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Practical Guidance ISO 50001


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  • 1. Practical Guidance for ISO 50001 ImplementationWith helpful information to prepare you for certification By Carolyn Campbell, Lead Assessor and ISO 50001 Expert at LRQA Energy comes in many forms including electricity, gas, Why is ISO 50001 good for you? oil and steam and is a resource used by organizations Implementing an energy management system certified to ISO worldwide. Although energy is becoming increasingly 50001 aids in the reduction of your energy consumption through more expensive as the Earth’s non-renewable resources a structured approach to monitoring your energy use, identifying are used up, the good news is that reducing your areas for improvement and then implementing action plans to energy consumption will not only reduce your costs, improve your energy performance. Stakeholder and employee it’ll also reduce your carbon footprint and help reduce engagement are a key part of the system requirements to ensure your environmental impacts. It also reduces your ongoing effectiveness. And, certification to ISO 50001 enables reliance on others to provide the energy you need to you to demonstrate your commitment to your stakeholders for operate, hence reducing the risk to your organization. improving your energy performance and minimizing your impact Energy management is, therefore, quickly becoming one of the on the environment. most fundamental areas of focus across all business sectors worldwide. Why consider ISO 50001 when ISO 14001 already exists? The new international energy management standard, ISO 50001 ISO 50001 has been designed solely for the management of was issued on 15 June 2011, and as with other ISO standards, energy and includes a number of requirements not covered by it’s based on the Plan-Do-Check-Act cycle, which allows easy ISO 14001. Although energy is included as an aspect in the integration with your existing systems. majority of organizations’ ISO 14001 environmental management systems, no particular emphasis is shown to energy within ISO But, how do you know if ISO 50001 is 14001, and it is often overlooked with organizations right for your business? concentrating on the more obvious environmental aspects, such This article provides practical advice and guidance for those as chemicals and waste. intending to implement an energy management system (EnMS) and those considering ISO 50001 certification. Implementing an energy management system certified to ISO 50001 includes the need to establish baseline(s) of energy usage This article was written by Lead Assessor, Carolyn Campbell. She and energy performance indicators as well as the usual objectives has worked for LRQA for nine years, assessing a wide variety of and targets which exist within an environmental management companies against ISO 14001, and has more recently been system. There are also specific clauses relating to design involved with the development of LRQA’s assessment procedures (covering facilities and production lines, etc) and procurement, and services for ISO 50001. including specifying energy purchasing requirements.
  • 2. By actively considering energy specifications, organizations areencouraged to not only consider where their current energy isfrom, and any impacts or risks associated with that, but alsowhere their energy could come from, such as renewable and on-site sources.Although organizations generally recognize that energy is asignificant 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 improvementsand financial savings are often missed. ISO 50001 specificallyhighlights these areas, so your energy management system willensure that these opportunities are investigated andimprovements realized.Before you start implementingPrior to establishing an energy management system you willneed to gather background data on your energy usage andconsumption so that you can determine your energy baseline(s).Without this information, you won’t be able to complete therequirements of the energy planning section of ISO 50001.Some energy baselines can be obtained online from yoursuppliers, 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 theirCarbon Reduction Commitment (CRC) requirements. For otherbaselines, the data can be logged using manual readings forelectricity and gas usage, usually taking readings weekly ormonthly depending on the usage level. Please note, the use ofutility bills can cause problems for baseline data due to estimatedreadings and varying numbers of days covered in each bill period.Baselines can also be established for other forms of energy byusing invoices from suppliers or fuel card data if measuring dieselusage.4.1 General requirementsAs the starting point of the standard, this clause requires yourorganization to establish, implement, maintain and improve anenergy management system (EnMS). You must ensure yoursystem is documented where it is a requirement within ISO50001.One of the first things you need to decide as an organization isthe extent of your system, i.e. its scope and boundaries. Reducing your energy consumptionRemember, the definitions for these are given in the standard(‘boundaries are the physical or site limits and/or organizational will not only reduce your costs, it’lllimits as defined by the organization whereas the scope is theextent of activities, facilities and decisions that the organization also reduce your carbon footprintaddresses through an EnMS, which can include several and help reduce your environmentboundaries’). By setting a clear scope and boundaries, you’llenable everyone to understand the coverage of your system. impacts.The final part of 4.1 requires you to determine how you willmeet the requirements of ISO 50001; in other words, planningwhat you are going to do. Organizations plan in different ways,but typical examples of a system establishment plan include theuse of project management systems, simple flow diagrams oractions from a meeting.
