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ISO 50001 Energy Management-What is it?

ISO 50001:2011, is a voluntary International Standard developed by ISO (International Organization for Standardization) which gives organizations the requirements for Energy Management Systems (EnMS) along with its guidance for the usage.

Purpose of ISO 50001
ISO 50001 is intended to provide organizations with a recognized framework for integrating energy performance, including use & consumption, into their management practices.
Benefits of ISO 50001 Implementation

  • Reduce costs :Reduce energy costs via a structured approach to identifying, measuring and managing your energy consumption.
  • Improve Business Performance: Drive greater productivity by identifying technical point solutions and affecting behavioural change to reduce energy consumption.
  • Engage top management : Position energy management in the boardroom as a key business issue.
  • Comply with legislation :Meet current or future mandatory energy efficiency targets and/or the requirements of GHG emission reduction legislation.
  • Reduce your GHG emissions : Meet stakeholder expectations or obligations now and in the future.
  • Formalise energy policy and objectives : Create respect for the energy management policy and embed energy efficient thinking in your organization.
  • Integrate your management systems : Align your EnMS with existing management systems for incremental benefit.
  • Secure energy supply : Understand your energy risk exposure and identify areas of the organization at greatest risk.
  • Drive innovation : Develop opportunities for new products and services in the low-carbon economy of the future.
  • Flexible and scalable :Applicable to any organisation, large or small and from any industry.

The Goals of ISO 50001

  • Assist organizations in making better use of their existing energy-consuming assets
  • Create transparency and facilitate communication on the management of energy resources
  • Promote energy management best practices and reinforce good energy management behaviors
  • Assist facilities in evaluating and prioritizing the implementation of new energy-efficient technologies
  • Provide a framework for promoting energy efficiency throughout the supply chain
  • Facilitate energy management improvements for greenhouse gas emission reduction projects
  • Allow integration with other organizational management systems such as environmental, and health and safety.

Today more than ever, effective energy management is a crucial issue for the success of any business. For many, the answer is an energy management system (EnMS) – a framework for the systematic management of energy.




(How will it help?)

(What in it for my Business?)

Rising energy costs.

To keep energy costs low/reduce cost
i.e. electricity bills, gas bills and fuel bills.

Standard requires organisations to
identify significant energy use
and put operating controls in place
to minimise those usage.

Efficiency of machines, processes
and transport improved.
Productivity increased.
Energy consumption reduced.

Lower bills (such as the Climate
Change Levy) and more cost savings
meaning greater profitability and
more money to spend on other

Energy is wasted through lack of
management or poor housekeeping.

To ensure all staff are aware of their
roles and responsibilities regarding
energy management.

Processes are standardised and
communicated to all staff meaning
they are more likely to comply.
Controls are introduced to prevent
situations that could lead to deviations
from the energy management system.
Audits of the system are conducted
to ensure that procedures are
being followed.

Good energy management
embedded into normal operations.

Less time wasted on chasing
and following up instances of
poor performance.
More time to spend on continual
improvement initiatives.

Opportunities to improve energy
performance go unrecognised.

To recognize opportunities for
saving money.

Standard requires the organisation
to conduct reviews of its energy
use and maintain a register of
opportunities for saving energy.

All opportunities can be identified
and prioritised for action.

Opportunities are not missed
or forgotten.

Organisation does not understand or
recognise the impact of the working
environment on energy consumption
i.e. temperature, humidity, windspeed,
production throughput.


To understand how energy variables can
impact on energy consumption.

Standard requires the organisation
to establish, monitor and measure its
significant energy consumption and
associated energy variables.

Deviations from the norm can be more
readily spotted and acted upon quickly.
Hidden waste can be spotted and
acted upon.

Less time lost correcting deviations
meaning more time to be proactive.

Company fined as a result of not
complying with legislation - such as
reporting energy efficiency against

To reduce risk of non compliance with
legislation and fines.

Procedure for the identification of
relevant legislation, understanding of
how it applies to your organisation and
evaluation of compliance.
Operational controls to be in place.

Better awareness and understanding
of applicability of relevant legislation.
Better management of risk.
Fewer instances of non compliance.

Fewer fines and prosecutions.
More time to spend on
proactive measures.

Shareholders chose to withdraw their
investment and go elsewhere – to
organisations who can demonstrate
their commitment to improving energy
and environmental performance.

To meet shareholder expectations.

Standard requires that the organisation
has a policy and management system
for improving energy performance.

Shareholders can see that an
organisation is committed to
improving performance.

Risk of losing investors is minimised.
Less time working to keep existing
stakeholders and less time and
effort wasted in finding
new investors.

‘Energy Enthusiast’ who is driving
energy management in your
organsiation leaves.

To ensure energy management is
embedded into the culture of the
whole organisation.

Standard requires the development,
training and communication of the
policy and procedures to all staff within
the organisation.

Robustness of the system survives
Initiatives continue to progress.

Less disruption to business as usual
meaning more time to spend on
energy reduction initiatives.
Less time and money wasted on
initiatives that are started but not
seen to completion.

 To Whom it Applies

Like all ISO management system standards, ISO 50001 has been designed for implementation by any organization, whatever its size or activities, whether in public or private sectors, regardless of its geographical location.

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