alternative energy sources, such as waste energy. ● What is your past and present energy use
and consumption?
The energy review shall be updated at defined ● What are your areas of significant energy use?
intervals, as well as in response to major changes in ● How do you identify the facilities, equipment,
facilities, equipment, systems, or processes. systems, processes and personnel working
for or on behalf of the organization that
EXAMPLES OR LEARNING POINTS significantly affect energy use
and consumption?
The facility has noted the following energy use data: ● How do you identify other relevant variables
affecting significant energy uses?
Source Amount BTU (x106) KWhr (x103) ● How do you determine the current energy
Fuel Oil 3,000 Gal 416.070 121.800 performance of facilities, equipment, systems,
Propane 15,000 Gal 1,365.495 400.500 and processes related to identified significant
Diesel 4,000 Gal 522.000 152.800 energy uses?
Electric 1,500,000 KWhr 5,118.000 1,500.000 ● How do you estimate future energy use and
Total 2010 7,421.565 2,175.100 (+15%) what are those values?
● How do you identify, prioritize, and record
Total 2009 6,308.330 1,848.835 (+15%)
opportunities for improving energy
performance?
Total 2008 5,362.080 1,571.510

a. While a steady 15% increase in energy was 4.4.4 Energy Baseline
noted for the past two years, management has
estimated a 5% increase in KWhr for 2011 = INTRODUCTION:
2,393 x103 KWhr.
The energy baseline is maintained and recorded
b. Energy Uses for purposes of this discussion, the
as a means for the organization to determine the
key focus areas are:
records maintenance period. a “suitable data period”
i. Propane forklifts means the organization accounts for regulatory
ii. Warehouse Lighting requirements, or variables that affect the energy use
and consumption. Variables can include weather,
iii. Manufacturing use of Fuel Oil

25

seasons, business activity cycles and other conditions. ● What are the trigger limits for EnPIs requiring
The adjustments to the baseline are also considered change to the baseline?
maintenance and the requirements are defined in ● Is there a predetermined method to address
this standard. major changes to the process, operational
patterns, energy systems?
REQUIREMENTS OF THE STANDARD ● What currently influences changes to your
Energy baseline?
The organization shall establish an energy
baseline(s) using the information in the initial energy 4.4.5 Energy Performance Indicators
review, considering a data period suitable to the
(EnPI’s)
organization's energy use and consumption. Changes
in energy performance shall be measured against the
INTRODUCTION:
INTRODUCTION:
energy baseline(s).
EnPI’s can be a simple parameter, a simple ratio or
Adjustments to the baseline(s) shall be made in the a complex model. Examples of EnPI’s can include
case of one or more of the following: energy consumption per time, energy consumption
● EnPI’s no longer reflect organizational energy per unit of production, and multi-variable models.
use and consumption The organization can choose EnPI’s that inform
● Major changes to the process, operational the energy performance of their operation, and
patterns, or energy systems can update the EnPI’s when business activities or
● Changes according to a predetermined method baselines change that affect the relevance of the EnPI,
as applicable.
The energy baseline(s) shall be maintained and
recorded. REQUIREMENTS OF THE STANDARD
EXAMPLES OR LEARNING POINTS The organization shall identify EnPI’s appropriate for
monitoring and measuring its energy performance.
From the example above, Top Management has The methodology for determining and updating the
decided to use the 2009 energy data as its base line. EnPI’s shall be recorded and regularly reviewed.
Some energy reduction efforts were made in 2010, EnPI’s shall be reviewed and compared to the energy
and management wanted to see the long term effects baseline as appropriate.
of the efforts. 2009 was selected in this case for the
reasons stated. There is nothing wrong with using EXAMPLES OR LEARNING POINTS
2008 or 2010 data as the baseline. Management
has implemented a triennial review period for In our case, management has decided to use KWhr’s
the baseline. The next review (pending any major the EnPI. While many different EnPI’s could be used,
changes) will be related to the 2012 data. for the sake of simplicity, this will be the only one.
This is not to say multiple EnPI’s can be an integral
ACTION ITEMS part of your system. The facility could “normalize”
them relative to:
● Identify, document and maintain your energy
a. Headcount (KWhr / employees)
baseline
● Use your Energy Review b. Production (KWhr / unit, KWhr / $MM sales,
● Identify and document your data period or KWhr / 1,000 pieces)
● Are there processes to identify changes to c. Use per day (KWhr / operating day)
measure against the baseline?
d. Total Energy Use (KWhr)

26

ACTION ITEMS contractor awareness of energy management
behaviors. The extent to which the action plan
● Identify and document your EnPI’s achieves the increased awareness and other results
● What is the methodology for determining and should be verified using the method determined by
updating, recording and regularly review the the organization and documented in the action plan.
EnPI’s?
● What is the frequency for EnPI’s to be The creation and use of one or more action plan
reviewed and compared to the energy baseline is important to the successful implementation of
as appropriate? an EnMS. Each action plan should describe how
the organization's objectives and targets will be
4.4.6 Energy Objectives, Energy Targets achieved, including timescales, necessary resources
and Energy Management Action and personnel responsible for implementing the
Plans action plan(s). The action plan(s) may be subdivided
to address specific elements of the organization's
INTRODUCTION: operations.

