ISO 50001 Energy Management

Continuous Improvement Driving Financial Results

Don Macdonald Director of Sustainability & Energy Services Jerry Skaggs Product Manager UL DQS, Inc.

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Executives Seek Certainty
“Specific operational strategy must be the key part of the Energy Policy and M & V Strategy…done properly, will lead to a positive ROI on the overall Benchmarking, Certification or Non-Certification process”

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Source: McKinsey

Executives Seek Certainty

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Source: McKinsey

Executives Seek Certainty 4 Source: McKinsey .

Benchmark your EnMS Maturity 5 .

Who are the Decision Makers 6 .

Organizational Barriers to Energy Management • Energy not valued as an organizational ‘currency’ • Continuous monitoring. monitoring and systems 7 . metrics and performance measurement absent • Economic performance. financial and qualitative benefits (ROI) absent • First costs more important than recurring costs • Disconnect between capital and operating budgets • Technical training lacking • Sustainability “culture” immature • Deep Process quality management systems not embedded • Stakeholders focus on production and not efficient use of energy or resources • Functional silo’s vs. cultural silo’s • IT data.

concerned investors. environmental regulations.Energy is the Strategic GHG & Climate Driver ‘Uncertainty in carbon markets. climate change policy pose risks that cannot be managed using existing norms and procedures’ 8 .

Harnessing the Power of Process Business processes for competitive advantage: • Six Sigma • Lean Manufacturing • Continuous Improvement 40% 35% 30% 25% 20% 15% 10% 5% 0% Energy Management Standard Continuous Improvement ISO 9001 or 140001 Six Sigma Lean • ISO 9001 • ISO 14001 • Plan-do-check-act Formal energy management standards (ANSI. BSI): JCI. 2011 9 .

Comprehensive Energy Management.RARE JCI Study .83 Organizations surveyed… 40 35 • Training for employees: 76% • • • • • • • • • Formal review of energy policy: 47% Incentives for energy efficiency success: 45% Effective & empowered energy team: 41% Enterprise level energy data: 29% Corporate reduction goal: 28% Energy action plan for organization: 28% Formal energy policy: 27% C-level responsibility: 27% Adopted energy standard: 27% Number of Organizations 30 25 20 15 10 5 0 0-2 3-4 5-6 Energy Management Score 7-8 Result: Mixed Practices 9-10 JCI 2011 10 .

Energy Investments & Operations •Impact is multi-dimensional. each organization unique. •Facility. baseline and verification) are critical. engineering project specification and procurement staff critical links •Foundational tools (metrics. Source: UNIDO 2010 11 .

utility credits.Quality Systems & Shareholder Value Linkage Drive Return on Investment (ROI) across manufacturing & operating silos: • Process level execution critical to performance • Continuously managed energy processes: • Reduce exposure to energy costs (Internal hedging and volatility management) • Reduce carbon related emissions without negative effect on operations • Continual improvement of energy intensity • Value both avoidance & savings for internal and external metrics (e. CAPEX.) 12 .g. emissions. reduced labor intensity. etc.

benchmark and manage energy use. Pinero.” ISO/PC 242 Chair. E.Energy Benchmarking “ ISO 50001 provides a proven model that helps organizations systematically plan. 13 .

& SEP Quality Mgmt Environ Mgmt Information Security Energy Mgmt Risk Mgmt Procurement 14 .Market Adoption Indicators ISO 9001 ROI benchmarks 9-13% • MNC’s mandated or implied Tier 1 & 2 adoption • Competitive advantage & supply chain drivers added further incentives • Operational benefits realized but marginally documented • No real performance metrics ISO 14001 ROI Benchmarks 7-12% • Similar drivers as ISO 9001.5-17% range expected within 1-2 yrs • Performance metrics (self-defined) incorporated • Web-based & continuous performance tools • Measured benchmarking • Compatible with ISO 9001. 14001. plus • Environmental responsibility • Evolving into CSR & CSV • No real performance metrics ISO 50001 • Published ROI Data Suggests 6.

U. Inc. •MIT Campus’s •Target Corporation •Wal-mart Stores. Inc.S. Pilot Facilities Adopting ISO 50001 & SEP Commercial buildings piloting Superior Energy Performance: •Cleveland Clinic •US GSA •Grubb & Ellis Company •Marriott International. • 3M • Alcoa • Allsteel • Amcor PET • Bentley Prince Street • Bridgestone Tire • Cook Composites • Didion Milling. Inc • Dow Chemical • Eaton • General Dynamics • Free scale Semi • Haynes International • Holcim • JR Simplot • Lockheed Martin • Cooper Tire • • Kenworth Trucks Neenah Foundry Company • Nissan • Owens Corning • Nissan • Schneider Electric • Spirax Sarco • Traco • Volvo • World Kitchen 15 June 2011 .

internal compliance Variables affecting energy use and consumption are identified ISO 50001 is a foundational tool that any organization can use to manage energy. 2011 16 . such as GHG Increased efficiency of energy sources Increased assurance of legal.SEP & ISO 50001 Energy Management Benefits of an effectively implemented EnMS can include: Reduced operational and overhead costs → increased profitability • • • • Reduced air emissions. Components in place: • Baseline • Policy • Plan • Team/Leader Superior Energy Performance Facility-level conformance to ISO 50001 with validated energy performance improvement ISO 50001 ISO 50001 DOE.

