SGS EnMS Webinar - 25052021

5/25/2021
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Webinar
Towards
sustainable energy
management with
ISO 50001
Webinar | Mohd Noor Bin Hasan | 25 May 2021 (Version 1)

2
©SGS (Malaysia) Sdn Bhd

All rights reserved. Unless otherwise specified, no part of this publication may be reproduced or utilized in any form or by any
means, electronic or mechanical, including photocopying and microfilm, without permission in writing from SGS (M) Sdn Bhd. 1
5/25/2021
Speaker
Mohd Noor Bin Hasan
Product Manager – Energy & Environment
SGS Malaysia Sdn Bhd
mohdnoor.hasan@sgs.com
Mohd Noor is an experienced auditor in auditing EnMS and

EMS including assurance of environmental reports and carbon
footprints. He also previously involved in Verification and
Validation of Clean Development Mechanism (CDM) projects
in Malaysia.
Agenda
 What is ISO 50001?
 What are the benefits of ISO 50001?
 How can you implement ISO 50001 and integrate with
other management systems standards?
 The ISO 50001 certification process
 Conclusion
 Q&A
© SGS Société Générale de Surveillance SA – 2021 – All rights reserved -

SGS is a registered trademark of SGS Société Générale de Surveillance SA
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What is ISO 50001?

 This standard is a sustainable business tool
that supports organizations in all sectors by
enhancing energy use through the
development of Energy Management System
(EnMS)
 ISO 50001 specifies requirements for

establishing, implementing, maintaining and
improving an EnMS
 This standard demands continual

improvement to achieve desired goals
What are the benefits to implements EnMS as per ISO

50001?
Structured approach to the Right First
Energy cost saving Time methodologies
Reduced greenhouse-gas emissions Improve corporate image and credibility

and carbon footprint among stake holder, regulators,
customers, prospective clients and the
public
Increased energy awareness among
staff
Improved operational efficiencies

Greater knowledge of equipment efficiency
Informed decision making processes from Improved maintenance practices

system design through to operation

5/25/2021
The high level structure of ISO 50001

 A major change in the new ISO 50001:2018 is the
introduction of the “High Level Structure“ (HLS). This
structure was created by the “International
Organization for Standardization“ (ISO) to
standardize new or revised ISO management
standards.
 The HLS includes a uniform general structure,
common regulations and core statements as well as
standardized terms. This facilitates the development
of Integrated Management System (IMS) by
improving the compatibility of different standards.
 Some standards, such as ISO 9001, ISO 14001, and
ISO 45001 are already have an HLS structure.
Uniform structure of the HLS

01 Scope
02 Normative References
03 Terms and definitions
04 Context of the Organization
05 Leadership
06 Planning
07 Support
08 Operation
09 Performance Evaluation
10 Improvement

5/25/2021
The structure of ISO 50001:2018

00 Introduction
01 Scope
02 Normative References
03 Terms and definitions
3.1 Terms related to the organization
3.2 Terms related to the management system
3.3 Terms related to requirement
3.4 Terms related to performance
3.5 Terms related to energy
4. Context of 4.3 4.4

4.1 4.2
the
organization  Understanding the  Understanding the  Determining the scope  Energy
organization and its needs and and boundaries of the management
context expectation of energy management system
interested parties system
5.1 5.2 5.3

5. Leadership
 Leadership and  Energy policy  Organizational roles,
commitment responsibilities and
authorities
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6.1 6.2 6.3 6.4 6.5 6.6

6. Planning
 Actions to  Objectives,  Energy review  Energy  Energy  Planning for
address risks energy performance baseline collection of
and targets and indicators energy data
opportunities planning to
achieve them
7.1 7.2 7.3 7.4 7.5

7. Support
 Resources  Competence  Awareness  Communication  Documented
information
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8.1 8.2 8.3

8. Operation
 Operational planning  Design  Procurement
and control
9. 9.3
9.1 9.2
Performance
evaluation  Monitoring,  Internal audit  Management review
measurement, analysis
and evaluation of
energy performance
and the EnMS
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10. 10.1 10.2

Improvement  Nonconformity and  Continual
corrective action improvement
Annex A
• Guidance for Use
Annex B
• Correspondence between ISO 50001:2011 and ISO 50001:2018
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How to Get
Started?
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How to get started?

