IMPROVED PERFORMANCE ENERGY OPTIMISATION...4.4 ENERGY PLANNING 10 4.4.1 GENERAL 10 ENERGY PLANNING...

THE ROUTE TO ISO 50001:2011 AVOIDING THE PITFALLS

THE ROUTE TO ISO 50001:2011AVOIDING THE PITFALLSAUTHOR

Terry Coyle ISO 50001 Product Manager (UK)

SUSTAINABILITY

CONSUMER CONFIDENCE

REDUCED COSTS

IMPROVED PERFORMANCE

FURTHER EXCELLENCE

ENVIRONMENTAL RESPONSIBILITY

ENERGY OPTIMISATION

MANAGE RISKS

EFFICIENCY


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FOREWORD

The purpose of this booklet is to provide a simple introduction to ISO 50001 Energy Management Systems. It is not intended to be a full explanation of the standard or of its implementation; rather it aims to promote understanding and to help the reader profit from the experience of third-party auditors, and the problems encountered by others. It is hoped that this simple approach will cut through some of the “fog” and “management speak” that so often overcomplicates something that should be reasonably straightforward.

It is not intended as a replacement for the standard, and the reader is strongly advised to purchase a copy of ISO 50001 if planning to implement an ISO 50001 management system.

Some of the wording of this booklet is taken from ISO 50001 and SGS acknowledges the permission of the British Standards Institute for use of those extracts.


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TABLE OF CONTENTS

INTRODUCTION 4

THE ISO 50000 FAMILY OF STANDARDS 6

THE PITFALLS 6

4.1 GENERAL REQUIREMENTS 6

4.2 MANAGEMENT RESPONSIBILITY 7

4.3 ENERGY POLICY 8

4.4 ENERGY PLANNING 10

4.4.1 GENERAL 10

ENERGY PLANNING PROCESS 10

4.4.2 LEGAL REQUIREMENTS AND OTHER REQUIREMENTS 11

4.6.2 EVALUATION OF COMPLIANCE WITH LEGAL REQUIREMENTS AND OTHER REQUIREMENTS

11

4.4.3 ENERGY REVIEW 13

OPPORTUNITIES FOR IMPROVEMENT 13

4.4.4 ENERGY BASELINE 16

4.4.5 ENERGY PERFORMANCE INDICATORS 17

4.4.6 ENERGY OBJECTIVES, ENERGY TARGETS AND ENERGY MANAGEMENT ACTION PLANS

18

4.5.1 GENERAL 20

4.5.2 COMPETENCE, TRAINING AND AWARENESS 20

4.5.3 COMMUNICATION 21

4.5.4 DOCUMENTATION 21

4.5.5 OPERATIONAL CONTROL 23

4.5.6 DESIGN 24

4.5.7 PROCUREMENT OF ENERGY SERVICES, PRODUCTS, EQUIPMENT AND ENERGY

25

4.6 CHECKING 26

4.6.1 MONITORING, MEASUREMENT AND ANALYSIS 26

4.6.3 INTERNAL AUDIT OF THE EnMS 28

4.6.4 NON-CONFORMITIES, CORRECTION, CORRECTIVE ACTION AND PREVENTIVE ACTION

30

4.6.5 CONTROL OF RECORDS 31

4.7 MANAGEMENT REVIEW 32

THE CERTIFICATION PROCESS 34

WHY SGS? 35


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INTRODUCTION

This booklet gives a brief introduction to ISO 50001 and points out some of the common pitfalls in implementation and preparing for third-party audit.

The pitfalls noted are all real; that is why there are no direct references to the sites or companies concerned.

ABOUT ISO 50001

ISO 50001 was published in 2011 and aims to help organisations establish the systems and processes necessary to improve energy performance. This should lead to reductions in energy costs and greenhouse gas emissions through systematic management of energy.

The standard sets out the requirements for an energy management system (EnMS) to enable an organisation to develop and implement a policy and objectives that take into account legal requirements and information about significant energy uses. It is intended to apply to all types and sizes of organisations whatever their geographical, cultural and social conditions.

ISO 50001 can be used independently or integrated with any other management system. To this end, the structure of the standard is similar to that of ISO 14001, the requirements for environmental management systems.

Energy policy

Energy Planning

Checking

Implementationand operation

Continuous improvement

Implementationand operation

Nonconformities,correction, correctiveand preventive action

Management review

Monitoring, measurementand analysis

Source: ISO 50001:2011

The standard does not establish absolute requirements for energy performance beyond the commitments in the energy policy of the organisation and its obligation to comply with relevant legislation. Therefore, two organisations carrying out similar operations but having different energy performance can both conform to its requirements.

The level of detail and complexity of the EnMS, the extent of documentation and the resources devoted to it depend on a number of factors, such as the size of an organisation, the scope of the system, and the nature of its activities, goods and services. This may be the case in particular for small and medium-sized enterprises.

STRUCTURE OF ISO 50001

The international standard ISO 50001 specifies a model for an EnMS that may be applied to any type or size of organisation. It is based on an implementation model of PLAN ~ DO ~ CHECK ~ ACT and follows a simple and logical sequence.


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The PLANNING PHASE of the system is absolutely crucial to the effective implementation of the management system.

It all starts with the energy review with the characterisation of the current situation of the organisation in terms of energy performance and the variables that affect performance, the selection of the energy uses that are considered to be significant (SEUs) and the identification of opportunities for its improvement.

Even though each organisation can establish its own criteria for the determination of the significant energy uses, the standard includes the definition:

“Significant energy use is an energy use accounting for substantial energy consumption and/or offering considerable potential for energy performance improvement”.

In ISO 50001 energy performance encompasses different aspects of energy:

The energy baseline(s) (EnB) and energy performance indicator(s) (EnPI) are then derived from the information identified in the energy review. In order to effectively manage the energy performance of their facilities, systems, processes and equipment, an organisation needs to know how energy is used and how much is consumed over time.

An EnPI is a value or measure of energy consumption normalised against a variable that affects that usage to be able to determine energy performance. An energy baseline (EnB) is a reference that quantifies an organisation’s energy performance over a specified time period. The EnB enables organisations to identify changes in energy performance between reporting periods and before and after energy performance improvement actions.

ENERGYPERFORMANCE

ENERGYCONSUMPTION

ENERGYUSE

OTHERENERGY

EFFICIENCY

ENERGYINTENSITY


We can simplistically describe the different planning clauses in the following diagram.

WHERE ARE WE?4.4.2 Legal and other requirements4.4.3 Energy review4.4.4 Energy baseline(s)4.4.5 Energy performance indicators

WHERE DO WE WANT TO GO?4.4.6 Objectives and targets

HOW WILL WE GET THERE?4.4.6 Energy management action plans

HOW DO WE KNOW WE ARE ONTHE RIGHT TRACK?4.4.4 Energy baseline(s)4.4.5 Energy performance indicators


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The IMPLEMENTATION (DO) PHASE of the system involves touching on different elements. For implementation of the EnMS to be effective it is critical that these elements consider the significant energy uses (SEUs) as identified during the planning phase.

PEOPLE

4.5.2 Competence,training and awareness

4.5.3 Communication

PROCESSES

4.5.4 Documentation

4.5.5 Operational control

4.5.6 Design

EQUIPMENT AND FACILITIES

4.5.6 Design

4.5.7 Procurement

The VERIFICATION (CHECK) PHASE of the system covers requirements that are common to other management systems. This includes measuring, monitoring and calibration procedures to ensure that the controls and programmes are functioning as intended. It also includes a check on compliance with legislation.

• monitoring, measurement and analysis;

• evaluation of compliance with legal and other requirements;

• internal audit;

• non-conformities, correction, corrective and preventive action.

The REVIEW (ACT) PHASE of the

management system is the final stage.

A periodic review by management is required to establish the basis for the next PDCA cycle where the whole system is reviewed to ensure it is functioning, delivering against the policy and objectives and targets, is still up to date and appropriate for the organisation.

THE ISO 50000 FAMILY OF STANDARDS

Besides ISO 50001, there are also other related standards that support organisations implementing an energy management system:

• SO 50002:2014 – Energy audits - Requirements with guidance for use

• SO 50003:2014 – Energy management systems - Requirements for bodies providing audit and certification of energy management systems

• ISO 50004:2014 – Energy management systems - Guidance for the implementation, maintenance and improvement of an energy management system

• ISO 50006:2014 – Energy management systems - Measuring energy performance using energy baselines (EnB) and energy performance indicators (EnPI). General principles and guidance

• ISO 50015:2014 – Measurement and verification of organisational energy performance. General principles and guidance

THE PITFALLS

The notes and information that follow provide a simple explanation of the requirements of the standard, examples of some common pitfalls experienced by SGS auditors during third party certification audits and also a simple checklist of the requirements of each clause. It is intended that these combined should provide a useful guide and starting point for any organisation looking to implement an energy management system conforming to the requirements of ISO 50001:2011. To that end and for simplicity of use, the information below is preceded by the clause numbers of ISO 50001:2011 and are presented in the order they appear.

