ISO 50001 - PECB

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When Recognition MattersWHITEPAPERISO 50001ENERGY MANAGEMENT SYSTEMwww.pecb.com

CONTENT3Introduction4Who has benefited from ISO 50001 so far?5An overview of ISO 50001:20115How to ensure energy efficiency?5Key Clauses of ISO 50001:20117Link of ISO 50001 with other standards7ISO 50001 opposed to ISO 140018What are the Business Benefits of an Energy Management System?9Why is PECB a Worthy Choice?11Steps for Obtaining a PECB CertificationPRINCIPAL AUTHORSEric LACHAPELLE, PECBMustafe BISLIMI, PECB2ISO 50001 // ENERGY MANAGEMENT SYSTEM

INTRODUCTION“Using energy efficiently helps organizations save money as well as helping to conserve resources and tackleclimate change.” ISO.orgUnderstanding the importance of energy management is not that difficult, since there is a considerably largeamount of data that needs to be gathered, documented, analyzed and accounted in a systematic way.ISO 50001:2011 was established to support organizations in all sectors to use energy more efficiently throughthe implementation of an Energy Management System (EnMS).ISO 50001:2011 affects up to 60 percent of the world’s energy consumption and has the potential of a globaltrade catalyst, for industrial energy efficiency in the same way that ISO 9001 has for quality.The implementation of an Energy Management System within an organization requires a change in existinginstitutional practices towards energy. Systematic management and the behavior approach have become thecore efforts to improve energy efficiency today. The purpose of ISO 50001 is to enable organizations to establishthe Energy Management System and its processes to improve energy performance and increase cost savings.Organizations of all sizes and types should engage in a systematic and comprehensive process that will helpthe business in: Reducing energy related to operational costs, Increasing energy efficiency, Demonstrating commitment to sustainability, Supporting energy conservation, Reducing greenhouse gas emissions, Improving the use of energy assets, and Refining energy procurement practices.Up to the end of December 2014, at least 6, 778 of ISO 50001:2011 certificates, a growth of 40 % ( 1, 952), hadbeen issued in 80 countries and economies, 58 more than in 2011.The top three countries for the total number of certificates and growth in number of certificates in 2014 wereGermany, France and Spain.The table below summarizes the statistics of the ISO 50001 certifications around the world.StandardNumber of certificatesin 2014Number of certificatesin 2013EvolutionEvolution in %ISO 500016, 7784, 8261, 95240 %ISO 50001 // ENERGY MANAGEMENT SYSTEM3

ISO 50001 is based on the Plan - Do - Check - Act (PDCA) continual improvement framework and incorporatesenergy management into everyday organizational practices.In the context of energy management, the PDCA approach can be outlined as follows: Plan: conduct the energy review and establish the baseline, energy performance indicators (EnPIs), objectives,targets and action plans necessary to deliver results that will improve energy performance in accordance withthe organization's energy policy;Do: implement the energy management action plans;Check: monitor and measure processes and the key characteristics of operations that determine energyperformance against the energy policy and objectives, and report the results;Act: take actions to continually improve energy performance and the EnMS.ContinualImprovementEnergy policyEnergy planningManagement reviewImplementation andoperationCheckingInternal audit ofthe EnMSMonitoring measurementand analysisNonconformities,correction, corrective andpreventive actionWHO HAS BENEFITED FROM 50001 SO FAR?Bentley, Coca-Cola, Delta Electronics in China, Schneider Electric of France, the Dahanu Thermal Power Station inIndia, and LCD TV maker AU Optronics Corp of Taiwan, Province of China, are just some of the organizations thathave reported benefits of using ISO 50001.Industry (51% world energy use) – The ISO 50001 standard for machines and equipment, combustion engines,refrigeration and air conditioning, automation systems, industrial fans, fluid power systems, compressors, air andgas cleaning equipment, etc., increase performance and effectiveness to reduce power consumption.Transport (27% world energy use) – The ISO 50001 standard for ships, aircraft,road vehicles, motor cycles and mopeds address issues such as fuel consumptionand emissions. The ISO 50001 standard for electric and natural gas vehicles, andfuelling stations, will help disseminate this cleaner technology around the world,facilitating economies of scale.Commercial and residential sector (22% world energy use) - The ISO 50001 standardincludes design, construction, operation and maintenance that help reduce energyconsumption in buildings, while ensuring an acceptable indoor environment. Theycover areas such as thermal performance, insulation, materials and products,components and elements, energy use calculation, climatic data, ventilation,energy conservation, sustainability, carbon metrics, lighting, refrigeration and airconditioning.4ISO 50001 // ENERGY MANAGEMENT SYSTEMIndustry 51%Transport 27%Commercial and residencialsector 22%

