GENERATING COST SAVINGS THROUGH

EFFECTIVE ENERGY MANAGEMENT

A DISCUSSION ABOUT THE CHALLENGES AND OPPORTUNITIES ASSOCIATED WITH ENERGY
SAVINGS IMPROVEMENTS

OCTOBER 2015
AUTHOR
Eric G.T. Huang
Global Product Manager,
Energy/Sustainability, SGS

ABSTRACT
The purpose of this document is to provide an introduction to the
ISO 50001:2011 Energy Management System (EnMS) certification
requirements. This document is not intended to be a full explanation
of the certification standards and related requirements or of its
implementation. Rather, it aims to promote understanding of the
standard and to enable organisations to establish the systems and
processes necessary to reduce energy costs, boost efficiency, and
enhance competitiveness.

CONTENTS
I. EXECUTIVE SUMMARY ...................................................................................................................3
II. GLOBAL ENERGY MANAGEMENT ...............................................................................................3
III. ENERGY MANAGEMENT SYSTEMS STANDARDS .................................................................5
IV. GLOBAL SOLUTIONS FOR ENERGY MANAGEMENT ..............................................................9
V. ISO 50001 FAMILY OF STANDARDS .............................................................................................11
VI. EUROPES ENERGY EFFICIENCY DIRECTIVE 2012/27/EU ......................................................14
VII. HOW ISO 50001:2011 RELATES TO OTHER INTERNATIONAL STANDARDS ...................14
VIII. INTEGRATING ENVIRONMENTAL AND ENERGY MANAGEMENT SYSTEMS:
PROCESS AND BENEFITS ..................................................................................................................16
IX. CASE STUDY COCA-COLA EGYPT CUTS CARBON EMISSIONS AND
ENERGY COSTS WITH ISO 50001:2011 CERTIFICATION ............................................................18
X. CONCLUSION.....................................................................................................................................20

I. EXECUTIVE SUMMARY
Energy efficiency is the most promising
means to reduce greenhouse gases
in the short term, said Yvo de Boer,
Former Executive Secretary of the
United Nations Framework Convention
on Climate Change (UNFCCC). Thomas
L. Friedman, foreign affairs columnist
for The New York Times and a threetime Pulitzer Prize winner, in his no. 1
bestseller Hot, Flat, and Crowded,
stated: We cannot continue the
business a s usual path. We need a
green revolution and we need to focus
on ET Energy Technology based
on renewable energy production and
energy efficiency.

This is the beginning of a new era

the Energy Climate Era. Energy
conservation technology and facilities/
equipment are only part of the approach
to improve energy efficiency. Systematic
management and the behaviour
approach have become the core efforts
to improve energy efficiency today. The
purpose of ISO 50001:2011, the energy
management system (EnMS) standard
discussed in this paper, is to enable
organisations to establish the systems
and processes necessary to improve
energy performance and increase cost
savings.

They are based on the continual

improvement and Plan-Do-Check-Act
approaches utilised in the ISO 9001
and ISO 14001 management systems
standards to provide compatibility
and integration opportunities.
Implementing these standards
should lead to reductions in energy
costs with a positive effect on an
organisations bottom line, while
minimising greenhouse gas emissions
and the overall negative impact on the
environment.

II. GLOBAL ENERGY MANAGEMENT

THE CHALLENGE OF THE
ENERGY-CLIMATE ERA
What are the greatest problems
facing humanity today? As far back as
2003, the Nobel Laureate Richard E.
Smalley outlined what he said would
be Humanitys Top Ten Problems for
the next 50 years. He placed energy
consumption first on the list in response
to a projection that the worlds population
would increase from 6.5 billion to 8-10
billion by 2050.
In recent years, many people have listed
energy as a growing problem. Certainly
many of our environmental problems
today arise from the types of energy we
use, and the increasing burning of fossil
fuels will accelerate climate change.
The global climate system is warming,
with an increase in the frequency and
intensity of extreme weather and climate
events such as heat waves, cold spells,
heavy rainfall, droughts and tropical
cyclones, as well as rises in sea levels.
The United Nations Intergovernmental
Panel on Climate Change (IPCC)
confirmed that the warming of the
climate system is unequivocal.
3

Eleven of the twelve years between

1995 and 2006 ranked among the
twelve warmest years since 1850. The
temperature increase is widespread
across the world, with both rising sea
levels and decreases in snow and ice
extent consistent with warming.
Current energy and CO2 trends run
directly counter to the repeated warnings
made by the IPCC, which concludes
that to limit the long-term global average
temperature rise to between 2.0C and
2.4C, global CO2 emission reductions of
at least 50% (compared to 2000 levels)
will need to be achieved by 2050. Recent
studies suggest that climate change is
occurring even faster than previously
expected and that even the 50% by
2050 goal may be inadequate to prevent
dangerous climate change.
Today it seems that the world needs ever
increasing energy supplies to sustain
economic growth and development.
However, energy resources are under
pressure and CO2 emissions from todays
energy usage already threaten our
climate. What options do we have for
switching to a cleaner and more efficient
energy future? How much will it cost?
And what policies do we need?
According to the International Energy
Agency (IEA) Energy Technology
Perspectives (ETP) 2010 report, the
next decade is critical. If emissions do
not peak by around 2020 and decline
steadily thereafter, achieving the
needed 50% reduction by 2050 will
become much more costly. Following
this earlier report, the IEA released its
ETP 2012 2C Scenario (2DS) exploring
the technological energy efficiency and
balanced energy system options that are
needed to realise a sustainable future.
Central to this is the use of renewable
energy sources and ensuring lower
emissions.
According to the 2DS, energy savings
and the use of alternative energy sources
could save countries a total of 450
exajoules (EJ) in fossil fuel purchases
by 2020. By 2050, the cumulative fossil
fuel savings potential is said to be almost
9,000 EJ equivalent to more than 15

years of current world energy primary

demand.
ETP 2014 highlighted the fact that
decarbonising electricity supply and
increasing electricity end-use efficiency
remain two key components of the 2DS.
Today, heating and cooling in buildings
and industry accounts for approximately
40% of final energy consumption a
larger share than transportation (27%).
Among energy end uses, heating
and cooling systems offer substantial
potential for decarbonisation. Potential
that has so far been largely untapped.
Broad application of energy efficiency
and switching to low-carbon final
energy carriers (including decarbonised
electricity) can push the fossil share to
below 50% by 2050, with renewables
(including renewable electricity) covering
more than 40% of heating and cooling
needs.
The biggest challenge lies in making the
shift towards clean electricity production.
Meeting the 2DS under such an increase
means reducing the global average
carbon intensity of electricity production
by more than 90%. Improving the
efficiency of electricity use provides 12%
of the cumulative emissions reduction,
and also enables cost savings through
reduced capacity and investment needs
in the power sector.
Thomas L. Friedman, foreign affairs
columnist for The New York Times, and a
three-time Pulitzer Prize winner, explains
in his number one bestseller Hot, Flat,
and Crowded, a new era through his
illuminating account of recent events:
the Energy-Climate Era. He shows
how 911, Hurricane Katrina, and the
flattening of the world by the Internet
have combined to bring climate and
energy issues to the top of the agenda.
We can no longer expect to enjoy peace
and security, economic growth, and
human rights if we continue to ignore
the key problems of the Energy-Climate
Era: energy supply and demand, petrodictatorship, climate change, energy
poverty, and biodiversity loss. How we
handle these five problems will determine
whether we have peace and security,
economic growth, and human rights in

the coming years. As Friedman defines,

the era concerns itself with the energy
and climate problems, both of which are
widely debated and needing solutions;
but they have not gone very far, the
much-touted green revolution has hardly
begun.

