We’re already seeing the devastating effects of failing to maintain global warming at the 1.5 degrees, as pledged in the 2015 Paris Climate Agreement. In order to get this back on track we all need to consider our current energy consumption.
So, what can businesses do to manage their impact?
That’s where ISO 50001, the Standard for Energy Management, comes in! ISO 50001 can help your business to continually improve its energy performance, energy efficiency, energy use and energy consumption. Building an energy management system will ultimately help you to understand, monitor and measure your use of energy.
Today Darren Morrow, Senior Isologist here at Blackmores, joins us to share his top 5 top tips for ISO 50001 Implementation.
You’ll learn
- What is ISO 50001?
- 5 top tips for Implementing and Energy Management System
Resources
In this episode, we talk about:
[00:52] We have a more detailed walkthrough of ISO 50001 Implementation available in our steps to success podcast series, which are episodes: 84, 85 and 88
[01:05] What is ISO 50001? ISO 50001 is all about continually improving energy performance, energy efficiency, energy use and energy consumption. By Implementing an energy management system, you will be able to fully understand and monitor and measure your use of energy. Like most other ISO’s, continual improvement is at the heart of ISO 50001, and It’s also based on the Annex SL format. So, it shares some similarities with Standards such as ISO 9001 and ISO 14001. If you’ve got ISO 14001, you’re already half-way there!
[01:40] ISO 50001 and ESOS – ISO 50001 can also help you comply with ESOS (The Energy Savings Opportunities Scheme). If you’d like to learn more about that, listen to episode 138.
[02:50] Tip 1 – Top Management commitment and allocation of resources: This is vital, as the reason for implementation, management, requirements and aims along with expectations of everyone within the business for their support, is clearly demonstrated and communicated from the top down.
With an energy management system, part of this commitment includes making sure suitable resources are made available, this includes:
- People – For implementation, maintenance and improvement of the systems, including the means of gathering and reporting data.
- Financial support – There will be times where investment will be required. Ensuring existing equipment maintenance and servicing undertaken as required to maintain efficiency.
Allocate clear responsibilities for individuals e.g. gathering data such as meter readings, fuel usage, so that this is done consistently and the data is not only available but accurate.
[04:14] Tip 2 – Data: For data collection we need to understand certain things, an Energy review will support the identification of energy sources, identify and understand energy use and determine clear performance monitoring and indicators, leading to the determination of the data required. Some key considerations include:
- Identify sources of energy and your energy consumption from the energy review
- The quality, precision and accuracy of the data collected needs to be considered and monitored if measuring / monitoring results are to be meaningful.
- Data collection frequency should be determined and maintained to support the overall statistical analysis.
Finally, set goals and targets for improvement (EnPIs) – this can be in overall energy consumption, specific equipment improvements, other ratios measures such as consumption per person of consumption vs revenue.
[06:10] Tip 3 – Align and Integrate with other business management systems, goals and strategies: Sounds simple, but not always undertaken effectively, when implementing an energy management system consider any other management system that is already in place and look at any similarities, any elements that already exist that can be tweaked or expanded – this way, it is treated as ‘business as usual’.
[07:20] Tip 4 – Communication, training and awareness: Communication plays a key role in any system, make sure you:
- Communicate requirements, goals and commitments, and objectives or targets.
- Keep staff informed of what’s going on as their involvement and direct actions support achieving goals and targets, along with identifying improvements.
- Assign responsibilities, create a team and/or assign a champion – This supports the effectiveness of data collection, and also can increase motivation and encourage identification of energy saving opportunities
Energy savings require the commitment of the whole workforce. There ideally needs to be a champion in the organization who can drive change and savings.
[08:41] Tip 5 – Record opportunities for improving energy efficiency: Any and all identified opportunities can be, and should be logged and monitored for suitability, no matter how ‘far out there’ these may be.
Some may not be appropriate or feasible immediately, or in the short term, possibly due to costs / investment requirements. However, once an opportunity is logged, it can be monitored, assigned financial support and be planned for Implementation.
[10:40] We’re offering a Buy 1 Get 1 Free offer on isologyhub memberships until the 31st October 2023! Contact us to book a demo
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The Energy Savings Opportunity Scheme (ESOS) is a legal requirement for organisations of a certain size or value. The scheme is designed to make companies look at how they use energy with a view to improving performance. If your organisation qualifies for ESOS, you have until December 5th to comply or complete your phase 3 reporting.
Over the last few episodes we’ve explored two routes to compliance: Energy Audits and ISO 50001. As we explained, ISO 50001 goes above and beyond ESOS requirements and ensures you don’t have to gather an evidence pack every four years to prove compliance.
However, there are many more benefits to ISO 50001 than just it’s compliance with ESOS requirements. Join Mel this week as she dives into the other benefits ISO 50001, including real world examples from some global brand names.
You’ll learn
- Why Implement ISO 50001?
- What are the benefits of ISO 50001?
- Who has found success with ISO 50001?
Resources
In this episode, we talk about:
[00:35] Watch our previous episodes to learn more about Energy Audits and ISO 50001
[01:41] Benefit #1: Cost savings – By Improving your energy efficiency and reducing energy consumption, you can save a startling amount. ISO 50001 helps you to put a system in place that will allow optimisation of your energy usage.
[02:20] Benefit #2: Compliance – ISO 50001 can help you comply with the likes of ESOS and SECR. Carbon reporting and legal requirements in relation to it are global, any countries lagging behind on these requirements will soon adopt or create their own in response to the limited time we have left to reduce the effects of the climate crisis.
[02:45] Benefit #3: Reduce your environmental Impact – By reducing energy usage and switching to more energy efficient means, you will reduce your carbon emissions. ISO 50001 also acts as a complementary tool to ISO 14001 (Environmental Management) that many already have in place.
[03:10] Benefit #4: A coordinated approach – Companies, especially large ones, may have multiple systems in place to manage energy. ISO 50001 helps to create a universal framework that can be applied to a whole business.
[03:25] Benefit #5: External Incentives – There may be external benefits that can be gained by proving that you are taking steps to reduce your environmental impact. This could include tax benefits, insurance ect
[04:25] Benefit #6 Informed funding – There is a lot of funding out there to help companies with new green technology. Having ISO 50001 in place will give you a consistent overview of your energy usage, so you’ll be able to make informed funding choices based on where more savings can be made in terms of emissions and general costs.
