THE ROUTE TO ISO 50001:2011

Transcription

1 SUSTAINABILITY IMPROVED PERFORMANCE ENERGY OPTIMISATION CONSUMER CONFIDENCE FURTHER EXCELLENCE MANAGE RISKS REDUCED COSTS ENVIRONMENTAL RESPONSIBILITY EFFICIENCY THE ROUTE TO ISO 50001:2011 AUTHOR Terry Coyle ISO Product Manager (UK)

2 FOREWORD The purpose of this booklet is to provide a simple introduction to ISO Energy Management Systems. It is not intended to be a full explanation of the standard or of its implementation; rather it aims to promote understanding and to help the reader profit from the experience of third-party auditors, and the problems encountered by others. It is hoped that this simple approach will cut through some of the fog and management speak that so often overcomplicates something that should be reasonably straightforward. It is not intended as a replacement for the standard, and the reader is strongly advised to purchase a copy of ISO if planning to implement an ISO management system. Some of the wording of this booklet is taken from ISO and SGS acknowledges the permission of the British Standards Institute for use of those extracts. 2

3 TABLE OF CONTENTS INTRODUCTION 4 THE ISO FAMILY OF STANDARDS 6 THE PITFALLS GENERAL REQUIREMENTS MANAGEMENT RESPONSIBILITY ENERGY POLICY ENERGY PLANNING GENERAL 10 ENERGY PLANNING PROCESS LEGAL REQUIREMENTS AND OTHER REQUIREMENTS EVALUATION OF COMPLIANCE WITH LEGAL REQUIREMENTS AND OTHER REQUIREMENTS ENERGY REVIEW 13 OPPORTUNITIES FOR IMPROVEMENT ENERGY BASELINE ENERGY PERFORMANCE INDICATORS ENERGY OBJECTIVES, ENERGY TARGETS AND ENERGY MANAGEMENT ACTION PLANS GENERAL COMPETENCE, TRAINING AND AWARENESS COMMUNICATION DOCUMENTATION OPERATIONAL CONTROL DESIGN PROCUREMENT OF ENERGY SERVICES, PRODUCTS, EQUIPMENT AND ENERGY CHECKING MONITORING, MEASUREMENT AND ANALYSIS INTERNAL AUDIT OF THE EnMS NON-CONFORMITIES, CORRECTION, CORRECTIVE ACTION AND PREVENTIVE ACTION CONTROL OF RECORDS MANAGEMENT REVIEW 32 THE CERTIFICATION PROCESS 34 WHY SGS?

4 INTRODUCTION This booklet gives a brief introduction to ISO and points out some of the common pitfalls in implementation and preparing for third-party audit. The pitfalls noted are all real; that is why there are no direct references to the sites or companies concerned. ABOUT ISO ISO was published in 2011 and aims to help organisations establish the systems and processes necessary to improve energy performance. This should lead to reductions in energy costs and greenhouse gas emissions through systematic management of energy. The standard sets out the requirements for an energy management system (EnMS) to enable an organisation to develop and implement a policy and objectives that take into account legal requirements and information about significant energy uses. It is intended to apply to all types and sizes of organisations whatever their geographical, cultural and social conditions. ISO can be used independently or integrated with any other management system. To this end, the structure of the standard is similar to that of ISO 14001, the requirements for environmental management systems. The standard does not establish absolute requirements for energy performance beyond the commitments in the energy policy of the organisation and its obligation to comply with relevant legislation. Therefore, two organisations carrying out similar operations but having different energy performance can both conform to its requirements. The level of detail and complexity of the EnMS, the extent of documentation and the resources devoted to it depend on a number of factors, such as the size of an organisation, the scope of the system, and the nature of its activities, goods and services. This may be the case in particular for small and medium-sized enterprises. Continuous improvement Management review Energy policy Energy Planning Implementation and operation Checking STRUCTURE OF ISO The international standard ISO specifies a model for an EnMS that may be applied to any type or size of organisation. It is based on an implementation model of PLAN ~ DO ~ CHECK ~ ACT and follows a simple and logical sequence. Monitoring, measurement and analysis Implementation and operation Nonconformities, correction, corrective and preventive action Source: ISO 50001:2011 4