A MAJOR OPPORTUNITY
Energy efficiency is the most promising
means to reduce greenhouse gases in the
short term, said Yvo de Boer, Former
Executive Secretary of the United Nations
Framework Convention on Climate
Change (UNFCCC). Thomas L. Friedman
also stated in his book: We cannot
continue the business as usual path. We
need a green revolution and we need to
focus on ET Energy Technology based
on renewable energy production and
energy efficiency.
This is the beginning of a new era
the Energy-Climate Era. Increased
energy efficiency will become the most
important momentum of the future.
Low-cost options for reducing actual
consumption many of which are already
available offer the greatest potential for
cutting CO2 emissions over the period to
2050.
Former US Energy Secretary Steven
Chu also indicated: Energy efficiency
is not just low-hanging fruit; it is fruit
that is lying on the ground. And energy
efficiency means money back in your
pocket because you pay less on your
energy bills. Energy conservation
technology and facilities or equipment
are only part of the approach to improve
energy efficiency. Most energy efficiency
in industry is achieved through changes
in how energy is managed in a facility,
rather than through the installation of
new technologies. Today, systematic
management and the behaviour approach
have become the core efforts to improve
energy efficiency and cut costs. An
energy management standard provides a
method for integrating energy efficiency
into existing industrial or commercial
management systems for continuous
improvement. Any improvements
in energy efficiency would result in

significant reductions in carbon emissions

and increased cost savings for an
organisation.
The key question for energy management
practitioners is how to provide the
best case for successful energy
management within their organisation,
one that will achieve the desired buyin at senior management level, and
can be implemented as a successful
management system.
The purpose of an energy management
standard is to provide an organisational
framework for industrial facilities to
integrate energy efficiency into their
management practices. This includes
fine-tuning production processes and
improving the energy efficiency of
industrial systems. Energy management
seeks to apply to energy use the same
culture of continual improvement that
has been successfully used by industrial

firms to improve quality and safety

practices. An energy management
standard is needed to influence how
energy is managed in an industrial facility,
thus realising immediate energy use
reductions through changes in operational
practices, as well as creating a favourable
environment for adoption of more capitalintensive energy-efficiency measures and
technologies1.
Efficient energy management requires
the identification of where energy is
used, where it is wasted and where
any energy saving measures will have
most effect. ISO 50001:2011 provides
a structured approach that incorporates
energy management into organisational
culture, resulting in sustained energy
savings and continual improvements
in energy performance over time. This
helps to justify initial investments into
energy projects, as well as to deliver a

return on investment. The key feature

of a successful EnMS is that it is fully
integrated as an embedded management
process within an organisation, energy
management implications are considered
at all stages of the development of new
projects, and that these implications
are part of any change control process.
Without a structured approach, there is
no guarantee that energy savings will be
sustained, or that return-on-investment
will be maximised.
A change in organisational culture is
needed in order to realise industrial
energy efficiency potential. An EnMS
standard can provide the supportive
organisational framework necessary to
move beyond an energy saving approach
to an energy efficiency approach that
routinely and methodically seeks
out opportunities to increase energy
efficiency and achieve cost savings, no
matter how large or small.

III. ENERGY MANAGEMENT SYSTEM

STANDARD
ENERGY MANAGEMENT SYSTEM
STANDARD ISO 50001:2011

facilities and to reduce greenhouse gas

(GHG) emissions worldwide.

Realising the importance of energy

management, ISO 50001:2011
was developed as the International
Standard for energy management
by the International Organisation for
Standardisation (ISO) in 2008. The ISO
50001:2011 energy management system
standard was published on 15 June, 2011.
It is anticipated to affect up to 60 percent
of the worlds energy consumption and
has the potential to become a global trade
catalyst for industrial energy efficiency
in the same way that ISO 9001 has
for quality. This standard is expected
to achieve major, long-term increases
in energy efficiency (20% or more) in
industrial, commercial and institutional

ISO 50001:2011 specifies requirements

for an organisation to establish,
implement, maintain and improve
an energy management system,
which enables that organisation to
take a systematic approach in order
to achieve continual improvement of
energy performance, including energy
efficiency, energy use and consumption.
It specifies requirements applicable to
energy use and consumption, including
measurement, documentation and
reporting, design and procurement
practices for equipment, systems,
processes and personnel that contribute
to energy performance. Implementation
of this standard should lead to reductions

in energy costs, GHG emissions and

other environmental impacts, through the
systematic management of energy.
ISO 50001:2011 establishes an
international framework for industrial,
commercial or institutional facilities,
or entire companies, to manage their
energy, including procurement and use. It
is applicable to organisations of all types
and sizes, irrespective of geographical,
cultural or social conditions.
Conformance with ISO 50001:2011
demonstrates that a plant or company
has a sustainable EnMS in place, has
completed a baseline assessment
of energy use and is committed to
continuously improving its energy
performance, while reducing costs.

1 McKane, et al. Thinking Globally: How ISO 50001 Energy Management can make industrial energy efficiency standard practice.
Available at http://industrial-energy.lbl.gov/drupal.files/industrial-energy/ISO%2050001-Energy%20Management.pdf
5

The framework of ISO 50001:2011

encompasses a combination of technical
and strategic management aspects,
which are expected to give this standard
wide acceptability. The standard is
based on the continual improvement and
Plan-Do-Check-Act (PDCA) approaches
utilised in ISO 9001 and ISO 14001, to
provide compatibility and integration
opportunities.

DEVELOPING ISO 50001:2011

The UN Industrial Development
Organisation (UNIDO) was one of the
earliest entities to recognise the industry
need to develop an effective response to
climate change and to the proliferation of
national energy management standards.
In March 2007, UNIDO hosted a meeting
of experts which led to the submission
of a formal request to the ISO Central
Secretariat to consider undertaking work
on an international energy management
standard.
In February 2008, the Technical
Management Board of ISO approved
the establishment of a new project
committee (PC 242 Energy
Management) to develop the new ISO
Management System Standard for
Energy. The project committee consisted
of 35 participating and 5 observing
countries. The Associao Brasileira
de Normas Tcnicas (ABNT) and the
American National Standards Institute
(ANSI) jointly served as the Secretariat.
The US Council for Energy-Efficient
Manufacturing and the US Department
of Energy are supporting ANSIs role in
developing the standard.
The first ISO/PC 242 committee
convened in Washington, D.C. in
September 2008 and again in Brazil in
March 2009. The ISO 50001:2011 energy
management system standard was
published on 15 June, 2011.

ISO 50001:2011 REQUIREMENTS

Implementation of an energy
management standard within an
organisation requires a change in
existing institutional practices toward
energy, a process that may benefit
from technical assistance from external
experts. Organisation staff familiar
with management systems (i.e. quality,
safety and environment) understand the
dynamics of establishing a management
system and its successful integration
into the organisations corporate culture.
These experts, however, typically
have little or no expertise in energy
efficiency. In contrast, industrial energyefficiency experts are highly specialised
in energy efficiency, but are trained
and orientated toward the identification
and execution of energy-efficiency
projects without a management system
context. The appropriate application of
energy management standards requires
significant training and skill. There is a
need to build not only internal capacity
within organisations seeking to apply the
standard, but also external capacity from
knowledgeable experts to help establish
an effective implementation structure.
The suite of skills required to provide the
technical assistance needed for energy
management is unique, since it combines
both management systems and energy
efficiency.1
General ISO 50001:2011 requirements
include:

A strong commitment to continual

improvement of energy efficiency

Appointment of a qualified person

for energy management

Development of an energy
management plan. Without a plan in
place, opportunities for improvement
may be known but may not be
promoted or implemented because
energy management is not part of
the organisational culture and the
normal planning process

Assessing the major energy uses

in the organisation to develop a
baseline of energy use and set
targets for improvement

Selection of energy performance

indicators and objectives to help
shape the development and
implementation of an action plan

Training for staff and those who

work on behalf of the organisation
who need to be aware of energy
use and performance objectives in
both the skills and the day-to-day
practices needed to improve energy
performance

The results should be regularly

evaluated and communicated to
all personnel, recognising high
achievement

WHAT DOES ISO 50001:2011 COVER?

