GENERATING COST SAVINGS THROUGH EFFECTIVE ENERGY MANAGEMENT

OCTOBER 2015

AUTHOR

Eric G.T. Huang Global Product Manager, Energy/Sustainability, SGS

A DISCUSSION ABOUT THE CHALLENGES AND OPPORTUNITIES ASSOCIATED WITH ENERGY SAVINGS IMPROVEMENTS

2

CONTENTS

ABSTRACTThe purpose of this document is to provide an introduction to the ISO 50001:2011 Energy Management System (EnMS) certification requirements. This document is not intended to be a full explanation of the certification standards and related requirements or of its implementation. Rather, it aims to promote understanding of the standard and to enable organisations to establish the systems and processes necessary to reduce energy costs, boost efficiency, and enhance competitiveness.

I. EXECUTIVE SUMMARY ..................................................................................................................3

II. GLOBAL ENERGY MANAGEMENT ..............................................................................................3

III. ENERGY MANAGEMENT SYSTEMS STANDARDS ................................................................5

IV. GLOBAL SOLUTIONS FOR ENERGY MANAGEMENT .............................................................9

V. ISO 50001 FAMILY OF STANDARDS ............................................................................................11

VI. EUROPE’S ENERGY EFFICIENCY DIRECTIVE 2012/27/EU .....................................................14

VII. HOW ISO 50001:2011 RELATES TO OTHER INTERNATIONAL STANDARDS ..................14

VIII. INTEGRATING ENVIRONMENTAL AND ENERGY MANAGEMENT SYSTEMS: PROCESS AND BENEFITS .................................................................................................................16

IX. CASE STUDY – COCA-COLA EGYPT CUTS CARBON EMISSIONS AND ENERGY COSTS WITH ISO 50001:2011 CERTIFICATION ...........................................................18

X. CONCLUSION ....................................................................................................................................20

3

I. EXECUTIVE SUMMARY

II. GLOBAL ENERGY MANAGEMENT

“Energy efficiency is the most promising means to reduce greenhouse gases in the short term,” said Yvo de Boer, Former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). Thomas L. Friedman, foreign affairs columnist for The New York Times and a three-time Pulitzer Prize winner, in his no. 1 bestseller “Hot, Flat, and Crowded”, stated: “We cannot continue the business a s usual path. We need a green revolution and we need to focus on ET – Energy Technology – based on renewable energy production and energy efficiency.”

This is the beginning of a new era – the “Energy Climate Era”. Energy conservation technology and facilities/equipment are only part of the approach to improve energy efficiency. Systematic management and the behaviour approach have become the core efforts to improve energy efficiency today. The purpose of ISO 50001:2011, the energy management system (EnMS) standard discussed in this paper, is to enable organisations to establish the systems and processes necessary to improve energy performance and increase cost savings.

They are based on the continual improvement and Plan-Do-Check-Act approaches utilised in the ISO 9001 and ISO 14001 management systems standards to provide compatibility and integration opportunities. Implementing these standards should lead to reductions in energy costs with a positive effect on an organisation’s bottom line, while minimising greenhouse gas emissions and the overall negative impact on the environment.

THE CHALLENGE OF THE ‘ENERGY-CLIMATE ERA’

What are the greatest problems facing humanity today? As far back as 2003, the Nobel Laureate Richard E. Smalley outlined what he said would be Humanity’s ‘Top Ten Problems for the next 50 years’. He placed energy consumption first on the list in response to a projection that the world’s population would increase from 6.5 billion to 8-10 billion by 2050.

In recent years, many people have listed energy as a growing problem. Certainly many of our environmental problems today arise from the types of energy we use, and the increasing burning of fossil fuels will accelerate climate change.

The global climate system is warming, with an increase in the frequency and intensity of extreme weather and climate events such as heat waves, cold spells, heavy rainfall, droughts and tropical cyclones, as well as rises in sea levels. The United Nations’ Intergovernmental Panel on Climate Change (IPCC) confirmed that the warming of the climate system is unequivocal.

4

Eleven of the twelve years between 1995 and 2006 ranked among the twelve warmest years since 1850. The temperature increase is widespread across the world, with both rising sea levels and decreases in snow and ice extent consistent with warming.

Current energy and CO2 trends run directly counter to the repeated warnings made by the IPCC, which concludes that to limit the long-term global average temperature rise to between 2.0°C and 2.4°C, global CO2 emission reductions of at least 50% (compared to 2000 levels) will need to be achieved by 2050. Recent studies suggest that climate change is occurring even faster than previously expected and that even the ‘50% by 2050’ goal may be inadequate to prevent dangerous climate change.

Today it seems that the world needs ever increasing energy supplies to sustain economic growth and development. However, energy resources are under pressure and CO2 emissions from today’s energy usage already threaten our climate. What options do we have for switching to a cleaner and more efficient energy future? How much will it cost? And what policies do we need?

According to the International Energy Agency (IEA) ‘Energy Technology Perspectives (ETP) 2010’ report, the next decade is critical. If emissions do not peak by around 2020 and decline steadily thereafter, achieving the needed 50% reduction by 2050 will become much more costly. Following this earlier report, the IEA released its ETP 2012 2°C Scenario (2DS) exploring the technological energy efficiency and balanced energy system options that are needed to realise a sustainable future. Central to this is the use of renewable energy sources and ensuring lower emissions.

According to the 2DS, energy savings and the use of alternative energy sources could save countries a total of 450 exajoules (EJ) in fossil fuel purchases by 2020. By 2050, the cumulative fossil fuel savings potential is said to be almost 9,000 EJ – equivalent to more than 15

years of current world energy primary demand.

ETP 2014 highlighted the fact that decarbonising electricity supply and increasing electricity end-use efficiency remain two key components of the 2DS. Today, heating and cooling in buildings and industry accounts for approximately 40% of final energy consumption – a larger share than transportation (27%). Among energy end uses, heating and cooling systems offer substantial potential for decarbonisation. Potential that has so far been largely untapped. Broad application of energy efficiency and switching to low-carbon final energy carriers (including decarbonised electricity) can push the fossil share to below 50% by 2050, with renewables (including renewable electricity) covering more than 40% of heating and cooling needs. The biggest challenge lies in making the shift towards clean electricity production. Meeting the 2DS under such an increase means reducing the global average carbon intensity of electricity production by more than 90%. Improving the efficiency of electricity use provides 12% of the cumulative emissions reduction, and also enables cost savings through reduced capacity and investment needs in the power sector.

Thomas L. Friedman, foreign affairs columnist for The New York Times, and a three-time Pulitzer Prize winner, explains in his number one bestseller “Hot, Flat, and Crowded”, a new era through his illuminating account of recent events: “the Energy-Climate Era”. He shows how 911, Hurricane Katrina, and the flattening of the world by the Internet have combined to bring climate and energy issues to the top of the agenda. “We can no longer expect to enjoy peace and security, economic growth, and human rights if we continue to ignore the key problems of the Energy-Climate Era: energy supply and demand, petro-dictatorship, climate change, energy poverty, and biodiversity loss. How we handle these five problems will determine whether we have peace and security, economic growth, and human rights in

the coming years”. As Friedman defines, the era concerns itself with the energy and climate problems, both of which are widely debated and needing solutions; but they have not gone very far, the much-touted ‘green revolution’ has hardly begun.