ISO 50001 Key Elements • • • • • • • • • • Energy policy Cross-divisional management team Energy review Baseline (s) Energy performance indicators (EnPIs) Energy objectives and targets Action plans Operating controls and procedures Measurement and verification Reporting of progress 17 .

Step 1 – Commitment Step 2 .Data Step One: Secure Commitment from Top Management • Set Energy Policy • Define Scope and Boundaries Step Two: Collect. consumption 18 . Track. consumption • Estimate future energy use. and Analyze Energy Data • Current and past energy use.

Step 3 – Energy Use Step Three: Identify Key Energy Uses • • • • • • Facilities Systems Equipment Processes Personnel Relevant Variables 19 .

Step 4 .Baseline Step Four: Establish a Baseline • • • • Reference point for energy performance Outlines current energy performance Predicts future energy performance Provides benchmarking method 20 .

Prioritize Step Five: Identify Energy-Saving Opportunities • • • New Sources Renewable Sources Alternative Sources Step Six: Prioritize Opportunities • Return on Investment • Ease of Implementation 21 .Opportunities Step 6 .Step 5 .

Implementation and Operation • Competency. Training and Awareness • Communication • Documentation. Control of Documents • Operational Control • Design • Procurement 22 .

Corrective and Preventive Action • Control of Records • Management Review 23 . Measurement and Analysis • Evaluation of Compliance • Internal Audit • Non-Conformance.Checking and Management Review • Monitoring. Correction.

Targets.EnMS and Other Standards ISO 9001:2008 •Design •Procurement ISO 14001:2004 • Legal. Other requirements • Significant Energy Use • Objectives. Action Plans • Evaluation of Compliance 24 • Capital asset planning • Production Process Planning • Carbon & GHG • Waste reduction • Supply chain marketability • New product/service opportunities • Employee engagement • Retail: market differentiation .

Recent Case Studies & Results 25 .

26 . • The company now plans to adopt an ISO 50001based energy management system at all its manufacturing plants.000 tons. Taiwan • LCD TV’s – Taiwan. Province of China ISO 50001 implementation achieved 10 % energy conservation at the plant this year. save an estimated 55 million kWh of electricity and reduce carbon emissions by 35.Example Results – AU Optronics.

9M USD) from raised energy efficiency and management. aided by the organization’s new ISO 50001-based energy management system. are expected to yield annual savings of about INR 96.Example Results – Dahanu Power Station. India The plant conducted a series of targeted investments since March 2010 which.4 million ($1. 27 .

Example: $27. 18 months. 90% of worldwide facilities are ISO 140001 certified. 28 .Example Results – Schneider Electric US ISO 50001 & SEP Program demonstrate exceptional savings at its flagship manufacturing plant in USA. lighting. Plus a new 1MW solar field and additional savings from other projects yet to be announced estimated greater than 10%. heat recovery. Payback range avg.000 USD savings annually from VSD installation.

China With the implementation of the ISO 50001 energy management system in the Dongguan region.Example Results – Delta Electronics. and production capacity at an even level from January to May of this year.2 thousand tons of carbon emissions and a saving of CNY 8 million ($1.51 million KWH as compared to the same period in 2010.6M USD) 29 . This is equivalent to a reduction of 10. we have already reduced power consumption by 10.

000 kWh equivalent to just over $21. Austria During the first year.Example Results – Municipality of Bad Eisenkappel. 30 .400 USD. consumption of electrical energy decrease by nearly 25 % with the main savings achieved by updating the waste water plant and reducing energy consumption by 86.

700 million British thermal units of energy saved and allowed the company to capture $250.Example Results – Cook Composites & Polymers. US CCP’s Houston plant attained SEP Gold Certified Partner status and achieved a 14. The energy efficiency measures taken by CCP resulted in 31.9% improvement in energy efficiency over a two-year period.000 in cost savings per year. 31 .

com .4476 x3328 www.UL DQS Inc.Interest@us.ul-dqsusa.dqs-ul.285.com 800. ISO 50001 Tools UL DQS offers: Practitioner’s Guide & Self Assessment Tool Practitioner’s Guide Scorecard Tool 32 Energy.