Step 1 of 12: Conduct Self-assessment
To identify the main priorities of your organization regarding the implementation process
Key questions are:

 Does the top management know that significant energy cost savings can be achieved by simple low- cost
measures without financial investment?
 Is the top management committed to energy cost reduction and is there an energy policy in place agreed on by
top management?
 Have roles, responsibilities and authority been identified for all persons having an influence on significant energy
uses and is this documented?
 Have the significant energy uses been quantified and documented?
 Has a baseline of energy performance been established can be measured?
 Have indicator(s) or metrics been identified to use in measuring progress against your baseline?
 Have the organization’s energy objectives and targets been identified and documented?
 Have energy action plans been established?
 Is the energy management system evaluated at least once a year and are improvements made based on the
results of the evaluation?
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How to get started?

Step 2 of 12: Securing Top Management
Commitment
It is crucial that any effective energy management
system has the full commitment of top management of
the organization
Securing management support can be completed by

adding some convincing data and information on:
 Trends of energy use, energy costs and other energy related
issues;
 Saving data estimations from available generic saving
measure data;
 Benchmarking data from the sector our organization is part of;
 Case studies describing energy management achievements.
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Key factor for the

effectiveness of
energy management:
COMMITMENT FROM THE TOP
MANAGEMENT
 deciding Scope and Boundaries
 creation of Energy Policy
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How to get started?

Step 3 of 12: Build the Business Case
By completing the business case, the actual status of
energy use and related issues is established, providing
the starting point for the development of an energy
management policy
Necessary information for the business case are:

 The total amount of energy consumed, divided into fuels and
electricity
 Energy prices
 Production data for the purpose of knowing growth or
reduction rates in the future
 If relevant benchmarks are available for the organizations
sector, they can provide evidence that improvement is
achievable
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How to get started?

Step 4 of 12: Establish Scope and
Boundaries
It is necessary to define what will be covered by the
EnMS. Sometimes an organization will decide not to
include some aspects
Examples of the decisions to be made on scope and
boundaries are:
 Are all the buildings in the facility to be included?
 Are all factories in the organization to be included? This will only
apply if a system is being developed at a corporate level. It might be
decided to pilot the concept in one or a small number of facilities.
 Are all departments included?
 Are all processes included?
 Are all energy sources included?
 Is transport included?
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How to get started?

Step 5 of 12: Appoint the Management
Representative (MR)
The MR is responsible for the establishment,
implementation and improvement of the energy
management system. He or she is appointed by top
management and given the required authority and
necessary resources to accomplish the task of
implementation
The management representative should have the following
responsibilities at a minimum:
 Implementing the energy management system;
 Reporting to top management on the performance of the energy
management system;
 Reporting to top management on the energy performance of the
organization;
 Formation of an energy management team whenever appropriate and
possible;
 Plan and direct energy management activities.
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How to get started?

Step 6 of 12: Establish the Energy
Management Team
The role of the team is to assist the MR throughout
the process of implementing the EnMS
The team may include any or all of the following:
 Management representative;
 Energy manager or energy engineer (in smaller organizations, the
management representative may also be the energy manager or the
environmental, health and safety officer or all three);
 People who have shown interest and whose assistance will benefit a
smooth implementation;
 A representative from each key area with significant energy use, so that all
parts of the organization are represented. The size of the team will vary with
the scale and complexity of the organization and its energy use;
 Financial manager;
 Production and/or operations manager(s);
 Quality and occupational health and safety manager;
 Communications or training staff;
 Other relevant departments who may have an impact on energy use or the
potential to help.
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How to get started?