A MAJOR OPPORTUNITY

“Energy efficiency is the most promising means to reduce greenhouse gases in the short term,” said Yvo de Boer, Former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). Thomas L. Friedman also stated in his book: “We cannot continue the business as usual path. We need a green revolution and we need to focus on ET – Energy Technology – based on renewable energy production and energy efficiency.”

This is the beginning of a new era – the Energy-Climate Era. Increased energy efficiency will become the most important ‘momentum’ of the future. Low-cost options for reducing actual consumption – many of which are already available – offer the greatest potential for cutting CO2 emissions over the period to 2050.

Former US Energy Secretary Steven Chu also indicated: “Energy efficiency is not just low-hanging fruit; it is fruit that is lying on the ground. And energy efficiency means money back in your pocket because you pay less on your energy bills.” Energy conservation technology and facilities or equipment are only part of the approach to improve energy efficiency. Most energy efficiency in industry is achieved through changes in how energy is managed in a facility, rather than through the installation of new technologies. Today, systematic management and the behaviour approach have become the core efforts to improve energy efficiency and cut costs. An energy management standard provides a method for integrating energy efficiency into existing industrial or commercial management systems for continuous improvement. Any improvements in energy efficiency would result in

5

1 McKane, et al. Thinking Globally: How ISO 50001 – Energy Management can make industrial energy efficiency standard practice. Available at http://industrial-energy.lbl.gov/drupal.files/industrial-energy/ISO%2050001-Energy%20Management.pdf

significant reductions in carbon emissions and increased cost savings for an organisation.

The key question for energy management practitioners is how to provide the best case for successful energy management within their organisation, one that will achieve the desired buy-in at senior management level, and can be implemented as a successful management system.

The purpose of an energy management standard is to provide an organisational framework for industrial facilities to integrate energy efficiency into their management practices. This includes fine-tuning production processes and improving the energy efficiency of industrial systems. Energy management seeks to apply to energy use the same culture of continual improvement that has been successfully used by industrial

firms to improve quality and safety practices. An energy management standard is needed to influence how energy is managed in an industrial facility, thus realising immediate energy use reductions through changes in operational practices, as well as creating a favourable environment for adoption of more capital-intensive energy-efficiency measures and technologies1.

Efficient energy management requires the identification of where energy is used, where it is wasted and where any energy saving measures will have most effect. ISO 50001:2011 provides a structured approach that incorporates energy management into organisational culture, resulting in sustained energy savings and continual improvements in energy performance over time. This helps to justify initial investments into energy projects, as well as to deliver a

return on investment. The key feature of a successful EnMS is that it is fully integrated as an embedded management process within an organisation, energy management implications are considered at all stages of the development of new projects, and that these implications are part of any change control process. Without a structured approach, there is no guarantee that energy savings will be sustained, or that return-on-investment will be maximised.

A change in organisational culture is needed in order to realise industrial energy efficiency potential. An EnMS standard can provide the supportive organisational framework necessary to move beyond an energy saving approach to an energy efficiency approach that routinely and methodically seeks out opportunities to increase energy efficiency and achieve cost savings, no matter how large or small.

III. ENERGY MANAGEMENT SYSTEM STANDARDENERGY MANAGEMENT SYSTEM STANDARD – ISO 50001:2011

Realising the importance of energy management, ISO 50001:2011 was developed as the International Standard for energy management by the International Organisation for Standardisation (ISO) in 2008. The ISO 50001:2011 energy management system standard was published on 15 June, 2011. It is anticipated to affect up to 60 percent of the world’s energy consumption and has the potential to become a global trade catalyst for industrial energy efficiency in the same way that ISO 9001 has for quality. This standard is expected to achieve major, long-term increases in energy efficiency (20% or more) in industrial, commercial and institutional

facilities and to reduce greenhouse gas (GHG) emissions worldwide.

ISO 50001:2011 specifies requirements for an organisation to establish, implement, maintain and improve an energy management system, which enables that organisation to take a systematic approach in order to achieve continual improvement of energy performance, including energy efficiency, energy use and consumption. It specifies requirements applicable to energy use and consumption, including measurement, documentation and reporting, design and procurement practices for equipment, systems, processes and personnel that contribute to energy performance. Implementation of this standard should lead to reductions

in energy costs, GHG emissions and other environmental impacts, through the systematic management of energy.

ISO 50001:2011 establishes an international framework for industrial, commercial or institutional facilities, or entire companies, to manage their energy, including procurement and use. It is applicable to organisations of all types and sizes, irrespective of geographical, cultural or social conditions.

Conformance with ISO 50001:2011 demonstrates that a plant or company has a sustainable EnMS in place, has completed a baseline assessment of energy use and is committed to continuously improving its energy performance, while reducing costs.

6

The framework of ISO 50001:2011 encompasses a combination of technical and strategic management aspects, which are expected to give this standard wide acceptability. The standard is based on the continual improvement and Plan-Do-Check-Act (PDCA) approaches utilised in ISO 9001 and ISO 14001, to provide compatibility and integration opportunities.

DEVELOPING ISO 50001:2011

The UN Industrial Development Organisation (UNIDO) was one of the earliest entities to recognise the industry need to develop an effective response to climate change and to the proliferation of national energy management standards. In March 2007, UNIDO hosted a meeting of experts which led to the submission of a formal request to the ISO Central Secretariat to consider undertaking work on an international energy management standard.

In February 2008, the Technical Management Board of ISO approved the establishment of a new project committee (PC 242 – Energy Management) to develop the new ISO Management System Standard for Energy. The project committee consisted of 35 participating and 5 observing countries. The Associação Brasileira de Normas Técnicas (ABNT) and the American National Standards Institute (ANSI) jointly served as the Secretariat. The US Council for Energy-Efficient Manufacturing and the US Department of Energy are supporting ANSI’s role in developing the standard.

The first ISO/PC 242 committee convened in Washington, D.C. in September 2008 and again in Brazil in March 2009. The ISO 50001:2011 energy management system standard was published on 15 June, 2011.

ISO 50001:2011 REQUIREMENTS

Implementation of an energy management standard within an organisation requires a change in existing institutional practices toward energy, a process that may benefit from technical assistance from external experts. Organisation staff familiar with management systems (i.e. quality, safety and environment) understand the dynamics of establishing a management system and its successful integration into the organisation’s corporate culture. These experts, however, typically have little or no expertise in energy efficiency. In contrast, industrial energy-efficiency experts are highly specialised in energy efficiency, but are trained and orientated toward the identification and execution of energy-efficiency projects without a management system context. The appropriate application of energy management standards requires significant training and skill. There is a need to build not only internal capacity within organisations seeking to apply the standard, but also external capacity from knowledgeable experts to help establish an effective implementation structure.

