Establish an energy management system

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An energy management system (EnMS) establishes an ongoing process of identifying, planning and implementing improvements in the way an organisation uses energy.

A high-quality EnMS builds business value by recognising energy as an essential business input. It establishes processes to monitor energy use and deliver on energy objectives.

Senior leadership and responsibility

The commitment of senior management is the foundation of any effective energy management system. Energy management should not be merely ‘tacked on’ to existing operations.

An organisation must have clear energy performance objectives and allocate sufficient resources to implement and manage the system. Communicating the commitment of senior management and resources establishes energy management as an important priority.

Develop an energy policy that includes energy performance

Developing and adhering to an energy policy shows a commitment to improving energy performance.

The policy can clarify energy management objectives and expected timeframes to achieve them. It is often expressed as a concise statement that can be easily communicated.

An energy policy will often include:

alignment with sustainability objectives and broader improvement goals
a target metric for improvement, such as a reduction in the amount of energy used per unit production and timeframe to be achieved
links between energy use and carbon emissions
greenhouse gas reduction targets.

As with any business policy, the energy policy should be periodically updated and performance assessed.

Align the scope with existing processes

An EnMS should align with existing business priorities and systems. It should be a key component continuous improvement efforts.

An EnMS can be implemented at different levels of an organisation depending on the size and structure of the business. It can be developed for a:

organisation
business unit
facility
functional group
individual process.

Organisations that have a single management structure will typically implement a single top-level EnMS. Corporations with multiple business units that have unique business and management systems often find it easier for each business unit to implement their own EnMS.

Any precedent set by other management systems, such as quality or environmental systems, can be used as a guide to determine where the EnMS should sit within the organisation.

An EnMS can include processes to ensure compliance with legal and contractual energy requirements. Energy performance can also be incorporated into design and procurement practices for new products, facilities and equipment. This could include how energy sources are identified and procured and how the energy performance of a supplier’s products should be considered during the procurement process.

Another scoping consideration is the timeframe of the EnMS. Specifying time-bound objectives and activities of the EnMS over the short, medium or long term can affect resource allocation and decision-making criteria.

Appoint an energy manager and energy team

An energy manager is typically responsible for overseeing the development and implementation of the EnMS. They are a conduit between senior management and the rest of the organisation.

Best practice in energy management requires the involvement of staff from many different areas and functional roles across the organisation. This may include:

personnel with technical and operational knowledge
staff from financial, environmental and other departments
senior managers with authority to make significant business decisions.

Forming an energy team facilitates participation and commitment and provides the energy manager with a resource base to draw upon. It ensures all aspects of the business are taken into account during the formulation and evaluation of energy efficiency projects.

Other leadership roles or project teams may be required to execute different aspects of the EnMS, depending on the size of the organisation. For example, energy assessments could be undertaken by corporate and site-based teams. Negotiating energy contracts may require close collaboration between the procurement team, energy manager and site-based operational staff.

Implementing an EnMS can also reveal where additional training, skills development or resources may be required to deliver on the objectives set out by senior management.

Engage stakeholders

The EnMS can be used to build energy efficiency into the organisation’s culture and empower employees to develop and implement new initiatives that improve energy performance.

Groups and individuals can significantly influence energy use through behavioural patterns and decision-making processes. Raising awareness across the organisation and opening communication channels on energy management can encourage individuals to contribute new ideas that could further improve performance.

Conduct energy efficiency assessments

An EnMS will not improve energy performance on its own. Undertaking an energy-efficiency assessment is the key activity in gaining a deeper understanding of how energy is used and where opportunities exist to improve performance.

An EnMS provides a structure for assessment outcomes to be evaluated by key decision makers. The evaluation will determine which energy-efficiency projects should be pursued and how to implement them. The EnMS should:

assign responsibilities
allocate resources to areas where the greatest energy performance improvements can be achieved
outline how to implement cost-effective opportunities to achieve identified savings.

Energy efficiency assessments should be undertaken on a regular basis. Based on lessons from the assessment process, companies can set more specific energy performance goals and identify and evaluate projects on an ongoing basis.

Communicate outcomes

Frequent and high-quality communication practices are a key factor in the successful operation of an EnMS. Communication should permeate through all aspects of the EnMS and across all levels of the organisation.

Companies should be regularly tracking energy performance against energy management objectives and evaluating how outcomes of energy-efficiency assessments and projects are helping achieve those goals. Continuous and consistent reporting provides transparency, accountability and helps maintain support from management and staff.

The EnMS should specify the communication channels that will be used to disseminate findings and outcomes. This includes:

establishing formal reporting procedures
adding energy as a standing agenda item at management meetings
establishing reporting templates that easily communicate key metrics to management and staff.

Key performance indicators (KPIs) are a useful tool for evaluating energy performance for a business, site or specific process. They communicate when potential problems are occurring which need to be addressed. Development of effective KPIs can also yield great insights into the key variables that effect energy efficiency.

Establish continuity and consistency

Like any business management system, perseverance and consistency are necessary to successfully operate an EnMS. This includes:

consistent implementation of action plans
regular monitoring of energy use and efficiency
evaluation of the performance of projects
planning for future energy assessments.

A continuous feedback process should promote the flow of information on policies, plans, ideas, decisions and performance. To retain a high-level of staff engagement, all communications from staff should be documented, acted upon and followed up.

A systematic method should collect and store all information pertaining to the EnMS incorporating document control procedures. This ensures accountability and transparency and allows for future evaluation and review.

The EnMS should be regularly reviewed to improve the value it delivers and its conformance with any applicable standards such as ISO 50001.

Energy Smart Toolbox

Functional skills for an energy efficiency assessment

ISO 50001 Energy Management International Organization for Standardization

EnergyStar Guidelines for Energy Management Energy Star

Teaming Up To Save Energy Energy Star