ISO 50001ENERGY MANAGEMENT SYSTEM

When Recognition Matters

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CONTENT____

Introduction

WhohasbenefitedfromISO50001sofar?

AnoverviewofISO50001:2011 Howtoensureenergyefficiency?

KeyClausesofISO50001:2011

LinkofISO50001withotherstandards

ISO 50001 opposed to ISO 14001

WhataretheBusinessBenefitsofanEnergyManagementSystem?

WhyisPECBaWorthyChoice?

StepsforObtainingaPECBCertification

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PRINCIPAL AUTHORSEric LACHAPELLE, PECBMustafe BISLIMI, PECB

ISO50001//ENERGYMANAGEMENTSYSTEM2

INTRODUCTION____

“Usingenergyefficientlyhelpsorganizationssavemoneyaswellashelpingtoconserveresourcesandtackleclimate change.” ISO.org

Understandingtheimportanceofenergymanagementisnotthatdifficult,sincethereisaconsiderablylargeamountofdatathatneedstobegathered,documented,analyzedandaccountedinasystematicway.ISO50001:2011wasestablishedtosupportorganizationsinallsectorstouseenergymoreefficientlythroughtheimplementationofanEnergyManagementSystem(EnMS).

ISO50001:2011affectsupto60percentoftheworld’senergyconsumptionandhasthepotentialofaglobaltradecatalyst,forindustrialenergyefficiencyinthesamewaythatISO9001hasforquality.

TheimplementationofanEnergyManagementSystemwithinanorganizationrequiresachangeinexistinginstitutional practices towards energy. Systematic management and the behavior approach have become the coreeffortstoimproveenergyefficiencytoday.ThepurposeofISO50001istoenableorganizationstoestablishtheEnergyManagementSystemanditsprocessestoimproveenergyperformanceandincreasecostsavings.

Organizationsofallsizesandtypesshouldengageinasystematicandcomprehensiveprocessthatwillhelpthebusinessin:

• Reducingenergyrelatedtooperationalcosts,• Increasingenergyefficiency,• Demonstratingcommitmenttosustainability,• Supportingenergyconservation,• Reducinggreenhousegasemissions,• Improvingtheuseofenergyassets,and• Refiningenergyprocurementpractices.

UptotheendofDecember2014,atleast6,778ofISO50001:2011certificates,agrowthof40%(+1,952),hadbeenissuedin80countriesandeconomies,58morethanin2011.

Thetopthreecountriesforthetotalnumberofcertificatesandgrowthinnumberofcertificatesin2014wereGermany,FranceandSpain.

ThetablebelowsummarizesthestatisticsoftheISO50001certificationsaroundtheworld.

Standard Number of certificates in 2014

Number of certificates in 2013 Evolution Evolution in %

ISO 50001 6,778 4,826 1,952 40%

ISO50001//ENERGYMANAGEMENTSYSTEM 3

ISO50001isbasedonthePlan-Do-Check-Act(PDCA)continualimprovementframeworkandincorporatesenergymanagementintoeverydayorganizationalpractices.Inthecontextofenergymanagement,thePDCAapproachcanbeoutlinedasfollows:

• Plan:conducttheenergyreviewandestablishthebaseline,energyperformanceindicators(EnPIs),objectives,targetsandactionplansnecessarytodeliverresultsthatwillimproveenergyperformanceinaccordancewiththeorganization'senergypolicy;

• Do:implementtheenergymanagementactionplans;• Check:monitor andmeasureprocessesand the key characteristicsof operations that determine energy

performanceagainsttheenergypolicyandobjectives,andreporttheresults;• Act:takeactionstocontinuallyimproveenergyperformanceandtheEnMS.

WHOHASBENEFITEDFROM50001SOFAR?

Bentley,Coca-Cola,DeltaElectronicsinChina,SchneiderElectricofFrance,theDahanuThermalPowerStationinIndia,andLCDTVmakerAUOptronicsCorpofTaiwan,ProvinceofChina,arejustsomeoftheorganizationsthathavereportedbenefitsofusingISO50001.

Industry(51%worldenergyuse)–TheISO50001standardformachinesandequipment,combustionengines,refrigerationandairconditioning,automationsystems,industrialfans,fluidpowersystems,compressors,airandgascleaningequipment,etc.,increaseperformanceandeffectivenesstoreducepowerconsumption.

Transport(27%worldenergyuse)–TheISO50001standardforships,aircraft,roadvehicles,motorcyclesandmopedsaddressissuessuchasfuelconsumptionandemissions.TheISO50001standardforelectricandnaturalgasvehicles,andfuellingstations,willhelpdisseminatethiscleanertechnologyaroundtheworld,facilitatingeconomiesofscale.