The suite of skills required to provide the technical assistance needed for energy management is unique, since it combines both management systems and energy efficiency.1

General ISO 50001:2011 requirements include:

• A strong commitment to continual improvement of energy efficiency

• Appointment of a qualified person for energy management

• Development of an energy management plan. Without a plan in place, opportunities for improvement may be known but may not be promoted or implemented because energy management is not part of the organisational culture and the normal planning process

• Assessing the major energy uses in the organisation to develop a baseline of energy use and set targets for improvement

• Selection of energy performance indicators and objectives to help shape the development and implementation of an action plan

• Training for staff and those who work on behalf of the organisation who need to be aware of energy use and performance objectives in both the skills and the day-to-day practices needed to improve energy performance

• The results should be regularly evaluated and communicated to all personnel, recognising high achievement

WHAT DOES ISO 50001:2011 COVER?

The ISO 50001:2011 standard includes four main clauses:

1. Scope

2. Normative References

3. Terms and Definitions

4. Energy Management System Requirements

Annex A: Guidance on the use of the International Standard

Annex B: Correspondence between ISO 50001:2011, ISO 9001:2008, ISO 14001:2004 and ISO 22000:2005

Clause 4 of the standard is the further broken down into seven sub-clauses. Details of these sub-clauses are as follows:

4.1 General Requirements

The organisation shall:

• Establish, document, implement, maintain and improve an EnMS in accordance with the requirements of this international standard

• Define and document the scope and the boundaries of its EnMS

7

• Determine how it will meet the requirements of this international standard in order to achieve continual improvement of its energy performance and of its EnMS

4.2 Management Responsibility

Top management shall demonstrate its commitment and support for the EnMS, and continually improve its effectiveness by:

• Defining, establishing, implementing, and maintaining an energy policy

• Appointing a management representative and approving the formation of an energy management team

• Providing the resources needed to establish, implement, maintain and improve the EnMS and resulting energy performance

• Identifying the scope and boundaries to be addressed by the EnMS

• Communicating the importance of energy management to those in the organisation

• Ensuring that energy objectives and targets are established

• Ensuring that EnPIs are appropriate to the organisation

• Considering energy performance in long-term planning

• Ensuring that results are measured and reported at determined intervals

• Conducting management reviews

4.3 Energy Policy

Top management shall define the energy policy and ensure that it:

• Is appropriate to the nature and scale of the organisation’s energy use and consumption

• Includes a commitment to continual improvement in energy performance

• Includes a commitment to ensure the availability of information and of necessary resources to achieve objectives and targets

• Includes a commitment to comply with applicable legal requirements and other requirements to which the organisation subscribes related to its energy use, consumption, and efficiency

• Provides the framework for setting and reviewing energy objectives and targets

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

• Is documented and communicated at all levels within the organisation

• Is regularly reviewed, and updated as necessary

4.4 Energy Planning

Energy planning shall:

• Be consistent with the energy policy and lead to activities that continually improve energy performance

• Involve a review of the organisation’s activities which can affect energy performance

• Develop, record, and maintain an energy review. The methodology and criteria used to develop the energy review shall be documented. To develop the energy review, the organisation shall:

• Analyse energy use and consumption based on measurement and other data

• Based on the analysis of energy use and consumption, identify the areas of significant energy use

• Identify, prioritise and record opportunities for improving energy performance

• Establish an energy baseline(s) using the information in the initial energy review

• Identify energy performance indicators (EnPIs) appropriate for monitoring and measuring its energy performance

• Establish, implement and maintain documented energy objectives and targets. The objectives and targets shall be consistent with the energy policy. Targets shall be consistent with the objectives

4.5 Implementation and Operation

The organisation shall:

• Use the action plans and other outputs resulting from the planning process for implementation and operation

• Ensure any person(s) working for, or on its behalf related to significant energy uses are competent on the basis of appropriate education, training, skills and experience

• Communicate internally with regard to its energy performance and EnMS, as appropriate for the size of the organisation

• Establish, implement and maintain procedure(s) to approve documents for adequacy prior to issue

• Identify and plan those operations and maintenance activities which are related to its significant energy uses and that are consistent with its energy policy, objectives, targets and action plans

• Consider energy performance improvement opportunities and operational control in the design of new, modified and renovated facilities, equipment, systems and processes

• Establish and implement the criteria for assessing energy use, consumption and efficiency over the planned or expected operating lifetime when procuring energy using products, equipment and services

4.6 Checking

The organisation shall:

• Ensure that the key characteristics of its operations that determine energy performance are monitored, measured and analysed at planned intervals

8

• Define and periodically review its measurement needs

• Ensure that the equipment used in monitoring and measuring of key characteristics provides data which is accurate and repeatable

THE ISO 50001:2011 ENERGY MANAGEMENT SYSTEM MODEL

MANAGEMENT

PLAN

• Policy/goals/targets (4.3,4.4.,6)

• Management Commitment (4.2.1)

DO

• Training (4.5.2)

• Communication (4.5.3)

• Documentation (4.5.4)

• Operational Control (4.5.5)

CHECK

• Internal audit (4.6.3)

• Corrective/preventive action (4.6.4)

ACT

• Management review (4.7)

TECHNICAL

PLAN

• Energy Review (4.4.3)

• Energy baseline (4.4.4)

• Energy Performance Indicators (4.4.5)

DO

• Design (4.5.6)

• Energy purchasing (4.5.7)

CHECK

• Monitoring (4.6.1)

• Measurement (4.6.1)

• Verifying action plans results (4.4.6)

ACT

• Energy performance and EnPls review (4.7.2)

ACT PLAN

DOCHECK

• Investigate and respond to significant deviations in energy performance

• Conduct internal audits at planned intervals

• Address actual and potential nonconformities by making corrections, and by taking corrective action and preventive action

4.7 Management Review

Top management shall review the organisation’s EnMS to ensure its continuing suitability, adequacy and effectiveness.

9

IV. GLOBAL SOLUTIONS FOR ENERGY MANAGEMENTWHY THE ENERGY MANAGEMENT SYSTEM STANDARD?

With energy costs and the importance attributed to climate change having risen over the past several years, energy efficiency has become paramount. According to a report by the Economist Intelligence Unit, energy-efficiency management is critical to businesses because they need to be seen to be:2

• Keeping costs under control during economic recession

• Positioning themselves and their brands as green product providers

• Meeting increasingly stringent compliance requirements

• Improving the environmental footprint of their products/services

• Implementing stronger controls over suppliers of environmental standards

Businesses that waste energy are reducing profitability and causing avoidable pollution, primarily through increased carbon emissions, which contributes to both climate change and dwindling fuel reserves. Making businesses more energy efficient is seen as a largely untapped solution to addressing global warming, energy security and fossil fuel depletion.

As pressures mount on businesses to become more energy efficient, managing resources effectively is proving more essential than ever. In addition, customers are increasingly asking for assurance from organisations that they treat the environment responsibly and are able to demonstrate energy efficiency.

ISO 50001:2011 is intended to give energy management system guidance to companies and organisations so that they can develop and implement energy policies, objectives, targets and action

plans, which take into account legal requirements and other information relevant to energy use.

A management process is required to proactively assess, manage, and measure energy usage. The introduction to the standard makes it clear that implementing ISO 50001:2011: ‘…should lead to reductions in energy cost, greenhouse gas emissions and other environmental impacts, through systematic management of energy.’