The ISO 50001:2011 standard includes
four main clauses:
1.

Scope

2.

Normative References

3.

Terms and Definitions

4.

Energy Management System

Requirements

Annex A: Guidance on the use of the

International Standard
Annex B: Correspondence between
ISO 50001:2011, ISO 9001:2008, ISO
14001:2004 and ISO 22000:2005
Clause 4 of the standard is the further
broken down into seven sub-clauses.
Details of these sub-clauses are as
follows:
4.1 General Requirements
The organisation shall:

Establish, document, implement,

maintain and improve an EnMS in
accordance with the requirements of
this international standard

Define and document the scope and

the boundaries of its EnMS

Determine how it will meet the

requirements of this international
standard in order to achieve
continual improvement of its energy
performance and of its EnMS

Includes a commitment to comply

with applicable legal requirements
and other requirements to which
the organisation subscribes related
to its energy use, consumption, and
efficiency

Provides the framework for setting

and reviewing energy objectives and
targets

4.5 Implementation and Operation

Supports the purchase of energyefficient products and services,

and design for energy performance
improvement

Use the action plans and other

outputs resulting from the planning
process for implementation and
operation

Is documented and communicated at

all levels within the organisation

Is regularly reviewed, and updated

as necessary

Ensure any person(s) working for,

or on its behalf related to significant
energy uses are competent on the
basis of appropriate education,
training, skills and experience

Be consistent with the energy policy

and lead to activities that continually
improve energy performance

Communicate internally with regard

to its energy performance and
EnMS, as appropriate for the size of
the organisation

Involve a review of the organisations

activities which can affect energy
performance

Establish, implement and maintain

procedure(s) to approve documents
for adequacy prior to issue

Develop, record, and maintain an

energy review. The methodology
and criteria used to develop the
energy review shall be documented.
To develop the energy review, the
organisation shall:

Identify and plan those operations

and maintenance activities which
are related to its significant energy
uses and that are consistent with its
energy policy, objectives, targets and
action plans

Consider energy performance

improvement opportunities and
operational control in the design
of new, modified and renovated
facilities, equipment, systems and
processes

Establish and implement the

criteria for assessing energy use,
consumption and efficiency over
the planned or expected operating
lifetime when procuring energy using
products, equipment and services

4.2 Management Responsibility

Top management shall demonstrate its
commitment and support for the EnMS,
and continually improve its effectiveness
by:

Defining, establishing, implementing,

and maintaining an energy policy

Appointing a management
representative and approving the
formation of an energy management
team

Providing the resources needed to

establish, implement, maintain and
improve the EnMS and resulting
energy performance

4.4 Energy Planning

Identifying the scope and boundaries

to be addressed by the EnMS

Communicating the importance of

energy management to those in the
organisation

Ensuring that energy objectives and

targets are established

Ensuring that EnPIs are appropriate

to the organisation

Considering energy performance in

long-term planning

Ensuring that results are measured

and reported at determined intervals

Conducting management reviews

4.3 Energy Policy

Analyse energy use and

consumption based on
measurement and other data

Based on the analysis of energy

use and consumption, identify
the areas of significant energy
use

Top management shall define the energy

policy and ensure that it:

Is appropriate to the nature and scale

of the organisations energy use and
consumption

Includes a commitment to continual

improvement in energy performance

Includes a commitment to ensure

the availability of information and
of necessary resources to achieve
objectives and targets

The organisation shall:

Energy planning shall:

Establish, implement and maintain

documented energy objectives and
targets. The objectives and targets
shall be consistent with the energy
policy. Targets shall be consistent
with the objectives

Identify, prioritise and record

opportunities for improving
energy performance

Establish an energy baseline(s) using

the information in the initial energy
review

4.6 Checking

Identify energy performance

indicators (EnPIs) appropriate for
monitoring and measuring its energy
performance

The organisation shall:

Ensure that the key characteristics
of its operations that determine
energy performance are monitored,
measured and analysed at planned
intervals

Define and periodically review its

measurement needs

Ensure that the equipment used in

monitoring and measuring of key
characteristics provides data which
is accurate and repeatable

Investigate and respond to

significant deviations in energy
performance

Conduct internal audits at planned

intervals

Address actual and potential

nonconformities by making
corrections, and by taking corrective
action and preventive action

4.7 Management Review

Top management shall review the
organisations EnMS to ensure its
continuing suitability, adequacy and
effectiveness.

THE ISO 50001:2011 ENERGY MANAGEMENT SYSTEM MODEL

MANAGEMENT

TECHNICAL

PLAN

PLAN

Policy/goals/targets
(4.3,4.4.,6)

Energy Review
(4.4.3)

Management
Commitment (4.2.1)

Energy baseline
(4.4.4)

Energy Performance
Indicators (4.4.5)

DO

Training (4.5.2)

Communication
(4.5.3)

Documentation
(4.5.4)

Operational Control
(4.5.5)

CHECK

PLAN

DO

DO

Design (4.5.6)

Energy purchasing
(4.5.7)

CHECK

Monitoring (4.6.1)

CHECK

Measurement (4.6.1)

Internal audit (4.6.3)

Corrective/
preventive action
(4.6.4)

Verifying action plans

results (4.4.6)

ACT

ACT

ACT

Management review
(4.7)

Energy performance
and EnPls review
(4.7.2)

IV. GLOBAL SOLUTIONS FOR

ENERGY MANAGEMENT
WHY THE ENERGY MANAGEMENT
SYSTEM STANDARD?
With energy costs and the importance
attributed to climate change having
risen over the past several years, energy
efficiency has become paramount.
According to a report by the Economist
Intelligence Unit, energy-efficiency
management is critical to businesses
because they need to be seen to be:2

Keeping costs under control during

economic recession

Positioning themselves and their

brands as green product providers

Meeting increasingly stringent

compliance requirements

Improving the environmental

footprint of their products/services

Implementing stronger controls over

suppliers of environmental standards

Businesses that waste energy are

reducing profitability and causing
avoidable pollution, primarily through
increased carbon emissions, which
contributes to both climate change
and dwindling fuel reserves. Making
businesses more energy efficient is
seen as a largely untapped solution
to addressing global warming, energy
security and fossil fuel depletion.
As pressures mount on businesses
to become more energy efficient,
managing resources effectively is proving
more essential than ever. In addition,
customers are increasingly asking for
assurance from organisations that they
treat the environment responsibly and are
able to demonstrate energy efficiency.
ISO 50001:2011 is intended to give
energy management system guidance
to companies and organisations so that
they can develop and implement energy
policies, objectives, targets and action

plans, which take into account legal

requirements and other information
relevant to energy use.
A management process is required to
proactively assess, manage, and measure
energy usage. The introduction to the
standard makes it clear that implementing
ISO 50001:2011: should lead to
reductions in energy cost, greenhouse
gas emissions and other environmental
impacts, through systematic
management of energy.

Many organisations currently have limited

levels of the expertise necessary to
achieve these reductions and so need
guidance on how to do so through best
practices.

