We highly recommend that you implement an Energy Management System tailored to your business.

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1 GUIDE TO: Energy Management Systems (EnMS) This guide introduces you to the key ingredients of an effective Energy Management System (EnMS). An EnMS is an essential foundation for businesses of all sizes when you aim to achieve lasing energy savings. We highly recommend that you implement an Energy Management System tailored to your business. It will provide a range of valuable benefits, ranging from energy and cost savings to reduced risk, and an improved ability to run successful energy efficiency projects. The structure will help you achieve policy commitments and plan effective action to improve energy performance, so that you can stay ahead in today s competitive market. Overview To be effective, an Energy Management System should cover the following steps. Each step is described in further detail below, alongside guidance for procurement and investment procedures. 1. Define management responsibility. 2. Establish an energy management team. 3. Appoint energy champions. 4. Define corporate mission / goal. 5. Establish a baseline and set targets. 6. Create a dedicated energy policy. 7. Use operating policies / start-up and shutdown procedures. 8. Communicate. If after reading this guide you require further assistance, please do not hesitate to contact Envantage. We have extensive experience with Energy Management Systems, including the ISO standard, and would be pleased to help you implement the most effective solution for your business.

2 Step 1: Define management responsibility In order for energy savings to be made throughout a business, it is imperative that there is support from top management. To maintain the day to day running of the system, a management representative should be appointed with the responsibility to keep the system up to date and act as the principal communication line between the energy management team members and top management. As a management representative, your responsibilities will be to: Implement and maintain the energy management system. Report to top management. Ensure planning of energy management activities are designed to support the policy and targets. Define roles and responsibilities. Promote awareness and communicate achievements. Step 2: Establish an Energy Management Team (EMT) Consideration should be given to the devolvement of responsibility for energy management to individual sites, departments or managers. An Energy Management Team (EMT) should be formed, comprising members coopted from various sectors of the business. The team should be chaired by the appointed energy management representative. The purpose of the team should be to both identify opportunities to reduce energy consumption and to monitor progress. The EMT should meet on a regular basis to discuss the progress and implementation of the energy saving action plan, identify new opportunities, and review performance. The minutes of the meetings should be logged, including any actions either completed or required. In its formative stages the primary target should be to produce an action plan of all measures that have historically and are currently being considered for implementation that will reduce energy consumption. It is essential the energy champions (Step 3 below) be kept in touch with the findings and direction of the EMT. Step 3: Appoint energy champions One way of devolving energy management is to appoint individuals in each area who will act as a focus for that particular area. An energy champion can ensure that energy efficiency is practiced in their area. They can also communicate ideas on energy saving from the workforce back to the management. We recommend the establishment of such energy champions throughout your business, ideally at least one per department. Energy awareness training is a key tool to ensure the engagement of energy champions, members of the Energy Management Team, and responsible managers see box overleaf.

3 Energy awareness training People are an essential ingredient of a successful Energy Management System. Energy awareness training is vital to ensure that management and staff are able to contribute to your energy efficiency targets. It should be provided to managers, supervisors and energy champions. Energy awareness training should engage with staff and be as interactive as possible. By encouraging participants to have a say in the company s processes, staff will develop ownership of any saving opportunities identified. Typical energy savings of 2% Studies completed by The Carbon Trust have shown that energy awareness training will typically reduce a site s energy consumption by 2%, although this will depend on your specific business. What does energy awareness training entail? Training includes an appreciation of how energy is used, a brief walk through audit to identify potential energy waste and savings opportunities, production of an energy action plan, and tool box training guidance. Content should be tailored to meet specific departmental requirements and current knowledge. Who should receive training? It should be provided to managers, supervisors and energy champions. These members of staff will then pass on the knowledge to the remaining workforce using the tool box training packages. It is also recommended that energy awareness training be provided to new employees during induction. When should you deliver it? Training should ideally be delivered following the introduction of formal operating procedures at your site (see Step 7). How do you achieve sustained success? After a period of time, bad housekeeping practice will tend to reappear and earlier successes may be undermined. This is best addressed by making energy awareness part of the company induction programme and undertaking regular refresher campaigns every 12 months. Envantage is an experienced provider of energy awareness training, which is a requirement of the ISO standard for Energy Management Systems. Talk to our team to discuss how we can deliver successful training for your business.