AN OVERVIEW OF ISO 50001:2011ISO 50001 provides guidelines on how to design and implement an Energy Management System thatmeets the goals and objectives of reducing energy consumption and increasing efficiency.The components required for an effective EnMS include the energy policy and setting of objectives, targetsand action plans. ISO 50001 allows organizations to meet their energy policy requirements, and takewhatever action necessary to improve upon their energy performance.How to ensure energy efficiency?Organizations shall consider the following guidelines included in the main clauses of this InternationalStandard to help ensure energy efficiency.It’s used to improve an existing business process.KEY CLAUSES OF ISO 50001:2011Clause 4.1: General RequirementsClause 4.2: Management ResponsibilityClause 4.3: Energy PolicyClause 4.4: Energy PlanningClause 4.5: Implementation and OperationClause 4.6: CheckingClause 4.7: Management ReviewWhat is an Energy Management System?An Energy Management System is a setof interrelated or interacting elementsto establish an energy policy, energyobjectives, processes and procedures toachieve those objectives.Each of these key activities is overviewed below.Clause 4.1: General RequirementsThe organization shall establish, document, implement, maintain and improve an energy managementsystem based on ISO 50001, and define its scope and boundaries.ISO 50001 // ENERGY MANAGEMENT SYSTEM5

Clause 4.2: Management ResponsibilityTop management shall demonstrate its commitment to support the energy management system and tocontinually improve its effectiveness, through: An energy policy; A management representative and an energy management team; Resources (human resources, specialized skills, technology, financial resources); The scope and boundaries of the energy management policy; Communication; The establishment of energy objectives and targets; and Management reviews.Clause 4.3: Energy PolicyThe energy policy recaps the client’s best approach for identifying, capturing, and tracking energy savingsand prevention of costs. The energy policy states the organization's commitment for achieving energyperformance and improvement. In addition, it ensures appropriateness to the nature and scale of theorganization's energy use and consumption.Clause 4.4: Energy PlanningThe energy planning process is a critical phase as it involves the energy management system’s improvementand performance, after carrying out the following requirements: Meeting legal and other requirements Development of an energy review Establishment of an energy baseline Identification of energy performance indicators Execution of energy objectives, targets and action plansClause 4.5: Implementation and OperationIt is recommended for the organization to use the performed action plans and other outputs resulting fromthe planning process, for the implementation and operation of the energy management system.The processes involved in the implementation and operation phase are: Competence, training and awareness, Communication, Documentation, Operational control, and Design.Clause 4.6: CheckingTo ensure that the implementation of the energy management system was successful, necessary actionsshall be taken, such as: Monitoring, measurement and analysis of the management system’s operations, Evaluation of compliance with legal and other requirements, Conducting an internal audit, Addressing nonconformities by making corrections, taking corrective actions and preventive actions,and Controlling of records.Clause 4.7: Management ReviewThe inputs and outputs of the management review play an important role in ensuring the energy managementsystem’s continuing suitability, adequacy and effectiveness.6ISO 50001 // ENERGY MANAGEMENT SYSTEM