5 The PLANNING PHASE of the system is absolutely crucial to the effective implementation of the management system. It all starts with the energy review with the characterisation of the current situation of the organisation in terms of energy performance and the variables that affect performance, the selection of the energy uses that are considered to be significant (SEUs) and the identification of opportunities for its improvement. Even though each organisation can establish its own criteria for the determination of the significant energy uses, the standard includes the definition: Significant energy use is an energy use accounting for substantial energy consumption and/or offering considerable potential for energy performance improvement. In ISO energy performance encompasses different aspects of energy: ENERGY INTENSITY Source: ISO 50001:2011 ENERGY EFFICIENCY ENERGY USE ENERGY PERFORMANCE ENERGY CONSUMPTION OTHER The energy baseline(s) (EnB) and energy performance indicator(s) (EnPI) are then derived from the information identified in the energy review. In order to effectively manage the energy performance of their facilities, systems, processes and equipment, an organisation needs to know how energy is used and how much is consumed over time. An EnPI is a value or measure of energy consumption normalised against a variable that affects that usage to be able to determine energy performance. An energy baseline (EnB) is a reference that quantifies an organisation s energy performance over a specified time period. The EnB enables organisations to identify changes in energy performance between reporting periods and before and after energy performance improvement actions. We can simplistically describe the different planning clauses in the following diagram. WHERE ARE WE? Legal and other requirements Energy review Energy baseline(s) Energy performance indicators WHERE DO WE WANT TO GO? Objectives and targets HOW WILL WE GET THERE? Energy management action plans HOW DO WE KNOW WE ARE ON THE RIGHT TRACK? Energy baseline(s) Energy performance indicators 5

6 The IMPLEMENTATION (DO) PHASE of the system involves touching on different elements. For implementation of the EnMS to be effective it is critical that these elements consider the significant energy uses (SEUs) as identified during the planning phase. PEOPLE Competence,training and awareness Communication PROCESSES Documentation Operational control Design EQUIPMENT AND FACILITIES Design Procurement The VERIFICATION (CHECK) PHASE of the system covers requirements that are common to other management systems. This includes measuring, monitoring and calibration procedures to ensure that the controls and programmes are functioning as intended. It also includes a check on compliance with legislation. monitoring, measurement and analysis; evaluation of compliance with legal and other requirements; internal audit; non-conformities, correction, corrective and preventive action. The REVIEW (ACT) PHASE of the management system is the final stage. A periodic review by management is required to establish the basis for the next PDCA cycle where the whole system is reviewed to ensure it is functioning, delivering against the policy and objectives and targets, is still up to date and appropriate for the organisation. THE ISO FAMILY OF STANDARDS Besides ISO 50001, there are also other related standards that support organisations implementing an energy management system: SO 50002:2014 Energy audits - Requirements with guidance for use SO 50003:2014 Energy management systems - Requirements for bodies providing audit and certification of energy management systems ISO 50004:2014 Energy management systems - Guidance for the implementation, maintenance and improvement of an energy management system ISO 50006:2014 Energy management systems - Measuring energy performance using energy baselines (EnB) and energy performance indicators (EnPI). General principles and guidance ISO 50015:2014 Measurement and verification of organisational energy performance. General principles and guidance THE PITFALLS The notes and information that follow provide a simple explanation of the requirements of the standard, examples of some common pitfalls experienced by SGS auditors during third party certification audits and also a simple checklist of the requirements of each clause. It is intended that these combined should provide a useful guide and starting point for any organisation looking to implement an energy management system conforming to the requirements of ISO 50001:2011. To that end and for simplicity of use, the information below is preceded by the clause numbers of ISO 50001:2011 and are presented in the order they appear. GENERAL REQUIREMENTS Have the scope and boundaries of the system been defined and documented? 4.1 GENERAL REQUIREMENTS This chapter of ISO is fairly general but it does contain an important requirement of the energy management system, related to scope and boundaries. In ISO 50001, scope and boundaries are defined the following way: Scope: extent of activities, facilities and decisions that the organisation addresses through an EnMS, which can include several boundaries. Boundaries: physical or site limits and/or organisational limits as defined by the organisation. Each organisation has the freedom to choose the scope and boundaries of its management system. Whereas many organisations opt to include all their activities and facilities in the scope of the system, others choose to focus on one specific area, e.g. the area with the highest energy consumption, or leave a certain activity out, e.g. distribution of products. In terms of boundaries, the most common way to define it is by site. Obviously, this only applies when the organisation has more than one site. In the organisation s certificate it must be very clear what the scope and boundaries of the energy management system are and any public certification claims must not mislead the public in believing that the certification covers more than it actually does. The scope has been documented but not the boundaries. The scope and boundaries of the EnMS have changed, however the documentation has not been updated to reflect the change. üor û COMMENT/PLAN 6

