Energy FAQ: everything you need to know about ISO 50001 version 2018

What is ISO 50001?

ISO 50001 is a voluntary international standard developed by some 50 member countries of the International Organization for Standardization (ISO) in 2011. It provides guidelines for implementing an effective energy management system in a company or any other organization. It is, in a sense, the go-to guide for anyone wishing to make their organization more energy-efficient, with the aim of saving money and reducing greenhouse gas emissions and pollutants associated with energy combustion. Like any ISO standard, it is not mandatory.

Is ISO 50001 mandatory?

 Like any ISO standard and voluntary standards in general, ISO 50001 is not mandatory. As such, it is not included in the list of mandatory standards. Nevertheless, it is recommended to use it to formalize one’s energy management approach, as the professionals who participated in its drafting agreed, by consensus, to define best practices for achieving the desired outcome: improving energy performance. The standard defines energy performance as follows: “measurable result(s) related to energy efficiency, energy use, and energy consumption.”

ISO 50001:2018: What’s New?

On August 21, 2018, the NF EN ISO 50001:2018 standard replaced the NF EN ISO 50001:2011 standard in the AFNOR collection. In terms of terminology, it clarifies certain concepts, such as the relationship between “energy performance indicators” and the “baseline energy situation” when demonstrating energy performance improvement. However, it is in the areas of energy data collection and the measurement of energy performance improvement that the new version of ISO 50001 provides the most guidance. Since the standard now requires demonstrating that there is indeed continuous improvement in energy performance, it provides a methodological framework. Ultimately, users know how to organize themselves so that the energy savings expected at the end of an action plan are actually achieved and sustained over time, in order to demonstrate this to third parties.

How does the 2018 version of ISO 50001 affect my work as an energy manager?

You must focus on energy performance measurement and verification (M&V). You will be required to demonstrate continuous improvement in energy performance using appropriate measurement plans and relevant energy data, which you must have rigorously analyzed to derive performance indicators. The new version of the standard will also allow you to coordinate your work with that of the quality manager, the environmental management system coordinator, and the occupational health and safety manager. Indeed, these three roles have standards (ISO 9001, ISO 14001, ISO 45001) built on a common framework. This is useful for joint reporting, for example!

ISO 50001:2018 = Guaranteed Profitability?

 The new ISO 50001 standard helps you implement the right tools to ensure that the promise of achieving significant energy savings by year N is fulfilled. It therefore comes at just the right time to lend credibility to an energy-saving plan and thus remove barriers to financing the projects intended to generate those savings. Local governments and all organizations seeking funding will appreciate it! In this regard, the new version of the standard has benefited from contributions from previous international standards on the measurement and verification of energy performance (ISO 50006, ISO 50015, and ISO 17741), which were themselves inspired by the international IPMVP protocol.

ISO 50001: A management standard or a technical standard? 

ISO 50001 is a standard that establishes a management system, not a technical standard. The 2018 version integrates energy management into corporate strategy. Chapter 5, for example, covers aspects related to management responsibility and energy policy. It places greater emphasis on leadership and management commitment, requiring management to define a policy and objectives consistent with the organization’s strategic direction, and to support management teams so that they, in turn, contribute to the management system.

Does ISO 50001 guarantee that the promised energy savings will be achieved?

This is precisely the goal of the M&V work recommended in the new version of the standard. If, in addition, you engage engineering firms and service providers who are themselves committed to properly implementing the standard, then yes, you will have greater assurance that the energy performance improvement curve promised on paper will match what you actually observe in practice. An energy management system built on the new ISO 50001 standard further fosters a culture of long-term results. Not only is it based on the principle of continuous improvement known as “PDCA” (plan, do, check, act), as applied to an easily quantifiable resource, but it also incorporates the latest best practices in energy measurement and the verification of energy savings.

Is ISO 50001 a stepping stone toward meeting your regulatory obligations?

Do you work in the service sector? The “Service Sector Decree” requires you to improve the energy performance of your building stock, with an initial deadline of 2030. In this regard, ISO 50001 gives you a head start, as it provides a framework for identifying, selecting, tracking, and measuring the right consumption data, and for engaging your staff. Once the decree takes effect, you’ll know how to organize your efforts to identify the right areas for savings, implement an action plan, assess how effective they are, and sustain these gains over time. In addition, you’ll be ready to feed data into the future IT platform for collecting consumption data, managed by ADEME, starting January 1, 2020. And you’ll achieve this by involving your entire organization in a formalized management system.

I am ISO 50001 certified. Do I have to start all over again? 

For organizations already certified to ISO 50001:2011, international standards provide a three-year transition period from the publication of the new standard to update their energy management system and transition to the new version. The deadline is therefore 2021. This transition can take place during the certification cycle or during a recertification audit. For those wishing to adopt ISO 50001 in 2019, the choice is theirs, but it is advisable to opt for the new version. Especially since, starting March 1, 2020, all ISO 50001 audits will be conducted according to the 2018 version.

If I implement ISO 50001, am I exempt from the mandatory energy audit? 

Under a 2012 European directive, companies “other than SMEs” must conduct an energy audit of their energy consumption every four years in order to identify opportunities for energy savings and implement action plans. In France, the first deadline was December 5, 2015. The affected companies must therefore prepare for the next deadline, which is at the end of 2019. The regulation provides an exemption for companies holding ISO 50001 certification.

 To be exempt from the regulatory audit, your company must not only implement the ISO 50001 standard (either the old or new version—it doesn’t matter for now), but also have a third-party body such as AFNOR Certification verify that it is properly applied to at least 80% of its energy bills, with a certificate issued following an audit by an independent auditor. Even if a company decides to fully comply with the standard, it remains subject to the regulatory energy audit unless it obtains this certification. Note that a company whose ISO 50001 certification has expired becomes subject to the audit again.