[04:55] Benefit #7 Track Objectives – ISO 50001 can help you set Objectives and then set policies and procedures to help make those a reality. Those familiar with ISO Standards will know that it’s all about continual Improvement, so you’ll always be making progress.
[05:30] Benefit #8 Credibility – ISO 50001 is an internationally recognised Standard, and is a mark of your credibility. This can be used in marketing materials, displayed on your website, used in Case Studies ect.
[06:35] You don’t have to be a large brand or organisation to Implement ISO 50001. It can be implemented for a business of any size where energy is a significant environmental Impact.
[07:05] Hilton’s success with ISO 50001: One of the world’s largest hotel chains, Hilton was the first global hospitality company to achieve portfolio-wide certification to ISO 50001. The savings have been significant, reducing Hilton’s energy intensity by 20.6% and its carbon intensity by 30.0% from a 2008 baseline.
[07:55] Bentley’s success with ISO 50001: Reduced energy usage by two-thirds for each car produced and by 14% overall for the entire plant, delivering savings of 230 GWh of energy – enough to power 11,500 houses for a year!
[09:37] Hitachi’s success with ISO 50001: Following the Japanese earthquake disaster in 2011, Hitachi decided to introduce “the smart next-generation factory plan”. Following implementation of ISO 50001, the plant reduced 23 % of the contract electricity, 15 % of CO2 emissions and 5 million yen/month of electricity costs.
[10:12] Toyota’s success with ISO 50001: Implementation of ISO 50001 resulted in a reduction in electricity usage which has translated into cost-savings of more than R4.8 million (Over £210,000!) over a two-year period. The company also generated energy savings of GWh 8.15 across its 14 plants, and reduced its GHG emissions by 7,804 tons.
[10:50] Schneider Electric’s success with ISO 50001: The company adopted ISO 50001 certification in order to maximise energy performance. Following the certification, the business’ energy performance increased by 10.5%, with savings totaling £26,500 over 3 years.
[12:15] Want more info on ISO 50001? – Head on over to the isologyhub to get access to a wealth of ISO 50001, and energy management tools
For those interested in ISO 50001, we’re offering a free copy of the Standard to anyone who signs up for Implementation with us before the 16th June.
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This episode, we’re joined by Paul Robinson our Managing Consultant at Blackmores to talk about ISO 50001 – the Energy Management Standard.
Paul gives us some guidance and advice on how to audit and implement this standard effectively and how you can make improvements in your energy management.
We also talk about some common techniques to reduce energy consumption, how to increase a buildings energy efficiency, and how to monitor if equipment is being used in line with good practice.
You’ll learn
- How to make improvements in your energy management.
- How to implement the energy management standard ISO 50001.
- The purpose and benefits of carrying out internal audits.
- Common techniques to reduce energy consumption.
- How to increase a buildings energy efficiency.
- Why everyone should switch to LED lights.
Resources
In this episode, we talk about:
[02:25] The purpose and benefits of carrying out internal audits.
[03:31] Benefits data centres have had as a result of auditing.
[04:45] How an organization can set up a robust audit programme.
[07:23] The impact a building’s design has on its energy efficiency and how this can be improved.
[10:16] The importance of monitoring systems and the power of automation.
[11:59] How to know which maintenance companies to work with.
[13:13] How to know if equipment is being used with good practice.
[15:26] The benefits of raising opportunities of improvement to management.
[17:59] Common opportunities for businesses to improve their energy management.
[21:24] Evidence you expect to see when carrying out an ISO 50001 audit.
If you need assistance with implementing ISO 50001 or another standard – Contact us!
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We’re diving further into sustainability and best practices today as Mel is joined by Kit Oung who is a leading energy consultant with a wealth of experience spanning the last 25 years.
Kit is an energy and resource efficiency practitioner, consultant, trainer, and author on the subject of energy and resource efficiency; operational excellence, and triple bottom line.
Notable engagements include: designing regulations in the UK (energy and climate change regulations); Sharjah, UAE (mandatory Health and Safety awareness), and Singapore (waste regulation); drafting guidebooks on integrated management systems (ISO), energy efficiency (UNEP), ISO 50001 (ISO/UNIDO) and promoting of good governance in energy, environment, and health safety in India, Zambia, UAE, Qatar, Saudi Arabia, Oman, and Nigeria.
Kit is the author of Energy Management in Business: The Manager’s Guide to Maximising and Sustaining Energy Reduction (Gower, 2013), and coauthor of Best Practices and Case Studies for Industrial Energy Efficiency Improvement (UNEP, 2016). He also assisted in the technical review of ISO 50001: Energy management systems – A practical guide for SMEs (ISO, 2015).
Kit serves on IChemE’s Congress, IChemE’s Energy Community of Practice, IChemE’s annual sustainability awards judging panel, UNIDO’s global energy management leadership awards judging panel, and take part in developing National, Regional and International standards. He chaired ISO 14002-2 (current), ISO 50002 (current), PAS51215, EN16247-3, and participated in the development of ISO 14001 series, ISO 50001 series, and EN16247 series of standards.
Today, we’re looking at how to make energy sustainability strategies actionable, what the drivers for energy sustainability are, and how we can gain and maintain management commitment in sustainable energy practices. We’ll also have a sneak peak into Kit’s upcoming book: People, Planet, Profit: Environmentally and Socially Sustainable Business Strategies (Which you can pre-order! Link available under Resources)
You’ll learn
- The importance of leaders, managers and engineers all playing their parts in sustainability strategies.
- What needs to be in place for sustainability strategies to be actionable.
- How the drivers for energy sustainability differ in different geographical locations.
- The extent of the destruction of our forests and seas and why we aren’t doing anything about it.
- Different low cost fuel saving technologies.
- How to gain and maintain management commitment in sustainable energy practices.
- How to break down your energy consumption and make it visible
- The psychological benefits of celebration.
Resources
- Pre-order: People, Planet, Profit: Environmentally and Socially Sustainable Business Strategies
- Start with Why
- Get in contact with Kit Oung
In this episode, we talk about:
[02:12] Kit’s experience in working with energy management and sustainable initiatives.
[05:48] Key aspects that need to be in place for a sustainability strategy to be actionable and have real influence on a company’s products and services.
[10:40] A case study of how British Airways has integrated sustainability into their business structure.
