Energy comes in many forms including electricity, gas, oil and steam and is a resource used by

organizations worldwide. Although energy is becoming increasingly more expensive as the Earth’s non-
renewable resources are used up, the good news is that reducing your energy consumption will not only
reduce your costs, it’ll also reduce your carbon footprint and help reduce your environmental impacts. It
also reduces your reliance on others to provide the energy you need to operate, hence reducing the risk to
your organization.

Implementing an energy management system certified to ISO 50001 includes the need to establish
baseline(s) of energy usage and energy performance indicators as well as the usual objectives and targets
which exist within an environmental management system. There are also specific clauses relating to design
(covering facilities and production lines, etc) and procurement, including specifying energy purchasing
requirements.
By actively considering energy specifications, organizations are encouraged to not only consider where
their current energy is from, and any impacts or risks associated with that, but also where their energy
could come from, such as renewable and onsite sources.
Although organizations generally recognize that energy is a significant cost and an area where
improvements could be made, it is often neglected during the purchasing and design decisions. So,
opportunities for ongoing energy efficiency improvements and financial savings are often missed. ISO
50001 specifically highlights these areas, so your energy management system will ensure that these
opportunities are investigated and improvements realized.

Prior to establishing an energy management system you will need to gather background data on your
energy usage and consumption so that you can determine your energy baseline(s). Without this
information, you won’t be able to complete the requirements of the energy planning section of ISO 50001.
Some energy baselines can be obtained online from your suppliers, such as electricity for those with half
hourly meters. Where installed, automatic meter readings are also available, with larger organizations often
installing these due to their Carbon Reduction Commitment (CRC) requirements. For other baselines, the
data can be logged using manual readings for electricity and gas usage, usually taking readings weekly or
monthly depending on the usage level. Please note, the use of utility bills can cause problems for baseline
data due to estimated readings and varying numbers of days covered in each bill period.
Baselines can also be established for other forms of energy by using invoices from suppliers or fuel card
data if measuring diesel usage
One of the first things you need to decide as an organization is the extent of your system, i.e. its scope and
boundaries. Remember, the definitions for these are given in the standard (‘boundaries are the physical or
site limits and/or organizational limits as defined by the organization whereas the scope is the extent of
activities, facilities and decisions that the organization addresses through an EnMS, which can include
several boundaries’). By setting a clear scope and boundaries, you’ll enable everyone to understand the
coverage of your system.

ISO 50001 clearly states the requirements for both top management (4.2.1) and the management
representative (4.2.2).
To meet these requirements, you need to first agree these commitments (as stated in points a to j in clause
4.2.1) with your top management and make sure they can be demonstrated once your system is
established.
A management representative will need to be appointed by top management. This should be a person who
has the appropriate skills and competence to carry out the required tasks. Their role should be clearly
defined to cover points a to h in clause 4.2.2.
Again, your system should be able to demonstrate that these commitments are in place.

energy policy. This needs to be defined by your top management and must be appropriate to the nature
and scale of your organization’s energy use and consumption. There are certain commitments which you
need to clearly state within your energy policy. These are:
• A commitment to continual improvement in energy performance
• A commitment to ensure the availability of information and of necessary resources to achieve objectives
and targets
• A commitment to comply with applicable legal and other requirements to which the organization
subscribes related to its energy use, consumption and efficiency

In addition to these commitments, the policy also has to meet the other requirements as defined in points a
to h of clause 4.3.
These include the need to ensure it supports the purchase of energy efficient products and services, and
design for energy performance improvement. This links well to the later clauses on design (4.5.6) and
procurement (4.5.7).
Your policy will need to be documented and communicated to all levels within the organization. Unlike other
common standards, you can decide whether or not to make the policy available externally.
The energy policy is the cornerstone of your system and should clearly lay out your commitments, aims and
expectations for your energy management system.