ORGANISATIONS IMPLEMENTING ISO 15001 ARE ABLE TO IDENTIFY WAYS TO IMPROVE EFFICIENCY AND REDUCE WASTE

Many organisations currently have limited levels of the expertise necessary to achieve these reductions and so need guidance on how to do so through best practices.

2 Economist Intelligence Unit Report. Countdown to Copenhagen. Available at: http://graphics.eiu.com/marketing/pdf/copenhagen/Sustainability_2009.pdf

10

3 Carbon Trust 2011 press releases “Only 7% of the public believe company claims of action on climate change” 21 March 2011. Available at: http://www.carbontrust.co.uk/news/news/press-centre/2011/Pages/company-climate-change.aspx

Improvements in energy efficiency and performance will require improved systems and processes. Companies and organisations will need to manage the way in which they use energy in order to reduce GHG emissions and other environmental impacts, as well as to cut energy costs and wastage.

AN ENERGY MANAGEMENT SYSTEM, WHICH SETS OBJECTIVES TO REDUCE ENERGY USE, INHERENTLY REDUCES AND ORGANISATION’S ENERGY COSTS

ISO 50001:2011 provides a framework for integrating energy efficiency into existing industrial management systems and enables organisations to take a systematic approach to achieve continual improvement of energy performance, energy efficiency and energy conservation.

In addition, a survey done by Carbon Trust released on 23 March, 2011, suggested that for those companies able to provide credible evidence of improving their environmental impact there are considerable commercial and reputational opportunities. Of those surveyed, more than 50% are more loyal to brands that can show, at a glance, evidence of action.

70% of people want businesses to mandatorily disclose their carbon emissions, and 66% of the public question the authenticity of climate claims made by companies. The research shows that the majority of consumers (60%) need third-party evidence from a respected climate change body before believing corporate claims. Just 7% believe the word of companies on their climate change responsibilities and actions to reduce their impacts3.

Reports suggest that there is a distinct correlation between the strongest, most successful brands, and those that score highly on the categories of corporate reputation, leadership and innovation. Environmental responsibility is one of the top characteristics of leading companies.

In summary, the ISO 50001:2011 EnMS standard provides the following benefits:

• Strategic planning that requires measurement, management, and documentation for continuous improvement for energy efficiency and cost savings

• Addressing policies and procedures based on all aspects of energy purchase and use

• Demonstrating continuous improvement in energy efficiency

• It creates documents that are useful for additional energy saving projects that are undertaken as well as for evolving into policies

• Identifying key performance indicators, unique to the company, that are tracked to measure progress

• Assisting organisations in making better use of existing energy-consuming assets

• Offering guidance on benchmarking, measuring, documenting, and reporting energy performance

improvements and their projected impact on reductions in greenhouse gas emissions

• Creating transparency and facilitating communication on the management of energy resources

• Promoting energy management best practices and reinforcing good energy management behaviours

• Assisting facilities in evaluating and prioritising the implementation of new energy efficient technologies

• Providing a framework for promoting energy efficiency throughout the supply chain

• Facilitating energy management improvements in the context of greenhouse gas emission reduction projects

HOW DOES THE ENERGY MANAGEMENT SYSTEM CERTIFICATION PROCESS WORK?

The ISO 50001:2011 certification process, which is similar to ISO 14001:2004, consists of the following six steps:

Step 1 – You are provided with a proposal based on the size and nature of your organisation. You can then proceed with the audit by accepting the proposal

Step 2 – You may have a ‘pre-audit’* performed to give an indication of the

11

*Please not that stand-alone pre-audits (gap analysis), can be carried out independently of any certification activity.

ISO 50001:2011 CERTIFICATION PROCESS

ASSESSMENT AND CERTIFICATIONSURVEILLANCE VISITS TYPICALLYAT 6 TO 12 MONTH INTERVALS

10

* Please note that stand-alone pre-audits (gap analysis), can be carried out independently of any certification activity.

ISO 50001:2011 CERTIFICATION PROCESS

Step A

Agree Contract

Step B

Optional Pre-Audit

SURVEILLANCE VISITS TYPICALLY AT 6 TO 12 MONTH INTERVALS

Step C

Stage 1 Audit

Step D

Stage 2 Audit

Certificate Issue on

Completion of Successful

Audit

Step e

Surveillance Visits

Step F

Re-Certification Audit

Action and Closure of Identified Non-Conformities

Action and Closure of Identified

Non-Conformities Certification Cycle typically 3 years

ASSESSMENT AND CERTIFICATION

• Assisting organisations in making better use of their existing energy-consuming assets

• Offering guidance on benchmarking, measuring, documenting, and reporting energy performance improvements and their projected impact on reductions in greenhouse gas emissions

• Creating transparency and facilitating communication on the management of energy resources

• Promoting energy management best practices and reinforcing good energy management behaviours

• Assisting facilities in evaluating and prioritising the implementation of new energy efficient technologies

• Providing a framework for promoting energy efficiency throughout the supply chain

• Facilitating energy management improvements in the context of greenhouse gas emission reduction projects

HOW DOES THE ENERGY MANAGEMENT

SYSTEM CERTIFICATION PROCESS WORK?

The ISO 50001:2011 certification process, which is similar to ISO 14001:2004,

consists of the following six steps:

• Step A – You are provided with a proposal based on the size and nature of your organisation. You can then proceed with the audit by accepting the proposal.

• Step B – You may 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. You receive a report after this stage identifying any concerns or observed non-compliances so that you can take immediate action if required.

• Step D – This is ‘Stage 2’ of the initial audit process. 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 and with your own documentation system. 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 an authorised Certification Manager to confirm the issuance of a certificate.

• Step E – Surveillance visits will be scheduled at either six or twelve month intervals depending on the contract. During the visits, there are reviews of the implementation of the action plan 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 re-certification audit. Surveillance visits will then continue, as before, on a 3-year cycle.

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 3 – 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. It is also an opportunity for the auditor 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. After this stage you will receive a report identifying any concerns or observed

non-compliances so that remedial action can be taken, if required

Step 4 – This is ‘Stage 2’ of the initial audit process. The audit includes interviews with you and your colleagues, and the examination of records. Observation of your working practices determines how compliant your processes are with the standard and with your own documentation system. 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 the non-conformities have been addressed, a technical review of the audit will be

V. ISO 50001 FAMILY OF STANDARDSA SUITE OF COMPLEMENTARY ENERGY MANAGEMENT SYSTEM STANDARDS

Since the publication of the ISO 50001 Energy management system – Requirements with guidance for use, in June 2011, the International Technical Committee responsible for developing standards on energy management

(ISO/TC 242) has developed a suite of complementary energy management system (EnMS) standards which will guide organisations through the various stages of setting up an EnMS. These consist of:

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

conducted by an authorised Certification Manager to confirm the issuance of a certificate

Step 5 – Surveillance visits will be scheduled at either six or twelve month intervals, depending on the contract. During these visits, there are reviews of the implementation of the action plan 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 6 – Shortly before the third anniversary of the initial certification, a routine visit will be extended to enable a re-certification audit. Surveillance visits will then continue, as before, on a three-year cycle

• ISO 50003:2014 EnMS – Requirements for bodies providing audit and certification of energy management systems

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

12

ISO 50002:2014 ENERGY AUDITS – REQUIREMENTS WITH GUIDANCE FOR USE

ISO 50002:2014 specifies the process requirements for carrying out an energy audit in relation to energy performance. It is applicable to all types of establishments and organisations, and all forms of energy and energy use. An energy audit includes a detailed analysis of the energy performance of an organisation, its equipment, systems and/or processes. It is based on appropriate measurement and observation of energy use, energy efficiency and consumption. Energy audits are planned and conducted as part of the identification and prioritisation of opportunities to improve energy performance, reduce energy waste and obtain related environmental benefits. Audit outputs include information on current use and performance. They also provide ranked recommendations for improvement in terms of energy performance and financial benefits.