7 4.2 MANAGEMENT RESPONSIBILITY ISO defines top management as person or group of people who directs and controls an organisation at the highest level. In ISO the top management responsibilities are detailed and far reaching. The requirements related to the setting of the energy policy, provision of resources, the formation of an energy team, the consideration of energy considerations in long-term planning and appointment of a management representative are just a few examples of how top management commitment is crucial to the successful implementation of the EnMS and must continue to be engaged in the system. The management representative does not have suitable competence for the role. Roles and responsibilities are not effectively communicated to the relevant people. Top management is disconnected from the implementation and maintenance of the EnMS. Insufficient resources including time, personnel, technology or financial are provided for the effective implementation and ongoing ability of the EnMS to meet the policy commitments and demonstrate continual performance improvement. MANAGEMENT RESPONSIBILITY üor û COMMENT/PLAN Has top management established, implemented and maintained the energy policy? Is energy performance considered in long-term planning? Is there a nominated management representative? Does the management representative have the appropriate responsibility and authority? Does the management representative have appropriate skills and competence? Did top management approve the formation of an energy management team? Are responsibilities and authorities of people involved in the management system defined and communicated? Does the management representative report energy performance and the performance of the EnMS to top management? Are resources provided to improve the EnMS and energy performance? 7

8 4.3 ENERGY POLICY An organisation s energy policy is the foundation of the EnMS. Ideally, to be relevant and truly reflect the business, it should where possible be produced after identifying the organisation s significant energy uses (SEUs) and objectives and targets. Some organisations also choose to identify their scope and boundaries in the policy. Even though ISO does not require the policy to be available externally, it is important that the personnel and people that work for or on behalf of the organisation clearly understand what is covered by the policy and EnMS. KEY REQUIREMENTS The policy must: be appropriate commit to continual improvement in energy performance commit to compliance with applicable legal and other requirements commit to ensure the availability of information and of necessary resources to achieve objectives and targets provide a framework for setting objectives and targets support the purchase of energyefficient products and services, and design for energy performance improvement be documented and communicated at all levels of the organisation. Taking these in turn: Appropriate It is rare to find a policy that is not appropriate to an organisation; however, it is good practice for the opening paragraph of the policy to give a brief outline of the organisation s business sector so that the policy can be viewed in context although not a requirement, the scope and boundaries of certification can also be detailed here. Commitment to continual improvement Occasionally these commitments are more inferred than explicitly stated in the policy. This can lead to confusion since the policy should be understandable and clear. It is right to show this commitment clearly and it is perfectly acceptable to use the exact words from the standard in your policy this gives a very clear mandate and direction to the energy management system (EnMS). Commitment to ensure the availability of information and of necessary resources to achieve objectives and targets This commitment is very important to demonstrate that senior management is serious about energy management and will provide the necessary resources to achieve improved energy performance. The auditor will verify the implementation of this commitment across the audit, especially when auditing objectives, targets and action plans, procurement and management review. Commitment to comply with relevant legal and other requirements It may seem superfluous for a chief executive to sign a statement that commits to legal compliance after all this is never optional! A commitment to legal compliance is another fundamental part of an EnMS and as such deserves a place in the policy. The matter of other requirements to which the organisation subscribes can be more difficult. Examples of other requirements are company guidelines, client requirements (there are some industries where clients define energy related requirements) or voluntary schemes to which the organisation subscribes. Provide a framework for setting objectives and targets You do not need to state your objectives and targets in the policy. Problems can arise when the policy is written with good intent or overzealous expectation of what the organisation can do. For example, if your policy states a commitment to reduction in energy use in a certain area, the EnMS must keep such promises. They will need to be delivered by objectives, targets and action plans. On the other hand, the policy must give an indication of the main areas where your system will focus. Anyone who reads your policy will have a reasonable expectation that it represents what you do and how you act. Supports the purchase of energy-efficient products and services, and design for energy performance improvement This requirement is not defined in the standard as a commitment and therefore it does not have to be explicitly stated in the policy as such. Nevertheless, the policy content must give an indication 8

9 that the organisation will consider energy performance of products and services in the procurement and design processes. Documented and communicated at all levels of the organisation The documented part is straightforward. Communicated at all levels of the organisation is where most difficulty occurs. Third-party auditors always check knowledge and understanding of policy with personnel encountered during the audit. They do not expect a word-forword recital of the policy! What they do expect to find is a knowledge that it exists, an idea of where to find it, and some idea of the relevance of the EnMS to the employee and of the organisation s actions regarding energy management. So to sum up, the energy policy is the backbone of an EnMS. If it makes promises or raises expectations, they must be delivered. Your employees and contractors must know about it and its relevance to them. People working for or on behalf of the organisation are not aware of the energy policy. Some mandatory commitments are not clearly stated in the policy. Implementation of the policy cannot be demonstrated by top management. The policy is not regularly reviewed and/or updated. The policy commitments are not supported by measurable data and are unrealistic, e.g. performance improvement ambitions that are unachievable. ENERGY POLICY üor û COMMENT/PLAN Documented, dated and approved? Appropriate? Commits to: continual improvement? ensuring the availability of information and of necessary resources to achieve objectives and targets? compliance with legislation? compliance with other requirements? Provides a framework for setting and reviewing objectives and targets? Supports the purchase of energy-efficient products and services, and design for energy performance improvement? Communicated to and known by all employees? Is reviewed and updated as deemed necessary? Delivers its promises? (Links to significant energy uses and objectives) 9