ORGANISATIONS
IMPLEMENTING
ISO 15001 ARE ABLE
TO IDENTIFY WAYS TO
IMPROVE EFFICIENCY
AND REDUCE WASTE

2 Economist Intelligence Unit Report. Countdown to Copenhagen. Available at: http://graphics.eiu.com/marketing/pdf/copenhagen/Sustainability_2009.pdf

9

Improvements in energy efficiency

and performance will require improved
systems and processes. Companies and
organisations will need to manage the
way in which they use energy in order
to reduce GHG emissions and other
environmental impacts, as well as to cut
energy costs and wastage.

AN ENERGY
MANAGEMENT
SYSTEM, WHICH
SETS OBJECTIVES TO
REDUCE ENERGY USE,
INHERENTLY REDUCES
AND ORGANISATIONS
ENERGY COSTS

Reports suggest that there is a distinct

correlation between the strongest, most
successful brands, and those that score
highly on the categories of corporate
reputation, leadership and innovation.
Environmental responsibility is one of the
top characteristics of leading companies.
In summary, the ISO 50001:2011 EnMS
standard provides the following benefits:

Strategic planning that requires

measurement, management, and
documentation for continuous
improvement for energy efficiency
and cost savings
Addressing policies and procedures
based on all aspects of energy
purchase and use

improvements and their projected

impact on reductions in greenhouse
gas emissions

Creating transparency and facilitating

communication on the management
of energy resources

Promoting energy management

best practices and reinforcing good
energy management behaviours

Assisting facilities in evaluating and

prioritising the implementation of
new energy efficient technologies

Providing a framework for promoting

energy efficiency throughout the
supply chain

Facilitating energy management

improvements in the context of
greenhouse gas emission reduction
projects

Demonstrating continuous
improvement in energy efficiency

ISO 50001:2011 provides a framework

for integrating energy efficiency into
existing industrial management systems
and enables organisations to take a
systematic approach to achieve continual
improvement of energy performance,
energy efficiency and energy
conservation.

It creates documents that are useful

for additional energy saving projects
that are undertaken as well as for
evolving into policies

Identifying key performance

indicators, unique to the company,
that are tracked to measure progress

In addition, a survey done by Carbon

Trust released on 23 March, 2011,
suggested that for those companies able
to provide credible evidence of improving
their environmental impact there are
considerable commercial and reputational
opportunities. Of those surveyed, more
than 50% are more loyal to brands that
can show, at a glance, evidence of action.

Assisting organisations in making

better use of existing energyconsuming assets

Step 1 You are provided with a

proposal based on the size and nature of
your organisation. You can then proceed
with the audit by accepting the proposal

Offering guidance on benchmarking,

measuring, documenting, and
reporting energy performance

Step 2 You may have a pre-audit*

performed to give an indication of the

HOW DOES THE ENERGY MANAGEMENT

SYSTEM CERTIFICATION PROCESS WORK?
The ISO 50001:2011 certification process,
which is similar to ISO 14001:2004,
consists of the following six steps:

70% of people want businesses to

mandatorily disclose their carbon
emissions, and 66% of the public
question the authenticity of climate
claims made by companies. The research
shows that the majority of consumers
(60%) need third-party evidence from a
respected climate change body before
believing corporate claims. Just 7%
believe the word of companies on their
climate change responsibilities and
actions to reduce their impacts3.

3 Carbon Trust 2011 press releases Only 7% of the public believe company claims of action on climate change 21 March 2011.
Available at: http://www.carbontrust.co.uk/news/news/press-centre/2011/Pages/company-climate-change.aspx
10

proposal based on the size and nature of

your organisation. You can then proceed
with the audit by accepting the proposal.

Offering guidance on benchmarking,

measuring, documenting, and reporting
energy performance improvements and
their projected impact on reductions in
greenhouse gas emissions

documentation system. At the end of

this stage, you are presented with the
findings of the audit classified as either
major or minor non-conformances
along with other observations and
opportunities for improvement.
Once you have addressed the nonconformities, a technical review of
the audit will then be conducted by an
authorised Certification Manager to
confirm the issuance of a certificate.

Step B You may have a pre-audit*

performed to give an indication of
the readiness of your organisation
for the audit. This stage is optional,
yet it is often found useful in
identifying any weaknesses in your
systems and in building confidence
before the formal audit.

Creating transparency and facilitating

communication on the management of
energy resources
Promoting energy management best
practices and reinforcing good energy
management behaviours
readiness of your organisation for the
audit.
Assisting
facilities
in evaluating
This stage
is optional,
yet and
it is
prioritising
the implementation
new
often
found useful
in identifyingof
any
energy efficient
technologies
weaknesses
in your
systems and in
confidence
before
formal
building
Providing
a framework
forthe
promoting
audit
energy efficiency throughout the
supply
chainfirst part of the formal audit
Step
3 The
the Stage energy
1 Readiness
Review.
is Facilitating
management
This
is an evaluation
ofcontext
the compliance
improvements
in the
of
of greenhouse
your documented
system with the
gas emission
requirements
of the standard. It is
reduction projects
also an opportunity for the auditor to
better understand the nature of your
HOW DOES THE ENERGY MANAGEMENT
organisation, to plan the rest of the audit
SYSTEM CERTIFICATION PROCESS WORK?
as effectively as possible and to initially
The
ISO 50001:2011
certification
process,
examine
key elements
of the system.
which
is
similar
to
ISO
14001:2004,
After this stage you will receive a report
identifying any concerns or observed

Step C The first part of the formal

non-compliances so that remedial action
audit is the Stage 1 Readiness
can be taken, if required
Review. This is an evaluation of the
Step
4 This of
is Stage
2 of the initial
compliance
your documented
system
audit
The auditof
includes
withprocess.
the requirements
the standard
interviews
with you and
to better understand
theyour
nature of your
colleagues,
andtothe
examination
of audit
organisation,
plan
the rest of the
records.
Observation
of your
as effectively
as possible
andworking
to initially
practices
how
compliant
examinedetermines
key elements
of the
system.
your
are with
the
standard
Youprocesses
receive a report
after
this
stage
and
with yourany
own
documentation
identifying
concerns
or observed
system.
At the endso
of that
this you
stage,
non-compliances
canyou
take
areimmediate
presentedaction
with ifthe
findings of
required.
the audit classified as either major or
Step D This is Stage 2 of the
minor non-conformances, along with
initial audit process. The audit
other observations and opportunities
includes interviews with you and
for improvement. Once the nonyour colleagues and the examination
conformities have been addressed, a
of records. Observation of your
technical review of the audit will be

conducted
Step E Surveillance
visits will
be
by an authorised
Certification
scheduled
at either the
six or
twelve month
Manager
to confirm
issuance
of a
intervals depending on the contract.
certificate
During the visits, there are reviews of
Step 5 Surveillance visits will be
the implementation of the action plan
scheduled at either six or twelve month
addressing the past non-conformities
intervals, depending on the contract.
and examinations of certain mandatory
During these visits, there are reviews of
and other selected parts of the system
the implementation of the action plan
in line with an audit plan that you are
addressing the past non-conformities
provided with before each visit.
and examinations of certain mandatory
and
Step
F selected
Shortly before
thirdsystem
other
partsthe
of the
anniversary
of
the
initial
certification,
in line with an audit plan that you are a
routine visit
be extended
provided
withwill
before
each visitto enable
a re-certification audit. Surveillance
Step 6 Shortly before the third
visits will then continue, as before, on a
anniversary of the initial certification, a
3-year cycle.
routine visit will be extended to enable a
re-certification audit. Surveillance visits
will then continue, as before, on a threeyear cycle

ISO 50001:2011 CERTIFICATION PROCESS

ISO 50001:2011 CERTIFICATION PROCESS

SURVEILLANCE VISITS TYPICALLY

SURVEILLANCE VISITS TYPICALLY
AT
AT66TO
TO12
12MONTH
MONTHINTERVALS
INTERVALS

ASSESSMENT
AND
CERTIFICATION
ASSESSMENT
AND
CERTIFICATION

Step A

Step C

Step D

Agree
Contract

Stage 1
Audit

Stage 2
Audit

Step B
Optional
Pre-Audit

Action and
Closure of
Identified
Non-Conformities

Certificate
Issue on
Completion
of Successful
Audit

Step e
Surveillance
Visits

Action and Closure of Identified

Non-Conformities

Step F
Re-Certification
Audit

Certification Cycle typically 3 years

* Please note that stand-alone pre-audits (gap analysis), can be carried out independently of any certification activity.
*Please not that stand-alone pre-audits (gap analysis), can be carried out independently of any certification activity.