4 Step 4: Define corporate mission / goal Once the formal management structure has been implemented, the overall corporate mission or goal should be clearly defined. This will act as the driving force of the new system and will be supported by a range of shorter term targets and action plans to keep the strategy on track. The following goals could be considered: Become a more sustainable operation / business. Minimise energy wastages and boost environmental responsibility. Reduce energy consumption and GHG emissions. Step 5: Establish a baseline and set targets In order for the Energy Management System to be effective, it is important that the current energy performance has been assessed. A clear baseline and time defined reduction targets should be outlined using the existing energy consumption data available (e.g. main fiscal energy meters or sub-meters). When setting energy efficiency targets, it is important the baseline scenario is considered, in addition to appropriate intensity metrics, future plans and scope to save energy, which should include any energy efficiency opportunities available. Software tools are available that support the assessment of baseline energy consumption and progress towards targets see box overleaf. Step 6: Create a dedicated energy policy The introduction of a formal energy policy is critical in order to formalise commitment to energy management, and reflects the corporate mission. The policy should be circulated to all members of staff and should be regularly reviewed. A good energy policy should include the following: Detail corporate mission providing a clear expression of aims and aspirations. Include a commitment to continual improvement detailing both long and short term targets. Be directly relevant to the organisation and appropriate to its nature and size. Include a commitment to ensure that sufficient resources are in place to meet policy objectives (also covering investment). Include a statement to comply with relevant policy and legislation. Provide a framework for establishing and evaluating energy objectives and targets. Support the purchase of energy efficient products (purchasing policy), services and design for energy performance improvement. Endorsed and led by the board/senior management. Documented and communicated to all staff. Additional polices such as procurement, investment and operating policies should be implemented to support the overarching energy policy.

5 Software for energy analysis and Monitoring & Targeting Software tools are available that support the analysis of your existing energy consumption data, so that you can easily establish baseline usage and reduction targets. Monitoring & Targeting is a costsaving analysis technique that helps you identify inefficiencies in your energy consumption, and monitor your progress towards energy reduction targets. Envantage has developed the energy software ENMAT, designed specifically for energy analysis and Monitoring & Targeting activities. A free version is available for your half hourly supplies, and can be upgraded to a full Monitoring & Targeting edition with sub metering. Talk to our team to access the free software and discuss your requirements, or visit Step 7: Use operating policies / start-up and shutdown procedures It is recommended that you review any business operations that are associated with significant energy use, and document formalised operational procedures that are consistent with the energy policy, objectives and targets. The operational policy should clearly outline operating criteria to ensure energy wastages are avoided and maintenance requirements are documented. The introduction of operational procedures must be effectively communicated to all staff and applicable people. Training and/or awareness campaigns may be required in order to maximise savings. The operating policy should contain simple shutdown procedures for implementation across the workplace to minimise wasted energy during office hours. In our experience, simple procedures work. Procedures set alongside the equipment and areas to be controlled can provide a simple but powerful tool to reduce energy consumption. The procedures should be concise, clearly visible and in close proximity to the equipment and their controls.

6 A survey should clearly identify any equipment that must not be switched off for operational, security or health and safety reasons. Colour coding of switches and equipment is often effective: Green Ok to switch off if not required Amber Check something first before switching off Red Never touch or switch off Procedures could also be clearly displayed on posters at the entrance and exits of zones and rooms, to ensure that the use of lighting, heating and ventilation are effectively controlled. Step 8: Communicate It is imperative that all staff, and any person working on behalf your business, are aware of the corporate mission, targets and polices. In addition of formal energy awareness training, regular communication should be maintained with all staff to ensure the system is maintained. Formal communication lines should be utilised to illustrate performance against targets and to champion overperforming areas or individuals. Performance against targets should be embedded into team meetings and addressed in the same manner as other KPIs. Some simple communication lines and staff engagement techniques to consider include s and newsletters, posters, stickers, displays or notice boards, incentives, and schemes such as a green ideas bank via the intranet. Additional ideas include: Promotional material including messages on promotional material such as diaries, Christmas cards, mouse mats, brochures, website etc. Competitions offering prizes for competitions to come up with the best slogan, design a poster, answer a carbon quiz etc. can engage staff and raise awareness. Meetings and presentations energy and carbon should be placed on the agenda of existing meetings. Headers and footers of internal communications these can be used to pass on messages in relation to energy and carbon. Payslips People tend to look at messages printed on pay slips as they want to know what they have been paid, however these should be used sparingly as if they appear too often they may lose appeal. Messages can be appropriate for the month e.g. in February turning the thermostat down by 1 C knocks 8% off heating bills might be appropriate. The Energy Management Team need to work to implement the energy saving action plan and maintain energy management. The EMT should ensure that the action plan and polices are regularly updated to maintain