10 4.4 ENERGY PLANNING GENERAL ISO states that There must be a documented energy planning process. This process must be consistent with the energy policy and lead to activities that continually improve energy performance. The term process is commonly used in quality management systems and is defined as a set of interrelated or interacting activities, which transforms inputs into outputs (SOURCE: ISO 9001:2008). Each organisation should describe their energy planning process, including the activities developed by the relevant functions and departments. In comparison to a procedure, a process description has the advantage of clarifying how information flows through the different areas of the organisation and what the expected outcomes should be. In Figure A.2 of the standard we can find an example of an energy planning process. ENERGY PLANNING PROCESS This diagram shows the basic concepts of energy planning. PLANNING INPUTS ENERGY REVIEW PLANNING OUTPUTS Past and present energy uses Relevant variables affecting significant energy use Performance Source: ISO 50001:2011 A. Analyse energy use and consumption B. Identify areas of significant energy use and consumption C. Identify opportunities for improving energy performance Energy baseline EnPI(s) Objectives Targets Action plans There is no documented energy planning process. The planning process does not reflect the organisation s reality, e.g. the above process does not fit all organisations. The identified SEUs have not been incorporated into the supporting processes, e.g. training, operational controls and procedures, communications, design and procurement activity. GENERAL REQUIREMENTS üor û COMMENT/PLAN Is there a documented energy planning process? Is the energy planning consistent with the energy policy and leads to activities that continually improve energy performance? 10

11 4.4.2 LEGAL REQUIREMENTS AND OTHER REQUIREMENTS EVALUATION OF COMPLIANCE WITH LEGAL REQUIREMENTS AND OTHER REQUIREMENTS KEY REQUIREMENTS The standard requires that you identify and have access to the relevant legal and other requirements in relation to the organisation s energy uses, consumption and efficiency. There is also a need to ensure that legal and other requirements are communicated within the organisation and there is a periodic check on the state of compliance to these legal and other requirements. This compliance confirmation is an essential part of the EnMS. In practice the legal and other requirements related to the organisation s energy use and consumption needs to be reviewed and a decision taken on how to check compliance and how often to do this. A sound process needs to be produced and records maintained to show the process was effective and to demonstrate compliance. This can be done as a standalone task although frequently organisations will build this into existing mechanisms or processes, e.g. internal audits. Care must be taken though to ensure the evidence is clear and that all legal and other requirements have been evaluated.the following are examples of considerations related to legal and other requirements: energy efficiency of organisations energy efficiency of processes greenhouse gases (GHG) emissions building energy efficiency: design inspection and maintenance performance certificates equipment energy efficiency: design efficiency in equipment use motors inspection and maintenance performance certificates The legal requirements can be established at different levels. This differs from country to country.the INTERNATIONAL CONVENTIONS SUPRA-NATIONAL NATIONAL REGIONAL requirements must be reviewed at defined intervals. Ideally the process should ensure that you: know what legislation and other requirements apply know what it means to your organisation know what it means to the different areas or departments know what duty or obligation is imposed define a method to demonstrate compliance know how you ensure compliance have a reference to the mechanism for confirming compliance. LOCAL 11

12 Other requirements are not identified and included, e.g. policies, codes of practice, contractual requirements, etc. The process for keeping legal and other requirements up to date is not robust. The register or other method for identifying legal and other requirements includes non-relevant requirements that confuses and/ or diminishes attention from the appropriate requirements. The register or other method for identifying legal and other requirements does not provide detail or explanations of relevance of the requirements. Occasionally you find a list that is just a list and provides absolutely no input to understanding or management. Access to the base legislation is not available. Compliance has been stated to have been checked at internal audit; however, there is no evidence to support this in the audit reports. The person responsible for initial identification and updating of legal and other requirements related to the organisation s energy use and consumption, and ongoing evaluation of compliance is not competent with regards to energy legislation, resulting in applicable legal and other requirements not being evaluated for compliance. The legal and other requirements register/list/database has not considered legal and other requirement associated with the organisation s energy uses, e.g. boilers, compressors, district heating and cooling systems, renewable sources, etc. LEGAL AND OTHER REQUIREMENTS üor û COMMENT/PLAN Is there a mechanism in place to describe how you gain access to these requirements, how you keep track of changes, and who does this? Is there a mechanism in place to record these requirements, make sure they are communicated and understood within the organisation? Is there a means of accessing the original laws, regulations etc.? Register or listing includes (as applicable): Laws, regulations, policies, codes of practices, schemes, e.g. Carbon Disclosure Project, contractual requirements, etc. and the means of accessing changes to all of these relevant requirements. Is there a mechanism in place to evaluate compliance with legal and other requirements periodically as determined appropriate and records maintained? Are records of the results of the evaluations of compliance maintained? 12