10

V. ISO 50001 FAMILY OF STANDARDS

A SUITE OF COMPLEMENTARY ENERGY
MANAGEMENT SYSTEM STANDARDS
Since the publication of the ISO
50001 Energy management system
Requirements with guidance for use, in
June 2011, the International Technical
Committee responsible for developing
standards on energy management

(ISO/TC 242) has developed a suite of

complementary energy management
system (EnMS) standards which will
guide organisations through the various
stages of setting up an EnMS. These
consist of:

ISO 50002:2014 Energy audits

Requirements with guidance for use

ISO 50003:2014 EnMS

Requirements for bodies providing
audit and certification of energy
management systems

ISO 50004:2014 EnMS Guidance

for the implementation, maintenance
and improvement of an energy
management system

11

ISO 50006:2014 EnMS Measuring

energy performance using energy
baselines (EnB) and energy
performance indicators (EnPI)
General principles and guidance

ISO 50015:2014 EnMS Measuring

and verification of energy
performance of organisations
General principles and guidance

Below is a brief overview of the new

standards, how they interact with ISO
50001, and how the additional standards
might be appropriate to the needs of
organisations implementing ISO 50001.

ISO 50002:2014 ENERGY AUDITS

REQUIREMENTS WITH GUIDANCE FOR USE
ISO 50002:2014 specifies the process
requirements for carrying out an
energy audit in relation to energy
performance. It is applicable to all types
of establishments and organisations,
and all forms of energy and energy use.
An energy audit includes a detailed
analysis of the energy performance
of an organisation, its equipment,
systems and/or processes. It is based
on appropriate measurement and
observation of energy use, energy
efficiency and consumption. Energy
audits are planned and conducted
as part of the identification and
prioritisation of opportunities to
improve energy performance, reduce
energy waste and obtain related
environmental benefits. Audit outputs
include information on current use and
performance. They also provide ranked
recommendations for improvement
in terms of energy performance and
financial benefits.
An energy audit can be used to support
an energy review, it can also facilitate
monitoring, measurement and analysis
as described in ISO 50001, or be used
independently.

12

This standard allows for differences

in approach and in terms of scope,
boundary and audit objective. It seeks to
harmonise common aspects of energy
auditing in order to enhance clarity and
transparency. The energy audit process
is presented as a simple chronological
sequence, but this does not preclude
repeated iterations of certain steps.
The main body of this standard
covers the general requirements and
framework common to all energy
audits that can be supplemented by
equivalent national audit standards. For
auditing of specific types of facilities,
processes or equipment, refer to the
relevant international, national and local
standards and guidelines.
The purpose of this standard is to define
the minimum set of requirements
leading to the identification of
opportunities for the improvement
of energy performance. ISO
50002:2014 does not address either
the requirements for selection and
evaluation of the competence of bodies
providing energy audit services or the
auditing of an organisations energy
management system, as these are
described in ISO 50003.

ISO 50003:2014 ENMS REQUIREMENTS

FOR BODIES PROVIDING AUDIT
AND CERTIFICATION OF ENERGY
MANAGEMENT SYSTEMS
ISO 50003:2014 specifies requirements
for competence, consistency and
impartiality in the auditing and
certification of energy management
systems (EnMS) for bodies providing
these services. It is intended to be
used in conjunction with ISO/IEC
17021:2011. The requirements of ISO/
IEC 17021:2011 also apply to ISO
50003:2014.
In order to ensure the effectiveness
of EnMS auditing, ISO 50003:2014
addresses the audit process,
competence requirements for
personnel involved in the certification
process for energy management
systems, the duration of audits and
multi-site sampling. In addition to the
requirements of ISO/IEC 17021:2011,
this standard specifies requirements
reflecting the specific technical area of
energy management systems that are
needed to ensure the effectiveness of
the audit and certification. In particular,
it addresses additional requirements for
the audit planning process, the initial
certification audit, the on-site audit,
auditor competence, duration of EnMS
audits, and multi-site sampling.

This standard deals with energy

management system audits for
certification purposes. However,it does
not deal with energy audits whose
purpose is to establish a systematic
analysis of energy consumption and
energy use and which are defined in ISO
50002.

ISO 50004:2014 ENMS GUIDANCE FOR

THE IMPLEMENTATION, MAINTENANCE
AND IMPROVEMENT OF AN ENERGY
MANAGEMENT SYSTEM
ISO 50004:2014 provides guidance when
implementing the requirements of an
energy management system based on
ISO 50001. It guides organisations to
take a systematic approach in order to
achieve continual improvement in energy
management and energy performance.
This standard is not prescriptive and each
organisation determines how to best
approach meeting the requirements of
ISO 50001. While the guidance in ISO
50004:2014 is consistent with the ISO
50001 energy management system
model, it is not intended to provide
interpretations of the requirements of ISO
50001.
Energy management will be sustainable
and most effective when it is integrated
into an organisations overall business
processes (e.g. operations, finance,
quality, maintenance, human resources,
procurement, health and safety and
environmental).
This standard includes practical help
boxes designed to provide the user
with ideas, examples and strategies
for implementing an EnMS. The
examples and approaches presented
are for illustrative purposes. They are
neither intended to represent the only
possibilities, nor are they necessarily
suitable for every organisation.
In implementing, maintaining or
improving an EnMS, it is important
that organisations select approaches
appropriate to their own circumstances.
ISO 50001 can be integrated with other
management system standards, such as

ISO 9001, ISO 14001, and OHSAS 18001.

Integration can have a positive effect
on business culture, business practice,
embedding energy management into
daily practice, operational efficiency and
the operating cost of the management
system. ISO 50004:2014 does not
provide guidance on how to develop an
integrated management system.
The guidance in ISO 50004:2014 is
applicable to any organisation, regardless
of its size, type, location or level of
maturity.

ISO 50006:2014 ENMS MEASURING

ENERGY PERFORMANCE USING
ENERGY BASELINES (ENB) AND ENERGY
PERFORMANCE INDICATORS (ENPI)
GENERAL PRINCIPLES AND GUIDANCE
ISO 50006:2014 provides guidance
to organisations on how to establish,
use and maintain energy performance
indicators (EnPIs) and energy baselines
(EnBs) as part of the process of
measuring energy performance. This
standard provides practical guidance on
how to meet the ISO 50001 requirements
related to the establishment, use and
maintenance of EnPIs and EnBs in
measuring energy performance and
energy performance changes. These are
two key interrelated elements of ISO
50001 that enable the measurement,
and therefore management, of energy
performance in an organisation.
In order to effectively manage the energy
performance of facilities, systems,
processes and equipment, organisations
need to know how energy is used and
how much is consumed over time. An
EnPI is a value or measure that quantifies
results related to energy efficiency, use
and consumption in facilities, systems,
processes and equipment. Organisations
use EnPIs as a measure of their energy
performance.
The EnB is a reference that characterises
and quantifies an organisations energy
performance during a specified time
period. It enables an organisation to
assess changes in energy performance

between selected periods. The EnB is

also used to calculate energy savings,
before and after the implementation
of energy performance improvement
actions.
Organisations define targets for energy
performance as part of the EnMS energy
planning process. Each organisation
needs to consider its energy performance
targets when identifying and designing
EnPIs and EnBs.
This International Standard includes
practical help boxes designed to
provide the user with ideas, examples
and strategies for measuring energy
performance using EnPIs and EnBs.