[15:15] The main drivers of sustainability practices in the Middle East.
[17:12] What inspired Kit to write his new book – People, Planet, Profit: Environmentally and Socially Sustainable Business Strategies
[21:20] Low cost technologies businesses can use to reduce their energy consumption.
[23:48] The three elements you need in an organisation to effectively control your energy consumption.
[25:40] How to gain and maintain management commitment.
[28:30] The importance of understanding every aspect of an organisation’s processes and the hidden costs around waste materials.
[32:34] The importance of measuring consumption of resources and benchmarking.
[34:16] How to break down your energy consumption and make it visible.
[38:26] How external providers can help companies with the technical aspect of the data.
[40:48] How to break down implementation barriers in companies.
[47:03] The psychological benefits of celebration.
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We’re joined again by Paul Robinson, Managing Consultant at Blackmores. Last week Paul summarised the importance of energy management and introduced us to ISO 50001. This week, he delves deeper into the individual clauses of the Standard to break down what’s required in a typical Energy Management System.
What you’ll learn:
- The main clauses and requirements of ISO 50001
- Examples of ISO 50001’s application in other Businesses based on Paul’s experience
What are the main clauses of ISO 50001?
ISO 50001 has been aligned with the Annex SL format since 2018 so that it may be more easily integrated with other ISO Standards. The clauses are as follows:
- Clauses 1, 2 and 3 – These are all explanatory clauses, starting with the scope, then Normative References and lastly Terms and Definitions.
- Clause 4 – Context of the Organisation: Here you would define the scope and boundaries of your energy management system and understanding the processes affected. This includes looking at your energy inputs and outputs. You’ll also address any energy issues that affect you and interested parties involved.
- Clause 5 – Leadership: This refers to Top Management commitment, which is necessary if you want your energy management system to be successful. They will need to provide resources required to implement an energy policy, and to define roles and responsibilities.
- Clause 6 – Planning: This is a central pillar behind every Energy Management System as it talks about strategic and tactical considerations. This includes high-level issues, the needs and expectations of interested parties and the risks and opportunities associated with them in an energy context. This clause also includes an Energy Review, which will help you build a picture of your energy sources and current consumption. From that you can start setting your Objectives and Targets and actions going forward using energy baselines and energy performance indicators established from the Energy Review.
- Clause 7 – Support: This clause talks about provision of resources, competencies, awareness, communication and documented information required for energy management.
- Clause 8 – Operation: This is where operational controls are defined to help you manage your energy effectively. It also covers design and procurement, which means procuring of energy, consuming assets and having effective processes in place to ensure energy is a key consideration when making infrastructure changes.
- Clause 9 – Performance Evaluation: ISO 50001 is very data driven and clause 9 states the requirements for monitoring and measurement of your energy use, which will be used to demonstrate your improvement in energy efficiency. This clause also covers Internal Audits and Management Review to ensure the Management System is performing effectively.
- Clause 10 – Improvement: This clause talks about taking opportunities that drive continual improvement in the Management System, but also recognizing that sometimes things go wrong. It also addresses significant deviations and a structure to investigate and correct those deviations to keep the management system on track.
What can go wrong?:
Based on his experience, Paul highlighted some issues he’s seen in existing Management Systems:
- Not aligning an Energy Management system with Company Objectives
- Lack of financial resources
- Having the Management system built and run by only one person – This becomes a single point of failure
- Confusion in responding to energy deviations – lack of communication of a process to correct non-conformities
- Rushed creation – Energy Management Systems created in a short span of time may not be properly embedded into the business and can lead to the issues listed above.
That’s it from Paul this week! For further information on ISO 50001, visit our Standards page Here. We also have an ISO 50001 Handbook available to members of the isologyhub, sign up here to grab a copy.
If you’re just getting started with ISO, we do have a free ISO Blueprint available for download to help you to plan, create, launch and get certified to ISO Standards.
We’d love to hear your views and comments about the ISO Show, here’s how:
- Share the ISO Show on Twitter or Linkedin
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Today we’re joined by Paul Robinson, Managing Consultant at Blackmores. Paul is here to introduce the Energy Management Standard, ISO 50001, why it’s important and give you an overview of its basic structure.
What you’ll learn:
- Why energy management is so critical in the current climate crisis
- The main purpose of ISO 50001
- A summary of the clauses within ISO 50001
Why have an Energy Management Standard?
There’s a big focus on trying to maintain global warming to that 1.5 degrees increase. Right now, we’re failing on that. In order to get this back on track we need to consider our current energy consumption. During COP26 we heard a lot about phasing out coal power, unfortunately there are some countries who are resistant to that and as a result have had the requirements watered down. Regardless, energy use continues to rise as does the demand.
Energy Management is particularly relevant for organisations who want to measure their impact and put measures in place to reduce their environmental footprint.
Why is it so important to restrict Global Warming to 1.5 degrees?
It’s literally the difference between survival. We’re at a tipping point now, failing to stick to this 1.5 degrees will result in rising sea levels and rising temperatures. Paul shares his experience working in Cyprus where it’s not uncommon now for the temperature to reach 45 degrees. This isn’t sustainable and it will get to the point where it’s difficult for humans to survive if we keep going at this rate.
What is the main purpose of ISO 50001?
ISO 50001 includes continually improving energy performance, energy efficiency, energy use and energy consumption. Building an energy management system will help you to understand, monitor and measure your use of energy, and like most other ISO’s, continual improvement is at the heart of ISO 50001. Key factors it addresses are energy performance, energy efficiency and energy consumption.
What are the main clauses of ISO 50001?
ISO 50001 went through it’s latest revision in 2018, aligning it with the Annex SL format that many other ISO’s use. The clauses are as follows:
- Clauses 1, 2 and 3 – Explanatory clauses
- Clause 4 – Context of the Organisation
- Clause 5 – Leadership
- Clause 6 – Planning
- Clause 7 – Support
- Clause 8 – Operation
- Clause 9 – Performance Evaluation
- Clause 10 – Improvement
That’s it from Paul this week! Join us next week as Paul breaks down each clause of the Standard and how it can be applied. For further information on ISO 50001, visit our Standards page Here. We also have an ISO 50001 Handbook available to members of the isologyhub, sign up here to grab a copy.
If you’re just getting started with ISO, we do have a free ISO Blueprint available for download to help you to plan, create, launch and get certified to ISO Standards.