Commercialandresidentialsector(22%worldenergyuse)- The ISO 50001 standard includesdesign,construction,operationandmaintenancethathelpreduceenergyconsumptioninbuildings,whileensuringanacceptableindoorenvironment.Theycover areas such as thermal performance, insulation, materials and products,components and elements, energy use calculation, climatic data, ventilation,energyconservation,sustainability,carbonmetrics, lighting,refrigerationandair-conditioning.

Energy policy

Energy planning

Implementation and operation

Monitoring measurement and analysis

Nonconformities, correction, corrective and

preventive action

Internal audit of the EnMS

Management review

ContinualImprovement

Checking

ISO50001//ENERGYMANAGEMENTSYSTEM4

Industry 51%Transport 27%Commercial and residencial sector 22%

ISO50001//ENERGYMANAGEMENTSYSTEM 5

ANOVERVIEWOFISO50001:2011ISO50001providesguidelinesonhowtodesignandimplementanEnergyManagementSystemthatmeetsthegoalsandobjectivesofreducingenergyconsumptionandincreasingefficiency.

ThecomponentsrequiredforaneffectiveEnMSincludetheenergypolicyandsettingofobjectives,targetsand action plans. ISO 50001 allows organizations to meet their energy policy requirements, and takewhateveractionnecessarytoimproveupontheirenergyperformance.

Howtoensureenergyefficiency?Organizations shall consider the following guidelines included in themain clauses of this InternationalStandardtohelpensureenergyefficiency.

It’susedtoimproveanexistingbusinessprocess.

KEYCLAUSESOFISO50001:2011Clause4.1:GeneralRequirementsClause4.2:ManagementResponsibilityClause4.3:EnergyPolicyClause4.4:EnergyPlanningClause4.5:ImplementationandOperationClause4.6:CheckingClause4.7:ManagementReview

Eachofthesekeyactivitiesisoverviewedbelow.

Clause 4.1: General Requirements

The organization shall establish, document, implement,maintain and improve an energymanagementsystembasedonISO50001,anddefineitsscopeandboundaries.

What is an Energy Management System?An Energy Management System is a set of interrelated or interacting elements to establish an energy policy, energy

objectives, processes and procedures to achieve those objectives.

Clause 4.2: Management Responsibility Top management shall demonstrate its commitment to support the energy management system and to continuallyimproveitseffectiveness,through:• Anenergypolicy;• Amanagementrepresentativeandanenergymanagementteam;• Resources(humanresources,specializedskills,technology,financialresources);• Thescopeandboundariesoftheenergymanagementpolicy;• Communication;• Theestablishmentofenergyobjectivesandtargets;and• Managementreviews.

Clause 4.3: Energy Policy

Theenergypolicyrecapstheclient’sbestapproachforidentifying,capturing,andtrackingenergysavingsand prevention of costs. The energy policy states the organization's commitment for achieving energyperformance and improvement. In addition, it ensures appropriateness to the nature and scale of theorganization'senergyuseandconsumption.

Clause 4.4: Energy Planning

Theenergyplanningprocessisacriticalphaseasitinvolvestheenergymanagementsystem’simprovementandperformance,aftercarryingoutthefollowingrequirements:• Meetinglegalandotherrequirements• Developmentofanenergyreview• Establishmentofanenergybaseline• Identificationofenergyperformanceindicators• Executionofenergyobjectives,targetsandactionplans

Clause 4.5: Implementation and Operation

Itisrecommendedfortheorganizationtousetheperformedactionplansandotheroutputsresultingfromtheplanningprocess,fortheimplementationandoperationoftheenergymanagementsystem.

Theprocessesinvolvedintheimplementationandoperationphaseare:• Competence,trainingandawareness,• Communication,• Documentation,• Operationalcontrol,and• Design.

Clause 4.6: Checking

Toensurethattheimplementationoftheenergymanagementsystemwassuccessful,necessaryactionsshallbetaken,suchas:• Monitoring,measurementandanalysisofthemanagementsystem’soperations,• Evaluationofcompliancewithlegalandotherrequirements,• Conductinganinternalaudit,• Addressingnonconformitiesbymakingcorrections,takingcorrectiveactionsandpreventiveactions,

and• Controllingofrecords.

Clause 4.7: Management Review

Theinputsandoutputsofthemanagementreviewplayanimportantroleinensuringtheenergymanagementsystem’scontinuingsuitability,adequacyandeffectiveness.