Step 7 of 12: Establish Roles, Responsibility
andsuccessful
The Authority implementation of an energy
management system will require the commitment and
effort of staff at every level of the organization
When documenting roles and responsibilities, it is

important to define clearly who has authority for which
elements of the EnMS. This will avoid any conflict or
misunderstanding between, for example, production and
maintenance.
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How to get started?

Step 8 of 12: Define the Energy Policy
The energy policy statement is an official document with
which top management demonstrates its commitment
and support to the EnMS for achieving continual energy
performance improvement
The policy requires the following:

 It needs to be appropriate to the nature and scale of the
organization’s energy use
 It needs to be reviewed and updated regularly (e.g.
annually) to ensure that it remains relevant. This review will
usually be part of the regular management review of the
overall EnMS.
 It needs to be communicated to all employees and
contractors to demonstrate to them that the senior
management is committed to its EnMS.
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How to get started?
Step 9 of 12: Establish the Structure for

EnMS Implementation
A level of planning and project management will be
required for the implementation of a successful
EnMS
The plan should include keeping the EnMS as simple

as possible in the first instance. Complexity can be
added with experience in future years though it will
probably be found that simplicity is always better.
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How to get started?
Step 10 of 12: Create Organizational

Awareness
It is important that all staff and contracted employees
of the organization are aware of the organization’s
commitment to improved energy performance. Many
organizations will include awareness training for staff
on the importance of energy management and
energy cost reduction
Many also include the context of climate change and

greenhouse gas (GHG) emissions and the
connection between the organization’s energy use
and GHG emissions.
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How to get started?

Step 11 of 12: Maintain Your Documents
It is necessary for effective management and operation
of the EnMS that many items are documented
The following is a list of typical documents that may be required:
 Energy policy
 Energy review
 Copies of energy audit or assessment reports
 Objectives, targets and action plans
 Training plans
 List of critical operating parameters
 Technical drawings of systems and equipment including process
and instrumentation diagrams (P&IDs) and/or process flow
diagrams
 Technical specifications of equipment
 Purchasing specifications for energy using equipment
 Energy Performance Indicators (EnPIs)
 Baseline
 Operator logs
 Maintenance and service records
26  Minutes of energy meetings
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How to get started?

Step 12 of 12: Control Your Documents
It doesn’t matter if the documents are paper or
electronic, the same principles apply
Documents should be:
 Approved for use to ensure that they are correct. This
approval should be in advance of use of the document.
 Periodically reviewed and updated to ensure that they are
not out of date. Many documents may not require updating
but it is necessary to periodically review them to be sure of
this.
 The current revision should be clearly identified and old
revisions filed in an archive to ensure that the latest version
is the one in use.
 They should be legible.
 They should be readily located and identifiable
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How to Develop
Energy
Information and
Plans?
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Energy planning process

Planning Inputs Planning Planning Outputs
Strategic
6.1 Actions to address risks and opportunities
•Internal and external •Identification of risks •Actions to address
issues Needs and and opportunities risks and
expectations of opportunities
interested parties Tactical
6.3 Energy review
Based on energy • Energy use and
consumption and/or identified consumption trends
opportunities for energy • Future energy use and
• Current energy types performance improvement,
• Past and current energy consumption
determine SEUs • Opportunities for energy
use For SEUs, determine:
• Past and current energy performance improvement
• Relevant variables and • SEUs
consumption • Current energy • EnPI(s)
performance • EnB(s)
• Personnel • Energy objectives, energy
Determine and prioritize targets, and action plans
opportunities for improving • Energy data collection plan
Energy performance
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How to develop energy information and plans?
Energy Planning
Process Flowchart
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How to develop energy information

and plans?
Step 1 of 8: Acquire and Analyze Energy
Data
Ideally the past three years of energy bills would be
used to establish these trends. One useful method is to
develop annualized trends of energy use. You will also
need to be aware of current energy sources and how
much energy you expect to use in the coming period
These will include electricity, fuel and other sources

identified during the energy review.
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What is energy review?