We’d love to hear your views and comments about the ISO Show, here’s how:
- Share the ISO Show on Twitter or Linkedin
- Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and we read each one.
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With the ESOS deadline being just a few weeks away, I’m joined on today’s podcast by Andrew Geens, Head of certification at CIBSE (Chartered Institution of Building Engineers) to discuss CIBSE and his views on the routes to compliance and the UK’s readiness for the deadline in December 2019.
CIBSE represents the interests of the Building Services industry with a substantial membership base across 98 countries. The Building services industry is very diverse, the services delivered by Mechanical and Electrical engineers range from providing hot water in our buildings to installing and maintain lighting and air-conditioning. CIBSE provide useful guides and Technical Memorandums on all of these aspects including managing energy performance in buildings.
CIBSE operate the largest register of energy professionals in the UK, including ESOS Assessors, Low Carbon energy Assessors and Energy Consultants.
Andrew gives an update on ESOS compliance in 2019 and the status of the CIBSE approved energy professionals.
For those eligible companies that have still not submitted their energy report to ESOS, Andrew explains the options available to comply. Options range from energy reporting through to certification to an Energy Management system, ISO 50001. Interestingly, we discuss on the Podcast the tangible financial benefits of companies that have gone down the ISO 50001 route.
Contact us to find out how we can assist you before the ESOS deadline.
Further information can be found at
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Purpose of energy audits
The Energy Savings Opportunity Scheme (ESOS) is a legal requirement for organisations of a certain size or value. The scheme is designed to make companies look at how they use energy with a view to improving performance. If your organisation qualifies for ESOS, then there is a chance that your premises may be subject to an on-site energy audit.
These audits are required by ESOS in order to understand where and how energy is used within the organisations premises and operations. Every audit will recommend cost-effective measures that will save the organisation energy and money – the ultimate intention of the legislation. Saving money on escalating energy bills will also increase competitiveness.
Therefore the “Opportunity” in ESOS really is a big one, both for individual businesses and the UK as a whole.
What to expect
The on-site energy audit itself is the practical element of the process in which a qualified auditor assesses your operations (buildings, processes and transport fuel use) to identify how energy is used on a day to day basis, and to identify where savings can be made.
In order for the auditor to understand fully how energy is used, they will need to visit your site and see what is in place and what is used on the site. Typical areas the audit will assess include:
- The type of lighting used in the premises and if more energy efficient alternatives are available
- How heating and cooling systems are managed, reviewing settings and control types
- Insulation levels to see where heat loss could be reduced
- The type of energy used to run the premises, and if cheaper or lower carbon fuels or renewables are appropriate
- How equipment and machinery is used, and if savings can be made through more efficient operation
An audit can take from around 2 hours to a full day depending on the size and complexity of the site. When visiting the site, it is helpful for the auditor to be accompanied by someone from the site who is knowledgeable in the areas being surveyed. In addition, the auditor may wish to speak to a cross section of staff to include facilities, maintenance and those staff operating specific equipment, or occupying specific areas.
They will undertake a thorough survey of the property using measurements and photographs and assessing lighting, heating and insulation systems, the building construction type and its usage, to create your audit report. During the audit the auditor may also wish to take meter readings, or view monitoring or measurement activities in place on the site.
The audit is a visual inspection and so not invasive of the structure of the building. Each auditor will make their own observations.
To ensure that relevant energy saving opportunities are identified, the auditor may request energy related information in advance of the on-site visit.
Listen to our previous 17 episodes by subscribing to us on iTunes or Soundcloud
And click HERE for further information on how we can help you with ESOS.
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Last week we covered what ESOS is, who qualifies and a brief explanation of methods of compliance. In this week’s episode we’ll go into more detail on the methods for compliance, namely ESOS Energy Audits and ISO 50001.
Episode highlights:-
ESOS Energy Audits
Planning
- Which sites are in scope of ESOS?
- What energy consuming activities are undertaken at each site?
- Calculate the % of total energy consumption for each site and activity
- Plan where to focus the ESOS audits in order for the organisation to gain the most benefit
Note: Flexibility to exclude up to 10% of your identified energy consumption under the de minimis rule. Any exclusions must be clearly detailed within your Evidence Pack together with the rationale for exclusion.
Conducting the audit (competence, sampling)
The audit plan and methodology should be developed before the audits begin and should be retained in your Evidence Pack.
When reviewing your ESOS scope, you might identify that you have a range of similar operations i.e. you may have small satellite offices or similar retail units, so you can simply take a sample of these.
A registered Lead Assessor must oversee your ESOS assessment, but individual audits can be carried out by suitably skilled people who are not Lead Assessors.
Note: Blackmores can provide qualified personnel to do these audits.
Data collection and analysis
Where to find your data?
- Facilities managers – for meter readings and invoices
- Your travel team – for information on journeys undertaken and distances travelled
- A maintenance team – for meter readings and invoices
- Vehicle fleet managers – for information on vehicles, fuel purchased and distance travelled
Identifying opportunities for improvement
The approach taken will need to be tailored to the business but could include:
- financial savings offered by the improvement measures and the necessary investment required;
- return on investment (or other agreed economic criteria);
- The comparison in terms of both cost and energy consumption between alternative energy efficiency improvement measures;
Documentation requirements
- The scope and boundaries of the audit
- The methodology adopted
- The sources of the data used
- Any significant gaps in data
- What methods were used to cover gaps in energy data through estimation
Reporting compliance to the EA
Once the ESOS report has been reviewed and signed off by the ESOS Lead Assessor and either one or two Directors, the business can then register their compliance with the environment Agency.
Notification is made via an online notification system.
The most effective route to ESOS compliance if to implement an energy management system compliant to ISO 50001.
ISO 50001 is a best practice framework to help organisations to improve their energy performance and energy efficiency, thus, reducing their energy consumption and carbon footprint.