4.1 GENERAL REQUIREMENTS

This chapter of ISO 50001 is fairly general but it does contain an important requirement of the energy management system, related to scope and boundaries.

In ISO 50001, scope and boundaries are defined the following way:

• Scope: extent of activities, facilities and decisions that the organisation addresses through an EnMS, which can include several boundaries.

• Boundaries: physical or site limits and/or organisational limits as defined by the organisation.

Each organisation has the freedom to choose the scope and boundaries of its management system.

Whereas many organisations opt to include all their activities and facilities in the scope of the system, others choose to focus on one specific area, e.g. the area with the highest energy consumption, or leave a certain activity out, e.g. distribution of products.

In terms of boundaries, the most common way to define it is by site. Obviously, this only applies when the organisation has more than one site.

In the organisation’s certificate it must be very clear what the scope and boundaries of the energy management system are and any public certification claims must not mislead the public in believing that the certification covers more than it actually does.

COMMON PITFALLS

• The scope has been documented but not the boundaries.

• The scope and boundaries of the EnMS have changed, however the documentation has not been updated to reflect the change.

GENERAL REQUIREMENTS COMMENT/PLANüOR û

Have the scope and boundaries of the system been defined and documented?


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4.2 MANAGEMENT RESPONSIBILITY

ISO 50001 defines top management as “person or group of people who directs and controls an organisation at the highest level”. In ISO 50001 the top management responsibilities are detailed and far reaching. The requirements related to the setting of the energy policy, provision of resources, the formation of an energy team, the consideration of energy considerations in long-term planning and appointment of a management representative are just a few examples of how top management commitment is crucial to the successful implementation of the EnMS and must continue to be engaged in the system.

COMMON PITFALLS

• The management representative does not have suitable competence for the role.

• Roles and responsibilities are not effectively communicated to the relevant people.

• Top management is disconnected from the implementation and maintenance of the EnMS.

• Insufficient resources including time, personnel, technology or financial are provided for the effective implementation and ongoing ability of the EnMS to meet the policy commitments and demonstrate continual performance improvement.

MANAGEMENT RESPONSIBILITY üOR û COMMENT/PLAN

Has top management established, implemented and maintained the energy policy?

Is energy performance considered in long-term planning?

Is there a nominated management representative?

Does the management representative have the appropriate responsibility and authority?

Does the management representative have appropriate skills and competence?

Did top management approve the formation of an energy management team?

Are responsibilities and authorities of people involved in the management system defined and communicated?

Does the management representative report energy performance and the performance of the EnMS to top management?

Are resources provided to improve the EnMS and energy performance?


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4.3 ENERGY POLICY

An organisation’s energy policy is the foundation of the EnMS. Ideally, to be relevant and truly reflect the business, it should where possible be produced after identifying the organisation’s significant energy uses (SEUs) and objectives and targets.

Some organisations also choose to identify their scope and boundaries in the policy. Even though ISO 50001 does not require the policy to be available externally, it is important that the personnel and people that work for or on behalf of the organisation clearly understand what is covered by the policy and EnMS.

KEY REQUIREMENTS

The policy must:

• be appropriate

• commit to continual improvement in energy performance

• commit to compliance with applicable legal and other requirements

• commit to ensure the availability of information and of necessary resources to achieve objectives and targets

• provide a framework for setting objectives and targets

• support the purchase of energy-efficient products and services, and design for energy performance improvement

• be documented and communicated at all levels of the organisation.

Taking these in turn:

Appropriate

It is rare to find a policy that is not appropriate to an organisation; however, it is good practice for the opening paragraph of the policy to give a brief outline of the organisation’s business sector so that the policy can be viewed in context – although not a requirement, the ‘scope’ and ‘boundaries’ of certification

can also be detailed here.

Commitment to continual improvement

Occasionally these commitments are more inferred than explicitly stated in the policy. This can lead to confusion since the policy should be understandable and clear. It is right to show this commitment clearly and it is perfectly acceptable to use the exact words from the standard in your policy – this gives a very clear mandate and direction to the energy management system (EnMS).

Commitment to ensure the availability of information and of necessary resources to achieve objectives and targets

This commitment is very important to demonstrate that senior management is serious about energy management and will provide the necessary resources to achieve improved energy performance. The auditor will verify the implementation of this commitment across the audit, especially when auditing objectives, targets and action plans, procurement and management review.

Commitment to comply with relevant legal and other requirements

It may seem superfluous for a chief executive to sign a statement that commits to legal compliance – after all this is never optional!

A commitment to legal compliance is another fundamental part of an EnMS and as such deserves a place in the policy.

The matter of “other requirements” to which the organisation subscribes can be more difficult. Examples of “other requirements” are company guidelines, client requirements (there are some industries where clients define energy related requirements) or voluntary

schemes to which the organisation subscribes.

Provide a framework for setting objectives and targets

You do not need to state your objectives and targets in the policy. Problems can arise when the policy is written with good intent or overzealous expectation of what the organisation can do. For example, if your policy states a commitment to reduction in energy use in a certain area, the EnMS must keep such promises. They will need to be delivered by objectives, targets and action plans.

On the other hand, the policy must give an indication of the main areas where your system will focus. Anyone who reads your policy will have a reasonable expectation that it represents what you do and how you act.

Supports the purchase of energy-efficient products and services, and design for energy performance improvement

This requirement is not defined in the standard as a commitment and therefore it does not have to be explicitly stated in the policy as such. Nevertheless, the policy content must give an indication


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ENERGY POLICY üOR û COMMENT/PLAN

Documented, dated and approved?

Appropriate?

Commits to:

• continual improvement?

• ensuring the availability of information and of necessary resources to achieve objectives and targets?

• compliance with legislation?

• compliance with other requirements?

Provides a framework for setting and reviewing objectives and targets?

Supports the purchase of energy-efficient products and services, and design for energy performance improvement?

Communicated to and known by all employees?

Is reviewed and updated as deemed necessary?

Delivers its promises? (Links to significant energy uses and objectives)

that the organisation will consider energy performance of products and services in the procurement and design processes.

Documented and communicated at all levels of the organisation

The “documented” part is straightforward.

“Communicated at all levels of the organisation” is where most difficulty occurs.

Third-party auditors always check knowledge and understanding of policy with personnel encountered during the audit. They do not expect a word-for-word recital of the policy! What they do expect to find is a knowledge that it exists, an idea of where to find it, and some idea of the relevance of the EnMS to the employee and of the organisation’s actions regarding energy management.

So to sum up, the energy policy is the backbone of an EnMS. If it makes promises or raises expectations, they must be delivered. Your employees and contractors must know about it and its relevance to them.

COMMON PITFALLS

• People working for or on behalf of the organisation are not aware of the energy policy.

• Some mandatory commitments are not clearly stated in the policy.

• Implementation of the policy cannot be demonstrated by top management.

• The policy is not regularly reviewed and/or updated.

• The policy commitments are not supported by measurable data and are unrealistic, e.g. performance improvement ambitions that are unachievable.


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4.4 ENERGY PLANNING

4.4.1 GENERAL

ISO 50001 states that “There must be a documented energy planning process. This process must be consistent with the energy policy and lead to activities that continually improve energy performance.”

The term “process” is commonly used in quality management systems and is defined as “a set of interrelated or interacting activities, which transforms inputs into outputs” (SOURCE: ISO 9001:2008).

Each organisation should describe their energy planning process, including the activities developed by the relevant functions and departments. In comparison to a procedure, a process description has the advantage of clarifying how information flows through the different areas of the organisation and what the expected outcomes should be.

In Figure A.2 of the standard we can find an example of an energy planning process.

ENERGY PLANNING PROCESS

This diagram shows the basic concepts of energy planning.

PLANNING INPUTS ENERGY REVIEW PLANNING OUTPUTS

A. Analyse energy use and consumption

Past and presentenergy uses

B. Identify areasof significant energy use

and consumption

C. Identify opportunitiesfor improving energy

performance

• Energy baseline• EnPI(s)• Objectives• Targets• Action plans

• Relevant variables affecting significant energy use

• Performance


COMMON PITFALLS

• There is no documented energy planning process.