 A study of energy use and ways to reduce energy
consumption
 Snapshot of energy / mass balance in energy use system
 Identify and analyze the energy use and consumption
through current use and management practices;
 Identify the significant energy use (SEUs) of its process or
activities or facilities and variables affecting the use and
consumption;
 Estimate the future energy use and consumption;
 Identify and propose energy conservation or energy
efficiency opportunities in reducing energy use and
consumption; and
 Client preparation – requirement for Energy Management
System ISO 50001 certification.
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Energy data collection plan
 The plan shall specify:

• The data which is necessary to monitor the
key characteristics
• How and at what frequency the data shall
be collected and retained
 Energy Data includes:

• The relevant variables related to SEUs
• Energy consumption related to SEUs and
to the organization
• Operational characteristics related to SEUs;
• Static factors, if applicable
• Data specified in action plans
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and plans?
Step 2 of 8: Determine Significant Energy
Uses (SEUs)
Once you know which are your most significant energy
uses (SEUs) (i.e. processes, systems, equipment, etc.),
you will focus most of your efforts on those uses
In order to identify your significant energy uses (SEUs),

you need to know how much energy each process or
system uses. Grouping equipment by energy systems
(e.g. process heating, compressed air, steam systems,
etc.) is an important best practice.
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Energy system components

 Heating, Ventilation and Air Conditioning
 (HVAC)
 Lighting
 Electrical Devices
 Office Equipment
Significant energy used (SEUs)

 Heating, Ventilation and Air Conditioning
(HVAC)
 Furnace (industrial)
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and plans?
Step 3 of 8: Establish the Influence of
Various Drivers on Energy Use
Drivers are those activities and/or factors which

cause a change in energy use, e.g. in colder weather
we might use more heat than in warmer weather.
Drivers are also known as energy factors or energy
variables. In ISO50001 they are called energy
variables
The most common drivers are production activity

and weather.
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and plans?
Step 4 of 8: Establish an Energy Baseline
and Determine EnPI
Develop Energy Baselines (EnBs) and Energy
Performance Indicators (EnPIs) for each SEU
 At the simplest level, the baseline could be the total

amount of electricity or kWh per unit of output and
other fuels used in the year ending before the EnMS is
implemented.
 One simple EnPI is the annualized view of usage of
each SEU e.g. total electricity or kWh per unit of
output, boiler fuel, compressed air electricity,
refrigeration electricity, etc.
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and plans?
Step 5 of 8: Identify Legal and Other
Requirements
These will include local and national laws and corporate
or customer requirements. In order to manage your
energy effectively you need to be aware of these
requirements
It is recommended that these requirements be reviewed

regularly (perhaps every six months) and plans be put in
place to ensure compliance with them.
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and plans?
Step 6 of 8. Identify Opportunities For
Improvement
You will need to develop a register (list) of all energy
saving opportunities or ideas. It is important to realize that
this register is a live database and will increase in size on
an ongoing basis. It is the main continual improvement tool
in the EnMS
All ideas that might realistically help to improve energy

performance should be added to the opportunities list once
they have had an initial review by the energy manager.
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Step 7 of 8: Identify People Who May Have a Significant Impact on Energy Use
There are a number of people in all organizations who have a significant impact on your energy
use. These people need to be identified and their level of training or competence evaluated to
ensure that they understand their role and the influence they have on energy use.
These people can include the following:
 Operators of large energy using equipment or processes. They are typically in a position to have a
direct significant impact on energy use by how they operate the equipment or process. They typically
include boiler and other large utility system operators.
 Manufacturing or production process operators.
 Manufacturing or production process managers and engineers.
 Maintenance personnel including crafts people and their supervisors and engineers.
 Security, cleaning and safety personnel. They typically see facilities in a different way and at different
times to most employees. They are often aware of energy waste out of normal working hours.
 People who can influence others. This category includes managers, supervisors, team leaders, etc. It
is important that they understand their roles from an energy perspective and that they use their
positions to positively influence others in the organization.
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Step 8 of 8: Establish Energy Objectives and Targets
An example of an objective might be to train all your utility operators in the energy aspects of
their roles over the next two years. Another would be to improve the efficiency of your steam
system by 10 per cent over the next three years
Objectives Targets Action plans
 Longer term (maybe  Specific  What?