ISO50001//ENERGYMANAGEMENTSYSTEM6

ISO50001//ENERGYMANAGEMENTSYSTEM 7

Although ISO 50001 is closely associated to ISO 14001,this standard highlights more importance on the continual improvement of energy performance, including energyefficiency,energyuseandconsumption.

ISO50001caneitherbeusedincombinationwithISO14001,tohelpidentifyadditionalopportunitiesforenergysavings,orasasinglemanagementsystemstandardforthoseorganizationsconcerned about energy costs and their environmental impact.

EnergyisoneofthepillarsofISO14001.

The exclusive elements of ISO 50001 are all focused ontechnicalactivities(4.4.3Energyreview,4.4.4Energybaseline,4.4.5 Energy performance indicators, 4.5.6 Design, 4.5.7Procurement of energy services, products, equipment andenergy).

Thetablebelowdisplaystherelationshipoftheclausesinbothstandards.

ISO 50001

Carbon Management

ISO 14001

ISO 50001 OPPOSED TO ISO 14001____

LinkofISO50001withotherstandardsISO50001canbeeasily linkedwithISO9001andISO14001. ISO50001focusesonenergyefficiency,whilstISO14001emphasizesthesignificantenvironmentalimpactsofanorganization.Both standards can be either individually implemented or with each other. These standards can also be integratedwithothermanagementsystemstandards,suchasISO9001.

Inaddition,otherInternationalStandardsrelatedtoenergymanagementare:

• ISO12655,EnergyPerformanceofbuildings• ISO13153,Frameworkofthedesignprocessforenergysaving• ISO/TC180,Solar energy• ISO/TC238,SolidBiofuels• ISO14067,Greenhouse gas emissions• ISO13790,Calculationofenergyuseforheatingandcooling• ISO18292,Energyperformanceoffenestration(windows)systems

ISO 50001 ISO 14001

4.2.2Managementrepresentative 4.4.1Resources,roles,responsibilityandauthority

4.4.2Legalrequirementsandotherrequirements 4.3.2Legalandotherrequirements

4.5.2Competence,trainingandawareness 4.4.2Competence,trainingandawareness

4.5.4.1Documentationrequirements 4.4.4 Documentation

4.5.4.2Controlofdocuments 4.4.5Controlofdocuments

4.5.5 Operational Control 4.4.6Operationalcontrol

4.6.2Evaluationofcompliancewithlegalrequirementsandotherrequirements 4.5.2Evaluationofcompliance

4.6.3InternalauditoftheEnMS 4.5.5 Internal audit

4.6.4Nonconformities,correction,correctiveaction and preventive action

4.5.3Nonconformity,correctiveactionandpreventiveaction

4.6.5Controlofrecords 4.5.4Controlofrecords

4.6.1Monitoring,measurementandanalysis 4.5.1Monitoringandmeasurement

WHATARETHEBUSINESSBENEFITSOFANENERGYMANAGEMENTSYSTEM?

____Aswithallthemajorundertakingswithinanorganization,itisessentialtogainthebackingandsponsorshipoftheexecutivemanagement.Byfar,thebestwaytoachievethisistoillustratethepositivegainsofhavinganeffectiveenergymanagementprocessinplace,ratherthanhighlightthenegativeaspectsofthecontrary.

Todayaneffectiveenergymanagementsystemisnotaboutbeingforcedintotakingactiontoaddressexternalpressures,butitsimportancereliesonrecognizingthepositivevalueofenergymanagementwhengoodpracticeisembeddedthroughoutyourorganization.

Predictableandeffectiveresponse to energy

performance

Protectionofpeople

Maintenanceofvitalactivitiesoftheorganization

Better understandingoftheorganization

Cost reduction Respectoftheinterestedparties

Protectionofthereputationand brand

Confidenceofclients

Competitiveadvantage

Legalcompliance

Regulatorycompliance

Contractcompliance

ISO50001//ENERGYMANAGEMENTSYSTEM8

ISO50001//ENERGYMANAGEMENTSYSTEM 9

Theadoptionofaneffectiveenergymanagementprocesswithinanorganizationwillhavebenefitsinanumberofareas,examplesofwhichinclude:

• Rootforintegratingenergyefficiencyintomanagementpractices;• Developingbetteruseofexistingenergy-consumingassets;• Benchmarking,measuring,documenting,andreportingenergyintensityimprovementsandtheirimpacton

greenhousegasemissions;• Effectivecommunicatingonthemanagementofenergyresources;• Energymanagementbestpracticesandgoodenergymanagementbehaviors;• Evaluatingandprioritizingtheimplementationofnewenergy-efficienttechnologies;• Provisionofaframeworkforpromotingenergyefficiencythroughoutthesupplychain;and• Improvementofenergyprocurementpractices.