13 4.4.3 ENERGY REVIEW This clause is very important and has far reaching impacts; it is considered the cornerstone of the EnMS. The effectiveness of the management system relies to a large extent on the quality of the energy review. ISO states that the organisation has to develop, record and maintain an energy review. The methodology and criteria used must be documented. The standard does not mention documented procedure, therefore the organisation can choose to document the methodology and criteria in any format or type of document. To develop the review, the organisation must: a. analyse energy use and consumption based on measurement and other data, i.e. identify current energy sources; evaluate past and present energy use and consumption; b. based on the analysis of energy use and consumption, identify the areas of significant energy use, i.e. identify the facilities, equipment, systems, processes and personnel working for, or on behalf of, the organisation that significantly affect energy use and consumption; identify other relevant variables affecting significant energy uses; determine the current energy performance of facilities, equipment, systems and processes related to identified significant energy uses; estimate future energy use and consumption; c. identify, prioritise and record opportunities for improving energy performance. Below we have detailed a little more information on some of the key requirements of this clause: Energy uses and consumption The identification of energy use and consumption is critical in understanding where energy is used within the organisation and forms the basis for prioritising the efforts to improve energy efficiency. The organisation that intends to implement an EnMS should start by establishing its current position with regard to energy consumption by means of an inventory of energy use. Without understanding your current position, it will not be possible to determine if improvements have been made. Each review of energy use and consumption must include past and present energy consumption based on measurement and other data. The degree of detail depends on the size of the organisation and the complexity of energy use, but should as a minimum include all energy sources (electricity, oil, natural gas or other) and energy uses (drying, pumping, air conditioning, lighting, steam production, compressed air production, transport, etc.). Where the organisation operates at several facilities, the energy uses and the energy consumption of each facility should be reviewed individually. Trends in energy consumption over previous years and the identification of the relevant variables that affect it should be reviewed and form the basis for defining the energy baseline. Information on energy use, which is already available, can be used in the review, e.g. energy bills, meter readings, building management energy reports or other existing information. Where there is no information available, the consumption may be determined by other means such as nameplate data, rated power information, current readings, running hours, and so on. NOTE: Nameplate data must be used with extreme care, as it rarely corresponds to practical use. Nameplate data is normally specified for worst case or standard test conditions. Significant energy uses The purpose of the energy review is to identify the significant energy uses, i.e. the equipment and processes that account for the greatest energy use and/ or which offer the most potential for energy savings. The methodology used to identify the significant energy uses must be defined. The significant energy uses when identified then become the focal point for many of the supporting clauses of the standard, e.g. objectives and targets, competence and awareness, operational control, design, procurement, monitoring, measurement and analysis, etc. If the organisation fails to identify the relevant significant energy uses it risks an energy management system that does not lead to improvements in energy performance. Identify relevant variables affecting significant energy uses To understand if improvements in energy performance have been made it is essential to understand what variables affect energy use. A simple reduction in energy consumption may not in fact indicate an improvement in energy performance, e.g. this could simply be the result of a reduction in output or running hours for the defined period leading to a corresponding reduction in consumption. To fully understand if an improvement in energy performance has been made it is essential to normalise energy usage against relevant variables, e.g. energy usage (kwh) vs tonne product produced or kwh vs office occupancy, etc. In this way it is then possible to accurately determine if energy performance improvement has been made regardless of situational change. 13