In addition to action plans focused on achieving REQUIREMENTS OF THE STANDARD
specific improvements in energy performance,
an organization may have action plans that focus The organization shall establish, implement and
on achieving improvements in overall energy maintain documented energy objectives and targets
management or improvement in the processes of at the relevant functions, levels, processes or
the EnMS itself. Action plans for these types of facilities within the organization. Time frames shall
improvements also can state how the organization be established for achievement of the objectives
will verify the results achieved by the action plan. and targets.
For example, an organization may have an action
plan designed to achieve increased employee and The objectives and targets shall be consistent with

27

the energy policy. Targets shall be consistent with for their relative contribution to the energy use and
the objectives. consumption goal (Delta). It was noted that 70% of
the reductions could be realized from reduction of
When establishing and reviewing objectives and electricity, but 19% could be realized with propane
targets, the organization shall take into account legal use reduction. The Action Plan:
requirements and other requirements, significant
energy uses and opportunities to improve energy Action – Warehouse Responsible To Be
performance, as identified in the energy review. Lighting Party Completed
It shall also consider its financial, operational and
1. Conduct lighting survey,
business conditions, technological options and the including use of natural and solar Consultant 3 months
views of interested parties. lighting
2. Evaluate the lighting survey
The organization shall establish, implement and and determine the re-lamping WR / JR 2 weeks
maintain action plans for achieving its objectives and cost and energy savings.

targets. The action plans shall include: 3. Determine cost and ROI on
WR 5 days
re-lamping.
● Designation of responsibility;
Next meeting
● The means and time frame by which individual 4. Present results to
JR after ROI
Management Team
targets are to be achieved; determination
● A statement of the method by which an 5. Upon approval, develop RFP
WR / Bob in
improvement in energy performance shall be with finance to include energy 1 month
Finance
efficiency requirements
verified;
6. Distribute RFP with response
● a statement of the method of verifying the Finance 6 weeks
in 6 weeks to Finance
results;
7. Evaluate RFPs and select WR / Bob in
● The action plans shall be documented, and 2 weeks
contractor Finance
updated at defined intervals. 8. Start project Contractor 5 weeks

EXAMPLES OR LEARNING POINTS 9. Close project
WR / Bob in
Finance
9 weeks

ABBCO’s Objective and Target: Reduce energy use 10. Monitor energy use relative
Maintenance 12 months
to lighting
and consumption by 10% of the 2010 base line,
using KWhr.
To Be
Responsible
Original Objective Delta KWhr Action - Forklifts Completed
Source Party
KWhr (x10 ) 3
KWhr (x10 ) 3 3
(x10 ) (cumulative)

Fuel Oil 121.8 109.6 12.2 (5.6%) 1. Contact forklift leasing
company for conversion of
Propane 400.5 360.4 40.1 (18.6%) Maintenance 2 weeks
forklifts from propane to battery
Diesel 152.8 137.5 15.3 (7.0%) power.
Electric 1,500.0 1,350.0 150.0 (68.9%) Forklift
2. Convert them 4 weeks
Company
Total 2010 2,175.1 1,957.6 217.5 10. Monitor energy use relative
Maintenance 12 months
to PIVs
10% Reduction 1,957.6

The Action Plan will define the methodology to reach Action – Manufacturing Use Responsible To Be
the Objectives of 10% reduction, based on KWhr. In of Fuel Oil Party Completed
the table above, all energy sources were evaluated
Replace Fuel Oil with Natural Gas Maintenance 4 months

28

ACTION ITEMS 4.5 Implementation and Operation
● What are your documented energy objectives
and targets within the organization? 4.5.1 General
● What is the time frame to achieve the
objectives and targets? INTRODUCTION:
● Are the objectives and targets consistent with
This clause is an opening statement to address the
the energy policy?
need to make the EnMS happen. This is the part of
● Are the targets consistent with the objective?
the standard where thing happen and benefits gained.
● When establishing and reviewing objectives
and targets, how do you take into account
legal requirements and other requirements,
significant energy uses, and opportunities to The organization shall use the action plans and other
improve energy performance as identified in outputs resulting from the planning process for
the energy review and include consider its implementation and operation.
financial, operational and business conditions,
technological options, and the views of 4.5.2 Competence, Training and
interested parties? Awareness
● How are Action Plans established,
implemented, and maintained for achieving its INTRODUCTION:
objectives and targets, including: designation
of responsibility; means and time frame by The organization defines competence, training and
which individual targets are to be achieved; awareness requirements based on its organizational
and statement of the method by which an needs. Competency is based on a relevant combination
improvement in energy performance shall of education, training, skills and experience.
be verified? The organization should identify the awareness,
● What is the method to verify results? knowledge, understanding and skills needed by
● What is the frequency to review and update any person with the responsibility and authority to
documented action plans? perform tasks on its behalf.

The organization shall ensure that any person(s)
working for or on its behalf, related to significant
energy uses, are competent on the basis of appropriate
education, training, skills or experience. The
organization shall identify training needs associated
with the control of its significant energy uses and the
operation of its EnMS. The organization shall provide
training or take other actions to meet these needs.

Appropriate records shall be maintained.

The organization shall ensure that any person(s)
working for or on its behalf are aware of:

29

ISO 50001 & SEP Practitioners Guide

ISO 50001 & SEP Practitioners Guide

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