ISO 50001

ISO 50001 is the international standard for Energy Management Systems, created by the International Organization for
Standardization (ISO). The standard specifies the requirements for establishing, implementing, maintaining and improving an
energy management system, whose purpose is to enable an organization to follow a systematic approach in achieving continual
improvement of energy performance, including energy efficiency, energy security, energy use and consumption.[1]

The standard aims to help organizations continually reduce their energy use, and therefore their energy costs and their greenhouse
gas emissions.

ISO 50001 was originally released by ISO in June 2011 and is suitable for any organization, whatever its size, sector or
geographical location.[2] The second edition, ISO 50001:2018 was released in August 2018.

The system is modelled after the ISO 9001 Quality Management System and the ISO 14001 Environmental Management System
(EMS) and the 2018 version has clauses modular with both.[3]

A significant feature in ISO 50001 is the requirement to "... improve the EnMS and the resulting energy performance" (clause
4.2.1 c). The other standards mentioned here (ISO 9001 and ISO 14001) both require improvement to the effectiveness of the
Management System but not to the quality of the product/service (ISO 9001) or to environmental performance (ISO 14001). It is
anticipated that by implementing ISO 9001 and 14001 together an organization would improve quality and environmental
performance, but the standards do not currently specify this as a requirement.

ISO 50001, therefore, has made a major leap forward in 'raising the bar' by requiring an organization to demonstrate that they
have improved their energy performance. There are no quantitative targets specified – an organization chooses its own then
creates an action plan to reach the targets. With this structured approach, an organization is more likely to see some tangible
financial benefits.

Contents
Reasons for use
Background
Development
Structure
Method
Certification
Impact
ISO 50001 and ISO 14001
Further reading
References
External links

Reasons for use

The main objective of the standard is to improve energy-related performance and energy efficiency continuously and to identify
energy reduction opportunities. This systematic approach will help organizations to establish systems and processes.

Consistent energy management helps organizations to realize untapped energy efficiency potential. They will benefit from cost
savings and make a significant contribution to environmental and climate protection, for example by the permanent reduction of
CO2 emissions.[4] The standard should alert employees and in particular the management level to the immediate and long-term
energy management gains that can be made. The organization can discover potential savings and competitive advantages.
Furthermore, a huge image boost for the organization can be created.[5]

Background
Organizations of all types and sizes increasingly want to reduce the amount of energy they consume. This is driven by the need or
desire to:

reduce costs,
reduce the impact of rising costs,
meet legislative or self-imposed carbon targets,
reduce reliance on fossil fuels, and
enhance the entity's reputation as a socially responsible organization.
In tandem, governments increasingly want to reduce the Greenhouse Gas Emissions of their citizens and industries, and are
imposing legislative mechanisms to compel carbon reduction more and more frequently.

In response, a range of energy management standards, specifications and regulations were developed in Australia, China,
Denmark, France, Germany, Ireland, Japan, Republic of Korea, Netherlands, Singapore, Sweden, Taiwan, Thailand, New Zealand
and the USA.[6]

Subsequently, the European Committee for Standardization (CEN) developed EN 16001:2009 Energy management systems.
Requirements with guidance for use as a first international energy management standard. This was published in July 2009[7] and
withdrawn in April 2012 as it had been superseded by ISO 50001.[8]

Development
The United Nations Industrial Development Organization (UNIDO) recognized that industry around the world needed to mount
an effective response to climate change.[9] It also noted a proliferation of national energy management standards that were
emerging as a response to market demand for help with energy efficiency.[10]

In April 2007, a UNIDO stakeholders meeting decided to ask ISO to develop an international energy management standard.[11]

ISO for its part had identified energy management as one of its top five areas for the development of International Standards and,
in 2008, created a project committee, ISO/PC 242, Energy management, to carry out the work.[6]

ISO/PC 242 was led by ISO members for the United States (ANSI) and Brazil (ABNT). In addition, its leadership included the
ISO members for China (SAC) and the United Kingdom (BSI Group) to ensure that developed and developing economies
participated together in the project committee.