Benefits:
- Improved resource efficiency
- Cost reduction
- Legal compliance
- Satisfy stakeholders
- Full ESOS compliance
- Competitive advantage
- Reputation
- USP
Step 1: Planning
- Identify the scope, including the physical boundaries
- Conduct a Gap Analysis to ISO 50001:2011
- Review existing data in relation to energy aspects
- Create and implementation plan to identify the resources required
- Facilitate an ‘Energy Working Group’ to champion the project and conduct an energy review
Step 2: Document the Energy Management System
- Identify and document the applicable energy legislation
- Identify and document the energy management controls
- Create the energy targets and programmes
- Document the Energy Management System
Step 3: Awareness Training
- Create the training materials for operatives and management
- Delivery of Energy Management Awareness Training
- ISO 50001 Awareness and Auditing Training (optional)
- Keep records of training attendance
Step 4: Compliance
- Plan and conduct internal audits to verify the level of compliance to ISO 50001
- Close out any Corrective and/or Preventive Actions as part of the assessment preparation
- Management Review Meeting
The Assessment
- Stage 1 – Document Review
- Stage 2 – Provide evidence of conformity to what you say you do!
- Listen to our previous 11 episodes by subscribing to us on iTunes or Soundcloud
And click HERE for further information on how we can help you with ESOS.
- Share the ISO Show on twitter or Linkedin
- Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help and I read each one.
- We’d love to hear you views on the ISO show and suggestions for future topics.
With the ESOS phase 2 deadline looming, do you know if you qualify? And if so, do you know what to do to comply? In this week’s podcast we will look at what ESOS is and briefly cover the various methods for compliance.
Podcast highlights:-
What is ESOS?
The Energy Saving Opportunity Scheme (ESOS) was launched for consultation by the Department of Energy and Climate Change (DECC) in July 2013. This scheme is a mandatory energy assessment and energy savings identification scheme for ‘Large Enterprises’.
A Large Enterprise is defined as:-
- Having more than 250 employees
- An annual turnover exceeding €50 million or an annual balance sheet total exceeding €43 million
The pubic sector is not required to participate.
Who qualifies?
- Limited companies
- Public companies
- Trusts
- Partnerships
- Unincorporated associations
- Non-for-profit bodies
ESOS Phase 2 Deadline: 5th December 2019
Why ESOS?
- Estimated to lead to £1.6 billion net benefits to the UK
- ESOS energy audits have the potential to increase business profitability and competitiveness.
- Helps to identify energy efficiency measures
What do you have to do to comply?
- Measure your total energy consumption
- Conduct energy audits to identify cost- effective energy efficiency recommendations
- Report compliance to the Environment Agency (as the scheme administrator)
ESOS energy Audits:
- Use 12 months of energy consumption data
- Produce cost-effective recommendations for the area being audited or confirm that there is no scope for cost-effective energy efficiency improvement
- Be overseen, conducted or reviewed by an ESOS Lead Assessor
Areas for potential energy saving:-
- Buildings
- Industrial Processes
- Transport
- Employees
Potential routes for compliance:
- ESOS Energy Audits
- ISO 50001
- Green Deal Assessments
- Display Energy Certificates
Listen to our previous 10 episodes by subscribing to us on iTunes or Soundcloud
And click HERE for further information on how we can help you with ESOS.
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What is ESOS?
10,000 of the UK’s largest businesses have to comply with the new Energy Savings Opportunity Scheme (ESOS) and conduct a mandatory energy audit across buildings, transport and industrial operations by December 2019.
Any company with more than 250 staff, or less than 250 staff but a turnover of over €50m and balance sheet exceeding €43m, must comply with ESOS or face fines. It also applies to smaller companies who are part of a corporate group which includes a business which meets those non-SME criteria.
Businesses can’t afford to ignore ESOS – compliance is not optional. More importantly, any delay in action could mean potential savings go unrealised. Often, the potential savings outweigh the cost of compliance.
This webinar took place on the 8th March at 11am. This webinar covered the following: –
- What is ESOS?
- Routes of ESOS compliance
- Energy Audits
- ISO 50001 route to compliance
If you have any questions feel free to contact us at: enquiries@blackmoresuk.com
What is ESOS?
In October 2012 the European Union established the Energy Efficiency Directive (EED). The Directive specified that all member countries were to create an energy audit scheme which would ensure the achievement of the Union’s 2020 target on energy efficiency. From this, the ESOS Regulations 2014 was established.
The ESOS Regulations 2014 requires large organisations in the UK to undertake comprehensive energy audits, every four years, which focuses on the energy that is used by the organisation’s buildings, industrial processes and transport, the consumption of the energy being used, and any potential energy saving opportunities that the organisation could instrument.
Who is Required to Comply with ESOS?
Any large organisations that employ 250 or more staff or have an annual turnover in excess of £42m and an annual balance sheet total of around £36.5m or are part of a corporate group containing a large enterprise are required to comply to ESOS.
When Do You Need to Comply By?
We are now in the second round of ESOS Assessments and below are important dates to remember;
• The Qualification Date – 31st December 2018
• The Reporting Date – 5th December 2019
How do you Comply to ESOS?
There are two paths to become complaint with ESOS;
Step 1
You will need to carry out an ESOS Audit. In order to complete your assessment, you will be required to undertake the following;
Identify and Calculate your Total Energy Consumption
You will be required to calculate the energy used by your organisation/group’s buildings, industrial processes and transport.
- Identify Areas of Significant Energy Consumption
While calculating your Total Energy Consumption, you should also be identifying the energy used by your organisation that accounts for at least 90% of your total energy consumption.
- Appoint a Lead Assessor
If you don’t have an ESOS Lead Assessor undertaking the audit, you will then be required to appoint a lead assessor to either carry out and oversee or review your energy audits and overall ESOS assessment. If you do require a Lead Assessor, they can be external, but you must ensure they are members of an approved professional body register.
- Notify the Environment Agency
Once you have conducted and completed your ESOS Audit, the next step is to submit your ESOS Notification of Compliance to the Environment Agency. The deadline for the this is 5th December 2019.
- Keep Records
Once you have notified the Environment Agency with your ESOS Notification of Compliance, you must keep the ESOS Audit as evidence.
Step 2
If your organisation is certified to ISO50001, you are not required to carry out an ESOS Audit. All you have to do it notify the Environment Agency that you are compliant with ESOS.
Need help with ESOS? We’d be happy to help, simply contact us on: enquiries@blackmoresuk.com
How do I establish Energy Performance Indicators and Energy Baselines?
Energy performance indicators or EnPIs are defined as a measure or unit of energy performance as defined by the organisation. This can be expressed by using a simple metric, ratio, or a model, depending on the nature of the activities being measured.