  • 3. 4.2 Management Responsibility 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.ISO 50001 clearly states the requirements for both top These include the need to ensure it supports the purchase ofmanagement (4.2.1) and the management representative (4.2.2). energy efficient products and services, and design for energyThese two clauses go into much more detail than other standards performance improvement. This links well to the later clauses onsuch as ISO 9001 and ISO 14001 to ensure a consistent approach design (4.5.6) and procurement (4.5.7).across organizations and that the necessary commitments are inplace for an effective system. Your policy will need to be documented and communicated to all levels within the organization. Unlike other common standards,To meet these requirements, you need to first agree these you can decide whether or not to make the policy availablecommitments (as stated in points a to j in clause 4.2.1) with your management and make sure they can be demonstrated onceyour system is established. The energy policy is the cornerstone of your system and should clearly lay out your commitments, aims and expectations for yourA management representative will need to be appointed by top energy management This should be a person who has the appropriateskills and competence to carry out the required tasks. Their roleshould be clearly defined to cover points a to h in clause 4.2.2. The energy policy is the cornerstoneAgain, your system should be able to demonstrate that thesecommitments are in place. Although not specified as of your system and should clearlydocumented requirements within the standard, documents suchas job descriptions, meeting minutes and procedures often form lay out your commitments, aimspart of the evidence within a system to demonstrate that these and expectations.requirements are being met.Clause 4.2.1 also includes a requirement for top management toapprove the formation of an energy management team. Clause4.2.2 then includes the requirement for the managementrepresentative to identify a person(s) to work with them tosupport energy management activities. When deciding on yourteam, you’ll need to take into account the size and complexity ofyour organization. For smaller organizations, the team mayconsist of one person, such as the management representative.4.3 Energy PolicyAs with all the common management system standards, ISO50001 requires your organization to have an energy policy. Thisneeds to be defined by your top management and must beappropriate to the nature and scale of your organization’s energyuse and consumption.There are certain commitments which you need to clearly statewithin 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
  • 4. 4.4 Energy PlanningNow that the basis has been established for your system, wemove onto the main planning part of the standard. You nowneed to conduct and document an energy planning process. Thisneeds to be consistent with your policy requirements and drivecontinual improvement in your energy performance. It also needsto involve a review of your activities that can affect your energyperformance (similar to an environmental aspect assessment inISO 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 asimilar clause to identify applicable environmental legal and otherrequirements and as energy is generally treated as anenvironmental aspect there is no need to repeat the work. Forthe majority of organizations, this is usually demonstratedthrough the introduction of a list, or register, of applicable legaland other requirements. Although the standard does not requirethis to be documented, it is often the easiest way to demonstratethat you have identified all the necessary requirements. Onceidentified you need to ensure that your organization hasimplemented any necessary requirements to make sure you arecompliant.The next stage is to conduct your energy review (clause 4.4.3).This requires your organization to analyze your energy use andconsumption based on measurement and other data, i.e. identifycurrent energy sources and evaluate past and present energy useand consumption.Once this analysis is complete, you then need to use the outputto identify the areas of significant energy use (facilities,equipment, systems, processes and personnel). Any applicablevariables for these significant energy uses should also beidentified, such as temperature or production levels. You thenneed to determine the current energy performance for significantenergy uses and estimate your future energy use andconsumption.Finally, your organization is required to identify, prioritize andrecord opportunities for improving energy performance. Theseopportunities can include your energy sources, so you may wantto consider potential renewable energy opportunities such aswind or solar. ISO 50001 requires your organizationAn energy baseline(s) needs to be established using the to ensure that any person(s) workinginformation from the initial energy review. These should cover atime period suitable for your organization. The amount of energy with energy usage on its behalf arebaseline(s) depends upon the size and complexity of yourorganization and how far you want to split up your energy use competent on the basis of appropriateand consumption for monitoring of your energy performance. education, training, skills or experience.These baselines will be used to determine any improvements inenergy performance as your system develops. Going forward,they need to be altered as required (i.e., due to major changes toprocesses, operational patterns or energy systems).
