Benefits of Implementing an Energy Management System
The ISO 50001 Energy Management System requires organisations to continually improve energy performance, including energy efficiency, energy use and consumption.
The ISO 50001 Energy Management System is suitable for all businesses regardless of their size, geography or industry. If the business operates in an energy intensive industry or one that faces green house gas (GHG) emissions regulation or legislation it is particularly effective.
There are a number of benefits to implementing ISO 50001:
- Identifying opportunities for improvement
- Ensuring greater level of control
- Enhance image
- Satisfy the expectations of most stakeholders
- Reduced costs and improved business performance
- Improved compliance with energy legislation
- Reduce carbon emissions
- Demonstrating transparency and commitment
The ISO 50001 formalizes energy policies and objectives and embeds them into energy efficient thinking throughout the organisation.
There are 7 principles that management should have to successfully operate an Environmental Management System in accordance with ISO 50001:
- Progress Management
- This ensures operation of the EnMs is making progress according to previously designed and agreed plans
- Change Management
- This Ensures operation of the EnMs is in line with any changes that happen either internally or externally (responding to threats appropriately)
- Operational Problem Resolution Management
- This ensures operational problems are dealt with quickly: treating them as opportunities for improvement is vital
- Risk Management
- This ensures risk factors are assessed in order to secure the position of continual improvement
- Preparation for Contingency
- Potential emergency scenarios should be documented and procedures devised in order to make sure that suitable safety levels are maintained at all times
- Document Management
- This ensures vital documents are identified, maintained, updated and available when needed. Unnecessary bureaucracy should be avoided.
- Objective and Target Achievement Evaluation Criteria
- Top management must provide transparent and objective evaluation criteria for target achievement. This is vital in a successful evaluation of progress or results.
ISO 50001 is not just about non conformity prevention it sets targets for energy performance improvements and examines if they have been achieved. It also ensures continuous improvement through the use of the “Plan – Do – Check – Act” (PDCA) cycle.
The PDCA cycle is the basis of every ISO standard and it consists of:
- Plan – Establish guidelines and provisions for a Energy Management System operation following ISO 50001
- Do – Operate the business under the new Energy Management System
- Check – Verify that you operate business under the established Energy Management System following ISO 50001
- Act – report the result of verification at management review
The overall Energy Management System is outlined in the first step and it provides guidelines for its implementation and control.
When establishing a new EnMS top management commitment is crucial as they appoint and authorise projects for the EnMS champion. The EnMS champion is a chosen higher management representative that directs activities down to the team and effectively to the whole organisation. Top management’s other activities would include allocating resources, setting performance ownership, ensure fair evaluation, direct the management review and define the energy policy.
A new energy policy has to be created in line with the ISO 50001 requirements. The energy policy must be coherent with the nature, the scale of, and the impact on the organisation’s energy use as it will effectively become a framework for setting and reviewing energy objectives and targets. The energy policy should emphasize commitment to continual improvement in energy performance and ensure availability of information and resources authorised by top management.
The top management must be sure that the energy policy is documented, communicated and understood within the organisation for a successful implementation of an Energy Management System, in line with ISO 50001. The Energy Management System should also be reviewed and updated when necessary
This step involves energy planning, and implementation and operation.
An energy review has to be conducted firstly. The energy review analyses energy use based on measurements and other data, identifies areas of energy use and consumption and prioritises and records opportunities for improving energy performance. An example would be the usage of renewable sources, alternative energy sources and other energy conservation opportunities (ECOs). The energy review defines a baseline and target and is used as evidence of energy performance improvement. Energy performance indicators (EnPIs) are also identified and objectives, targets and energy management action plans created.
Implementation and Operation
The implementation and operation consists of applying six additional elements in establishing the energy management action plan:
- Competence, training and awareness – resources should be put in place that ensure that the Energy Management team has adequate skills to control the EnMS
- Communication – appropriate communication channels should be defined
- Documentation – a system for the requirements and control of procedures and plans has to be in place
- Operational control – general guideline and provision for overall EnMS operation
- Design – guideline to reduce energy by reviewing the designs of facilities and manufacturing processes
- Procurement of energy services, products and equipment – the collaboration with suppliers is key in becoming a ‘greener’ organisation
The ISO 50001 does not mention product design but it is part of ISO 14001; the reason for its exclusion is that product design does not necessarily deal with energy even though it could affect it
This step involves checking of performance and it is done in four parts which are:
- Monitoring, measurement and analysis – as by designed guidelines and procedures
- Non conformities, correction, corrective and preventative actions – this ensures continual improvement of the energy management system
- Evaluation of compliance with legal and other requirements – the EnMS has to stay alert; the recorded information can be presented during management review to serve EnMS purpose
- Internal audit of the energy management system – can be conducted as a part of organisation’s audit programme. It examines that the EnMS conforms to energy objectives and target that have been established and that the EnMS is properly implemented and energy performance improved
At planned intervals a performance review must be done, the guidelines and procedures prepared in the previous steps should make this process easy to conduct. All documents and reports are then prepared for the management review
One of the most important EnMS processes is the management review. Management review:
- Reassures top management role and responsibility
- Accelerates the EnMS progress for continual improvement
- Evaluate’s people’s effort
- Understands and recognises the changes made
It is the output of the management review not the analysis that drives the EnMS forward. If necessary the management review should conduct changes in energy performance or energy performance indicators, changes in energy policy, objectives, targets or baseline and should allocate resources appropriately
The first step involves the application for certification.
This is where:
- An on-site analysis of your current system is conducted
- This will then be assessed against the standard
- A report is then prepared to highlight the gaps between your current system and the standard
The gap assessment is optional and is not required for the certification process.
Preliminary Assessment – Stage 1
Your documentation has to be inspected and various areas have to be reviewed including:
- The proposed scope of your registration
- The status of implementation of your management system
- The appropriate regulatory and legal requirements
- Your management policies and objectives
- Whether the system addresses the key areas of your business
- Your site-specific activities – top level process review
- Your key management elements, e.g. internal audits, reviews and complaints procedures
- Your readiness to move onto Stage 2 of the assessment, the Registration Assessment
There should be a period of several weeks between preliminary assessment and registration assessment so that any issues can be sorted in relation to the preliminary assessment. If there are major non-conformities a second preliminary assessment will have to be carried out.
Registration Assessment – Stage 2
This involves a full review of your management system in order to confirm that your management system is controlled. When the registration assessment is complete a notified body issues a detailed report along with the outcome which recommends registration or not. If any issues arise during the assessment you will be expected to submit an action plan which should describe what changes are to be made to the management system in order to reduce or eliminate the risk of the same issues occurring again.
Surveillance and Re-assessment
A notified body visits each company at least once a year to make sure the management system is being maintained and that it is achieving it’s expected outcomes. A part of the management system is reviewed in depth during each visit.
There is an expiry date on the certificate and the certificate expires every three years. Before the expiry date occurs a detailed assessment of the whole management system is undertaken to ensure every element of the system is performing satisfactorily and the results of the previous visits are taken into account.
During the registration period, changes are inevitable. In order to make sure the management system remains sound the notified body works with each registered organisation. Usually, change can be reviewed and assessed during routine surveillance visits. The notified body reserves the right to suspend or revoke certification in cases where change leads to the breakdown of the system