14 Estimate of the expected energy consumption during the following period The estimate may be based on historical energy consumption figures, estimated production levels for the following period, implementation of energy efficiency improvements planned for the period, etc. This ensures that an organisation understands and considers energy use in any future planned activities. Identification of persons working for or on behalf of the organisation whose actions may lead to significant changes in energy consumption Their role, responsibilities and authority should be clarified. This includes personnel that have an indirect but significant influence on energy consumption, e.g. purchasing, design and training staff. This also includes external personnel that can directly affect energy performance, e.g. subcontract maintenance personnel for boilers, HVAC systems, compressed air systems, industrial processes, etc. This information cascades to clause (training, competence and awareness) that details the requirements and controls for the personnel identified at this point. OPPORTUNITIES FOR IMPROVEMENT The organisation should maintain a register of opportunities for saving energy or other means of improving energy performance. These opportunities can be generated by different processes: suggestions from staff, meetings, analysis of energy performance indicators, identification of new technologies, management review meetings just to mention a few. In addition to the identification of opportunities for improving energy performance, the organisation may already have initiatives planned to improve energy performance. The combination of existing opportunities and newly identified opportunities should form the basis for setting objectives and targets and energy management action plans. Often the greatest opportunities for improved energy performance will come from no-cost housekeeping measures, i.e. training personnel to turn off equipment when not in use, promotion and awareness of energy performance in personnel s work practices and so on. The standard notes that opportunities can relate to potential sources of energy, use of renewable energy, or other alternative energy sources, such as waste energy. As this text appears as a note, it is not a requirement of the standard, and therefore its application is not mandatory. Methods to prioritise opportunities for each potential SEU include the following: estimated energy savings other business impacts or priorities return on investment or other organisational investment criteria (capital or operational) cost of implementation ease of implementation improved energy impacts actual or potential legal requirements perceived level of risk including technological risk availability of funding impact and value of non-energy benefits. (Source: ISO 50004) ENERGY REVIEW UPDATE The energy review must be updated at defined intervals, as well as in response to major changes in facilities, equipment, systems or processes. It is therefore important to ensure that the organisation understands what a major change is and that these changes are communicated to the EnMS representative in due time. This is critical not only to ensure compliance against this requirement but also against the design and procurement clauses. The organisation should consider updating the review at predefined intervals. Updated reviews should where possible be based on actual measurements. In updated reviews, there should be progressively more detailed analysis of all the areas of energy use. Account should be taken of essential changes of the energy usage of the organisation, e.g. expansion of production, plant modifications, changes in the organisation, change in raw materials and packaging materials, refurbishment of buildings, etc. The purpose of this is to allow the organisation to assess progress during the past review period, and identify possible initiatives for the coming period. 14

15 The energy review methodology is not clear about the criteria used to determine the significant energy uses. The organisation has not accurately identified all significant energy uses, usually due to insufficient, incomplete or poor energy data analysis. The organisation has not identified all energy sources, e.g. transport fuel, renewables, etc. The energy review does not include all the elements required by the standard, e.g. the estimate of future energy consumption, the identification of people that affect significant energy uses, etc. The organisation has not updated the energy review after a major change has taken place. The organisation has not identified all or the most relevant variables that affect the significant energy uses, or the variables chosen do not provide accurate correlation. Building fabric improvement opportunities have not been considered. The organisation has not identified opportunities for improving energy performance or acted upon identified opportunities. ENERGY REVIEW üor û COMMENT/PLAN Has the organisation developed, recorded and maintained an energy review? Have the methodology and criteria used to develop the energy review been documented? To develop the energy review the organisation shall: a. Analyse energy use and consumption based on measurement and other data, i.e.: Identify current energy sources Evaluate past and present energy use and consumption b. Based on the analysis of energy use and consumption, identify the areas of significant energy use, i.e.: Identify the facilities, equipment, systems, processes and personnel working for, or on behalf of, the organisation that significantly affect energy use and consumption Identify other relevant variables affecting significant energy uses Determine the current energy performance of facilities, equipment, systems, processes related to identified significant energy uses Estimate future energy use and consumption c. Identify, prioritise and record opportunities for improving energy performance (including use of renewable or other alternative energy sources, where applicable). Has the energy review been updated at defined intervals? Has the energy review been updated in response to a major change in facilities, equipment, systems or processes? 15

16 4.4.4 ENERGY BASELINE An energy baseline is required to establish current energy performance over a defined period against which future energy performance can be measured. Without this it is not possible to quantify how effective any energy performance improvement actions have been. Organisations experience seasonal variations in output and energy factors, so the energy baseline should cover a period suitable to include all variations, e.g. one year of data for building heating and cooling energy use. The initial energy baseline serves as the starting point; however, it should be a living tool against which future energy performance is measured. Significant organisational changes that affect the validity of the key energy performance indicators (EnPIs) can result in the need to adjust or reset the baseline. Examples of significant organisational changes could be: changed product mix changed operating schedule facility infrastructure change new or changed equipment and systems new energy sources new or modified energy uses organisational expansion/contraction, e.g. new or reduced sites, processes or activities, etc. Below is an explanatory diagram of the concept of baseline period and reporting period for an EnPI. Source: ISO 50001:2011 The organisation did not consider the relevant variables (EnPIs) that determine energy performance when establishing the energy baseline, i.e. the baseline was simple energy consumption. The baseline did not consider a suitable time period to measure all seasonal variations in energy use. Energy baselines for each energy source have not been considered where appropriate. The baseline has not been adjusted or reset after significant organisational changes. ENERGY BASELINE üor û COMMENT/PLAN Is there a record of the energy baseline? Was the energy baseline established using the information in the initial energy review, considering a data period suitable to the organisation s energy use and consumption? Has the energy baseline been adjusted when: a. EnPIs no longer reflect organisational energy use and consumption? b. Major changes to process, operational patterns or energy systems have occurred? c. Using a predetermined method? 16