ISO 50015:2014 ENMS MEASURING AND

VERIFICATION OF ENERGY PERFORMANCE
OF ORGANISATIONS GENERAL
PRINCIPLES AND GUIDANCE
ISO 50015:2014 establishes general
principles and guidelines for the
measurement and verification (M&V)
of energy performance and energy
performance improvement. M&V
adds value by increasing the credibility
of energy performance and energy
performance improvement results.
Credible results can contribute to
the pursuit of energy performance
improvement.
This standard can be used by
organisations of any size, M&V
practitioners, or any interested parties,
to apply M&V to the reporting of energy
performance results. The principles and
guidance in this standard can be used
either independently, or in conjunction
with other standards and protocols. The
principles and guidance in this standard
are not required by ISO 50001, but can be
applied by organisations using ISO 50001.
This International Standard does
not specify calculation methods. It
establishes a common understanding
of M&V and how it can be applied to
different calculation methods. These
principles and guidelines are applicable
irrespective of the M&V method used.

13

VI. EUROPES ENERGY EFFICIENCY

DIRECTIVE 2012/27/EU
ARTICLE 8 FOR ENERGY AUDITS AND
ENERGY MANAGEMENT SYSTEMS
The European Energy Efficiency Directive
(EED) establishes a set of binding
measures to help the EU reach its
20% energy efficiency target by 2020.
Under the Directive, all EU countries are
required to use energy more efficiently
at all stages of the energy chain, from
production to final consumption.
EU countries were required to transpose
the Directives provisions into their
national laws by 5 June 2014.
Article 8 imposes two main obligations
upon Member States: to promote the
availability of energy audits among
final customers in all sectors, and to
ensure that enterprises that are not
SMEs carry out energy audits at least
every four years. Audits must be costeffective and undertaken by qualified/
accredited experts or supervised by

independent authorities. The EED defines

SMEs as enterprises with fewer than
250 employees, annual turnover not
exceeding EUR 50 million, and/or an
annual balance sheet total not exceeding
EUR 43 million.
For large enterprises, however,
Member States must ensure that they
carry out energy audits of buildings
and installations at regular intervals
not exceeding four years, starting 5
December 2015 at the latest.
In the EED, energy audits are defined as
systematic procedures used to identify,
quantify and report existing energy
consumption profiles and energy savings
opportunities in buildings, industrial or
commercial operations or installations,
and in private or public services. EnMS
are defined as sets of elements of
plans establishing energy efficiency
objectives and strategies to achieve these

objectives. Energy audits are an integral

part of energy management systems.
Accordingly, large enterprises that
implement energy or environmental
management systems are exempt
from the requirement of energy audits
every four years. Large enterprises
implementing energy audits under
voluntary agreements are considered to
fulfil the regular energy audit requirement.
The EED gives energy audits and energy
management schemes a substantial role
to play in improving energy efficiency in
the end-use sectors.
In addition, energy audits, including
audits that are part of an energy or
environmental management system, are
less of a cost burden for large enterprises
than they would be for SMEs, not to
mention households and other small end
users.

VII. HOW ISO 50001:2011 RELATES TO

OTHER INTERNATIONAL STANDARDS
RELATIONSHIPS BETWEEN ISO
50001:2011, ISO 14001:2004 AND ISO
9001:2008
ISO 50001 is based on the common
elements of the ISO management
system standards ensuring a high level
of compatibility between ISO 9001 and
ISO 14001. Consequently, organisations
that already have an ISO 9001 system or
an ISO 14001 system in place can easily
integrate an ISO 50001 system into their
existing structures.

14

ISO 9001 is a Quality Management

System (QMS) which gives organisations
a systematic approach for meeting
customer objectives and ensuring
quality consistency. ISO 14001 is an
Environmental Management System
(EMS) which provides a system
for measuring and improving an
organisations environmental impact. The
relationship between ISO 50001:2011,
ISO 14001:2004 and ISO 9001:2008 are
outlined in the chart. (Figure 1)

Within the scope of ISO 14001 EMS

it is believed many organisations
can effectively deal with energy
performance. To support this position, it
is important to clarify who the standard
is ideally intended for; and to interpret
what differentiates ISO 50001 from ISO
14001. On comparing ISO 50001, ISO
14001 and ISO 9001, there are not only
many similarities, but also differences in
approach and degrees of prescription, as
shown in the chart on the facing page.

ISO 50001
ENERGY POLICY
Energy review
Energy performance indicators
Energy baseline
Energy management

ISO 14001
ENVIRONMENTAL POLICY
Environmental aspects
Emergency preparedness
Environmental management
programme

Objectives and targets

Legal requirements

MANAGEMENT COMMITMENT
ROLES, RESPONSIBILITY & AUTHORITY
COMPETENCE, TRAINING & AWARENESS
COMMUNICATION
OPERATIONAL CONTROL

ISO 9001
QUALITY POLICY
Customer focus

MONITORING & MEASUREMENT

Planning of product realisation

DOCUMENTATION

Customer-related processes

INTERNAL AUDIT

Control of nonconforming

CORRECTIVE & PREVENTIVE ACTION

MANAGEMENT REVIEW

Design
Procurement

Figure 1. The ISO 50001, ISO 14001 and ISO 9001 scope chart.

OTHER APPROACHES TO SUPPORTING

THE GREEN ECONOMY

ISO 14064 Greenhouse Gases

Part 1 and Part 2

Climate change arising from

anthropogenic activity has been identified
as one of the greatest challenges facing
countries, governments, business and
individuals, with major implications
for both human and natural systems.
International, regional, national, and
local initiatives are being developed
and implemented to limit levels of GHG
emissions into the atmosphere. These
initiatives rely on the assessment,
monitoring, reporting and verification of
GHG emissions and removals.

ISO 14064-1: details principles and

requirements for designing, developing,
managing and reporting organisation
or company-level GHG inventories. It
includes requirements for determining
GHG emission boundaries, quantifying
an organisations GHG emissions and
removals, and identifying specific
company actions or activities aimed at
improving GHG management.
ISO 14064-2: focuses on GHG projects
or project-based activities specifically
designed to reduce GHG emissions

or increase GHG removals. It includes

principles and requirements for
determining project baseline scenarios
and for monitoring, quantifying and
reporting project performance relative to
the baseline scenario and provides the
basis for GHG projects to be validated
and verified.

ISO/TS 14067:2013 Carbon

Footprint of Products
GHGs are emitted and removed
throughout the life cycle of a product
(i.e. cradle-to-grave) from raw material
acquisition through production, use and
end-of-life treatment.

15

This Technical Specification details

principles, requirements and guidelines
for the quantification and communication
of the carbon footprint of products (CFPs),
including both goods and services, based
on GHG emissions and removals over
the life cycle of a product. Requirements
and guidelines for the quantification and
communication of a partial CFP are also
provided. Communication of the CFP to
the intended audience is based on a CFP
study report which provides an accurate,
relevant and fair representation of the
CFP.
Based on existing International Standards
ISO 14020, ISO 14024, ISO 14025, ISO
14040 and ISO 14044 this Technical
Specification aims to set specific
requirements for the quantification
and communication of a CFP, including
additional requirements where the CFP
information is intended to be publicly
available.
ISO/TS 14067:2013 is expected to benefit
organisations, governments, communities
and other interested parties by providing
clarity and consistency in quantifying and
communicating CFPs.