Experts from the national standards bodies of 44 ISO member countries participated and another 14 countries sent observers.
Development organizations including UNIDO and the World Energy Council (WEC) were also involved.

ISO 50001 also drew on existing national and regional energy management codes and standards, including ones developed in
China, Denmark, Ireland, Japan, Republic of Korea, Netherlands, Sweden, Thailand, the US and the European Union.
ISO 50001:2011 Energy management systems – Requirements with guidance for use was published on June 17, 2011.[12]

ISO published a revised version of ISO 50001 in 2018. The revision reflects a desire to promote adoption of the standard among
small and medium sized enterprises. It also incorporates ISO's "high level structure" for use where organizations wish to integrate
a number of management system standards together.[13]

Structure
The structure of ISO 50001 is designed according to other ISO management system standards, in particular ISO 9001 (Quality
Management Systems) and ISO 14001 (Environmental Management Systems). Since all three management systems standards are
based on the PDCA cycle, and now share the same high level structure, ISO 50001 can be integrated easily to these systems.[14]

There are ten major components to ISO 50001:2018:

1.: Scope
2.: Normative references
3.: Terms and definitions
4.: Context of the organization
5.: Leadership
6.: Planning
7.: Support
8.: Operation
9.: Performance Evaluation
10.: Improvement

Method
ISO 50001 provides a framework of requirements that help organizations to:

develop a policy for more efficient use of energy

fix targets and objectives to meet the policy
use data to better understand and make decisions concerning energy use and consumption
measure the results
review the effectiveness of the policy and
continually improve energy management.[15]
ISO 50001 focuses on a continual improvement process to achieve the objectives related to the environmental performance of an
organization (enterprise, service provider, administration, etc.). The process follows a plan – do – check – act approach.

Plan:
The overall responsibility for the installed energy management system must be located with the top management. An energy
officer and an energy team should be appointed. Furthermore, the organization has to formulate the energy policy in form of a
written statement which contains the intent and direction of energy policy. Energy policy must be communicated within the
organization. The energy team is the connection between management and employees. In this phase the organization has to
identify the significant energy uses and prioritize the opportunities for energy performance improvement.

Do:
The stated objectives and processes are now introduced and implemented. Resources are made available and responsibilities
determined. Make sure that employees and other participants are aware of and capable of carrying out their energy management
responsibilities. The realization of the energy management system starts.

Check:
An energy management system
requires a process for compliance
and valuation of energy-related
regulations. Internal audit can help
to verify that the energy
management system is functioning
properly and generating the planned
results. The processes are monitored
with regard to legal and other
requirements (customer
requirements, internal policies) as
well as to the objectives of the
energy management of the
organization. The results are The 4 phases of the PDCA circle
documented and reported to top
management.[16]

Act:
The top management prepares a written valuation based on the internal audit. This document is called the management review.
The results will be evaluated on their performance level. If necessary, corrective or preventive actions can be initiated. Energy-
relevant processes are optimized and new strategic goals are derived.[17]

Certification
Certification proves that the energy management system meets the requirements of ISO 50001. This gives customers,
stakeholders, employees and management more confidence that the organization is saving energy. It also helps to ensure that the
energy management system is working throughout the organization.

Another advantage of a certification is its emphasis on continual improvement. The organization will continue to get better at
managing its energy. Additional cost savings can be generated over several years. Furthermore, certifying an organization shows
your public commitment to energy management.