An energy audit can be used to support an energy review, it can also facilitate monitoring, measurement and analysis as described in ISO 50001, or be used independently.

This standard allows for differences in approach and in terms of scope, boundary and audit objective. It seeks to harmonise common aspects of energy auditing in order to enhance clarity and transparency. The energy audit process is presented as a simple chronological sequence, but this does not preclude repeated iterations of certain steps.

The main body of this standard covers the general requirements and framework common to all energy audits that can be supplemented by equivalent national audit standards. For auditing of specific types of facilities, processes or equipment, refer to the relevant international, national and local standards and guidelines.

The purpose of this standard is to define the minimum set of requirements leading to the identification of opportunities for the improvement of energy performance. ISO 50002:2014 does not address either the requirements for selection and evaluation of the competence of bodies providing energy audit services or the auditing of an organisation’s energy management system, as these are described in ISO 50003.

ISO 50003:2014 ENMS – REQUIREMENTS FOR BODIES PROVIDING AUDIT AND CERTIFICATION OF ENERGY MANAGEMENT SYSTEMS

ISO 50003:2014 specifies requirements for competence, consistency and impartiality in the auditing and certification of energy management systems (EnMS) for bodies providing these services. It is intended to be used in conjunction with ISO/IEC 17021:2011. The requirements of ISO/IEC 17021:2011 also apply to ISO 50003:2014.

In order to ensure the effectiveness of EnMS auditing, ISO 50003:2014 addresses the audit process, competence requirements for personnel involved in the certification process for energy management systems, the duration of audits and multi-site sampling. In addition to the requirements of ISO/IEC 17021:2011, this standard specifies requirements reflecting the specific technical area of energy management systems that are needed to ensure the effectiveness of the audit and certification. In particular, it addresses additional requirements for the audit planning process, the initial certification audit, the on-site audit, auditor competence, duration of EnMS audits, and multi-site sampling.

• ISO 50006:2014 EnMS – Measuring energy performance using energy baselines (EnB) and energy performance indicators (EnPI) – General principles and guidance

• ISO 50015:2014 EnMS – Measuring and verification of energy performance of organisations – General principles and guidance

Below is a brief overview of the new standards, how they interact with ISO 50001, and how the additional standards might be appropriate to the needs of organisations implementing ISO 50001.

13

This standard deals with energy management system audits for certification purposes. However,it does not deal with energy audits whose purpose is to establish a systematic analysis of energy consumption and energy use and which are defined in ISO

50002.

ISO 50004:2014 ENMS – GUIDANCE FOR THE IMPLEMENTATION, MAINTENANCE AND IMPROVEMENT OF AN ENERGY MANAGEMENT SYSTEM

ISO 50004:2014 provides guidance when implementing the requirements of an energy management system based on ISO 50001. It guides organisations to take a systematic approach in order to achieve continual improvement in energy management and energy performance. This standard is not prescriptive and each organisation determines how to best approach meeting the requirements of ISO 50001. While the guidance in ISO 50004:2014 is consistent with the ISO 50001 energy management system model, it is not intended to provide interpretations of the requirements of ISO 50001.

Energy management will be sustainable and most effective when it is integrated into an organisation’s overall business processes (e.g. operations, finance, quality, maintenance, human resources, procurement, health and safety and environmental).

This standard includes practical help boxes designed to provide the user with ideas, examples and strategies for implementing an EnMS. The examples and approaches presented are for illustrative purposes. They are neither intended to represent the only possibilities, nor are they necessarily suitable for every organisation. In implementing, maintaining or improving an EnMS, it is important that organisations select approaches appropriate to their own circumstances.

ISO 50001 can be integrated with other management system standards, such as

ISO 9001, ISO 14001, and OHSAS 18001. Integration can have a positive effect on business culture, business practice, embedding energy management into daily practice, operational efficiency and the operating cost of the management system. ISO 50004:2014 does not provide guidance on how to develop an integrated management system.

The guidance in ISO 50004:2014 is applicable to any organisation, regardless of its size, type, location or level of maturity.

ISO 50006:2014 ENMS – MEASURING ENERGY PERFORMANCE USING ENERGY BASELINES (ENB) AND ENERGY PERFORMANCE INDICATORS (ENPI) – GENERAL PRINCIPLES AND GUIDANCE

ISO 50006:2014 provides guidance to organisations on how to establish, use and maintain energy performance indicators (EnPIs) and energy baselines (EnBs) as part of the process of measuring energy performance. This standard provides practical guidance on how to meet the ISO 50001 requirements related to the establishment, use and maintenance of EnPIs and EnBs in measuring energy performance and energy performance changes. These are two key interrelated elements of ISO 50001 that enable the measurement, and therefore management, of energy performance in an organisation.

In order to effectively manage the energy performance of facilities, systems, processes and equipment, organisations need to know how energy is used and how much is consumed over time. An EnPI is a value or measure that quantifies results related to energy efficiency, use and consumption in facilities, systems, processes and equipment. Organisations use EnPIs as a measure of their energy performance.

The EnB is a reference that characterises and quantifies an organisation’s energy performance during a specified time period. It enables an organisation to assess changes in energy performance

between selected periods. The EnB is also used to calculate energy savings, before and after the implementation of energy performance improvement actions.

Organisations define targets for energy performance as part of the EnMS energy planning process. Each organisation needs to consider its energy performance targets when identifying and designing EnPIs and EnBs.

This International Standard includes practical help boxes designed to provide the user with ideas, examples and strategies for measuring energy performance using EnPIs and EnBs.

ISO 50015:2014 ENMS – MEASURING AND VERIFICATION OF ENERGY PERFORMANCE OF ORGANISATIONS – GENERAL PRINCIPLES AND GUIDANCE

ISO 50015:2014 establishes general principles and guidelines for the measurement and verification (M&V) of energy performance and energy performance improvement. M&V adds value by increasing the credibility of energy performance and energy performance improvement results. Credible results can contribute to the pursuit of energy performance improvement.

This standard can be used by organisations of any size, M&V practitioners, or any interested parties, to apply M&V to the reporting of energy performance results. The principles and guidance in this standard can be used either independently, or in conjunction with other standards and protocols. The principles and guidance in this standard are not required by ISO 50001, but can be applied by organisations using ISO 50001.