Examples of Energy Performance Indicators
Examples of EnPI’s can include:
- kWh consumed per site
- kWh per linear metre of product produced
- kWh per number of staff
- kWh per square meter of occupied office space
It is critically important to determine a suitable range of relevant EnPI’s based on the results of the energy review. EnPI’s should help to demonstrate continual improvement in either efficiency, use and/or consumption.
Energy Baselines
An energy baseline (EnB) is defined as a quantitative reference(s) providing a basis for comparison of energy performance.
An energy baseline is based on data from a specified period of time and/or conditions, as defined by the organisation.
An example of an EnB:
kWh consumed in the 2015 period. Thus, energy efficiency, use and consumption can be compared against this baseline data to determine if an improvement has been achieved.
Energy baseline(s) are used for determination of energy performance improvement, as a reference before and after, or with and without implementation of energy performance improvement actions.
It is a requirement of the standard that monitoring and measurement activities should include comparison of data against the stated baseline(s)
ISO 50015 provides additional information on measurement and verification of energy performance.
ISO 50006 provides additional information on EnPI(s) and EnBs.
Need assistance with ISO 50001? At Blackmores, we are ISO consultants and we work with clients in all industries to help them gain their ISO standards. We’d be happy to help you, simply contact us at: enquiries@blackmoresuk.com
What is an Energy Review?
An energy review is a documented analysis of energy efficiency, energy use, and energy consumption based on data and other information, leading to the identification of areas of significant energy use (SEU) and opportunities for energy performance improvement.
The energy review will help to establish energy performance indicators (EnPI’s), energy baselines and objectives and targets for improvement.
What Should an Energy Review Include?
The energy review should include:
- a) Analysis of energy use and consumption based on measurements and other data i.e.
⎯ Identify current energy sources;
⎯ Evaluate past and present energy use and consumption;
- b) Identification of the areas of significant energy use, i.e.
⎯ Identify the facilities, equipment, systems, processes and personnel working for, or on behalf of, the organization that significantly affect energy use and consumption;
⎯ Identify other relevant variables affecting significant energy uses;
⎯ Determine the current energy performance of facilities, equipment, systems and processes related to identified significant energy uses;
⎯ Estimate future energy use and consumption;
- c) Identify, prioritize and record opportunities for improving energy performance.
Opportunities can relate to potential sources of energy, the use of renewable energy, or other alternative energy sources, such as waste energy.
The energy review should be updated at defined intervals (you define what this is), as well as in response to major changes in any facilities, equipment, systems, or processes.
ISO 50001 with Blackmores ISO Consultancy
Are you looking for an ISO consultant to work with your business? We work with organisations in various industries to help them put systems in place to gain their certifications. If you need assistance with ISO 50001 we’d be happy to help, contact us at: enquiries@blackmoresuk.com
ISO50001 requires us to undertake activities to check the effectiveness of the EnMS. In this blog we will focus on ISO 50001 clause 9 – Performance Evaluation, and in particular clause 9.1 which relates to Monitoring, measurement, analysis and evaluation of energy performance and the EnMS. Along with internal audit (9.2) and management review (9.3) clause 9.1 makes up a significant part of the “checking” activities required to confirm the EnMS remains suitable, adequate and effective.
ISO 50001 Clause 9 – Performance Evaluation
ISO 50001 clause 9 – performance evaluation is split into several parts.
Clause 9.1 is broken down in to two parts and is quite prescriptive, this is for good reason; we need to ensure we are measuring the right things. The outputs of our energy review process (6.3) our objectives targets and action plans (6.2) and our energy data collection plan (6.6) provide us with the main inputs into the process.
So, let’s break down the clause, starting with 9.1.1.
As a starting point we can to identify what needs to be monitored and measured, including at a minimum the following key characteristics:
- The effectiveness of the action plans in achieving objectives and energy targets;
- Energy performance Indicators (EnPI(s));
- Operation of significant energy uses (SEUs);
- Actual versus expected energy consumption;
Once this has been established, we can define the methods for monitoring, measurement, analysis and evaluation, to ensure we get valid repeatable and reliable results;
This leads us nicely into stating when monitoring and measurement shall be performed and when the results from monitoring and measurement will be analysed and evaluated.
The final step is to evaluate data created from the implementation of the energy data collection plan with a view to drawing conclusion on energy performance and the effectiveness of the EnMS (see 6.6).
Most importantly and critical to ensuring the ability to demonstrate continual improvement is the need to confirm that improvement in energy performance has been evaluated by comparing energy performance indicator (EnPI) value(s) (see 6.4) against the corresponding baselines (EnB’s) (see 6.5).
Any significant deviations in energy performance should be identified and investigated. An enhanced requirement in ISO50001:2018 requires the organisation to retain documented information on the results of the investigation and response (see 7.5).
Finally, all this needs to be recorded, either electronically or in hard copy to demonstrate evidence that the process is being undertaken effectively. This becomes vital evidence at internal and external audits and provides information for management review (see 9.3.2 [c] 2 and 9.3.3)
The second part of 9.1 requires us to undertake an evaluation of compliance with legal requirements and other requirements at planned intervals.
Clause 9.1.2 requires us to revisit those legal and other requirements identified during the identification of needs and expectations of interested parties (4.2) and gather the necessary evidence to confirm to our own satisfaction that compliance is being maintained. This exercise is sometimes undertaken as part of the internal audit process. Again, documented information (see 7.5) on the results of the evaluation of compliance and any actions taken need to be retained and the results of this exercise inform management review inputs (see 9.3.2 [c] 4)
If you would like to learn more about what Blackmores offers – contact us today!
ISO 50001 Energy Management – Clause 6, Planning & The Energy Review Process
The requirement for energy review is one of the key clauses of the ISO50001 energy management system standard. But why do we need to do this and how do we go about it.?
Undertaking an energy review helps us to understand what energy types we are using, which of these are significant, relevant variables that might affect energy use and allows us to consider and prioritise the opportunities that when implemented can help support the achievement of energy objectives.
Conducting an energy review is a process, the requirements are broken down into energy review inputs, the energy review itself and energy review outputs.
Inputs
The first step of the process is to identify your energy types. These might be use of electricity, use of natural gas, use of fuel in your vehicle fleet. You might obtain a certain percentage of energy from renewable sources, these should also be considered at this stage.