Link of ISO 50001 with other standardsISO 50001 can be easily linked with ISO 9001 and ISO 14001. ISO 50001 focuses on energy efficiency,whilst ISO 14001 emphasizes the significant environmental impacts of an organization.Both standards can be either individually implemented or with each other. These standards can also beintegrated with other management system standards, such as ISO 9001.In addition, other International Standards related to energy management are: ISO 12655, Energy Performance of buildingsISO 13153, Framework of the design process for energy savingISO/TC 180, Solar energyISO/TC 238, Solid BiofuelsISO 14067, Greenhouse gas emissionsISO 13790, Calculation of energy use for heating and coolingISO 18292, Energy performance of fenestration (windows) systemsISO 50001 OPPOSED TO ISO 14001Although ISO 50001 is closely associated to ISO 14001,this standard highlights more importance on the continualimprovement of energy performance, including energyefficiency, energy use and consumption.ISO 50001 can either be used in combination with ISO 14001,to help identify additional opportunities for energy savings, or asa single management system standard for those organizationsconcerned about energy costs and their environmental impact.Energy is one of the pillars of ISO 14001.The exclusive elements of ISO 50001 are all focused ontechnical activities (4.4.3 Energy review, 4.4.4 Energy baseline,4.4.5 Energy performance indicators, 4.5.6 Design, 4.5.7Procurement of energy services, products, equipment andenergy).ISO 50001Carbon ManagementISO 14001The table below displays the relationship of the clauses in bothstandards.ISO 50001 // ENERGY MANAGEMENT SYSTEM7

ISO 50001ISO 140014.2.2 Management representative4.4.1 Resources, roles, responsibility and authority4.4.2 Legal requirements and other requirements 4.3.2 Legal and other requirements4.5.2 Competence, training and awareness4.4.2 Competence, training and awareness4.5.4.1 Documentation requirements4.4.4 Documentation4.5.4.2 Control of documents4.4.5 Control of documents4.5.5 Operational Control4.4.6 Operational control4.6.2 Evaluation of compliance with legalrequirements and other requirements4.5.2 Evaluation of compliance4.6.3 Internal audit of the EnMS4.5.5 Internal audit4.6.4 Non conformities, correction, correctiveaction and preventive action4.5.3 Nonconformity, corrective action and preventiveaction4.6.5 Control of records4.5.4 Control of records4.6.1 Monitoring, measurement and analysis4.5.1 Monitoring and measurementWHAT ARE THE BUSINESS BENEFITS OF ANENERGY MANAGEMENT SYSTEM?As with all the major undertakings within an organization, it is essential to gain the backing and sponsorship of theexecutive management. By far, the best way to achieve this is to illustrate the positive gains of having an effectiveenergy management process in place, rather than highlight the negative aspects of the contrary.Today an effective energy management system is not about being forced into taking action to address externalpressures, but its importance relies on recognizing the positive value of energy management when good practiceis embedded throughout your organization.8Predictable and effectiveresponse to energyperformanceProtection ofpeopleMaintenance of vitalactivities of theorganizationBetter understandingof the organizationCost reductionRespect of the interestedpartiesProtection of thereputationand brandConfidence torycomplianceContractcomplianceISO 50001 // ENERGY MANAGEMENT SYSTEM

