ISO 50001 Standard. How Does It Improve Energy Efficiency in a Company?

ISO 50001 - what is it and why is it important for companies?

ISO 50001 is an international standard developed by the International Organization for Standardization. Its development had one main goal - to develop guidelines that will allow businesses, regardless of industry, to develop an energy management system. It is intended to contribute to greater organizational efficiency, care for the environment and reduce operating costs.

The ISO 50001 standard was first proposed in June 2011. Seven years later, in 2018, the standard has evolved into a second version. Importantly, the international energy efficiency standard builds on other popular ISO standards, 9001 (quality management) and 14001 (environmental management). So if your company has implemented ISO before, it will go easier with the 50001 standard.

ISO 50001 certification - what benefits does it bring to businesses?

Like all other standards developed by ISO, applying for ISO 50001 certification is completely voluntary. There are no regulations that oblige businesses to implement it. At the same time, the requirements are developed in such a flexible way that an energy management system can be implemented by any company, regardless of the scale and specifics of its business operations and geographical location.

What does an organization that decides to implement an energy standard gain? It turns out quite a lot, including:

improved energy efficiency, understood as the ability to maintain or improve productivity while reducing costs,

reducing the company's impact on the environment, particularly by reducing greenhouse gas emissions,

the ability to continuously improve energy management,

creation of documentation setting benchmarks for energy efficiency in subsequent years,

technological development of infrastructure through the introduction of solutions that promote energy savings,

greater market competitiveness through the ability to offer lower prices for goods and services,

greater opportunities to apply for subsidies (rebates do not have to occur in every country!).

What's more, certification by an authorized auditor unequivocally demonstrates that a company is pursuing a consistent and deliberate strategy to reduce its carbon footprint and energy transformation. For the business environment, this is a clear signal that such a contractor takes a responsible approach to environmental issues and it pays to do business with it.

An indirect benefit for an organization that has implemented ISO 50001 is also easier ESG reporting. This is because responsible energy management qualifies, as an environmental vertical of operations.

ISO 50001 - what are the key requirements and guidelines?

ISO 50001 provides a regulatory framework that promotes continuous improvement of a company's energy efficiency. The main milestones here are:

• developing internal policies that allow for better energy use,
• setting goals to be achieved by the internal policy,
• monitoring data to verify that the goals have been achieved,
• evaluating whether the policy, once developed, is working smoothly, and making appropriate adjustments.

There is no specific guidance on when the ISO 50001 standard can be implemented. According to the guidelines, it can apply to any type of energy used in a company (not just electricity) and regardless of its quantity and quality. The standard also does not specify the goals to be achieved through its implementation, only the direction of activities and general trends.

There are also no obstacles to implementing ISO 50001 independently of other environmentally favorable certifications. According to the guidelines, the energy management system should be implemented using the Deming cycle, which is well known to managers. It consists of four consecutive phases, with each phase consisting of different activities. These phases are Plan, Do, Check and Act.

Plan

The planning stage involves defining the responsibilities of those holding top management positions in the company for implementing and monitoring the change. Be sure to create an internal energy policy and communicate it within the organization. This phase also identifies the largest energy consumers and sets the overall direction for change.

By

The second phase is the time to implement the objectives. The company should release the funds allocated for environmental purposes and begin to enforce accountability for violations of environmental obligations.

Check

Implementation of the ISO standard's objectives should be carried out according to a specific time frame. After the set timeframe has passed, those responsible for implementing ISO 50001 monitor whether the goals have been achieved. For this purpose, it is worth setting up a cell to conduct an internal audit of the organization. An external audit would be an even better idea, as it is characterized by greater objectivity. The results are documented and then reported to the company's management.

Act

After receiving the results of the audit, the members of the board of directors refer to it (this is called management review). If necessary, further adjustments are made to the action plans, and further strategic goals are set.

Maintaining the Deming cycle is very important for the smooth operation of the ISO standard. This standard cannot be implemented once and forget about the energy efficiency of the company. What matters above all is the constant pursuit of excellence.

How ISO 50001 certification goes - a step-by-step process

It's a good idea to prepare well for ISO 50001 certification so that the entire audit goes smoothly and seamlessly. How to get started and what to keep in mind?

First of all, the organization should acquire a copy of the ISO standard to familiarize itself with its content and guidelines. The next step should be to determine what can be done in the organization to better manage energy. To do this, processes, infrastructure and available resources should be analyzed. Then it's time to identify the people responsible for implementing the change and train them accordingly.

The change process should be properly documented. When in doubt, it is worthwhile to enlist the support of an auditor who will conduct a preliminary assessment of operations and detect any weaknesses in the energy management system.

The relationship with the auditing company will be maintained for many years, as the certification must be renewed regularly. Therefore, it is worth choosing a reliable company that offers cooperation on a partnership basis. Be sure to pay attention to whether the auditor in question is accredited to perform audits in the relevant scope.

Examples of Companies That Implemented ISO 50001 and Achieved Success

The list of companies seeking a competitive advantage and cost savings through the implementation of ISO 50001 is long and continuously growing with new organizations. Among them, we can mention brands such as Carrefour, the oil processing company Repsol, IBM North America, AllSteel, the Volkswagen Group, and the Chrysler Group.

If you want your organization to be perceived as environmentally responsible, implementing ISO 50001 can be a great strategic move. Contact us and find out how we can help you obtain an international certification!