UKAS, the certification bodies' accreditation scheme in UK, accredits certification bodies to carry out certification of business
energy management systems to ISO 50001. In July 2018, there were 15 UK bodies with the necessary accreditation to carry out
independent audits and issue Energy Management Systems Certification to ISO 50001.[18]

Impact
ISO reported that the standard was warmly received by the market when it was first published. To the end of January 2012,
around 100 organizations in 26 countries had already achieved certification to ISO 50001.[19] ISO also listed several users who
had reported significant early cost savings and benefits.[20]

In China, Delta Electronics, a provider of power and thermal management solutions, reported reducing power consumption by
10.51 million kWh as compared to the same period in 2010. This is equivalent to a reduction of 10.2 thousand tons of carbon
emissions and a saving of CNY 8 million ($1.2m).

In India, the Dahanu Thermal Power Station in Maharashtra expected to accrue annual savings of about INR 96.4 million ($1.7m)
from raised energy efficiency and management.
In Austria, the municipality of Bad Eisenkappel, with 2,400 inhabitants, expected its consumption of energy to be reduced by
nearly 25 per cent, with the main savings achieved by updating the waste water plant and reducing energy consumption by 86 000
kWh, equivalent to €16,000 ($20.7k).

BSI Group published a case study showing that Sheffield Hallam University in the UK reduced its carbon emissions by 11 per
cent once it was certified to ISO 50001. This yielded annual savings of over £100,000 ($160.7k).[21]

In December 2013, the UK Department of Energy and Climate Change became the first Central Government department to
achieve certification against the requirements of ISO 50001, leading by example with the belief that structured energy
management will lead to substantial energy reductions and thus mitigate the effects of climate change.[22]

ISO has stated that it believes in due course the standard could influence up to 60 per cent of the world's energy use.[23]

ISO 50001 and ISO 14001

ISO 50001 is data driven and focuses on energy performance improvement, while ISO 14001 provides a more qualitative look at
all significant environmental impacts of an organization. Both standards can be implemented individually or they can be
integrated with each other, or with any other ISO management system standards, such as ISO 9001.

If energy is an organization's most significant environmental impact, ISO 50001 might be more appropriate than ISO 14001.
Many organizations will manage energy successfully via ISO 14001, but especially in organizations where energy is a significant
cost, ISO 50001 provides a more specific framework that enables organizations to apply a sharper focus to energy efficiency.

Further reading
Johannes Kals: Betriebliches Energiemanagement – Eine Einführung, Kohlhammer, Stuttgart 2010, ISBN 978-3-
17-021133-9
Thomas Elliott Welch: Implementing ISO 50001 – While integrating with your environmental management
system, TriMark Press, Inc., 2011.
Eccleston C., March F., and Cohen T., Inside Energy: The Handbook for Implementing an ISO 50001 Energy
Management Systems, CRC Press Inc. 300 pages (2011).