• The planning process does not reflect the organisation’s reality, e.g. the above process does not fit all organisations.

• The identified SEUs have not been incorporated into the supporting processes, e.g. training, operational controls and procedures, communications, design and procurement activity.

GENERAL REQUIREMENTS üOR û COMMENT/PLAN

Is there a documented energy planning process?

Is the energy planning consistent with the energy policy and leads to activities that continually improve energy performance?


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4.4.2 LEGAL REQUIREMENTS AND OTHER REQUIREMENTS

4.6.2 EVALUATION OF COMPLIANCE WITH LEGAL REQUIREMENTS AND OTHER REQUIREMENTS

KEY REQUIREMENTS

The standard requires that you identify and have access to the relevant legal and other requirements in relation to the organisation’s energy uses, consumption and efficiency. There is also a need to ensure that legal and other requirements are communicated within the organisation and there is a periodic check on the state of compliance to these legal and other requirements. This compliance confirmation is an essential part of the EnMS. In practice the legal and other requirements related to the organisation’s energy use and consumption needs to be reviewed and a decision taken on how to check compliance and how often to do this. A sound process needs to be produced and records maintained to show the process was effective and to demonstrate compliance. This can be done as a standalone task although frequently organisations will build this into existing mechanisms or processes, e.g. internal audits. Care must be taken though to ensure the evidence is clear and that all legal and other requirements have been evaluated.The following are examples of considerations related to

legal and other requirements:

• energy efficiency of organisations

• energy efficiency of processes

• greenhouse gases (GHG) emissions

• building energy efficiency:

• design

• inspection and maintenance

• performance certificates

• equipment energy efficiency:

• design

• efficiency in equipment use

• motors

• inspection and maintenance

• performance certificates

The legal requirements can be established at different levels. This differs from country to country.The

LOCAL

REGIONAL

NATIONAL

SUPRA-NATIONAL

INTERNATIONAL CONVENTIONS

requirements must be reviewed at defined intervals.

Ideally the process should ensure that you:

• know what legislation and other requirements apply

• know what it means to your organisation

• know what it means to the different areas or departments

• know what duty or obligation is imposed

• define a method to demonstrate compliance

• know how you ensure compliance

• have a reference to the mechanism for confirming compliance.


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COMMON PITFALLS

• “Other requirements” are not identified and included, e.g. policies, codes of practice, contractual requirements, etc.

• The process for keeping legal and other requirements up to date is not robust.

• The “register” or other method for identifying legal and other requirements includes non-relevant requirements that confuses and/or diminishes attention from the appropriate requirements.

• The “register” or other method for identifying legal and other requirements does not provide detail or explanations of relevance of the requirements. Occasionally you find a list that is just a list and provides absolutely no input to understanding or management.

• Access to the base legislation is not available.

• Compliance has been stated to have been checked at internal audit; however, there is no evidence to support this in the audit reports.

• The person responsible for initial identification and updating of legal and other requirements related to the organisation’s energy use and consumption, and ongoing evaluation of compliance is not competent with regards to energy legislation, resulting in applicable legal and other requirements not being evaluated for compliance.

• The legal and other requirements register/list/database has not considered legal and other requirement associated with the organisation’s energy uses, e.g. boilers, compressors, district heating and cooling systems, renewable sources, etc.

LEGAL AND OTHER REQUIREMENTS üOR û COMMENT/PLAN

Is there a mechanism in place to describe how you gain access to these requirements, how you keep track of changes, and who does this?

Is there a mechanism in place to record these requirements, make sure they are communicated and understood within the organisation?

Is there a means of accessing the original laws, regulations etc.?

Register or listing includes (as applicable):

Laws, regulations, policies, codes of practices, schemes, e.g. Carbon Disclosure Project, contractual requirements, etc. and the means of accessing changes to all of these relevant requirements.

Is there a mechanism in place to evaluate compliance with legal and other requirements periodically as determined appropriate and records maintained?

Are records of the results of the evaluations of compliance maintained?


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4.4.3 ENERGY REVIEW

This clause is very important and has far reaching impacts; it is considered the cornerstone of the EnMS. The effectiveness of the management system relies to a large extent on the quality of the energy review.

ISO 50001 states that the organisation has to develop, record and maintain an energy review. The methodology and criteria used must be documented. The standard does not mention “documented procedure”, therefore the organisation can choose to document the methodology and criteria in any format or type of document.

To develop the review, the organisation must:

a. analyse energy use and consumption based on measurement and other data, i.e.

• identify current energy sources;

• 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.

• identify the facilities, equipment, systems, processes and personnel working for, or on behalf of, the organisation that significantly affect energy use and consumption;

• identify other relevant variables affecting significant energy uses;

• determine the current energy performance of facilities, equipment, systems and processes related to identified significant energy uses;

• estimate future energy use and consumption;

c. identify, prioritise and record opportunities for improving energy performance.

Below we have detailed a little more information on some of the key requirements of this clause:

Energy uses and consumption

The identification of energy use and consumption is critical in understanding where energy is used within the organisation and forms the basis for prioritising the efforts to improve energy efficiency. The organisation that intends to implement an EnMS should start by establishing its current position with regard to energy consumption by means of an inventory of energy use. Without understanding your current position, it will not be possible to determine if improvements have been made.

Each review of energy use and consumption must include past and present energy consumption based on measurement and other data.

The degree of detail depends on the size of the organisation and the complexity of energy use, but should as a minimum include all energy sources (electricity, oil, natural gas or other) and energy uses (drying, pumping, air conditioning, lighting, steam production, compressed air production, transport, etc.).

Where the organisation operates at several facilities, the energy uses and the energy consumption of each facility should be reviewed individually.

Trends in energy consumption over previous years and the identification of the relevant variables that affect it should be reviewed and form the basis for defining the energy baseline. Information on energy use, which is already available, can be used in the review, e.g. energy bills, meter readings, building management energy reports or other existing information. Where there is no information available, the consumption may be determined by other means such as nameplate data, rated power information, current readings, running hours, and so on.

NOTE: Nameplate data must be used with extreme care, as it rarely corresponds to practical use. Nameplate data is normally specified for worst case or standard test conditions.

Significant energy uses

The purpose of the energy review is to identify the significant energy uses, i.e. the equipment and processes that account for the greatest energy use and/or which offer the most potential for energy savings. The methodology used to identify the significant energy uses must be defined.

The significant energy uses when identified then become the focal point for many of the supporting clauses of the standard, e.g. objectives and targets, competence and awareness, operational control, design, procurement, monitoring, measurement and analysis, etc. If the organisation fails to identify the relevant significant energy uses it risks an energy management system that does not lead to improvements in energy performance.

Identify relevant variables affecting significant energy uses

To understand if improvements in energy performance have been made it is essential to understand what variables affect energy use. A simple reduction in energy consumption may not in fact indicate an improvement in energy performance, e.g. this could simply be the result of a reduction in output or running hours for the defined period leading to a corresponding reduction in consumption. To fully understand if an improvement in energy performance has been made it is essential to normalise energy usage against relevant variables, e.g. energy usage (kWh) vs tonne product produced or kWh vs office occupancy, etc. In this way it is then possible to accurately determine if energy performance improvement has been made regardless of situational change.


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Estimate of the expected energy consumption during the following period

The estimate may be based on historical energy consumption figures, estimated production levels for the following period, implementation of energy efficiency improvements planned for the period, etc. This ensures that an organisation understands and considers energy use in any future planned activities.

Identification of persons working for or on behalf of the organisation whose actions may lead to significant changes in energy consumption

Their role, responsibilities and authority should be clarified. This includes personnel that have an indirect but significant influence on energy consumption, e.g. purchasing, design and training staff. This also includes external personnel that can directly affect energy performance, e.g. subcontract maintenance personnel for boilers, HVAC systems, compressed air systems, industrial processes, etc.

This information cascades to clause 4.5.2 (training, competence and awareness) that details the requirements and controls for the personnel identified at this point.

OPPORTUNITIES FOR IMPROVEMENT

The organisation should maintain a register of opportunities for saving energy or other means of improving energy performance. These opportunities can be generated by different processes: suggestions from staff, meetings, analysis of energy performance indicators, identification of new technologies, management review meetings just to mention a few.

In addition to the identification of opportunities for improving energy performance, the organisation may already have initiatives planned to improve energy performance. The combination of existing opportunities and newly identified opportunities should form the basis for setting objectives and targets and energy management action plans. Often the

greatest opportunities for improved energy performance will come from no-cost housekeeping measures, i.e. training personnel to turn off equipment when not in use, promotion and awareness of energy performance in personnel’s work practices and so on.