Energy Planning:

Now that the basis has been established for your system, we move onto the main planning part of the
standard. You now need to conduct and document an energy planning process. This needs to be
consistent with your policy requirements and drive continual improvement in your energy performance. It
also needs to involve a review of your activities that can affect your energy performance (similar to an
environmental aspect assessment in ISO 14001).
Legal and other requirements applicable to your energy use, consumption and efficiency need to be
identified (clause 4.4.2). These may well form part of a current EMS as ISO 14001 has a similar clause to
identify applicable environmental legal and other requirements and as energy is generally treated as an
environmental aspect there is no need to repeat the work. For the majority of organizations, this is usually
demonstrated through the introduction of a list, or register, of applicable legal and other requirements.
Although the standard does not require this to be documented, it is often the easiest way to demonstrate
that you have identified all the necessary requirements. Once identified you need to ensure that your
organization has implemented any necessary requirements to make sure you are compliant.
The next stage is to conduct your energy review (clause 4.4.3). This requires your organization to analyze
your energy use and consumption based on measurement and other data, i.e. identify current energy
sources and evaluate past and present energy use and consumption.
Once this analysis is complete, you then need to use the output to identify the areas of significant energy
use (facilities, equipment, systems, processes and personnel). Any applicable variables for these significant
energy uses should also be identified, such as temperature or production levels. You then need to
determine the current energy performance for significant energy uses and estimate your future energy use
and consumption.
Finally, your organization is required to identify, prioritize and record opportunities for improving energy
performance. These opportunities can include your energy sources, so you may want to consider potential
renewable energy opportunities such as wind or solar
An energy baseline(s) needs to be established using the information from the initial energy review. These
should cover a time period suitable for your organization. The amount of energy baseline(s) depends upon
the size and complexity of your organization and how far you want to split up your energy use and
consumption for monitoring of your energy performance. These baselines will be used to determine any
improvements in energy performance as your system develops. Going forward, they need to be altered as
required (i.e., due to major changes to processes, operational patterns or energy systems).
Energy performance indicators (EnPIs) must then be set which are appropriate for monitoring and
measuring your energy performance. You will also need to record your methodology for determining and
updating these EnPIs. They will need to be reviewed and compared against your energy baseline(s) as
appropriate to allow you to demonstrate improvement. Try to set these as stretching but realistic levels so
they are neither too easily met, nor impractical to achieve. As with other management systems, the final
part of planning your system, is to set objectives and targets. Within ISO 50001requirements, there also
needs to be documented action plans established, implemented and maintained to show how they will be
achieved. The action plans should include allocation of responsibilities, timescales and statements on how
any energy performance improvement will be verified and the method of verifying the results.

Energy Planning:

Energy planning and its elements described below form the core of the EnMS. The first step is the energy
review which includes an inventory of past and present energy use, a list of the variables affecting energy
consumption, a definition of what constitutes a ‘significant energy use’, and an analysis of these factors. It
is followed by the selection of energy performance indicators. The final outcome is the definition of an
energy baseline
The energy review should be documented in a report detailing the energy consumption structure, the
improvement proposals and the intended time schedule for implementation, as well as all supporting
technical data.
Energy planning implies an inventory of all significant energy consuming activities. In determining the scope
of energy consuming activities to be taken into account, consideration needs to be given to the inclusion or
exclusion of energy consumed by third parties on behalf of the business.
Energy consumption figures should, preferably, be established on the basis of actual plant data although
design data may be used as a second choice. A critical review of the inventory may be carried out to
identify the most significant energy consumers which might warrant further analysis. Definition of a
‘significance’ threshold becomes an important matter in this respect. When first implementing an EnMS, a
practical approach may be to first set the significance threshold at a fairly high level in order to focus initially
on the larger energy consumers, leaving the smaller ones to be dealt with in later reviews and/or cycles.

The energy review invariably results in a large number of proposals that need to be prioritized. Clear
prioritization criteria may be appropriate at the outset. They are usually based on a combination of saving
potential and financial return where significant costs are involved. The 80/20 rule will generally apply, i.e.
20% of the proposals providing 80% of the potential savings. The energy review should be documented in
a report detailing the energy consumption structure, the improvement proposals and the intended time
schedule for implementation, as well as all supporting technical data.