Leadership in Energy and

Environmental Design (LEED)
Green building is the practice of
increasing the efficiency with which all

buildings use resources: energy, water,

materials, etc. Green building is the
term for efficient building practices that
reduce impacts on human health and
the environment. These practices may
include improved design, construction,
operation, maintenance and removal. In
other words, the complete life cycle of
buildings.
The LEED Green Building Rating System
is a third-party certification programme,
which is globally accepted as a
benchmark for the design, construction
and operation of high performance and
environmentally-friendly buildings. Green
buildings consume on average 40-50%
less energy and 20-30% less water than
a conventional building. However, there
is an associated increase in cost of about
5-8% with green buildings. This cost can
be recouped over a period of 3-5 years.
LEED is an internationally recognised
mark of excellence and provides building
owners and operators with a framework
for identifying, implementing and
measuring green building design including
construction, operations and maintenance
solutions. LEED Rating Systems are
developed through an open, consensusbased process led by LEED committees
and according to the US Green Building
Council (USBGC).

If adopted, ISO 50001 Energy

Management Systems could help to
certify green building at an earlier stage
(e.g. the operational stage) and benefit
the LEED programme by increasing its
uptake. When organisations implement
an EnMS they need to have in place
monitoring and measurement results
that meet ISO 50001 clause 4.6.1:
Monitoring, Measurement and Analysis.
This section is a key component of
LEED requirements. When ISO 50001 is
implemented in new developments at the
design stage, it allows building owners
to understand the benefits of meeting
the requirements of ISO 50001. It also
makes it easier to adopt ISO 50001 in the
operational stage.

ISO 50001 LOOKS AT

AN ORGANISATIONS
ENERGY PERFORMANCE
IN DETAIL AND
CONCLUDES
WITH SPECIFIC
REQUIREMENTS THAT
LEAD TO BETTER
ENERGY PERFORMANCE

VIII. INTEGRATING ENVIRONMENTAL

AND ENERGY MANAGEMENT SYSTEMS:
PROCESS AND BENEFITS

16

WHY ISO 50001 IS THE NEXT LOGICAL

STEP FOR AN ISO 14001 CERTIFIED
ORGANISATION?

water, waste, energy etc.), ISO 50001

focuses specifically on the area of energy
efficiency.

Many organisations that hold an ISO

14001 certificate follow it with ISO
50001 standard certification. This is
because while ISO 14001 provides a
broad certification covering a variety
of different environmental criteria (air,

Within ISO 14001, energy is just one of

the environmental criteria that need to
be identified and addressed as part of
an Environmental Management System
(EMS). All environmental factors are
assessed in the same way. ISO 50001

instead looks at an organisations energy

performance and its environmental
impacts in detail and concludes with
specific requirements that lead to better
energy performance. These quantitative
requirements are fundamental to the
effective implementation of an EnMS.
To achieve ISO 50001, each variable
affecting an organisations EnMS needs

to be fully understood in terms of its

implications on energy performance. This
is a greater depth of understanding than
is required for ISO 14001.
Additionally, ISO 50001 determines
what information an organisation should
be monitoring and measuring as part
of its EnMS, setting a minimum of five
key characteristics as the minimum
requirements. ISO 50001 is specific in
defining end goals for the processes
associated with achieving these
requirements. ISO 14001 does not
require as much detail and gives an
organisation a greater degree of freedom
in terms of measurements, depending on
its environmental objectives. The result
for an organisation introducing ISO 5001
is that it is able to effectively achieve
energy efficiency improvements.

STEPS TO INTEGRATE MANAGEMENT

SYSTEMS
In Environmental Management Systems
and Energy Management Systems a
number of common elements can be
managed in an integrated way. Uniting
these systems benefits an organisation
in terms of cost savings and efficiencies.
However, integration of the two systems
needs to be planned and implemented
in a structured way, following a five-step
process:

implementation, operation and

maintenance of an integrated
management system throughout the
organisation. This forms the basis for
project planning. As part of this, the ISO
50001 requirements that are already
implemented should be identified. This
could include requirements that are
specific to the ISO 50001, such as an
energy review or energy performance
indicator, which an organisation may
already have established. A gap audit
gives the organisation a complete
picture of what needs to be addressed
to meet the standards requirements. A
competent auditor should perform the
gap audit to ensure that all requirements
are correctly assessed.
Step 3 Implement the integrated
management system

Identify the processes needed for

the implementation, operation and
maintenance of the EnMS and EMS
throughout the organisation

Establish, implement and maintain

a process to determine any legal
requirements related to the
organisations activities, products
and services that are relevant to the
scope of the EnMS and EMS

Determine the sequence and

interaction of these processes and
whether the integration of these
processes is possible

Determine the criteria and methods

needed to ensure that the operation
and control of these processes is
effective

Step 1 Gather the right team

Engage technical staff with environmental
and energy management knowledge
to support the management system
implementation team. These individuals
might be facilities managers, logistics
managers, fleet managers, procurement
and purchasing managers, or come from
other associated technical backgrounds.
Step 2 Gap analysis audit
Determine the boundaries and
applicability of the two management
systems and establish the scope. It is
recommended that the scope for an
integrated management system reflects
the widest requirements of the individual
systems at the operational level.
A gap analysis audit identifies
the processes needed for the

Ensure the availability of resources

and information necessary to
support the operation and monitoring
of these processes

Monitor, measure and analyse these

processes. Implement actions as
needed to achieve the planned
results and continual improvement
of the organisations overall
performance

Any non-conformities identified during

the gap analysis audit should also be
addressed.

Step 4 Internal audit and management

review
Perform internal audits related to the
ISO 50001 and 14001 requirements.
These can be done at the same time, as
long as the auditors have the required
competences to achieve both. Similarly,
the management review for ISO 50001
uses some of the same information as
that for ISO 14001 and the outcome of
these two reviews together can be used
to close the management system loop.
Step 5 Certification audit
Certification audits for both ISO 50001
and ISO 14001 can be performed at
the same time. The number of days
required for a joint audit is less than
if they are performed separately. The
more integrated the two management
systems, the more effective the use of
audit time and therefore the less the time
requirement. Individual certificates for
each standard are still received.

BENEFITS OF INTEGRATING
MANAGEMENT SYSTEMS
Integrating an organisations EMS
and EnMS means that the common
requirements of the two management
systems can be consolidated. Overall
objectives can then be prioritised based
on return on investment. This helps an
organisation to develop efficient means
to manage all the necessary resources,
ultimately saving time and money.
By bringing the management systems
implementation together, the
committees responsible for putting the
systems in place can also benefit from
shared learning experiences. For any
organisation that already has an EMS
and is introducing and integrating an
EnMS, many existing procedures could
be extended to cover the additional
requirements of the integrated
management system. This is likely to
include an information system, used for
collecting and disseminating information
related to the requirements of the
standards, as well as trained technical
staff, such as internal auditors.