The standard notes that opportunities can relate to potential sources of energy, use of renewable energy, or other alternative energy sources, such as waste energy. As this text appears as a note, it is not a requirement of the standard, and therefore its application is not mandatory.

Methods to prioritise opportunities for each potential SEU include the following:

• estimated energy savings

• other business impacts or priorities

• return on investment or other organisational investment criteria (capital or operational)

• cost of implementation

• ease of implementation

• improved energy impacts

• actual or potential legal requirements

• perceived level of risk including technological risk

• availability of funding

• impact and value of non-energy benefits.

(Source: ISO 50004)

ENERGY REVIEW UPDATE

The energy review must be updated at defined intervals, as well as in response to major changes in facilities, equipment, systems or processes.

It is therefore important to ensure that the organisation understands what a major change is and that these changes are communicated to the EnMS representative in due time. This is critical not only to ensure compliance against this requirement but also against the design and procurement clauses.

The organisation should consider updating the review at predefined intervals. Updated reviews should where possible be based on actual measurements. In updated reviews, there should be progressively more detailed analysis of all the areas of energy use. Account should be taken of essential changes of the energy usage of the organisation, e.g. expansion of production, plant modifications, changes in the organisation, change in raw materials and packaging materials, refurbishment of buildings, etc. The purpose of this is to allow the organisation to assess progress during the past review period, and identify possible initiatives for the coming period.


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COMMON PITFALLS

• The energy review methodology is not clear about the criteria used to determine the significant energy uses.

• The organisation has not accurately identified all significant energy uses, usually due to insufficient, incomplete or poor energy data analysis.

• The organisation has not identified all energy sources, e.g. transport fuel, renewables, etc.

• The energy review does not include all the elements required by the standard, e.g. the estimate of future energy consumption, the identification of people that affect significant energy uses, etc.

• The organisation has not updated the energy review after a major change has taken place.

• The organisation has not identified all or the most relevant variables that affect the significant energy uses, or the variables chosen do not provide accurate correlation.

• Building fabric improvement opportunities have not been considered.

• The organisation has not identified opportunities for improving energy performance or acted upon identified opportunities.

ENERGY REVIEW üOR û COMMENT/PLAN

Has the organisation developed, recorded and maintained an energy review?

Have the methodology and criteria used to develop the energy review been documented?

To develop the energy review the organisation shall:

a. Analyse energy use and consumption based on measurement and other data, i.e.:

• Identify current energy sources

• 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.:

• Identify the facilities, equipment, systems, processes and personnel working for, or on behalf of, the organisation that significantly affect energy use and consumption

• Identify other relevant variables affecting significant energy uses

• Determine the current energy performance of facilities, equipment, systems, processes related to identified significant energy uses

• Estimate future energy use and consumption

c. Identify, prioritise and record opportunities for improving energy performance (including use of renewable or other alternative energy sources, where applicable).

Has the energy review been updated at defined intervals?

Has the energy review been updated in response to a major change in facilities, equipment, systems or processes?


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4.4.4 ENERGY BASELINE

An energy baseline is required to establish current energy performance over a defined period against which future energy performance can be measured. Without this it is not possible to quantify how effective any energy performance improvement actions have been.

Organisations experience seasonal variations in output and energy factors, so the energy baseline should cover a period suitable to include all variations, e.g. one year of data for building heating and cooling energy use.

The initial energy baseline serves as the starting point; however, it should be a living tool against which future energy performance is measured. Significant organisational changes that affect the validity of the key energy performance indicators (EnPIs) can result in the need to adjust or reset the baseline. Examples of significant organisational changes could be:

• changed product mix

• changed operating schedule

• facility infrastructure change

• new or changed equipment and systems

• new energy sources

• new or modified energy uses

• organisational expansion/contraction, e.g. new or reduced sites, processes or activities, etc.

Below is an explanatory diagram of the concept of baseline period and reporting period for an EnPI.


COMMON PITFALLS

• The organisation did not consider the relevant variables (EnPIs) that determine energy performance when establishing the energy baseline, i.e. the baseline was simple energy consumption.

• The baseline did not consider a suitable time period to measure all seasonal variations in energy use.

• Energy baselines for each energy source have not been considered where appropriate.

• The baseline has not been adjusted or reset after significant organisational changes.

ENERGY BASELINE üOR û COMMENT/PLAN

Is there a record of the energy baseline?

Was the energy baseline established using the information in the initial energy review, considering a data period suitable to the organisation’s energy use and consumption?

Has the energy baseline been adjusted when:

a. EnPIs no longer reflect organisational energy use and consumption?

b. Major changes to process, operational patterns or energy systems have occurred?

c. Using a predetermined method?


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4.4.5 ENERGY PERFORMANCE INDICATORS

An energy performance indicator is a “quantitative value or measure of energy performance, as defined by the organisation”.

Indicators can be used for different purposes and are related to several clauses of the standard.

1. Raise awareness and understanding – 4.5.3 Communication

2. Measure progress towards goals – 4.4.6 Objectives and targets

3. Support decision making – 4.4.4 Energy baseline, 4.6.1 Monitoring, measurement and analysis and 4.7 Management review

Edward Deming said “You can’t manage what you can’t measure.” And in fact, indicators are essential to ensure the effectiveness of the energy management system.

Indicators must be derived from accurate and relevant data to ensure they provide an indicator that demonstrates effective correlation with energy performance. Otherwise, they will become a burdensome and non-value added task in your management system. A good example of this would be a R2 (correlation factor) value of greater than 0.75 when carrying out regression analysis. A value of less than 0.7 would indicate that the variable chosen is not the most appropriate.

A good indicator should:

• be based on accurate information

• be clearly defined, so that more than one person can calculate it

• be understandable

• lead to awareness or decision making

• reflect the organisation’s energy performance.

“Not everything that can be counted counts, and not everything that counts can be counted.” Albert Einstein

Examples of energy performance indicators:

• energy consumption by energy source versus raw material consumed (kWh/ tonne material)

• energy consumption per number of products produced or quantity of service provided (kWh/ 1000 parts produced or number of persons served)

• number of miles travelled per gallon of fuel consumed (mpg)

• consumption of gas or electric per heating or cooling degree day (kWh/ HDD or CDD)

• consumption of gas or electric per number of persons occupying a building (kWh/ person)

• energy saved due to a certain conservation and efficiency improvement.

ENERGY PERFORMANCE INDICATORS üOR û COMMENT/PLAN

Has the organisation identified EnPIs appropriate and relevant for monitoring and measuring its energy performance?

Is there a recorded methodology to determine and update energy performance indicators?

Does this methodology include suitable data analysis techniques to establish correlation?

Is this methodology clear and regularly reviewed?

Are energy performance indicators (EnPIs) regularly reviewed and compared to the energy baseline?

COMMON PITFALLS

• The methodology to determine the energy performance indicators is not clearly defined.

• Sufficient data analysis was not utilised in determining the EnPI resulting in poor correlation with energy performance and/or the most appropriate EnPI has not been determined.

• The indicators are too complicated and the analysis does not lead to any actions or awareness.


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4.4.6 ENERGY OBJECTIVES, ENERGY TARGETS AND ENERGY MANAGEMENT ACTION PLANS

Objectives and targets are the drivers for the continual improvement process that ensures that your EnMS delivers real improvements in energy performance. They identify what you have chosen to improve, by how much, and over what timescale. Action plans are the means of delivering the objectives and targets.

The standard requires when establishing and reviewing objectives and targets, the organisation shall take into account:

• legal and other requirements

• significant energy uses

• opportunities to improve energy performance, as identified in the energy review.

You can see from this how important it is to get the energy review right as this establishes where an organisation’s focus and resources should be directed. Failure to do that leads to a significant potential for energy and EnMS performance improvements going unrealised.

When setting objectives, the organisation must also consider its financial, operational and business conditions, technological options and the views of interested parties. In general terms this means that the objectives and targets should be realistic and appropriate for the complexity, nature and size of the organisation, e.g. a 1% reduction in energy use for a complex energy-using organisation that has the potential to improve performance by significantly more would not be considered appropriate. Equally, an organisation setting a target that is unachievable would not be considered realistic or productive.

When objectives and targets have been established it is then the job of the action plans to deliver the results. They must be documented and updated at defined intervals The action plans have to include:

• designation of responsibility

• the means and timeframe by which individual targets are to be achieved

• a statement of the method by which an improvement in energy performance shall be verified

• a statement of the method of verifying the results.