References
1. Eccleston, Charles; March, Frederic; Cohen, Timothy (2011). Inside Energy: Developing and Managing an ISO
50001 Energy Management System. CRC Press. ISBN 9781439876701.
2. "Energy Management system" (http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumbe
r=51297). International Organization for Standardization. 2011-06-09. Retrieved July 30, 2011.
3. Lakhe, Ramesh; Nassir, Sayyad; Dharkar, Kranti (2019). ISO 50001:2018 Energy Management System
Requirements & Implementation. ISBN 9781090748300.
4. "ISO 50001 Energy Management | BSI Group" (http://www.bsigroup.co.uk/en/Assessment-and-Certification-servi
ces/Management-systems/Standards-and-Schemes/ISO-50001-Energy-Management-Systems/).
www.bsigroup.co.uk. Retrieved 2012-10-24.
5. Deutsche Gesellschaft zur Zertifizierung von Managementsystemen (DQS): ISO 50001 Energiekosten sparen –
Klima schützen – Verantwortlich handeln (Produktblatt), Frankfurt 2012
6. "Win the energy challenge with ISO 50001" (http://www.iso.org/iso/iso_50001_energy.pdf) (PDF). June 2011.
ISO. p. 11. Retrieved 30 Oct 2012.
7. "New standard to increase energy efficiency: EN 16001:2009" (http://pr.euractiv.com/press-release/new-standard
-increase-energy-efficiency-en-160012009-10399). Euractiv.com. Retrieved 30 Oct 2012.
 8. "BS EN 16001:2009" (http://shop.bsigroup.com/en/ProductDetail/?pid=000000000030172146). BSI. Retrieved
30 Oct 2012.
9. "Win the energy challenge with ISO 50001" (http://www.iso.org/iso/iso_50001_energy.pdf) (PDF). ISO. Retrieved
30 Oct 2012.
10. Pierre, Inge. "EN 16001: a powerful tool for Energy Management" (http://www.cen.eu/cen/Sectors/Sectors/Utilitie
sAndEnergy/Energy/Documents/2pierre.pdf) (PDF). CEN/CENELEC. Retrieved 30 Oct 2012.
11. Fossa, Alberto J. "ISO 50001 Energy Management System the path, the birth story, the people involved,
difficulties, challenges, relevant discussions…" (http://www.iso.org/sites/iso50001launch/assets/docs/03-Alberto_
Fossa-ISO%2050001-the_path.pdf) (PDF). ABNT. Retrieved 30 Oct 2012.
12. "ISO 50001 energy management launch event" (http://www.iso.org/sites/iso50001launch/index.html). ISO. 21
June 2011. Retrieved 30 Oct 2012.
13. Lewis, B., New draft of ISO 50000 energy management standard (https://www.iso.org/news/ref2248.html),
accessed 1 December 2017
14. "ISO 50001 Energy management" (http://www.iso.org/iso/home/standards/management-
standards/iso50001.htm). www.iso.org. Retrieved 2012-10-24.
15. "Win the energy challenge with ISO 50001" (http://www.iso.org/iso/iso_50001_energy.pdf) (PDF). June 2011.
ISO. Retrieved 30 Oct 2012.
16. https://de.dqs-ul.com/en/certifications/environmental-management/iso-50001.html?
aoe_damfe%5Bmvcinstance%5D=43036&aoe_damfe%5Bdamrecord%5D=6717&aoe_damfe%5Baction%5D=down
viewed 24 October 2012
17. "ISO 50001:2018(en) Energy management systems — Requirements with guidance for use" (https://www.iso.org/
obp/ui/#iso:std:iso:50001:ed-2:v1:en). ISO. Retrieved 20 December 2018.
18. "Energy Management" (https://www.ukas.com/sectors/energy/). Retrieved 2018-07-23.
19. Johnson, Ian; et al. (14 March 2012). "ISO 50001 "on fire" - Energy management standard goes global" (http://w
ww.iso.org/iso/home/news_index/news_archive/news.htm?Refid=Ref1537). ISO. Retrieved 30 Oct 2012.
20. Lambert, Gary (12 July 2012). "Energy management - Early ISO 50001 adopters report major gains" (http://www.i
so.org/iso/home/news_index/news_archive/news.htm?refid=Ref1618). ISO. Retrieved 30 Oct 2012.
21. "University reduces carbon emissions by 11 percent and total energy savings by £10,000 per month" (http://www.
bsigroup.com/Documents/case-studies/certification/BSI-ISO50001-Sheffield-Hallam-University-Case-Study-UK-E
N.pdf) (PDF). BSI. Retrieved 30 Oct 2012.
22. "How does the UK flagship office for protecting the UK's energy resources show its commitment to managing the
use of energy efficiently and effectively within its own buildings?" (http://www.digitalenergy.org.uk/downloads/case
study(new)deccwhitehall-104127.pdf) (PDF).
23. "Win the energy challenge with ISO 50001" (http://www.iso.org/iso/iso_50001_energy.pdf) (PDF). ISO. June
2011. p. 1. Retrieved 30 Oct 2012.

External links
ISO 50001 - Energy Management (http://www.iso.org/iso/home/standards/management-standards/iso50001.htm)
- ISO.org

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