This International Standard does not specify calculation methods. It establishes a common understanding of M&V and how it can be applied to different calculation methods. These principles and guidelines are applicable irrespective of the M&V method used.

14

VI. EUROPE’S ENERGY EFFICIENCY DIRECTIVE 2012/27/EUARTICLE 8 FOR ENERGY AUDITS AND ENERGY MANAGEMENT SYSTEMS

The European Energy Efficiency Directive (EED) establishes a set of binding measures to help the EU reach its 20% energy efficiency target by 2020. Under the Directive, all EU countries are required to use energy more efficiently at all stages of the energy chain, from production to final consumption.

EU countries were required to transpose the Directive’s provisions into their national laws by 5 June 2014.

Article 8 imposes two main obligations upon Member States: to promote the availability of energy audits among final customers in all sectors, and to ensure that enterprises that are not SMEs carry out energy audits at least every four years. Audits must be cost-effective and undertaken by qualified/accredited experts or supervised by

independent authorities. The EED defines ‘SMEs’ as enterprises with fewer than 250 employees, annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.

For large enterprises, however, Member States must ensure that they carry out energy audits of buildings and installations at regular intervals not exceeding four years, starting 5 December 2015 at the latest.

In the EED, energy audits are defined as ‘systematic procedures’ used to identify, quantify and report existing energy consumption profiles and energy savings opportunities in buildings, industrial or commercial operations or installations, and in private or public services. EnMS are defined as sets of elements of plans establishing energy efficiency objectives and strategies to achieve these

objectives. Energy audits are an integral part of energy management systems.

Accordingly, large enterprises that implement energy or environmental management systems are exempt from the requirement of energy audits every four years. Large enterprises implementing energy audits under voluntary agreements are considered to fulfil the regular energy audit requirement.

The EED gives energy audits and energy management schemes a substantial role to play in improving energy efficiency in the end-use sectors.

In addition, energy audits, including audits that are part of an energy or environmental management system, are less of a cost burden for large enterprises than they would be for SMEs, not to mention households and other small end users.

VII. HOW ISO 50001:2011 RELATES TO OTHER INTERNATIONAL STANDARDSRELATIONSHIPS BETWEEN ISO 50001:2011, ISO 14001:2004 AND ISO 9001:2008

ISO 50001 is based on the common elements of the ISO management system standards ensuring a high level of compatibility between ISO 9001 and ISO 14001. Consequently, organisations that already have an ISO 9001 system or an ISO 14001 system in place can easily integrate an ISO 50001 system into their existing structures.

ISO 9001 is a Quality Management System (QMS) which gives organisations a systematic approach for meeting customer objectives and ensuring quality consistency. ISO 14001 is an Environmental Management System (EMS) which provides a system for measuring and improving an organisation’s environmental impact. The relationship between ISO 50001:2011, ISO 14001:2004 and ISO 9001:2008 are outlined in the chart. (Figure 1)

Within the scope of ISO 14001 EMS it is believed many organisations can effectively deal with energy performance. To support this position, it is important to clarify who the standard is ideally intended for; and to interpret what differentiates ISO 50001 from ISO 14001. On comparing ISO 50001, ISO 14001 and ISO 9001, there are not only many similarities, but also differences in approach and degrees of prescription, as shown in the chart on the facing page.

15

ISO 50001ENERGY POLICY

Energy review

Energy performance indicators

Energy baseline

Energy management

ISO 14001ENVIRONMENTAL POLICY

Environmental aspects

Emergency preparedness

Environmental management programme

Objectives and targetsLegal requirements

Design

Procurement

ISO 9001QUALITY POLICY

Customer focus

Planning of product realisation

Customer-related processes

Control of nonconforming

MANAGEMENT COMMITMENT

ROLES, RESPONSIBILITY & AUTHORITY

COMPETENCE, TRAINING & AWARENESS

COMMUNICATION

OPERATIONAL CONTROL

MONITORING & MEASUREMENT

DOCUMENTATION

INTERNAL AUDIT

CORRECTIVE & PREVENTIVE ACTION

MANAGEMENT REVIEW

Figure 1. The ISO 50001, ISO 14001 and ISO 9001 scope chart.

OTHER APPROACHES TO SUPPORTING THE GREEN ECONOMY

Climate change arising from anthropogenic activity has been identified as one of the greatest challenges facing countries, governments, business and individuals, with major implications for both human and natural systems. International, regional, national, and local initiatives are being developed and implemented to limit levels of GHG emissions into the atmosphere. These initiatives rely on the assessment, monitoring, reporting and verification of GHG emissions and removals.

ISO 14064 Greenhouse Gases — Part 1 and Part 2

ISO 14064-1: details principles and requirements for designing, developing, managing and reporting organisation – or company-level GHG inventories. It includes requirements for determining GHG emission boundaries, quantifying an organisation’s GHG emissions and removals, and identifying specific company actions or activities aimed at improving GHG management.

ISO 14064-2: focuses on GHG projects or project-based activities specifically designed to reduce GHG emissions

or increase GHG removals. It includes principles and requirements for determining project baseline scenarios and for monitoring, quantifying and reporting project performance relative to the baseline scenario and provides the basis for GHG projects to be validated and verified.

ISO/TS 14067:2013 Carbon Footprint of Products

GHGs are emitted and removed throughout the life cycle of a product (i.e. cradle-to-grave) from raw material acquisition through production, use and end-of-life treatment.

16

This Technical Specification details principles, requirements and guidelines for the quantification and communication of the carbon footprint of products (CFPs), including both goods and services, based on GHG emissions and removals over the life cycle of a product. Requirements and guidelines for the quantification and communication of a partial CFP are also provided. Communication of the CFP to the intended audience is based on a CFP study report which provides an accurate, relevant and fair representation of the CFP.

Based on existing International Standards ISO 14020, ISO 14024, ISO 14025, ISO 14040 and ISO 14044 this Technical Specification aims to set specific requirements for the quantification and communication of a CFP, including additional requirements where the CFP information is intended to be publicly available.

ISO/TS 14067:2013 is expected to benefit organisations, governments, communities and other interested parties by providing clarity and consistency in quantifying and communicating CFPs.

Leadership in Energy and Environmental Design (LEED)

Green building is the practice of increasing the efficiency with which all

buildings use resources: energy, water, materials, etc. Green building is the term for efficient building practices that reduce impacts on human health and the environment. These practices may include improved design, construction, operation, maintenance and removal. In other words, the complete life cycle of buildings.

The LEED Green Building Rating System is a third-party certification programme, which is globally accepted as a benchmark for the design, construction and operation of high performance and environmentally-friendly buildings. Green buildings consume on average 40-50% less energy and 20-30% less water than a conventional building. However, there is an associated increase in cost of about 5-8% with green buildings. This cost can be recouped over a period of 3-5 years.

LEED is an internationally recognised mark of excellence and provides building owners and operators with a framework for identifying, implementing and measuring green building design including construction, operations and maintenance solutions. LEED Rating Systems are developed through an open, consensus-based process led by LEED committees and according to the US Green Building Council (USBGC).