17 4.4.5 ENERGY PERFORMANCE INDICATORS An energy performance indicator is a quantitative value or measure of energy performance, as defined by the organisation. Indicators can be used for different purposes and are related to several clauses of the standard. 1. Raise awareness and understanding Communication 2. Measure progress towards goals Objectives and targets 3. Support decision making Energy baseline, Monitoring, measurement and analysis and 4.7 Management review Edward Deming said You can t manage what you can t measure. And in fact, indicators are essential to ensure the effectiveness of the energy management system. Indicators must be derived from accurate and relevant data to ensure they provide an indicator that demonstrates effective correlation with energy performance. Otherwise, they will become a burdensome and nonvalue added task in your management system. A good example of this would be a R2 (correlation factor) value of greater than 0.75 when carrying out regression analysis. A value of less than 0.7 would indicate that the variable chosen is not the most appropriate. A good indicator should: be based on accurate information be clearly defined, so that more than one person can calculate it be understandable lead to awareness or decision making Examples of energy performance indicators: energy consumption by energy source versus raw material consumed (kwh/ tonne material) energy consumption per number of products produced or quantity of service provided (kwh/ 1000 parts produced or number of persons served) number of miles travelled per gallon of fuel consumed (mpg) consumption of gas or electric per heating or cooling degree day (kwh/ HDD or CDD) consumption of gas or electric per number of persons occupying a building (kwh/ person) energy saved due to a certain conservation and efficiency improvement. ENERGY PERFORMANCE INDICATORS üor û COMMENT/PLAN Has the organisation identified EnPIs appropriate and relevant for monitoring and measuring its energy performance? Is there a recorded methodology to determine and update energy performance indicators? Does this methodology include suitable data analysis techniques to establish correlation? Is this methodology clear and regularly reviewed? Are energy performance indicators (EnPIs) regularly reviewed and compared to the energy baseline? The methodology to determine the energy performance indicators is not clearly defined. Sufficient data analysis was not utilised in determining the EnPI resulting in poor correlation with energy performance and/or the most appropriate EnPI has not been determined. The indicators are too complicated and the analysis does not lead to any actions or awareness. reflect the organisation s energy performance. Not everything that can be counted counts, and not everything that counts can be counted. Albert Einstein 17

18 4.4.6 ENERGY OBJECTIVES, ENERGY TARGETS AND ENERGY MANAGEMENT ACTION PLANS Objectives and targets are the drivers for the continual improvement process that ensures that your EnMS delivers real improvements in energy performance. They identify what you have chosen to improve, by how much, and over what timescale. Action plans are the means of delivering the objectives and targets. The standard requires when establishing and reviewing objectives and targets, the organisation shall take into account: legal and other requirements significant energy uses opportunities to improve energy performance, as identified in the energy review. You can see from this how important it is to get the energy review right as this establishes where an organisation s focus and resources should be directed. Failure to do that leads to a significant potential for energy and EnMS performance improvements going unrealised. When setting objectives, the organisation must also consider its financial, operational and business conditions, technological options and the views of interested parties. In general terms this means that the objectives and targets should be realistic and appropriate for the complexity, nature and size of the organisation, e.g. a 1% reduction in energy use for a complex energy-using organisation that has the potential to improve performance by significantly more would not be considered appropriate. Equally, an organisation setting a target that is unachievable would not be considered realistic or productive. When objectives and targets have been established it is then the job of the action plans to deliver the results. They must be documented and updated at defined intervals The action plans have to include: designation of responsibility the means and timeframe by which individual targets are to be achieved a statement of the method by which an improvement in energy performance shall be verified a statement of the method of verifying the results. 18

19 The objectives and targets are not quantifiable or measurable. The objectives action plan is not capable of delivering the target, e.g. overarching target of energy performance reduction of 5%, however the sum of all actions planned do not deliver this target. Some actions of the action plans are operational controls with no associated timeframe. The action plans do not include a statement of the method by which an improvement in energy performance shall be verified or the method of verifying the results. ENERGY OBJECTIVES, ENERGY TARGETS AND ENERGY MANAGEMENT ACTION PLANS Have energy objectives and targets been established, implemented, maintained and documented at the relevant functions, levels, processes or facilities within the organisation? Have objectives and targets been given a timeframe? Are objectives and targets consistent with the energy policy? Are targets consistent with the objectives? Have the objectives and targets taken into account or considered the following: üor û COMMENT/PLAN legal requirements and other requirements significant energy uses and opportunities to improve energy performance identified in the energy review financial, operational and business conditions technological options views of interested parties? Are action plans established, implemented and maintained? Do they include: a. Designation of responsibility? b. The means and timeframe by which individual targets are to be achieved? c. A statement of the method by which improvement in energy performance shall be verified? d. A statement of the method of verifying the results? Have the action plans been documented and updated at defined intervals? 19