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COMMON PITFALLS

• The objectives and targets are not quantifiable or measurable.

• The objectives action plan is not capable of delivering the target, e.g. overarching target of energy performance reduction of 5%, however the sum of all actions planned do not deliver this target.

• Some actions of the action plans are operational controls with no associated timeframe.

• The action plans do not include a statement of the method by which an improvement in energy performance shall be verified or the method of verifying the results.

ENERGY OBJECTIVES, ENERGY TARGETS AND ENERGY MANAGEMENT ACTION PLANS

üOR û COMMENT/PLAN

Have energy objectives and targets been established, implemented, maintained and documented at the relevant functions, levels, processes or facilities within the organisation?

Have objectives and targets been given a timeframe?

Are objectives and targets consistent with the energy policy? Are targets consistent with the objectives?

Have the objectives and targets taken into account or considered the following:

• legal requirements and other requirements

• significant energy uses and opportunities to improve energy performance identified in the energy review

• financial, operational and business conditions

• technological options

• views of interested parties?

Are action plans established, implemented and maintained? Do they include:

a. Designation of responsibility?

b. The means and timeframe by which individual targets are to be achieved?

c. A statement of the method by which improvement in energy performance shall be verified?

d. A statement of the method of verifying the results?

Have the action plans been documented and updated at defined intervals?


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4.5.1 GENERAL

4.5.2 COMPETENCE, TRAINING AND AWARENESS

It is pointless having an EnMS if the people who should make it work are not competent, are untrained, or are not aware of the existence of the company’s policy and procedures. The ability of the EnMS to deliver relies heavily on the competence and awareness of the personnel that operate and implement it, especially those that are related to the implementation, operation and maintenance of the significant energy uses (SEU). Again, this demonstrates the importance of the energy review. Without this competence and awareness, it is unlikely that the EnMS will achieve its goals or realise its potential for improvement in energy performance.

ISO 50001 requires that all personnel that affect the SEUs are competent. This includes personnel that work on behalf of the organisation, e.g. maintenance/service subcontractors, etc. Organisations must have effective processes in place to ensure that subcontract personnel conducting any activity that affects the SEUs are competent to do so, as much as they would for direct employees.

Related to direct employees that affect SEUs, this extends to all departments and areas of the organisation. Some examples of personnel that can affect SEUs are: energy team, maintenance and/or facilities personnel, procurement personnel, design personnel, top management and personnel responsible for operation of SEUs.

COMMON PITFALLS

• Internal audit personnel do not have sufficient knowledge of ISO 50001.

• Subcontractors are not aware of the EnMS and of their impact in energy performance.

• There is no competence analysis of subcontractors that affect significant energy uses.

COMPETENCE, TRAINING AND AWARENESS


Are any person(s) working for the organisation, or on its behalf, related to significant energy uses, competent on the basis of appropriate education, training, skills or experience?

Has the organisation identified the training needs associated with the control of its significant energy uses and operation of its energy management system?

Has the organisation provided training or taken other actions to meet these needs?

Has the organisation ensured that persons working for or on its behalf are and remain aware of:

a. The importance of conformity with the energy policy, procedures and with the requirements of the EnMS?

b. Their roles, responsibilities and authorities in achieving the requirements of the EnMS?

c. The benefits of improved energy performance?

d. The impact, actual or potential, with respect to energy use and consumption, of their activities and how their activities and behaviour contribute to the achievement of energy objectives and targets, and the potential consequences of departure from specified procedures?

Are records of competence, awareness and training maintained?

• Personnel that affect all significant energy uses as identified in the energy review have not been identified and appropriate competence requirements determined and verified.

• Supporting department/function personnel that affect the SEUs are not identified and competence requirements determined and verified, e.g. design and procurement personnel.


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4.5.3 COMMUNICATION

The standard recognises the need to make sure that information related to its energy performance and the EnMS is effectively communicated, and that this communication benefits both the organisation and personnel working for or on its behalf. It is recognised that those closest to and/or operating or maintaining the EnMS are most likely to know where there is potential for energy performance improvements. It is for this reason that the standard requires that organisations not only have to communicate with personnel but also to “listen” to personnel by implementing a process where they can make comments or suggest improvements to the EnMS.

With regards to communication with external interested parties, the standard only requires that an organisation should

decide if it wants to communicate its energy policy, EnMS and energy performance and document this decision. If the decision taken is to communicate externally then the organisation shall establish and implement a method for doing this.

COMMON PITFALLS

• Internal communication processes are not extended to personnel working on behalf of the organisation, e.g. subcontractors.

• The mechanism or process for personnel working for or on behalf of the organisation to make comments or improvement suggestions is not effective or effectively utilised and therefore potential energy performance savings are not realised.

COMMUNICATION üOR û COMMENT/PLAN

Does the organisation communicate internally with regard to its energy performance and EnMS, as appropriate to the size of the organisation?

Has the organisation established and implemented a process by which any person working for or on behalf of the organisation can make comments or suggest improvements to the EnMS?

Has the organisation documented its decision on whether to communicate externally on its energy policy, management system and energy performance?

If the decision is to communicate externally, has an external communication method been established and implemented?

4.5.4 DOCUMENTATION

ISO 50001 does not require any documented procedures but requires an organisation to maintain the information that describes the key/core elements of the EnMS. These include:

a. the scope and boundaries of the EnMS

b. the energy policy

c. the energy objectives, targets, and action plans

d. the documents, including records, required by this international standard

e. other documents determined by the organisation to be necessary.

The standard does not state what format these elements are to take, only that they are to be documented. This can be in paper, electronic or any other medium. Quite often organisations will produce an EnMS manual that will include all of the documented requirements; however, an organisation is free to choose how best to do this to suit their needs and taking the following into consideration:

• the scale of the organisation and type of activities

• the complexity of the processes and their interactions

• the competence of personnel.

Similar to other management systems standards, e.g. ISO 9001 or ISO 14001, documents that are required by the standard must be controlled, which includes technical documentation where appropriate, e.g. operating manuals, manufacturer’s specifications, etc. Where an organisation already has another management system in place, it makes sense for the EnMS requirements to be integrated and delivered by any pre-existing procedures. This avoids duplication. It is essential however to cross-refer to these documents because they are vital controls and will need to be included in


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COMMON PITFALLS

• The most common problem found is that documents and procedures are not available to those who need them and at relevant points of use. This is more often the case with management systems that are electronic.

• Updated versions of documents are not made available to every user, due to poor updating and control procedures.

• Occasionally the approval mechanism for procedures is not clear, nor is there a plan for reviewing the procedures to make sure they are still relevant and accurately reflect the requirements of the process that they describe.

• Documents of external origin determined necessary, e.g. technical specifications, operating manuals, etc., are not adequately controlled.

• Obsolete or superseded documents are not removed to prevent unintentional use.

DOCUMENTATION üOR û COMMENT/PLAN

Has the organisation established, implemented and maintained information, in paper, electronic or any other medium, to describe the core elements of the EnMS and their interaction?

The EnMS documentation shall include:

a. the scope and boundaries of the EnMS;

b. the energy policy;

c. the energy objectives, targets and action plans;

d. the documents, including records, required by this international standard; and

e. other documents determined by the organisation to be necessary.

Are all documents required by the standard and the EnMS controlled, including technical documentation where appropriate?

Has a procedure(s) been established, implemented and maintained to:

a. approve documents for adequacy prior to issue;

b. periodically review and update documents as necessary;

c. ensure that changes and the current revision status of documents are identified;

d. ensure that relevant versions of applicable documents are available at points of use;

e. ensure that documents remain legible and readily identifiable;

f. ensure documents of external origin are determined by the organisation;

g. prevent the unintended use of obsolete documents, and suitably identify those to be retained for any purpose?


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4.5.5 OPERATIONAL CONTROL

The mechanisms in ISO 50001 for managing the operation and maintenance of the significant energy uses (SEU) are operational control procedures. These are the detailed instructions for ensuring that facilities, processes, systems and equipment related to the SEUs are operated and maintained in accordance with operational criteria to prevent a deviation from effective energy performance. Operational control procedures and instructions can include the organisation’s own documentation, e.g. work instructions, operating procedures, workplace or workstation inspections, etc. They can also include external documentation, e.g. manufacturer specifications, operating manuals, maintenance manuals, etc.