The adoption of an effective energy management process within an organization will have benefits in a number ofareas, examples of which include: Root for integrating energy efficiency into management practices;Developing better use of existing energy-consuming assets;Benchmarking, measuring, documenting, and reporting energy intensity improvements and their impact ongreenhouse gas emissions;Effective communicating on the management of energy resources;Energy management best practices and good energy management behaviors;Evaluating and prioritizing the implementation of new energy-efficient technologies;Provision of a framework for promoting energy efficiency throughout the supply chain; andImprovement of energy procurement practices.WHY IS PECB A WORTHY CHOICE?Implementation of EnMS with IMS2 methodologyConsidering the well documented benefits of implementing an Energy Management System based on ISO 50001,makes the proposal easier to decide on.Most companies now realize that it is not sufficient to implement a generic, “one size fits all” energy plan. Foran effective response, with respect to maintaining the energy management system, such a plan must becustomized to fit to a company. A more difficult task is the compilation of an implementation plan that balancesthe requirements of the standard, the business needs and the certification deadline.There is no single blueprint for implementing ISO 50001 that will work for every company, but there are somecommon steps that will allow you to balance the frequent conflicting requirements and prepare you for asuccessful certification audit.PECB has developed a methodology (please see example below) for implementing a management system; the“Integrated Implementation Methodology for Management Systems and Standards (IMS2)”, and it is based onapplicable best practices. This methodology is based on the guidelines of ISO standards and also meets therequirements of ISO 50001.ISO 50001 // ENERGY MANAGEMENT SYSTEM9

1. Plan2. Do1.1 Initiating the EMS2.1 Resources, Roles, Responsibility,1.2 Understanding the organization2.2 Document Management1.3 Analyze the Existing System2.3 Design of Controls and Procedures1.4 Leadership and Project Approval2.4 Communication1.5 Scope2.5 Awareness and Training1.6 Environmental Policy2.6 Operational Controls1.7 Environmental Policy2.7 Emergency Preparedness3. Check4. Act4.1 Treatment of Non-conformities3.1 Monitoring, Measurement,Analysis and Evaluation4.2 Continual Improvement3.2 Evaluation of Compliance3.3 Internal Audit3.4 Management Review1.8 Objectives, Targets and ProgramsIMS2 is based on the PDCA cycle which is divided into four phases: Plan, Do, Check and Act. Each phase hasbetween 2 and 8 steps for a total of 21 steps. In turn, these steps are divided into 101 activities and tasks. This‘Practical Guide’ considers the key phases of the implementation project from the starting point to the finishingpoint and suggests the appropriate ‘best practice’ for each one, while directing you to further helpful resources asyou embark on your ISO 50001 journey.The sequence of steps can be changed (inversion,merge). For example, the implementation ofthe management procedure or documentedinformation can be done before the understandingof the organization. Many processes are iterativebecause of the need for progressive developmentthroughout the implementation project; for example,communication and training.By following a structured and effective methodology,an organization can be sure it covers all minimumrequirements for the implementation of amanagement system. Whatever methodology used,the organization must adapt it to its particular context(requirements, size of the organization, scope,objectives, etc.) and not apply it like a PlanDoEnMSProjectsCheckActThe sequence of steps can be changed (inversion, merge). For example, the implementation of themanagement procedure for documented information can be done before the understanding of theorganization. Many processes are iterative because of the need for progressive development throughoutthe implementation project; for example, communication and training.By following a structured and effective methodology, an organization can be sure it covers all minimumrequirements for the implementation of a management system. Whatever methodology used, theorganization must adapt it to its particular context (requirements, size of the organization, scope, objectives,etc.) and not apply it like a cookbook.10ISO 50001 // ENERGY MANAGEMENT SYSTEM

STEPS FOR OBTAINING A PECB CERTIFICATIONFor organizations:For individuals:1. Implement the management system1. Participate in the training course2. Perform internal audit and reviews2. Register for the certification exam3. Select preferred certification body3. Sit for the certification exam4. Perform a pre-assessment audit (optional)4. Apply for the certification scheme uponsuccessful completion5. Perform the stage 1 audit5. Obtain certification6. Perform the stage 2 audit (on-site)7. Perform a follow-up audit (optional)8. Register the certification9. Assure continual improvement by conductingsurveillance auditsFor further details relating the types of trainings and certifications that PECB offers, please visit our website:www.pecb.comISO 50001 // ENERGY MANAGEMENT SYSTEM11

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ISO 50001 can be easily linked with ISO 9001 and ISO 14001. ISO 50001 focuses on energy efficiency, whilst ISO 14001 emphasizes the significant environmental impacts of an organization. Both s

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