three years)  Measureable  Who?
 Specific  Achievable  When?
 Consistent with the  Relevant  Is it complete?
policy
 Timed  Was it successful?
 Support the objectives
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Objective, target, action plan/program

Reduce 5% total kWh compare with
year 2020
Objective
1. Reduce 2% total kWh for chiller

2. Reduce 3% total kWh for lighting
Target 3. Reduce 3% total kWh for
compressed air system optimization
1. Chiller: setting temp, preventive

Action Plan / Program maintenance, cooling tower
2. Lighting: preventive maintenance,
change to LED lighting, natural day
light
3. Compress air: adjust loading,
leakage management, VSD
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How to Develop
Day-to-Day
Operations?
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How to develop day-to-day operations?

Step 1 of 5: Determine Operational Controls
This is a very critical part of the EnMS. It is the part where you operate your energy using
equipment and where there is often significant opportunity to affect the organization’s
energy performance. It is critical that all SEUs are operated and maintained in the most
energy efficient way feasible. This area is very commonly neglected
Prioritize
SEUs
Use and
Operational review of
training operator
logs
Awareness
Energy of role and
Critical efficient
operating impact on
operation energy
parameters
performance
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How to develop day-to-day

operations?
Step 2 of 5: Ensure Competence and
Awareness of Personnel
You need to ensure that all persons who may have an
impact on your energy performance and in particular
those people who can affect the performance of your
SEUs are appropriately competent and aware of their
roles
All employees and contractors should be aware of your

commitment to improving your energy performance.
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Step 3 of 5: Implement Action Plans
It is part of the day to day operation of the EnMS to ensure that the items scheduled for
completion in the action plan are being addressed, completed and verified to be
performing as expected
These are some common problems are listed here and may be of interest:
 Lack of real management commitment which may lead to people not being really focused on
completing assigned duties in the knowledge that this will have no effect on their own performance
rating.
 Lack of sufficient technical ability to overcome the inevitable barriers that will be encountered.
 “I’m too busy and have other priorities” is an indicator of lack of real management commitment if
this is an acceptable response to delays.
 Lack of finance that should have been addressed when the plans were being agreed at the
planning stage.
 Lack of communication and understanding of expectations. You need to ensure that everyone
understands their own role and your expectations of them.
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Step 4 of 5: Design for Energy Efficiency
It is much easier and cheaper to design good energy performance into a new process or
facility from the beginning than it is to retrofit it later.
The following steps can be used to implement a systematic approach to Energy Efficient
Design (EED):
1 – Challenge 2 – Ensure 3 – Design and 4 – Design and 5 – Design and

energy service operational control challenge challenge challenge controls
is facilitated distribution system generation system
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Design
 Considering lifetime in ISO 50001

means evaluating the value of
energy performance and
business benefits against total
costs over the expected lifetime of
the equipment, building, service,
etc.
 It does not require a lifecycle
analysis or lifecycle management
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How to develop day-to-day

operations?
Step 5 of 5: Define Procurement Practices
and Purchasing Specifications
The procurement or purchasing process in your
organization has an important effect on both the
amount of energy you use and on its cost. It affects
your usage through the purchase of energy efficient
products, services and equipment and your cost both
through reduced usage and through energy purchase
costs.
You should consider this opportunity in preparing your
purchasing methodologies. Many organizations do not
have a systematic approach to this important area.
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How to Determine
Whether the
System is
Performing?
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5/25/2021
How to determine whether the

system is performing?
Step 1 of 5: Measure, Monitor and Analyze
You need to check if you are compliant with all relevant
requirements. A number of times a year you need to
review your list of requirements to ensure that you are
in compliance
The key characteristics of an EnMS that indicate