WHYISPECBAWORTHYCHOICE?____

Implementation of EnMS with IMS2 methodology

ConsideringthewelldocumentedbenefitsofimplementinganEnergyManagementSystembasedonISO50001,makes the proposal easier to decide on.

Mostcompaniesnowrealizethatitisnotsufficienttoimplementageneric,“onesizefitsall”energyplan.Foran effective response, with respect to maintaining the energy management system, such a plan must becustomizedtofittoacompany.Amoredifficulttaskisthecompilationofanimplementationplanthatbalancestherequirementsofthestandard,thebusinessneedsandthecertificationdeadline.

ThereisnosingleblueprintforimplementingISO50001thatwillworkforeverycompany,buttherearesomecommon steps that will allow you to balance the frequent conflicting requirements and prepare you for asuccessfulcertificationaudit.

PECBhasdevelopedamethodology(pleaseseeexamplebelow)forimplementingamanagementsystem;the“IntegratedImplementationMethodologyforManagementSystemsandStandards(IMS2)”,anditisbasedonapplicablebestpractices.Thismethodology isbasedontheguidelinesof ISOstandardsandalsomeetstherequirementsofISO50001.

1.1 Initiating the EMS

1.2 Understanding the organization

1.3 Analyze the Existing System

1.4 Leadership and Project Approval

1.5 Scope

1.6 Environmental Policy

1.7 Environmental Policy

1.8 Objectives, Targets and Programs

2.1 Resources, Roles, Responsibility,

2.2 Document Management

2.3 Design of Controls and Procedures

2.4 Communication

2.5 Awareness and Training

2.6 Operational Controls

3.1 Monitoring, Measurement, Analysis and Evaluation

3.2 Evaluation of Compliance

3.3 Internal Audit

4.1 Treatment of Non-conformities

4.2 Continual Improvement

1. Plan 2. Do 3. Check 4. Act

2.7 Emergency Preparedness

3.4 Management Review

IMS2isbasedonthePDCAcyclewhichisdividedintofourphases:Plan,Do,CheckandAct.Eachphasehasbetween2and8stepsforatotalof21steps.Inturn,thesestepsaredividedinto101activitiesandtasks.This‘PracticalGuide’considersthekeyphasesoftheimplementationprojectfromthestartingpointtothefinishingpointandsuggeststheappropriate‘bestpractice’foreachone,whiledirectingyoutofurtherhelpfulresourcesasyouembarkonyourISO50001journey.

EnMS Projects

Plan

Do

Check

Act

4 Phases

21 Steps

101 Activities

Undefined tasksThesequenceofstepscanbechanged (inversion,

merge). For example, the implementation ofthe management procedure or documented informationcanbedonebefore theunderstandingof the organization. Many processes are iterativebecause of the need for progressive developmentthroughouttheimplementationproject;forexample,communication and training.

Byfollowingastructuredandeffectivemethodology,anorganizationcanbesure itcoversallminimumrequirements for the implementation of amanagementsystem.Whatevermethodologyused,theorganizationmustadaptittoitsparticularcontext(requirements, size of the organization, scope,objectives,etc...)andnotapplyitlikeacookbook.

The sequence of steps can be changed (inversion, merge). For example, the implementation of themanagement procedure for documented information can be done before the understanding of theorganization.Manyprocessesareiterativebecauseoftheneedforprogressivedevelopmentthroughouttheimplementationproject;forexample,communicationandtraining.

Byfollowingastructuredandeffectivemethodology,anorganizationcanbesureitcoversallminimumrequirements for the implementation of a management system. Whatever methodology used, theorganizationmustadaptittoitsparticularcontext(requirements,sizeoftheorganization,scope,objectives, etc...)andnotapplyitlikeacookbook.

ISO50001//ENERGYMANAGEMENTSYSTEM10

ISO50001//ENERGYMANAGEMENTSYSTEM 11

STEPSFOROBTAININGAPECBCERTIFICATION

For organizations: For individuals:

1. Implement the management system 1. Participate in the training course

2.Performinternalauditandreviews 2.Registerforthecertificationexam

3.Selectpreferredcertificationbody 3.Sitforthecertificationexam

4.Performapre-assessmentaudit(optional) 4.Applyforthecertificationschemeuponsuccessfulcompletion

5.Performthestage1audit 5.Obtaincertification

6.Performthestage2audit(on-site)

7.Performafollow-upaudit(optional)

8.Registerthecertification

9. Assure continual improvement by conducting surveillance audits

ForfurtherdetailsrelatingthetypesoftrainingsandcertificationsthatPECBoffers,pleasevisitourwebsite:www.pecb.com

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