17

Any organisation already certified against

ISO 14001 would be able to simply
integrate the matching requirements
of the ISO 50001, such as the Record
Keeping System, Document Management
System, and Training and Awareness
Activities, into those that already exist.
Obviously, this does not apply to ISO
50001 specific requirements, such as the
criteria for identifying Significant Energy
Use and the development of an Energy
Management Action Plan.
Overall, the benefits achieved by
integrating the EMS and EnMS
management systems are numerous and
include:

An improved business focus

A more holistic approach to

managing business risks

Less conflict between individual

management systems

Reduced duplication and

bureaucracy

More effective and efficient audits

both internally and externally

Easier facilitation of the

requirements of any new
management system

For each new system that is integrated,

procedures and resources can generally
be expanded to meet the additional
requirements. By following this process,
as opposed to separately introducing a
new system, organisations are able to
prevent duplication, improve efficiency
and benefit from cost savings.

INTEGRATING AN
ORGANISATIONS
EMS AND EnMS
REDUCES DUPLICATION,
IMPROVES OVERALL
EFFICIENCIES AND
FURTHER BOOSTS COST
SAVINGS

IX. CASE STUDY COCA-COLA EGYPT

CUTS CARBON EMISSIONS AND
ENERGY COSTS WITH ISO 50001:2011
CERTIFICATION
COCA-COLA BOTTLING EGYPT (CCBE)
As the largest soft drinks bottler in the
Middle East Region, CCBE saw the
potential benefits of implementing ISO
50001. Primarily, the benefits were
significant reductions in carbon emissions
and an increase in cost savings for the
company. To date, CCBE has certified
seven plants against ISO 50001 in Cairo,
Alexandria, Tanta, Mansoura, Assyut,
6th of October and Kaliub plant. All of its
plants went through the same ISO 50001
certified plants programme. CCBE is
considered the first company in Africa to
have been certified against ISO 50001.
The Coca-Cola Company focuses effort
on protecting and preserving the planet,
which requires attention to areas such
as water, energy use, packaging and
emissions.

18

As part of the Coca-Cola Companys

commitment to sustainability, it
encourages its bottling partners to
do the same. Therefore all of CCBEs
new machinery and equipment is
environmentally friendly.
In Coca-Cola plants all over the world,
their 2004 Energy Consumption (MJ) is
considered to be the Energy Baseline.
A goal was set for all CCBE plants to
achieve a 20 percent reduction in energy
use over the 2004 baseline by 2010.
CCBE achieved a 48 percent reduction
by the end of 2010. To capitalise on
this success, the Coca-Cola Company
collaborated with World Wildlife Fund
(WWF) in 2011 to introduce the Top 10
Energy-Saving Challenge system-wide.
The programme equipped bottlers and
plant managers with ten high-return, lowrisk energy-saving practices to implement

in their plants. Through this programme,

the CCBE committed to fix all leaks
and employ good practice for energy
saving in its plants. This combination of
initiatives resulted in significant water
consumption and energy use reductions
across its plants. To improve even
further, and demonstrate to stakeholders
its on-going commitment to energy
management, CCBE turned to SGS for
certification against ISO 50001. Taking
the Top 10 Energy-Saving Challenge
as a cornerstone, ISO 50001 in CCBE
is concerned with energy monitoring
and saving, focusing on each piece of
equipment on the line, rather than the
whole production line output.
The energy performance of all CCBE
plants was reported monthly on the
Coca-Cola website (PICASSO).

In September 2012, SGS experts

conducted internal audit training for 20
employees in all system plants in CCBE
premises. The training was delivered to
introduce staff to the basic fundamentals
of ISO 50001 and energy savings.

In summary, the ISO 50001:2011 EnMS

standard provides the following benefits
to CCBE:

Ensuring senior management are

involved in achieving goals and
monitoring energy performance

By investigating each piece of equipment

in CCBE plants to identify specific
energy saving opportunities, CCBE
focused on energy saving from the
ground-up, rather than exclusively on
system implementation. This method of
approach encourages staff to be energy
oriented and to define all energy saving
opportunities.

CCBE achieved its ISO 50001

certification following an SGS in-depth
audit. SGS enabled CCBE to implement
the structured approach of ISO 50001
into its management framework. The
systematic approach to energy saving
that ISO 50001 brings helped CCBE
focus on the benefits that continual
energy savings can offer. Certification
against the standard means CCBE is now
able to identify new opportunities for
improvement and can subject these to a
formal management review. This review
allows CCBE to record any actions taken
and how successful these actions are in
terms of energy savings and reducing
carbon emissions.

Systematic approach that

continuously monitors the energy
performance on a pre-defined
frequency to ensure energy goals
are met and, in case of deviation, the
necessary corrective actions taken

Strategic planning that requires

measurement, management and
documentation for continuous
improvement for energy efficiency
and cost savings

Demonstration of continuous
improvement in energy efficiency

Assisting organisations in making

better use of their existing energy
consuming assets

An average of 8 percent energy

savings per year. CCBE expects
all certified plants will achieve a 12
percent energy saving per year

Identification of key performance

indicators unique to the company
that are tracked to measure progress

Guidance on benchmarking,
measuring, documenting and
reporting energy performance
improvements and their projected
impact on reductions in greenhouse
gas emissions

Facilitation on energy management

improvements in the context of
greenhouse gas emission reduction
projects

Promotion of energy management

best practices and reinforcement
of good energy management
behaviours

After implementing ISO 50001, CCBE

now has several initiatives in place
as part of an ongoing improvement
programme for energy performance,
efficiencies, use and consumption.
These initiatives include upgrading pipe
insulation, reducing compressed air
pressure, fixing air leaks and installing
smart control systems to synchronise
loading and unloading of low-pressure air
compressors. The process of certification
has strengthened the drive for new
efficiencies at CCBE and thanks to its
partnership with SGS it can now proudly
claim to be the first company in the food
and drinks sector in the Middle East
Region to have achieved certification
against ISO 50001.

19

X. CONCLUSION
ISO 50001:2011 combines the benefit of
a business management tool for energy
management and business processes,
with the ability to meet growing global
customer requirements for reduced GHG
emissions. Certification can provide

generic assistance to an organisation for

establishing, implementing or improving
an EnMS. Global application of an energy
management standard contributes to a
more efficient use of available energy
sources, enhanced competitiveness and

a positive impact on climate change.

Certifying your EnMS helps your
organisation to develop and improve
performance and reduce costs.

ABOUT THE AUTHOR

ABOUT SGS

Eric G.T. Huang

Global Product Manager,
Energy/Sustainability, SGS

SGS is the worlds leading inspection,

verification, testing and certification
company. SGS is recognised as the
global benchmark for quality and integrity.
With more than 80,000 employees, SGS
operates a network of over 1,650 offices
and laboratories around the world.

SGS has worldwide expertise in

supporting energy efficiency and
innovation. Our global presence and
knowledge of local legislations and
regulations gives you the peace of mind
of knowing that you are minimising your
environmental impact and improving
your energy consumption. We are the
global leader in ISO 14001 Environmental
Management Systems certification,
greenhouse gas verification and an
international front-runner in Energy
Management solutions.

Eric G.T. Huang has 26 years

environmental engineering and
management experience in audit,
consulting, engineering and operation,
specialising in energy and climate
change. He is now responsible for the
technical development of SGSs Energy
Management Systems certification
services, including ISO 50001:2011
and other sustainability services. Eric
holds a Masters degree in Civil and
Environmental Engineer from Rutgers
University, US.

Enhancing processes, systems and skills

is fundamental to your ongoing success
and sustained growth. We enable you to
continuously improve, transforming your
services and value chain by increasing
performance, managing risks, better
meeting stakeholder requirements
and managing sustainability. With a
global presence, we have a history of
successfully executing large-scale,
complex international projects. Our
people speak the language, understand
the culture of the local market and
operate globally in a consistent, reliable
and effective manner.

FOR MORE INFORMATION, VISIT

WWW.SGS.COM/ENERGY
OR CONTACT ENERGY@SGS.COM

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