successful energy performance improvement must be
monitored and measured. These key characteristics
include:
 The outputs from energy planning including action plans.
 Relation between significant energy uses (SEUs) and driving factors.
 Energy performance indicators (EnPIs).
 Effectiveness of the action plans in achieving objectives and targets.
 Monitoring of the effectiveness of operational control.
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Step 2 of 5: Calibrate Instruments
You need to check if you are compliant with all
relevant requirements. A number of times a year you
need to review your list of requirements to ensure that
you are in compliance
The physical calibration activity would normally be

carried out as a maintenance activity under operational
control.
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Step 3 of 5: Evaluate Compliance With Legal
and Other Requirements
You need to check if you are compliant with all
relevant requirements. A number of times a year you
need to review your list of requirements to ensure that
you are in compliance
You also need to monitor changing requirements to

ensure the list is up to date.
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Step 4 of 5: Conduct Internal Audits
An internal audit of an EnMS is an independent,
systematic review of part or an organization’s EnMS.
The purpose of the audit is to determine if the plans,
activities and procedures described in the system are
being conducted in the manner which the EnMS
requires
The process for internal audits can easily be integrated

with other existing management system audit
processes.
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Step 5 of 5: Conduct Management Reviews
The management review should first be held soon after
completion of the initial planning phase and annually
(typically) thereafter
 It should be attended by all the members of the senior

management team including the management
representative and the energy manager.
 Additional attendees may also be appropriate depending on
how the EnMS is structured.
 The format of the meeting will probably be a presentation
by the energy manager or management representative
followed by discussion and decision making.
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EnMS strategic planning flowchart
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5/25/2021
How the certification process works?
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Thank you!
Do you have any questions?
mohdnoor.hasan@sgs.com
cbe.my@sgs.com
+603 7627 0080
© SGS Société Générale de Surveillance SA – 2021 – All rights reserved -

SGS is a registered trademark of SGS Société Générale de Surveillance SA
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5/25/2021

Webinar | Mohd Noor Bin Hasan | 25 May 2021 (Version 1)

©SGS (Malaysia) Sdn Bhd

Mohd Noor is an experienced auditor in auditing EnMS and

© SGS Société Générale de Surveillance SA – 2021 – All rights reserved -

©SGS (Malaysia) Sdn Bhd

What is ISO 50001?

 ISO 50001 specifies requirements for

 This standard demands continual

What are the benefits to implements EnMS as per ISO

Reduced greenhouse-gas emissions Improve corporate image and credibility

Improved operational efficiencies

Informed decision making processes from Improved maintenance practices

©SGS (Malaysia) Sdn Bhd

The high level structure of ISO 50001

Uniform structure of the HLS

©SGS (Malaysia) Sdn Bhd

The structure of ISO 50001:2018

The structure of ISO 50001:2018

4. Context of 4.3 4.4

5.1 5.2 5.3

©SGS (Malaysia) Sdn Bhd

The structure of ISO 50001:2018

6.1 6.2 6.3 6.4 6.5 6.6

7.1 7.2 7.3 7.4 7.5

The structure of ISO 50001:2018

8.1 8.2 8.3

©SGS (Malaysia) Sdn Bhd

The structure of ISO 50001:2018

10. 10.1 10.2

©SGS (Malaysia) Sdn Bhd

How to get started?

Key questions are:

How to get started?

Securing management support can be completed by

©SGS (Malaysia) Sdn Bhd

Key factor for the

How to get started?

Necessary information for the business case are:

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How to get started?

How to get started?

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How to get started?

How to get started?

When documenting roles and responsibilities, it is

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How to get started?

The policy requires the following:

How to get started?

Step 9 of 12: Establish the Structure for

The plan should include keeping the EnMS as simple

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How to get started?

Step 10 of 12: Create Organizational

Many also include the context of climate change and

How to get started?

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How to get started?

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Energy planning process

How to develop energy information and plans?

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How to develop energy information