Once you have identified your energy types you will need to gather some consumption data to determine past consumption. How far back should you go…? Ideally you will have a couple of years of reliable data for each energy type if possible, however 12 months of historical data will help to get you started.
The next step is to understand the facilities, equipment, systems or energy-using processes where this energy is being used. This will help to breakdown the data so you can see where the areas of opportunity for improvement may lie.
Energy Review
Now you have the data you can analyse it to determine consumption trends.
Once we can see the trends we can start to consider those variables that may influence energy use, efficiency and consumption. This may include variables such as external temperature change, shift patterns, production volumes, occupancy rates and the expansion of facilities.
We must also consider those personnel can have an impact on energy use. This might include management, maintenance staff, operatives or team leaders whose decisions may impact consumption.
We can then define significant energy uses (SEU’s) The standard defined these as “energy use accounting for substantial energy consumption and/or offering considerable potential for energy performance improvement.” Noting that significance is defined by the organisation and can include facilities, systems, processes, or equipment.
Once we have defined those energy uses that are deemed “significant” we can start to consider and prioritise the opportunities for improvement. Activities should be undertaken to determine the benefit from implementing the opportunity. This may relate to payback (ROI), a saving in consumption (kWh) or cost saving (£ per annum) and will lead to the prioritisation of opportunities and a reasonable assessment of expected kWh savings expected for each opportunity.
Outputs
We can now finally draw our conclusions and present these in the energy review. The requirement to maintain documented information on energy review normally leads to a report being produced. This should include conclusions on energy use and consumption trends, an estimate of future energy use, recommendations for improvement and identified significant energy uses.
In addition to this you need to define energy performance indicators, energy baselines and energy objectives, targets and action plans. Defining EnPI’s and EnB’s correctly is critical to ensuring you can accurately measure and demonstrate improvements in either consumption and/or efficiency.
Once you know which of the selected opportunities you will be implementing, the identified kWh saving expected will inform the targets and action plans, while the identification of significant energy uses will inform the objectives. All of these need to be documented, noting consideration and inclusion of those actions to address risks and opportunities identified (See clauses 4.1, 4.2, 6.1)
Finally, you now know what you want to achieve (objectives, targets and action plans) and you can create an energy data collection plan. This should include measuring those relevant variables for SEUs, energy consumption related to SEUs and to the organisation, operational criteria related to SEUs, static factors (e.g. Facility size; design of installed equipment; number of weekly shifts; range of products) and the data specified in action plans.
This should lead to the creation of a clear measurement plan showing information such as the energy type, specific meters references, frequency of measurement and the responsibility for undertaking measurement activities.
Ensuring that the energy review process is robust and regularly reviewed will provide the basis for an effective EnMS and with top management support (5.1) and the necessary resources (7.1) can drive continual improvement in energy performance for many years to come.
If you would like more information – contact Blackmores today!
What’s the Difference Between the 2011 and 2018 versions of ISO 50001?
ISO 50001:2018 is based on Annex SL – the new ISO high level structure (HLS) that brings a common framework to all management systems, i.e. it applies a common language across all standards.
This helps to keep consistency, supports alignment of different management system standards, e.g. ISO9001, ISO14001, etc. With the new standard in place, organisations will find it easier to incorporate their energy management system into core business processes and get more involvement from top management.
The main change organisations who hold ISO50001:2011 will see are the requirements in clause 4.
Clause 4 relates to the context of the organisation and requires organisations to consider their relevant internal and external issues and consider the needs and expectations of interested parties who could be affected by the management system.
When establishing the scope and boundaries of certification, it is now made explicit that organisations cannot exclude any energy type at this stage.
Clause 5 relates to Leadership. The requirement for a management representative has been removed and requirements for leadership have been enhanced. This helps to ensure that energy is considered by top management and becomes a strategic issue for the organisation.
Clause 6 relates to planning. This is undertaken at a strategic and tactical level via determining actions to address risks and opportunities identified and via the undertaking of an energy review which leads to the development of objectives, action plans, Energy performance indicators (EnPI’s) and energy baselines (EnB’s) The final part of clause 6 requires us to establish a energy data collection plan.
Clause 7 relates to support and brings together the requirements to provide resources, define competencies, deliver awareness, communication and documented information as deemed necessary to ensure the EnMS is effective.
Clause 8 relates to operation, this consolidates design, procurement and operational controls relating to the facilities and equipment defined in the scope and boundaries of certification. This extends to the procurement of energy which can increasingly include a mix of energy from renewable sources.
Clause 9 relates to performance evaluation. This requires us to implement the energy data collection plan from clause 6 and undertake the actions necessary to monitor and measure, conduct internal audits and undertake management review. We recommend taking time to review and update your management review process in line with clause 9.3 of the 2018 revision.
Clause 10 relates to improvement. The term preventive action has been removed from the standard, however via determining issues (4.1) interested parties needs and expectations and legal requirements (4.2) and via taking actions to address risks and opportunities (6.1) organisations can demonstrate continual improvement in energy performance.
If you would like to learn more – contact Blackmores today!
ISO 50001 Energy Management – Understanding the Context of The Organisation
One of the major changes in ISO 50001 is the restructuring of the standard around ISO’s high level structure. This helps to align ISO 50001 with the other mainstream standards.
However, for those organisations who only have an existing ISO 50001:2011 certification in place or if you are implementing ISO 50001:2018 for the first time then this clause may be causing some confusion. So what does context of the organisation mean..?
ISO 50001 Energy Management Context of The Organisation
The clause is broken down into 4 parts:
- 4.1 Understanding the organization and its context
- 4.2 Understanding the needs and expectations of interested parties
- 4.3 Determining the scope of the energy management system
- 4.4 Energy management system
If we work through clause 4 from start to finish we will have identified those relevant issues that are affecting us and identified the needs and expectations of our interested parties, including those that are considered legal requirements, defined the scope of certification and identified the EnMS processes and their interactions.
So commencing with 4.1. A review of annex A4 in ISO 50001 provides us with a steer to determining issues.
External Issues
Examples of external issues can include:
- issues related to interested parties such as existing national or sector objectives, requirements or standards;
- restrictions or limitations on energy supply, security and reliability;
- energy costs or the availability of types of energy;
- effects of weather;
- effects of climate change;
- effect on greenhouse gas (GHG) emissions.