It goes without saying that effectively communicating operational control procedures to personnel that affect the energy performance of SEUs is critical to ensuring they are effectively implemented and that SEUs are effectively operated and maintained. As well as being displayed at relevant points of use, it would be expected that they are included within personnel’s training and awareness programmes as appropriate. This includes personnel working on behalf of the organisation, e.g. maintenance subcontractors.

COMMON PITFALLS

• The operational control procedures are not effectively communicated to all relevant personnel including subcontractors.

• There is no mechanism to return to normal operational conditions after something unusual has happened, e.g. maintenance activity, production peak, equipment failure or breakdown, etc.

• There is no clear link between significant energy uses and operational control procedures. In fact, every identified significant energy use should be linked to an operational control or an objective and target (or sometimes both).

• There is insufficient or ineffective monitoring, or evidence that controls are maintained.

• Where appropriate, controls or parameters are not locked or protected to prevent change.

OPERATIONAL CONTROL üOR û COMMENT/PLAN

Are operations and maintenance activities associated with significant energy uses identified and planned to ensure consistency with the energy policy, objectives, targets and action plans in order to ensure that they are carried out under specified conditions?

Does this include:

a. Establishing and setting criteria for the effective operation and maintenance of significant energy uses or where their absence could lead to a significant deviation from effective energy performance?

b. Setting operation and maintaining facilities, processes, systems and equipment, in accordance to operational criteria?

c. Appropriate communication of the operational controls to personnel working for, or on behalf of, the organisation?


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4.5.6 DESIGN

This clause aims to ensure an organisation will see improved energy performance over the medium and long term. The standard requires that when you are designing new, modified and renovated facilities, equipment, system and processes that could potentially have a significant impact on your energy performance, you need to consider how you can introduce improvements and how you can define effective operational controls to maintain and maximise energy performance. If this is done when an organisation makes any changes or purchases anything new that consumes significant amounts of energy or significantly affects energy performance, then you will have evaluated this and know that you have the most effective energy performance for your needs. This tends to be for facilities, equipment and processes that will last for significant periods of time or consumes significant amounts of energy, so if the wrong decisions are made at the design stage then this can have a significant detrimental effect on future energy consumption and performance.

Often organisations think that design is specific to new facilities, equipment and processes but it can be a greater range than this, e.g. design could be considered when selecting a new raw material or introducing a new product or a change to a production line, etc. For this reason, it is important that all relevant personnel within an organisation are aware of the concept of design related to ISO 50001, otherwise you risk energy performance not being considered during design projects resulting in losses in energy performance. It is recommended that you consider all aspects of design within your organisation, i.e. who are the personnel involved in design and who should be involved, what design activities are relevant, etc. and include this within the design aspect of the EnMS.

COMMON PITFALLS

• The energy manager or representative is not made aware of all the design activities that take place in the organisation.

• The concept of design is misunderstood and does not include important activities like the selection of a new raw material, new packaging, the modification of a distribution route or production process, etc.

• The personnel that are involved in design projects do not have the adequate competence or awareness to consider energy performance options.

DESIGN üOR û COMMENT/PLAN

Has the organisation considered energy performance improvement opportunities and operational control in the design of new, modified and renovated facilities, equipment, systems and processes that can have a significant impact on energy performance?

Have the energy performance evaluation results been incorporated where appropriate into the specification, design and procurement activities of relevant projects?

Have all the elements of this activity been recorded?


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4.5.7 PROCUREMENT OF ENERGY SERVICES, PRODUCTS, EQUIPMENT AND ENERGY

Procurement applies to the purchase and acquisition of equipment, materials, services and energy that can have a significant impact on energy performance. When this is the case it is a requirement of the standard that organisations inform their suppliers that your decision to procure the equipment, materials and services from them will be partly based on energy performance. By doing this you are encouraging your suppliers to provide or suggest the best option with regards to energy efficiency. You are also promoting innovation in that you are informing them that energy performance and efficiency is an important consideration to you.

ISO 50001 introduces the concept of life cycle cost analysis (LCCA) with the requirement to establish criteria for assessing energy use, consumption and efficiency over the planned or expected operating lifetime of procured energy services, products, equipment or energy. This is fundamental in ensuring that energy performance is not just considered in the short term but is evaluated over the entire lifetime. This makes sense really to ensure an organisation is getting the lowest cost or best energy performance over the long term. This is a good way of balancing the initial cost of equipment against the running costs and strengthens the case for any capital expenditure.

It can be clearly seen that this relies heavily on the personnel conducting the design and procurement activity. To understand the lifetime operating costs then the design criteria and operational controls defined at the design stage need to be communicated and understood by the procurement personnel. Equally, the procurement personnel need to be competent in assessing energy use, consumption and efficiency over the planned or expected

operating lifetime.

COMMON PITFALLS

• The organisation has not clearly identified which procurement processes can affect significant energy uses or does not have a process in place to ensure that this is systematically considered in procurement.

• There is no mechanism or process in place for informing suppliers that procurement of energy services, products and equipment that can have an impact on significant energy

use is partly evaluated on energy performance.

• The organisation has not documented the criteria or method for assessing energy performance of products, equipment and services over the operational lifetime.

• The communication between the design team and procurement team is not effective.

• Competency of the procurement team related to assessment of energy performance has not been considered.

• The procurement process has not considered the procurement of energy sources.

PROCUREMENT OF ENERGY SERVICES, PRODUCTS, EQUIPMENT AND ENERGY


Does the organisation inform the suppliers that purchasing is partly evaluated on the basis of energy performance, when purchasing energy services, products and equipment that have, or can have, an impact on significant energy use?

Has the organisation established and implemented criteria for assessing the energy use, consumption and efficiency over the planned or expected operating lifetime when procuring energy using products, equipment and services that are expected to have a significant impact on the organisation’s energy performance?

Has the organisation defined and documented energy purchasing specifications, as applicable, for effective energy use?


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4.6 CHECKING

4.6.1 MONITORING, MEASUREMENT AND ANALYSIS

The maxim “if you cannot measure it, you cannot manage it” could not be truer than when applied to an effective EnMS. There is no mistaking that an EnMS requires monitoring of energy use and that this data is analysed and understood. There is little chance of improved energy performance if an organisation does not understand how it is using energy and if the energy use is as expected.

The level of measurement will vary for each organisation depending on its size and complexity of energy use. This could range from as simple as reading utility meters up to monitoring systems connected to software applications that read energy use from a network of sub-meters. As you may have already guessed by now, the elements that monitoring, measurement and analysis apply to are related back to the energy review and includes the significant energy uses (SEUs), relevant variables affecting the SEUs, EnPIs, action plans for achieving objectives and targets, and actual versus expected energy consumption.

ISO 50001 also requires that the data used to monitor and measure these key characteristics is accurate and repeatable. This does mean that any measuring equipment is calibrated or other means of establishing accuracy and repeatability is determined.

Without taking action when energy use is found to be not as expected there is little point in monitoring and measurement in the first instance. ISO 50001 recognises this and requires that any significant deviations in energy performance (such as unexpected spikes or trends in usage) are investigated and responded to. Although not an explicit requirement within the standard, an organisation would to expected to determine the criteria by which it defines a significant deviation in energy performance.

If seeking third party certification of your EnMS, organisations need to be aware that the requirements for certification bodies (ISO 50003:2014), against which they are accredited, requires that the certification decision cannot be made without confirmation of energy performance improvement. ISO 50003 defines energy performance improvement as “improvement in measurable results related to energy efficiency, energy use, or energy consumption compared to the energy baseline”. This provides a wide range for how an organisation can demonstrate energy performance improvement. To maintain certification, the certification

body is also required to evaluate whether or not continual energy performance improvement has been demonstrated at each surveillance and recertification audit. This means that third party auditors will seek evidence of this, which must be documented within the audit report. If the audit team cannot determine that there has been energy performance improvement at the initial certification audit, then a positive recommendation for certification will not be made until such times as this can be confirmed. If evidence cannot be demonstrated at surveillance and recertification audits, then non-conformances will most probably be raised.


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COMMON PITFALLS

• The criteria for what is determined to be a significant deviation is not defined and therefore occurrences of abnormal energy use are not identified, investigated and acted upon.

• The level of monitoring and measurement is not appropriate or adequate for the size and complexity of the organisation, e.g. there is no sub-metering of energy uses in a large energy intensive manufacturing organisation.

• Monitoring and measurement has not included all significant energy uses as identified in the energy review.

• The effectiveness of action plans for achieving objectives and targets and actual versus expected energy consumption are frequently overlooked by organisations.

• An energy management plan is not defined and/or implemented.