Energy baseline
The energy baseline is one of the outputs of the energy review. It is the quantitative reference to be used
for assessing future actual data. It reflects the scope of activities under review. To be directly useful the
baseline must be performance-based with normalized data and/or performance indicators.
Benefits:

 Reduced greenhouse-gas (GHG) emissions and carbon footprint. Compliance with this standard
will allow you to meet current or future voluntary and/or mandatory energy efficiency targets or
GHG emission reduction legislation.
 Increase energy cost savings for the organisation by reducing energy costs via a structured
approach to managing your energy consumption.
 Increased knowledge of equipment efficiencies. By integrating your existing management systems
you can align your Energy Management System (EnMS) with existing management systems for
additional organisational benefits.
 Informed decision-making processes from system design  through to operation
 Increased energy awareness among staff members at all levels.
 Structured approach to the Right First Time methodologies
 Improved corporate image and credibility with all stakeholders and customer
 Enhanced security of energy supply as you will have identified your energy risk exposure in areas
within the organisation and commenced processes to reduce them
 Improved operational efficiencies and maintenance practices
Energy performance = Measurable results related to
energy
efficiency, energy use and energy consumption

PLAN
Outline management responsibilities. Top management commitment and involvement are critical to the success of an EnMS.
Management engagement at the beginning of the process helps to encourage progress.
Define the scope. A defined EnMS scope and boundaries will help to focus efforts and resources. The scope may be a building, plant,
facility, site, corporation, or a combination of these, but it should cover the activities, facilities, and decisions associated with the energy
sources encompassed by the scope.
Establish a team. To obtain the needed skills, knowledge, and relevant expertise, an energy-management project relies on a team
approach. A team provides diverse perspectives, distributes the workload, eases implementation, promotes wider acceptance, and improves
the potential for sustaining the system. The team should include members from all areas of the facility concerned with the selection,
procurement, consumption, reliability, disposal, or environmental impacts of fuels and energy systems.
Set the energy policy. An energy policy establishes top management commitment to energy performance improvement. The policy should
state the company's energy priorities. It may range from a few sentences to several paragraphs, and it must be documented and understood
by all employees.
Identify significant energy uses. To achieve the greatest performance improvement with the fewest resources, facilities must identify all of
their significant energy uses (SEU). SEU should receive special attention when establishing energy objectives, targets, and action plans,
during training and competence evaluations of relevant personnel, when planning for effective operation and maintenance, and when
monitoring and analyzing performance.
Determine energy performance indicators. Energy performance indicators (EnPIs) are measured param-eters, ratios, or models that help
to quantify energy use and efficiency improvements at the organization, facility, system, process, or equipment level. When compared to
baseline values, they help to gauge performance and improvements.
Set energy objectives and targets. Once opportunities for energy improvement are identified and organized, energy objectives and targets
for meeting the energy policy or performance commitment need to be set. Energy objectives should be high-level goals or specified
outcomes that guide development of strategies and activities. For each objective, specific, quantifiable achievement targets should be
outlined to help reach the overall goal.
Prepare an action plan. An energy-management action plan is a comprehensive project guide that needs to be communicated to all
responsible parties. It should define the activities to be completed, resources needed, personnel responsibilities, and methods for verifying
results.
DO
Manage and control documentation. An EnMS requires two types of information to be controlled: documents, which lay out expectations
for energy-management actions and behaviors; and records, which provide evidence of the results of those efforts. Document control
ensures that the correct information is available and helps to manage external and obsolete information. Accurate, accessible records are
essential to corrective and preventive efforts and for confirming system processes and results.
Communicate. Internal communication is essential to managing change. It keeps personnel abreast of energy-management activities,
incentives, and successes, which strengthens commitment and participation. The communication plan should include multiple pathways for
disseminating information.
Confirm competency, training, and awareness. ISO 50001 requires positions associated with significant energy uses to have defined
competencies, as well as evidence that the person responsible for the SEU has those competencies. Thus, the team must define the needed
competencies, assess the personnel, and develop a plan to address any training needs.
Define energy procurement specifications. To comply with ISO 50001, an organization must define specifications for purchasing energy.
The specifications may include quality and quantity requirements, characteristics (e.g., fuel composition, moisture, and energy content),
approximate cost, delivery schedule, resource reliability, and voltage, current, and/or electricity peaking times. To ensure that the
procurement plan and the EnMS are cohesive, the staff involved with energy procurement should understand SEUs and related controls;
energy objectives, targets, and action plans; EnPIs; operational controls critical to sustain improvements made by previous energy projects;
and key maintenance items related to energy systems (e.g., compressed air, steam, etc.).
CHECK
Verify legal and other requirements. A profile of the organization's energy obligations needs to be gathered, and should include any legal
or voluntary commitments. Processes should be put in place to identify, assess, and evaluate those requirements.
Implement a monitoring, measurement, and analysis plan. A primary requirement of ISO 50001 is that the organization establish an
energy monitoring, measurement, and analysis plan. The components of the plan depend on the size and complexity of the organization and
the monitoring equipment available. Typically, the plan includes system specifications, processes or equipment to be monitored, methods
and frequency of data collection, processes for data analysis, and calibration requirements.
Conduct internal audits. An audit is a systematic, documented process that verifies that the EnMS meets the organization's criteria, is
effectively implemented and maintained, supports the energy objectives and targets, and improves energy performance. During an audit, the
auditors interview personnel, observe activities, review documents, and examine records and data. Many facilities conduct audits annually.
ACT
Perform a management review. The organization must periodically review and evaluate its activities and energy performance to identify
opportunities for improvement. Typically, a management representative ensures that the appropriate information is collected, organized, and
presented to enable management to carry out evaluations and make informed decisions.
 STEP 1 GETTING STARTED
 Step 1
 Step 1.1
 Step 1.2
 Step 1.3
 Step 1.4