  • 5. Energy performance indicators (EnPIs) must then be set which are Clause lists the documentation requirements for ISOappropriate for monitoring and measuring your energy 50001. These are the minimum that are required. The listperformance. You will also need to record your methodology for includes part e which simply states ‘other documents determineddetermining and updating these EnPIs. They will need to be by the organization to be necessary’, so effectively everythingreviewed and compared against your energy baseline(s) as you think would be beneficial to document on top of theappropriate to allow you to demonstrate improvement. Try to set specified documents.these as stretching but realistic levels so they are neither tooeasily met, nor impractical to achieve. The clause related to document control ( is similar to other management system standards such as ISO 9001, ISOAs with other management systems, the final part of planning 14001 and OHSAS 18001. This requires you to have a process inyour system, is to set objectives and targets. Within ISO 50001 place to ensure that among other requirements, documents arerequirements, there also needs to be documented action plans controlled and changes identified.established, implemented and maintained to show how they willbe achieved. The action plans should include allocation ofresponsibilities, timescales and statements on how any energyperformance improvement will be verified and the method ofverifying the results.4.5 Implementation and OperationMoving on to the ‘do’ part of the standard, ISO 50001 requiresyour organization to use the action plans and other outputs formthe planning process to implement and operate your system.Again, as with other standards, ISO 50001 requires yourorganization to ensure that any person(s) working with energyusage on its behalf (including employees, agency workers andcontractors) are competent on the basis of appropriateeducation, training, skills or experience. This clause (4.5.2) hasspecific requirements that any person working for or on behalf ofyour organization must be aware of, as stated in points a to dand covering areas such as: importance of conformity with theenergy policy and EnMS requirements, their roles andresponsibilities, the benefits of improved energy performance,and the impact of their activities. The purpose of theserequirements is to ensure that everyone plays an active part inenergy management and is aware of their role and the potentialbenefits of good energy performance. You will also need toensure that appropriate records are maintained.Internal communications should be used to make people awareof your energy performance and so that everyone working for, oron your behalf, has the ability to make comments or suggestimprovements to the EnMS. An example of this could beimprovement suggestion cards and boxes, or a section on anintranet site providing it’s available to everyone. For externalcommunications, your organization needs to decide whether tocommunicate externally about your energy policy, EnMS andenergy performance. ISO 50001 is different to othermanagement system standards in that it does not require you tomake your energy policy publicly available. This decision needs tobe documented and a method established and implemented ifthe decision is to communicate.
  • 6. Similar to ISO 14001 requirements, ISO 50001 includes a clause(4.5.5) covering operational control. However, the areas of designand procurement are covered in separate clauses within ISO50001, giving them more prominence and detailed requirementsthan in ISO 14001. The operational control clause requires yourorganization to identify and plan your operations andmaintenance activities which are related to your significantenergy uses to ensure they are carried out under specifiedconditions. Examples of maintenance activities would be tominimize compressed air leaks, maintain steam traps and the setup and servicing of boilers. There is no separate clause foremergency preparedness in ISO 50001, but a note within theoperational control clause states organizations may chose toinclude energy performance in determining how they will reactto emergency situations.The design clause (4.5.6) refers to the design of new, modifiedand renovated facilities, equipment, systems and processes thatcan have a significant impact on your energy performance. It alsolooks at how your organization considers energy performanceimprovement opportunities when carrying out these designactivities. It does not cover design of your products.Where appropriate, you need to incorporate the results of anenergy performance evaluation into the specification, design andprocurement activities of the relevant project(s) and keep recordsof the design activity.Your organization has to inform suppliers that procurement ispartly evaluated on the basis of energy performance whenprocuring energy services, products and equipment that have, orcan have, an impact on significant energy use. You also need toestablish and implement criteria for assessing energy use,consumption and efficiency over the planned or expectedoperating lifetime when procuring energy using products,equipment and services which are expected to have a significantimpact on your organization’s energy performance. Energypurchasing specifications need to be defined and documented.The guidance part of ISO 50001 states that you can use the Each organization is unique and youspecification proposed by an energy supplier for thisrequirement. A good example of a specification used includes need to find what works well for yourorganizations choosing to specify the use of renewable sources organization’s energy management.only for their electricity supply rather than from any fossil fuelsources.