20 4.5.1 GENERAL COMPETENCE, TRAINING AND AWARENESS It is pointless having an EnMS if the people who should make it work are not competent, are untrained, or are not aware of the existence of the company s policy and procedures. The ability of the EnMS to deliver relies heavily on the competence and awareness of the personnel that operate and implement it, especially those that are related to the implementation, operation and maintenance of the significant energy uses (SEU). Again, this demonstrates the importance of the energy review. Without this competence and awareness, it is unlikely that the EnMS will achieve its goals or realise its potential for improvement in energy performance. ISO requires that all personnel that affect the SEUs are competent. This includes personnel that work on behalf of the organisation, e.g. maintenance/service subcontractors, etc. Organisations must have effective processes in place to ensure that subcontract personnel conducting any activity that affects the SEUs are competent to do so, as much as they would for direct employees. Related to direct employees that affect SEUs, this extends to all departments and areas of the organisation. Some examples of personnel that can affect SEUs are: energy team, maintenance and/or facilities personnel, procurement personnel, design personnel, top management and personnel responsible for operation of SEUs. Internal audit personnel do not have sufficient knowledge of ISO Subcontractors are not aware of the EnMS and of their impact in energy performance. There is no competence analysis of subcontractors that affect significant energy uses. COMPETENCE, TRAINING AND AWARENESS Are any person(s) working for the organisation, or on its behalf, related to significant energy uses, competent on the basis of appropriate education, training, skills or experience? Has the organisation identified the training needs associated with the control of its significant energy uses and operation of its energy management system? Has the organisation provided training or taken other actions to meet these needs? Has the organisation ensured that persons working for or on its behalf are and remain aware of: a. The importance of conformity with the energy policy, procedures and with the requirements of the EnMS? b. Their roles, responsibilities and authorities in achieving the requirements of the EnMS? c. The benefits of improved energy performance? d. The impact, actual or potential, with respect to energy use and consumption, of their activities and how their activities and behaviour contribute to the achievement of energy objectives and targets, and the potential consequences of departure from specified procedures? Personnel that affect all significant energy uses as identified in the energy review have not been identified and appropriate competence requirements determined and verified. Supporting department/function personnel that affect the SEUs are not identified and competence requirements determined and verified, e.g. design and procurement personnel. üor û COMMENT/PLAN Are records of competence, awareness and training maintained? 20

21 4.5.3 COMMUNICATION The standard recognises the need to make sure that information related to its energy performance and the EnMS is effectively communicated, and that this communication benefits both the organisation and personnel working for or on its behalf. It is recognised that those closest to and/or operating or maintaining the EnMS are most likely to know where there is potential for energy performance improvements. It is for this reason that the standard requires that organisations not only have to communicate with personnel but also to listen to personnel by implementing a process where they can make comments or suggest improvements to the EnMS. With regards to communication with external interested parties, the standard only requires that an organisation should decide if it wants to communicate its energy policy, EnMS and energy performance and document this decision. If the decision taken is to communicate externally then the organisation shall establish and implement a method for doing this. Internal communication processes are not extended to personnel working on behalf of the organisation, e.g. subcontractors. The mechanism or process for personnel working for or on behalf of the organisation to make comments or improvement suggestions is not effective or effectively utilised and therefore potential energy performance savings are not realised. COMMUNICATION üor û COMMENT/PLAN Does the organisation communicate internally with regard to its energy performance and EnMS, as appropriate to the size of the organisation? Has the organisation established and implemented a process by which any person working for or on behalf of the organisation can make comments or suggest improvements to the EnMS? Has the organisation documented its decision on whether to communicate externally on its energy policy, management system and energy performance? If the decision is to communicate externally, has an external communication method been established and implemented? DOCUMENTATION ISO does not require any documented procedures but requires an organisation to maintain the information that describes the key/core elements of the EnMS. These include: a. the scope and boundaries of the EnMS b. the energy policy c. the energy objectives, targets, and action plans d. the documents, including records, required by this international standard e. other documents determined by the organisation to be necessary. The standard does not state what format these elements are to take, only that they are to be documented. This can be in paper, electronic or any other medium. Quite often organisations will produce an EnMS manual that will include all of the documented requirements; however, an organisation is free to choose how best to do this to suit their needs and taking the following into consideration: the scale of the organisation and type of activities the complexity of the processes and their interactions the competence of personnel. Similar to other management systems standards, e.g. ISO 9001 or ISO 14001, documents that are required by the standard must be controlled, which includes technical documentation where appropriate, e.g. operating manuals, manufacturer s specifications, etc. Where an organisation already has another management system in place, it makes sense for the EnMS requirements to be integrated and delivered by any pre-existing procedures. This avoids duplication. It is essential however to cross-refer to these documents because they are vital controls and will need to be included in 21