ISO50001: A Systematic Approach to Understanding and Managing an Organisation’s Energy Consumption
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ISO50001: 2018 Energy Management Systems, is an international standard created by the International Organisation for Standardisation (ISO). It is a scalable business tool which can be applied to any size of organisation from any sector. Achieving ISO50001 certification allows an organisation to create, implement, maintain, and improve a flexible and robust Energy Management System (EnMS).
Why ISO50001?
An EnMS comprises a set of policies and procedures that are subject to a process of continual improvement, ensuring alignment with the vision and objectives of a business. In this way, a business can:
- Lower energy costs, manage risks and reduce exposure to energy price increases.
- Increase productivity leading to enhanced competitiveness and market position.
- Reduce greenhouse gas emissions.
- Essential Net Zero transition tool.
- Enable wider legislative compliance.
Research completed by the Department of Energy & Climate Change shows that a systematic and consistent approach to energy management helps businesses to reduce their annual energy costs by up to 20%. Moreover, investing in the energy efficiency measures identified by an ISO50001 system has been shown to have a much higher internal rate of return of around 48% compared with a typical business investment of only 12%.
A large proportion of the opportunities identified using an ISO50001 system will have a low or zero cost, such as behavioural interventions, heating and lighting optimisation, and eco driver training which are able to save between 5% and 10% of the annual energy cost.
What does an ISO 50001 EnMS look like?
At the heart of an ISO50001 EnMS is the 4-step operating principle that locks a cycle of continuous improvement in to the management system. The Plan-Do-Check-Act cycle ties together the actions needed to create and manage an effective EnMS.
1. Plan (Aims)
Establish top-level management commitment to the system. Set working objectives, baselines and performance indicators to create the policy.
2. Do (Implement)
Implementation of policy actions across the organisation. Establish 360° communication of all objectives to ensure stakeholder awareness.
3. Check (Review)
Periodic review by the management team to analyse the results of the system, comparing them with the targets and policy objectives.
4. Act (Adaptation)
Take corrective actions if the objectives have not been met. Modify systems for achieving objectives, and review objectives if the targets are not achievable.
What are some of the requirements of an ISO50001 EnMS?
- Defining the Scope of the System
The scope of the standard is set entirely by the organisation. The international standard can be applied to any size organisation in any sector and can cover the whole organisation or just defined parts of an organisation. - Management Responsibility
Top level management have an essential role in the success of the EnMS. Key commitments include the consignment of adequate resources to establish and maintain the standard as well as regular management reviews ensuring that the targets and policy objectives are being met. - Energy Policy
A formal energy policy encapsulates the organisation’s commitment to the goals and objectives of the EnMS, forming the basis for both internal and external review and validation. The energy policy will be appropriate for the size and nature of the business and can be reviewed and updated at any time. - Energy Planning
Conducting a thorough analysis of current energy sources, areas of significant energy use and historic and current consumption patterns will enable an organisation to set a robust energy baseline and create a range of reliable Energy Performance Indicators (EnPIs). These will go on to inform the organisation’s energy objectives, energy targets and energy management action plan. - Implementation and Operation
In order to deliver the energy management action plan, the organisation will require stakeholder commitment and resources. This will typically include a dedicated workforce who are suitably qualified and experienced, as well as developed communication streams. This will allow for distribution of the plan and its intended outcomes to an appropriate internal audience. - Checking and Management Review
The EnMS must be regularly audited and checked against the requirements of the standard. A top-level management review must also take place periodically to ensure that the policy, EnPIs, objectives and targets, as well as the action plan are aligned and still applicable. A certified EnMS will require a series of remote and in-person compliance audits to be completed by an external organisation. These will examine in detail the level of compliance between your EnMS and the published International Standard each year.
ISO50001 Implementation
An organisation-wide EnMS will take between 6 and 9 months to develop and implement, and up to 12 months if the system progresses on to the certification stage. The following is an example timeline showing the typical actions required;
- 1-2 months – Training, planning, defining the EnMS, perform a gap analysis across existing systems and policies.
- 2-3 months – Documentation, certification body selection, implementation of draft system.
- 4-5 Months – Implementation, operation of system, evidence gathering.
- 6-7 Months – Pre-assessment, internal audit, top management review, corrective actions.
- 8-9 Months – Stage 1 external audit, Stage 2 external audit, corrective actions.
- 9+ Months – Audit follow up, surveillance audits, certification.
If you are interested in developing an ISO50001 Energy Management System across your organisation, NUS' Energy and Sustainability Services department can support.
How NUS can Help
Our UK office has a dedicated team committed to international Energy and Sustainability Services (ESS). Our ESS team can carry out energy and carbon compliance, decarbonisation road-mapping, and support with implementation of onsite generation, meeting the requirements of ISO50001, the Energy Efficiency Directive Article 8 (EED A8), Energy Savings Opportunity Scheme (ESOS), Climate Change Agreement (CCA), Carbon Reduction Plan (CRP) and Streamlined Energy and Carbon Reporting (SECR) and much more.
Please contact NUS online or email UKSustainability@nusconsulting.co.uk for more information.
More: Energy Market Commentary, Carbon Reduction Plan (CRP), Climate Change Agreement (CCA), Decarbonization, Energy Efficiency Directive Article 8 (EED A8), Energy Savings Opportunity Scheme (ESOS), Streamlined Energy and Carbon Reporting (SECR)