ISO 50001 LOOKS AT AN ORGANISATION’S ENERGY PERFORMANCE IN DETAIL AND CONCLUDES WITH SPECIFIC REQUIREMENTS THAT LEAD TO BETTER ENERGY PERFORMANCE

If adopted, ISO 50001 Energy Management Systems could help to certify green building at an earlier stage (e.g. the operational stage) and benefit the LEED programme by increasing its uptake. When organisations implement an EnMS they need to have in place monitoring and measurement results that meet ISO 50001 clause 4.6.1: ‘Monitoring, Measurement and Analysis’. This section is a key component of LEED requirements. When ISO 50001 is implemented in new developments at the design stage, it allows building owners to understand the benefits of meeting the requirements of ISO 50001. It also makes it easier to adopt ISO 50001 in the operational stage.

VIII. INTEGRATING ENVIRONMENTAL AND ENERGY MANAGEMENT SYSTEMS: PROCESS AND BENEFITSWHY ISO 50001 IS THE NEXT LOGICAL STEP FOR AN ISO 14001 CERTIFIED ORGANISATION?

Many organisations that hold an ISO 14001 certificate follow it with ISO 50001 standard certification. This is because while ISO 14001 provides a broad certification covering a variety of different environmental criteria (air,

water, waste, energy etc.), ISO 50001 focuses specifically on the area of energy efficiency.

Within ISO 14001, energy is just one of the environmental criteria that need to be identified and addressed as part of an Environmental Management System (EMS). All environmental factors are assessed in the same way. ISO 50001

instead looks at an organisation’s energy performance and its environmental impacts in detail and concludes with specific requirements that lead to better energy performance. These quantitative requirements are fundamental to the effective implementation of an EnMS. To achieve ISO 50001, each variable affecting an organisation’s EnMS needs

17

to be fully understood in terms of its implications on energy performance. This is a greater depth of understanding than is required for ISO 14001.

Additionally, ISO 50001 determines what information an organisation should be monitoring and measuring as part of its EnMS, setting a minimum of five key characteristics as the minimum requirements. ISO 50001 is specific in defining end goals for the processes associated with achieving these requirements. ISO 14001 does not require as much detail and gives an organisation a greater degree of freedom in terms of measurements, depending on its environmental objectives. The result for an organisation introducing ISO 5001 is that it is able to effectively achieve energy efficiency improvements.

STEPS TO INTEGRATE MANAGEMENT SYSTEMS

In Environmental Management Systems and Energy Management Systems a number of common elements can be managed in an integrated way. Uniting these systems benefits an organisation in terms of cost savings and efficiencies. However, integration of the two systems needs to be planned and implemented in a structured way, following a five-step process:

Step 1 – Gather the right team

Engage technical staff with environmental and energy management knowledge to support the management system implementation team. These individuals might be facilities managers, logistics managers, fleet managers, procurement and purchasing managers, or come from other associated technical backgrounds.

Step 2 – Gap analysis audit

Determine the boundaries and applicability of the two management systems and establish the scope. It is recommended that the scope for an integrated management system reflects the widest requirements of the individual systems at the operational level.

A gap analysis audit identifies the processes needed for the

implementation, operation and maintenance of an integrated management system throughout the organisation. This forms the basis for project planning. As part of this, the ISO 50001 requirements that are already implemented should be identified. This could include requirements that are specific to the ISO 50001, such as an energy review or energy performance indicator, which an organisation may already have established. A gap audit gives the organisation a complete picture of what needs to be addressed to meet the standard’s requirements. A competent auditor should perform the gap audit to ensure that all requirements are correctly assessed.

Step 3 – Implement the integrated management system

• Identify the processes needed for the implementation, operation and maintenance of the EnMS and EMS throughout the organisation

• Establish, implement and maintain a process to determine any legal requirements related to the organisation’s activities, products and services that are relevant to the scope of the EnMS and EMS

• Determine the sequence and interaction of these processes and whether the integration of these processes is possible

• Determine the criteria and methods needed to ensure that the operation and control of these processes is effective

• Ensure the availability of resources and information necessary to support the operation and monitoring of these processes

• Monitor, measure and analyse these processes. Implement actions as needed to achieve the planned results and continual improvement of the organisation’s overall performance

Any non-conformities identified during the gap analysis audit should also be addressed.

Step 4 – Internal audit and management review

Perform internal audits related to the ISO 50001 and 14001 requirements. These can be done at the same time, as long as the auditors have the required competences to achieve both. Similarly, the management review for ISO 50001 uses some of the same information as that for ISO 14001 and the outcome of these two reviews together can be used to close the management system loop.

Step 5 – Certification audit

Certification audits for both ISO 50001 and ISO 14001 can be performed at the same time. The number of days required for a joint audit is less than if they are performed separately. The more integrated the two management systems, the more effective the use of audit time and therefore the less the time requirement. Individual certificates for each standard are still received.

BENEFITS OF INTEGRATING MANAGEMENT SYSTEMS

Integrating an organisation’s EMS and EnMS means that the common requirements of the two management systems can be consolidated. Overall objectives can then be prioritised based on return on investment. This helps an organisation to develop efficient means to manage all the necessary resources, ultimately saving time and money.

By bringing the management systems’ implementation together, the committees responsible for putting the systems in place can also benefit from shared learning experiences. For any organisation that already has an EMS and is introducing and integrating an EnMS, many existing procedures could be extended to cover the additional requirements of the integrated management system. This is likely to include an information system, used for collecting and disseminating information related to the requirements of the standards, as well as trained technical staff, such as internal auditors.

18

Any organisation already certified against ISO 14001 would be able to simply integrate the matching requirements of the ISO 50001, such as the Record Keeping System, Document Management System, and Training and Awareness Activities, into those that already exist. Obviously, this does not apply to ISO 50001 specific requirements, such as the criteria for identifying Significant Energy Use and the development of an Energy Management Action Plan.

Overall, the benefits achieved by integrating the EMS and EnMS management systems are numerous and include:

• An improved business focus

• A more holistic approach to managing business risks

• Less conflict between individual management systems

• Reduced duplication and bureaucracy

• More effective and efficient audits both internally and externally

• Easier facilitation of the requirements of any new management system

For each new system that is integrated, procedures and resources can generally be expanded to meet the additional requirements. By following this process, as opposed to separately introducing a new system, organisations are able to prevent duplication, improve efficiency and benefit from cost savings.

INTEGRATING AN ORGANISATION’S EMS AND EnMS REDUCES DUPLICATION, IMPROVES OVERALL EFFICIENCIES AND FURTHER BOOSTS COST SAVINGS

IX. CASE STUDY – COCA-COLA EGYPT CUTS CARBON EMISSIONS ANDENERGY COSTS WITH ISO 50001:2011 CERTIFICATIONCOCA-COLA BOTTLING EGYPT (CCBE)

As the largest soft drinks bottler in the Middle East Region, CCBE saw the potential benefits of implementing ISO 50001. Primarily, the benefits were significant reductions in carbon emissions and an increase in cost savings for the company. To date, CCBE has certified seven plants against ISO 50001 in Cairo, Alexandria, Tanta, Mansoura, Assyut, 6th of October and Kaliub plant. All of its plants went through the same ISO 50001 certified plants programme. CCBE is considered the first company in Africa to have been certified against ISO 50001.