7 energy savings and energy efficiency performance and target status must be continually tracked. Once the formal framework, goals, objective and new polices are in place, it is imperative that this is formally communicated to all staff via formal energy awareness training. Additional considerations: Procurement and investment Procurement and investment provide opportunities to improve energy performance through the use of more efficient products, services and facilities. Products and services When equipment or services require replacing or purchasing, the purchasing policy will ensure that energy and carbon emissions are taken into account in addition to price and other factors. As the policy will define procedures to evaluate carbon emissions and energy related operating costs over the lifetime of the product/service, a more detailed and informed decision can be made. Although this is likely to be adopted informally by key decision makers for large energy users such as lighting, chillers, compressors etc., formalisation into the purchasing policy will ensure that all equipment/services are assessed in the same way regardless its carbon and energy impact. The policy can insist that all items purchased are checked as to whether they are included on the Energy Technology List (ETL). If they are, then the company can receive tax benefits under the Enhanced Capital Allowance scheme (ECA). This area also has opportunities to influence the supply chain. It is now becoming increasing prevalent in the business to business supply chain for organisations to place sustainability requirements on their own suppliers. In this context, strong green credentials should be a prerequisite in order to commence or continue to work with your organisation. The utilisation of brand value and purchasing power can translate into wider carbon savings across the supply chain and demonstrates a dedication to responsibility. When procuring business to business services, the organisation should consider the addition of a carbon management section to tender requests, including the following: Is there an energy or carbon policy in place? Details of scope 1 and 2 emissions and sources. Provide details of emissions reduction targets and current performance. The development of a genuine green procurement policy, whereby a company refuses to purchase goods or services that do not adhere to environmental standards, represents one of the simplest ways of moving green improvements down a supply chain. The threat of dropping suppliers who fail to embrace best practices immediately unleashes competitive forces that will drive low carbon investments and force firms to embrace sustainable best practices.

8 Buildings Procuring buildings, whether through a lease or purchase, can be a key factor in an organisation s longterm energy performance. As a matter of policy it would be appropriate to only lease, purchase or commission new buildings that meet the highest of energy efficiency standards. In the longer-term this will be a far more cost-effective way of reducing carbon emissions than improving existing stock. Investment procedures Most organisations will need investment to take full advantage of cost-effective carbon reduction opportunities. Projects that cut energy costs should be compared on a rational basis with other investment opportunities. It is common for energy efficiency projects to lose out to other demands on funds perceived to be of greater importance. Good investment practice can be characterised by: A ring-fenced budget for energy efficiency under the control of the Energy Manager. This avoids the danger of funds being diverted. Financial savings generated from energy efficiency projects should be ring-fenced to be reinvested into energy efficiency. Appraisal on a whole lifecycle basis when comparing energy efficiency investment with competing demands on capital. Presenting senior managers with clear and thorough business cases for investment. As defined in the international ISO standard for Energy Management Systems, an organisation should ensure the availability of necessary resources to achieve objectives and targets; this includes the availability of funds to fulfil specific projects. It is recommended that a dedicated energy efficiency budget is set aside for use for energy savings projects only. In addition, it is imperative that clear CAPEX procedures are outlined to all members of the EMT who will be responsible for applications relating to energy efficiency projects. It may also be helpful to provide guidelines relating to the length of payback periods that are likely to be approved. Envantage is here to help This guide has outlined the key features of an effective Energy Management System (EnMS). If you are looking to implement an EnMS Envantage would be pleased to assist you, to ensure that you implement a system that suits your business and achieve the available cost and energy savings alongside other benefits. We have extensive experience that includes the ISO standard. You will receive guidance and implementation support from our Chartered Energy Managers at each stage of the process. Contact us today to discuss your requirements. Call us on or savings@envantage.co.uk