Getting started on an energy management system (EnMS) begins with identifying the benefits to the organization
of a systematic approach to energy management, gaining
top management
’s commitment, setting out a clear plan for implementation, and understanding the basics of EnMS documentation.
The initial impetus for implementation of an energy management system may come from management or from
employees, but either way, top management must be committed to the effort for it to be successful.

Making the business case

As a practical matter, making and communicating the business case is important to the success of the EnMS. The
organization’s business drivers for the effort need to be identified and the role that the energy management
system will play in supporting those drivers understood. It is recommended that key individuals, who have an
interest and understand the benefits of EnMS implementation, participate in preparing the materials required to
gain support for the initiative. Gaining the buy-in and support of top management is critical. Top management is
briefed on the energy management system, the positive impacts it will have on the bottom line and the drivers that
affect growth and lead to business success.
 Ensure top management commitment
Once top management is sold on the concept and has made the decision to move forward, they must demonstrate
their commitment by providing the leadership and resources needed for the development, implementation,
operation and continual improvement of the EnMS. Top management is responsible for developing the energy
policy that communicates the importance of energy in the organization’s strategic plans and objectives.

Top management appoints an 

energy management representative
 who has overall responsibility for developing, implementing and maintaining the EnMS. The management
representative works with top management to establish the scope and boundaries for the EnMS and form an 
energy management team
. Typically, a cross-functional team is used to provide the diverse set of skills and viewpoints involved in developing
and implementing a successful and effective EnMS.

Communication processes ensure awareness of the EnMS throughout the organization and promote participation
for fostering continual improvement. Top management supports continual improvement by regular system reviews
and providing the resources necessary to address EnMS requirements.

Establish the structure for EnMS implementation

The management representative and the energy team, with top management input, lay out the plan for EnMS
development and implementation. The plan considers the overall time frame for implementation, other
organizational goals and priorities, and integration with other management systems (if applicable). It also
considers available resources and designates responsibilities. Communication channels are established to make
team assignments, provide guidance and support, check progress and report status. Information should flow
readily in both directions between top management and organizational personnel. Communication includes sharing
successes at all levels of the organization. This promotes ongoing buy-in and participation in the implementation
effort.

Understand EnMS documentation

Another element of getting started on EnMS implementation is gaining an understanding of the role of documents
and records in the system and the decisions the organization must make about its EnMS documentation. There are
a number of common misconceptions about the extent of documentation needed for a management system based
on an ISO standard. For an ISO 50001 EnMS, a variety of records must be maintained, but only a few documents
are explicitly required. Organizations have a great deal of flexibility, but also responsibility, in determining what
documents and records are needed for their EnMS.

Follow these steps to help your organization get started on the path to successful EnMS implementation:

 Step 1.1 Make the business case

 Step 1.2 Secure top management commitment

 Step 1.3 Establish the structure for EnMS implementation

 Step 1.4 Understand EnMS documentation