The Coca-Cola Company focuses effort on protecting and preserving the planet, which requires attention to areas such as water, energy use, packaging and emissions.

As part of the Coca-Cola Company’s commitment to sustainability, it encourages its bottling partners to do the same. Therefore all of CCBE’s new machinery and equipment is environmentally friendly.

In Coca-Cola plants all over the world, their 2004 Energy Consumption (MJ) is considered to be the Energy Baseline. A goal was set for all CCBE plants to achieve a 20 percent reduction in energy use over the 2004 baseline by 2010. CCBE achieved a 48 percent reduction by the end of 2010. To capitalise on this success, the Coca-Cola Company collaborated with World Wildlife Fund (WWF) in 2011 to introduce the ‘Top 10 Energy-Saving Challenge’ system-wide. The programme equipped bottlers and plant managers with ten high-return, low-risk energy-saving practices to implement

in their plants. Through this programme, the CCBE committed to fix all leaks and employ good practice for energy saving in its plants. This combination of initiatives resulted in significant water consumption and energy use reductions across its plants. To improve even further, and demonstrate to stakeholders its on-going commitment to energy management, CCBE turned to SGS for certification against ISO 50001. Taking the ‘Top 10 Energy-Saving Challenge’ as a cornerstone, ISO 50001 in CCBE is concerned with energy monitoring and saving, focusing on each piece of equipment on the line, rather than the whole production line output.

The energy performance of all CCBE plants was reported monthly on the Coca-Cola website (PICASSO).

19

In September 2012, SGS experts conducted internal audit training for 20 employees in all system plants in CCBE premises. The training was delivered to introduce staff to the basic fundamentals of ISO 50001 and energy savings.

By investigating each piece of equipment in CCBE plants to identify specific energy saving opportunities, CCBE focused on energy saving from the ground-up, rather than exclusively on system implementation. This method of approach encourages staff to be energy oriented and to define all energy saving opportunities.

CCBE achieved its ISO 50001 certification following an SGS in-depth audit. SGS enabled CCBE to implement the structured approach of ISO 50001 into its management framework. The systematic approach to energy saving that ISO 50001 brings helped CCBE focus on the benefits that continual energy savings can offer. Certification against the standard means CCBE is now able to identify new opportunities for improvement and can subject these to a formal management review. This review allows CCBE to record any actions taken and how successful these actions are in terms of energy savings and reducing carbon emissions.

After implementing ISO 50001, CCBE now has several initiatives in place as part of an ongoing improvement programme for energy performance, efficiencies, use and consumption. These initiatives include upgrading pipe insulation, reducing compressed air pressure, fixing air leaks and installing smart control systems to synchronise loading and unloading of low-pressure air compressors. The process of certification has strengthened the drive for new efficiencies at CCBE and thanks to its partnership with SGS it can now proudly claim to be the first company in the food and drinks sector in the Middle East Region to have achieved certification against ISO 50001.

In summary, the ISO 50001:2011 EnMS standard provides the following benefits to CCBE:

• Ensuring senior management are involved in achieving goals and monitoring energy performance

• Strategic planning that requires measurement, management and documentation for continuous improvement for energy efficiency and cost savings

• An average of 8 percent energy savings per year. CCBE expects all certified plants will achieve a 12 percent energy saving per year

• Identification of key performance indicators unique to the company that are tracked to measure progress

• Promotion of energy management best practices and reinforcement of good energy management behaviours

• Systematic approach that continuously monitors the energy performance on a pre-defined frequency to ensure energy goals are met and, in case of deviation, the necessary corrective actions taken

• Demonstration of continuous improvement in energy efficiency

• Assisting organisations in making better use of their existing energy consuming assets

• Guidance on benchmarking, measuring, documenting and reporting energy performance improvements and their projected impact on reductions in greenhouse gas emissions

• Facilitation on energy management improvements in the context of greenhouse gas emission reduction projects

20

© S

GS

Gro

up M

anag

emen

t S

A –

201

5 –

All

right

s re

serv

ed –

SG

S is

a r

egis

tere

d tr

adem

ark

of S

GS

Gro

up M

anag

emen

t S

A.

ABOUT THE AUTHOR

Eric G.T. Huang Global Product Manager, Energy/Sustainability, SGS

Eric G.T. Huang has 26 years environmental engineering and management experience in audit, consulting, engineering and operation, specialising in energy and climate change. He is now responsible for the technical development of SGS’s Energy Management Systems certification services, including ISO 50001:2011 and other sustainability services. Eric holds a Masters degree in Civil and Environmental Engineer from Rutgers University, US.

ABOUT 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 80,000 employees, SGS operates a network of over 1,650 offices and laboratories around the world.

Enhancing processes, systems and skills is fundamental to your ongoing success and sustained growth. We enable you to continuously improve, transforming your services and value chain by increasing performance, managing risks, better meeting stakeholder requirements and managing sustainability. With a global presence, we have a history of successfully executing large-scale, complex international projects. Our people speak the language, understand the culture of the local market and operate globally in a consistent, reliable and effective manner.

COPYRIGHT NOTICE

The information contained in this document represents the current view of SGS SA on the issues discussed as of the date of publication. Because SGS must respond to changing market conditions, it should not be interpreted to be a commitment on the part of SGS, and SGS cannot guarantee the accuracy of any information presented after the date of publication.

This White Paper is for informational purposes only. SGS makes no warranties, express, implied or statutory, as to the information in this document.

Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of SGS.

SGS may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from SGS, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property.

ANY REPRODUCTION, ADAPTATION OR TRANSLATION OF THIS DOCUMENT WITHOUT PRIOR WRITTEN PERMISSION IS PROHIBITED, EXCEPT AS ALLOWED UNDER THE COPYRIGHT LAWS. © SGS SA 2015. ALL RIGHTS RESERVED.

SGS has worldwide expertise in supporting energy efficiency and innovation. Our global presence and knowledge of local legislations and regulations gives you the peace of mind of knowing that you are minimising your environmental impact and improving your energy consumption. We are the global leader in ISO 14001 Environmental Management Systems certification, greenhouse gas verification and an international front-runner in Energy Management solutions.

FOR MORE INFORMATION, VISIT WWW.SGS.COM/ENERGY OR CONTACT ENERGY@SGS.COM

X. CONCLUSIONISO 50001:2011 combines the benefit of a business management tool for energy management and business processes, with the ability to meet growing global customer requirements for reduced GHG emissions. Certification can provide

generic assistance to an organisation for establishing, implementing or improving an EnMS. Global application of an energy management standard contributes to a more efficient use of available energy sources, enhanced competitiveness and

a positive impact on climate change. Certifying your EnMS helps your organisation to develop and improve performance and reduce costs.

WWW.SGS.COM

© S

GS

Gro

up M

anag

emen

t S

A –

201

5 –

All

right

s re

serv

ed –

SG

S is

a r

egis

tere

d tr

adem

ark

of S

GS

Gro

up M

anag

emen

t S

A.