  • 7. 4.6 Checking 4.7 Management ReviewProgressing onto the ‘checking’ part of the standard, clause 4.6.1 This clause is similar to the management review requirementsrequires your organization to monitor, measure and analyze the within other common management system standards such as ISOkey characteristics of your operations that determine energy 9001, ISO 14001 and OHSAS 18001. The areas to be included asperformance. As a minimum, these key characteristics must inputs to the review are clearly described within the standard,include those listed in parts a to e of this clause, including EnPIs along with the expected outputs.and effectiveness of action plans. The results must be recorded,and you will also need to define and implement an energy Management review is an essential part of an effective system. Itmeasurement plan. allows top management to step back and take an overall look at your system, not only reviewing if it meets the requirements ofThe level of measurement will vary for each organization and the standard and legal and other requirements, but also whethercould range from reading utility meters up to complete software it is suitable for your organization and is delivering what youapplication systems, consolidating data inputs and delivering want from your EnMS. Although it is not specified what formatautomatic analysis. The measurement level should be management review should take, the majority of organizationsappropriate to the size and complexity of your organization. You use meetings to review their system to allow discussion and anyalso need to make sure that the data you use is accurate and necessary actions to be agreed. The frequency of managementrepeatable, so you’ll need to calibrate or otherwise verify the reviews varies from company to company, normally ranging frommonitoring and measurement equipment used. Any significant monthly to annually. When first establishing your system, anddeviations in energy performance (such as unexpected spikes in while your system remains immature, you should expect to haveusage) should be investigated and responded to, and there is a more frequent management reviews, often monthly or quarterly.need to keep appropriate records. As the system matures, the time frames often move out for fullAs with ISO 14001 and OHSAS 18001 there is a need to evaluate reviews, but more frequent reviews remain necessary for somecompliance with legal and other requirements (clause 4.6.2), this elements, such as energy performance, audit results and resultstime focusing on energy. As inline with the requirements of other from the evaluation of compliance with legal and otherstandards, you will need to plan and carry out internal audits to requirements.ensure that your system remains effective (clause 4.6.3). Also youare required to manage non-conformities, correction, corrective Many organizations use some form of existing managementactions and preventive actions (clause 4.6.4). meetings for these interim management reviews. For your EnMS your energy team could be used, with reports going to topThe final clause in this section of the standard covers the control management for review if top management isn’t part of theof records (4.6.5). This is similar to the requirements within other energy system standards as records need to be establishedand maintained in a way that they remain legible, identifiable Each organization is unique and you need to find what worksand traceable to the relevant activity. well for your organization’s energy management. Contact us W E T +1 281 398 7370For questions or information on LRQA ISO 50001 training or certification services, or to discuss your energymanagement system, contact us at or visit information on LRQA training,
  • 8. Lloyds Register Quality Assurance, Inc. 1330 Enclave Parkway, Ste 200, Houston, TX 77077 Lloyds Register Quality Assurance, Inc. is a member of the Lloyd’s Register Group.Lloyd’s Register and LRQA are trading names of the Lloyd’s Register Group of entities. Care is taken to ensure that all information provided is accurate and up to date.Services are provided by members of the Lloyd’s Register Group, for details see However, LRQA accepts no responsibility for inaccuracies in, or changes to, © LRQA 2012 - Lloyd’s Register Quality Assurance, Inc. - All rights reserved. Pub. February 2012