• The organisation has not considered the need for calibration of all equipment used in monitoring and measurement of key characteristics, e.g. calibration or other means of establishing accuracy and repeatability of utility meters, sub-meters, temperature gauges, etc.

MONITORING, MEASUREMENT AND ANALYSIS


Has the organisation ensured that the key characteristics of its operations that determine energy performance are monitored, measured and analysed at planned intervals?

Key characteristics shall include at a minimum:

a. significant energy uses and other outputs of the energy review;

b. the relevant variables related to significant energy uses;

c. EnPIs;

d. the effectiveness of the action plans in achieving objectives and targets; and

e. evaluation of actual versus expected energy consumption.

Are the results from monitoring and measurement of the key characteristics recorded?

Has the organisation defined and implemented an energy measurement plan appropriate to the size and complexity of the organisation and its monitoring and measurement equipment?

Has the organisation defined and periodically reviewed its measurement needs?

Has the organisation ensured that the equipment used in monitoring and measuring key characteristics provides data that is accurate and repeatable?

Has the organisation maintained records of equipment calibration or other methods of establishing accuracy and repeatability?

Has the organisation investigated and responded to significant deviations in energy performance? Are there any records related to this activity?


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4.6.3 INTERNAL AUDIT OF THE EnMS

The internal audit process is the key mechanism for making sure your EnMS is working as designed, and to help drive improvement in energy performance. The process is often overlooked by organisations and viewed as a burden, but if approached as an improvement mechanism rather than a fault finding mission it will maintain the EnMS and help to drive that continual improvement.

The audit scope

The aim of the internal audit process is to ensure that the implemented EnMS complies with your intentions and with the requirements of ISO 50001. There must be some way of identifying the task you set for your auditors to carry out. This would be the scope and boundaries of the audit. It can be based on areas of an organisation, on procedures, or vertical audits of significant energy uses supported by systems audits. If the organisation already has another management system, e.g. a quality management system or environmental management system, EnMS audits can be integrated with these to reduce duplication and resource requirements. There are many acceptable audit regimes, but any system must allow you to tell from the audit report produced by the auditor(s) that they completed the task they were sent to do.

A simple rule: if you have taken the trouble to implement a procedure to control a process or significant energy use, you should at some time check that the procedure is in use and remains effective.

The audit schedule or programme

The focus for planning of internal audits should be the areas and processes that are associated with the significant energy uses and/or have the most significant impact on energy performance. These can be directly linked to the significant energy uses, e.g. lighting, manufacturing processes, etc. or with the supporting management systems processes, e.g. training, maintenance, energy review, objectives and targets, etc. The audit plan should also consider previous audit results.

The internal auditor

It is important that internal auditors are not only competent but also impartial of the area or process they are auditing. They should have a good understanding of ISO 50001, a knowledge of the process being audited, its impact on energy use and performance and the skills of auditing. These do not all need to be in the same head! It is acceptable to use a team approach, or to divide tasks according to skills and knowledge. As mentioned previously, if the auditor and auditee approach the process with the correct attitude then it has a much better chance of producing positive results. This ultimately is the goal of the internal audit process, i.e. being able to report opportunities to top management to drive improved energy performance.

The audit report

Audit reports can be in any format that best suits the organisation’s need and resources. Frequently organisations will implement audit checklists. However the audit is documented, it is important that the documented objective evidence supports the outcome of the audit whether that is via conformance or non-conformance. Any audit findings should be clear and concise so that the auditee knows what actions are expected of them and any timeframes for that.


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COMMON PITFALLS

• It is quite common to find a schedule that omits the “system” procedures and thus delivers a set of “energy audits” rather than audits of the energy management system and its controls over energy issues.

• Occasionally schedules plan to audit everything at the same frequency, e.g. once per year. This can hardly be related to energy significance as it is unlikely that everything is of equal importance.

• The internal audit schedule has not considered all of the significant energy uses as identified by the energy review.

• The audit plan is set at the beginning of the year and not reviewed until the following year. In reality the audit plan should be a live document and reviewed continuously, e.g. if an audit has found significant problems then that area/process/significant energy use should probably not be left till the following year to be re-audited.

• The organisation’s internal audits have not tested all procedures before they have had their initial third-party audit. This means that the first real test is the certification audit and is more likely to result in non-conformances.

• Organisations often do not consult with auditors prior to appointing them to the internal audit team. There are people that are good at and enjoy auditing but equally there are others that dislike auditing. Making personnel audit that do not want to only causes problems with getting them to complete audits they are allocated and also is unlikely to get the best from them.

• The internal audit schedule or plan has not been achieved due to a lack of resource or not using the correct resource.

INTERNAL AUDIT OF THE EnMS üOR û COMMENT/PLAN

Does the organisation, at planned intervals, carry out internal audits to ensure the EnMS:

a. Conforms to planned arrangements for energy management including the requirements of this standard?

b. Conforms with the energy objectives and targets established?

c. Is effectively implemented and maintained and improves energy performance?

Does the audit plan and schedule take into consideration the status and importance of the processes and areas to be audited as well as the results of previous audits?

Does the selection of auditors and conduct of audits ensure that the audit process is impartial and objective?

Are audit records maintained and reported to top management?


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COMMON PITFALLS

• Failing to recognise and/or record an event as a “non-conformance” is a common problem. If it has been recognised and recorded it can then be fed into the process that investigates the cause, plans the solution and makes sure that the solution is effective to help prevent recurrence.

• Organisations frequently do not employ effective root cause analysis techniques and go from cause to solution without a thorough investigation. This not only is against the requirements of ISO 50001 but also can lead to a repeat of the problem if its true cause has not been identified and addressed.

NON-CONFORMITIES, CORRECTION, CORRECTIVE ACTION AND PREVENTIVE ACTION (CONTINUED)


Does the organisation address actual and potential non-conformities by making corrections, and by taking corrective action and preventive action?

Has the organisation ensured that any necessary changes to the EnMS are made?

Does this include:

a. Reviewing non-conformities or potential non-conformities?

b. Determining the causes of non-conformities or potential non-conformities?

c. Evaluating the need for action to ensure that non-conformities do not occur or reoccur?

d. Determining and implementing the appropriate action needed?

e. Maintaining records of corrective actions and preventive actions? and

f. Reviewing the effectiveness of the corrective action or preventive action taken?

Are the corrective action and preventive action defined and implemented appropriate to the magnitude of the actual or potential problems and the energy performance consequences encountered?

4.6.4 NON-CONFORMITIES, CORRECTION, CORRECTIVE ACTION AND PREVENTIVE ACTION

Non-conformities related to an EnMS cover just about any eventuality where an undesired outcome or result has appeared or is likely to appear. This can be related to energy performance (can also be defined as a significant deviation, see clause 4.6.1), e.g. an EnPI not achieving its target or energy consumption of equipment not as expected, however, it can also be related to support processes, e.g. maintenance not carried out as scheduled, personnel working on an SEU they are not trained on or process parameters not being operated within the defined criteria or specification. When things go wrong you need first to recognise that fact, to determine why they went wrong, and then to address the cause of the problem and its effects. Equally, considering that energy performance is data based and typically easily measureable, this lends itself to trend analysis and monitoring and targeting that can identify potential non-conformities before it gets to that stage. This process of learning from mistakes and making changes to prevent occurrence/recurrence and improve the process is a real benefit to the EnMS and drives continual improvement in energy performance.

• Organisations often set defined response and closure timeframes for non-conformances in line with existing procedures without giving consideration for the effect or loss of energy performance as a result of an ongoing non-conformance. When related to energy, time equals money!

• Non-conformance procedures can be good at identifying and taking actions but often stop at this point and forget to review the effectiveness of the corrective action or preventive action taken. This error only comes to light when the initial problem reappears by which time additional energy performance has been lost.


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4.6.5 CONTROL OF RECORDS

Records are the evidence that what was planned has actually happened. They are a basis for audit, and may well be required by law. EnMS records can be in any format, e.g. paper based checklists and records, etc. or in electronic format, e.g. spreadsheets, electronic reports, BEMS (building energy management systems) data and reports, etc.

The key difference with ISO 50001 and other management standard requirements is that you not only need to maintain records to demonstrate conformity to the requirements of the EnMS and the standard but, importantly, you also must maintain records to demonstrate conformity of the energy performance results achieved. This is key to being able to subject the results of energy performance to scrutiny, both internally and externally if required (e.g. due to legal requirements on reporting of energy consumption or emissions as a result of legislation such as EU ETS, CRC, climate change agreements, ESOS or similar) so that performance against expectations and targets can be ascertained and decisions or actions taken as appropriate based on that analysis.

ISO 50001 requires that records required to demonstrate conformity to the requirements of the EnMS, the standard and the energy performance results achieved are identified, retrievable, retained and that they remain legible, identifiable and traceable to the relevant activity. If, as is usually the case, records are in electronic format then consideration must be given to IT systems protection and back-up.

COMMON PITFALLS

• Energy data, reports and analysis produced by energy monitoring systems such as BEMS (building energy management systems) are not included within the organisation’s record controls procedure.

• Back-up of electronic data is often overlooked or the back-up is inadequate, e.g. back-up is performed to media that is held on the same site and not protected from damage in the event of an emergency, e.g. fire or flood.

• Often records provided by external parties are not controlled, e.g. utility bills.

CONTROL OF RECORDS üOR û COMMENT/PLAN

Has the organisation established and maintained records, as necessary, to demonstrate conformity to the requirements of its EnMS, the requirements of this standard and the energy performance results achievement?

Has the organisation defined and implemented controls for the identification, retrieval and retention of records?

Are records legible, identifiable and traceable to the relevant activity?


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4.7 MANAGEMENT REVIEW

As explained at the beginning of this booklet, ISO 50001 is based on the Plan-Do-Check-Act model. The final “act” element of this model is the management review process. This is when top management sit down and take stock of the EnMS, its direction, its performance, its delivery against policy aims and objectives and decide whether it still reflects the way the company wants to address and manage its energy use. Armed with the analysis, performance results and records as discussed throughout this booklet and as required by the management review inputs defined in clause 4.7.2, the management team can get take a holistic view of how the EnMS is performing to make informed decisions on strategic direction and implement actions to achieve continued improvement in energy performance.

Although it can be said that top management involvement is crucial to the success of any management system, this can be no more so than when related to an EnMS. This is mainly because an effective EnMS needs commitment to provide the resources to deliver it, including: competent personnel, time and financial support via capital expenditure. A key benefit of ISO 50001 is that any decision on capital expenditure related to energy use should be based on a life cycle cost analysis (see clause 4.5.7).

A unique requirement of the ISO 50001 management review process is the need to include a review of “projected energy performance for the following period”. Essentially this means top management need to understand and consider any planned organisational changes that could affect energy performance over the following period, e.g. introduction of new products or processes, planned expansions or contractions, forthcoming changes in legislation, etc. This ensures that energy management is included and considered in the planning process for these changes and also gives top management the foresight to evaluate that the EnMS will continue to be suitable, adequate and effective in meeting the policy aims and objectives.

The outputs of the management review should include actions related to areas

for improvement and related to the analysis of energy performance and the performance of the EnMS. This is key to the organisation being able to drive continual improvement and for this to come from top management. These actions should be documented and captured within the EnMS processes for ensuring they are completed and reviewed for effectiveness.


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COMMON PITFALLS

• Responsibility for the management review process is delegated to the EnMS representative and top management do not fully partake or delegate their participation.

• Sometimes minutes or notes of the meeting do not give a clear indication of what happened or what was discussed. This is a particular problem if the management representative does not produce a written report for discussion.

• Meetings frequently fail to happen on the set dates or have to be regularly rescheduled, usually because of unavailability of key participants. This can be an indicator of lack of commitment.

• Actions from the meeting are not effectively managed or carried out in a timely fashion, e.g. there may well be urgent and important actions required to improve energy performance that are not reviewed until the next management review in 6 or 12 months’ time resulting in losses in energy performance and wasted energy use.

• The review of “projected energy performance for the following period” has not been included or has not been effectively conducted, e.g. known significant organisational changes at the time of the management review have not been considered.

MANAGEMENT REVIEW üOR û COMMENT/PLAN

Does top management review the energy management system at planned intervals to ensure continuing suitability, adequacy and effectiveness?

Are records of the review maintained?

Do management review inputs include:

a. Follow-up actions from previous management reviews?

b. Review of energy policy?

c. Review of energy performance and related EnPIs?

d. Results of the evaluation of compliance with legal requirements and changes in legal requirements and other requirements to which the organisation subscribes?

e. The extent to which objectives and targets have been met?

f. Energy management system audits results?

g. Status of corrective and preventive actions?

h. Projected energy performance for the following period?

i. Recommendations for improvement?

Does management review outputs include decisions or actions related to as appropriate:

a. Changes in the energy performance of the organisation?

b. Changes to the energy policy?

c. Changes to the EnPIs?

d. Changes to objectives, targets or other elements of the system consistent with the organisation’s commitment to continual improvement?

e. Changes to allocation of resources?


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THE CERTIFICATION PROCESS

For anyone not familiar with the certification process, there are a series of steps. Organisations that are familiar with other management systems and standards, e.g. ISO 14001 and/or ISO 9001 will realise that these steps are virtually identical for ISO 50001. A description of these steps is detailed below and in the diagram.

STEP A – You will be asked to complete an EnMS questionnaire that identifies the size and nature of your organisation and its energy use and based on this you will be provided with a proposal. This will determine the number of audit days required. The number of audit days is directly related to the energy complexity of an organisation as per the requirements of ISO 50003:2014. You can then proceed with the audit by accepting the proposal.

STEP B – You may request to have a “pre-audit” performed to give an indication of the readiness of your organisation for the audit. This stage is optional, yet it is often found useful in identifying any weaknesses in your systems and in building confidence before the formal audit.

STEP C – The first part of the formal audit is the “Stage 1 – Readiness Review”. This is an evaluation of the compliance of your documented system with the requirements of the standard to better understand the nature of your organisation, to plan the rest of the audit as effectively as possible and to initially

examine key elements of the system to determine they meet the requirements of the standard and are suitable to the size and complexity of the organisation. You will receive a report after this stage identifying any concerns or observed areas of potential non-compliances so that you can take immediate action if required.

STEP D – This is the “Stage 2” on-site audit of the EnMS to gather the necessary audit evidence to determine whether the EnMS is compliant with the requirement of ISO 50001, the documented EnMS and whether or not energy performance improvement has been demonstrated. The audit includes interviews with you and your colleagues and the examination of records. Observation of your working practices determines how compliant your actual processes are with the standard, with your own documentation system and whether energy performance improvement has been demonstrated. At the end of this stage, you are presented with the findings of the audit classified as either major or minor non-conformances along with other observations and opportunities for improvement. Once you have addressed the non-conformities, a technical review of the audit will then be conducted by authorised Certification Decision Personnel to confirm the issuance of a certificate. Confirmation of energy performance improvement is required for granting the initial certification.

STEP E – Surveillance visits are ongoing assessments of conformity with the requirements of ISO 50001, the EnMS and that there has been continual improvement in energy performance. They are scheduled at either 6 or 12 month intervals depending on the contract. During the visits, there are reviews of the implementation of the action plans addressing the past non-conformities and examinations of certain mandatory and other selected parts of the system in line with an audit plan that you are provided with before each visit.

STEP F – Shortly before the third anniversary of the initial certification, a routine visit will be extended to enable a recertification audit. This is a review of all requirements of the ISO 50001 standard to determine that continued improvement in energy performance has been achieved and continued certification can be recommended. Surveillance visits will then continue, as before, on a 3-year cycle.

OptionalPre-audit

ASSESSMENT & CERTIFICATION

STEP B

STEP AAgree

contractRecertification

Audit

STEP CStage 1Audit

STEP D STEP FCertificate issuedon completion ofsuccessful audit

SURVEILLANCE VISITS TYPICALLYAT 6 OR 12 MONTH INTERVALS

Action and closureof identified

non-conformities

Action and closureof identified

non-conformitiesStage 2Audit

Certification cycle is typically 3 years

Surveillancevisits

STEP E


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WHY SGS?

SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognised as the global benchmark for quality and integrity. With more than 85,000 employees, SGS operates a network of over 1,800 offices and laboratories around the world.

We are constantly looking beyond customers’ and society’s expectations in order to deliver market leading services wherever they are needed. We have a history of undertaking and successfully executing large-scale, complex international projects. With a presence in every single region around the globe, our people speak the language and understand the culture of the local market, and operate globally in a consistent, reliable and effective manner.

THE GLOBAL SGS ACADEMY

SGS Academy global learning and development solutions cover a wide range of industries and subject areas, providing expertise designed to help you and your organisation continually adapt the way you work and keep ahead of market developments. Whatever your level of knowledge, our experts support you in progressing your career. Wherever your organisation is in terms of development, we give you the knowledge to take it further.

For more information, please contact [email protected] or visit www.sgs.com/energy

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