Internal Issues
Examples of internal issues can include:
- core business objectives and strategy;
- asset management plans;
- financial resource (labour, financial, etc.) affecting the organization;
- energy management maturity and culture;
- sustainability considerations;
- contingency plans for interruptions in energy supply;
- maturity of existing technology;
- operational risks and liability considerations.
Determining Issues
SWOT and /or PESTLE analysis can be also considered as an effective tool for determining issues, equally a robust business plan should include consideration of issues relating to energy supply and use as part of effective business planning. Note, at this stage we only need to identify the issues, however we will return to our issues when we address clause 6.1.
A simple table can be used to capture the needs and expectations of interested parties which addresses 4.2 a), b) and c), or you may use other techniques such as stakeholder mapping or questionnaires to establish their needs. Useful online resources such as www.legislation.gov.uk can be used to identify the relevant legislation, other sources include https://www.gov.uk/government/collections/energy-act
Once 4.1 and 4.2 have been effectively addressed, you have the information required to establish the scope and boundaries of certification, noting that in the revision of ISO 50001 no energy sources can be initially excluded from certification at this stage.
The organisation shall ensure that it has the authority to control its energy efficiency, energy use and energy consumption within the scope and boundaries. The organisation shall not exclude an energy type within the scope and boundaries.
The boundaries of certification can be considered to be the physical sites, buildings, facilities and physical assets that will be included in the management system.
The scope and boundaries need to be maintained as documented information, so consider where this will be documented within the management system.
Once the scope and boundaries are defined you can then consider the processes that will be included in the EnMS. If we consider that processes will include inputs (raw materials, energy etc) , outputs (products and services) and require resources in the form of people to support them we can map out these processes and ultimately decide whether they sit inside or outside the scope and boundaries of certification. Again, consider documenting this information to help you when undertaking energy review and when determining the relevant operational controls and monitoring and measurement requirements needed to maintain the EnMS.
Contact Blackmores today to find out more!
ISO 50001:2018 has been published
The International Organisation for Standardisation (ISO) has recently published ISO 50001:2018, the revised standard for energy management. ISO 50001:2018 has been revised to follow ISO’s common framework and High Level Structure (HLS) used for management system standards. This change will make it easier to integrate with other management system certifications, such as ISO 9001 and ISO 14001. Those that are already certified to the 2011 version of the standard will have 3 years to transition to the 2018 version.
What is the difference between the 2011 and 2018 standards?
ISO 50001:2018 is based on Annex SL – the new ISO high level structure (HLS) that brings a common framework to all management systems, i.e. it applies a common language across all standards.
This helps to keep consistency, supports alignment of different management system standards, e.g. ISO9001, ISO14001, etc. With the new standard in place, organisations will find it easier to incorporate their energy management system into core business processes and get more involvement from top management.
Other changes include:-
- New clause for understanding the organization and its context (4.1)
- New clause for systematic determination of the needs and expectations of interested parties (4.2)
- Strengthened emphasis on leadership and top management commitment
- Addition of Risk and opportunity management
- Addition of Competence (7.2)
- Extended requirements related to communications (7.4)
- Additions to Operational planning and control (8.1)
- Monitoring, measurement, analysis and evaluation of energy performance and the EnMS (9.1)
- Additions to Management review (9.3)
How your company can benefit from adopting ISO 50001
If energy use is one of your organisations significant environmental aspects, then an Energy management system (EnMS) may provide additional benefit and enhanced focus on energy management.
Application of ISO50001 contributes to more efficient use of available energy sources, to enhanced competitiveness and to reducing greenhouse gas emissions and other related environmental impacts. ISO50001 is applicable irrespective of the types of energy used, e.g. electricity, gas, diesel, petrol etc…
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What is ISO 50001:2018?
The ISO 50001 energy management standard specifies requirements for an organisation to establish, implement, maintain and improve an Energy Management System (EnMS), enabling the organisation to take a systematic approach to achieving continual improvement of energy performance.
ISO 50001 is an ideal tool for helping your organisation to establish the systems and processes necessary for achieving improved energy efficiency, financial savings and reductions in greenhouse gas emissions, through systematic management of energy.
This webinar was held on the 8th October 2018 and covers the following:-
- What is ISO 50001:2018?
- What’s the difference between the 2011 and 2018 standards?
- What are the benefits of ISO 50001:2018?
- How Blackmores can help you to achieve ISO 50001 certification
Do you need assistance with ISO 50001? We’d be happy to help, simply contact us on: enquiries@blackmoresuk.com
Blackmores invites you to EDIE Live, an event focusing on the sustainability, energy management, innovation and leadership and skills of your business. Taking place at the Birmingham NEC Centre on the 17th and 18th May 2016.
You are welcome to pick our brains on all ISO standards relating to Quality, Risk and Environmental Standards and enter our prize draw to win free consultancy days and E-Learning. We are also hosting the ISO 50001 Energy Management Advice Clinic.
Who should attend?
EDIE Live should be visited by anyone who manages any environmental, sustainability, energy or corporate responsibility aspects of their business. Common attendee job roles include:
- Energy Management
- Sustainability Management
- Environmental Management
- Facilities Management
- CSR Management
- Estates Management
- Waste Management
- Corporate Communications
- Energy procurement
- Health and Safety Management
- SHE Management
- Project Management
- Supply Chain/Contract Management
- Human Resources
- Training Management
What to expect?
This year EDIE Live is focusing around the issues of Energy, sustainability and resource efficiency for all businesses. During the two day run there will be a number of seminars discussing the following topics:
- Financing sustainability: challenges and opportunities
- Energy Efficiency – present and future
- Putting the O in ESOS – where is the opportunity?
- Sustainability best practice: building asset value
- Next generation: leading the way in onsite renewables
- Innovative onsite water management strategies
- Drivers for resource efficiency: what happens if we don’t engage?
- The approach of different sectors to resource efficiency
We look forward to seeing you there.
So in the latest budget announcement last week, in addition to the headline grabbing ‘Sugar levy’, George Osbourne also announced changes concerning business energy taxes and reporting:
- The Carbon Reduction Commitment (CRC) scheme will be abolished following the 2018/19 compliance year. In parallel there will be an increase in the Climate Change Levy (CCL) ensuring the change is a fiscally-neutral reform for the Government.
- Organisations will report under the CRC for the last time by the end of July 2019, with a surrender of allowances for emissions from energy supplied in the 2018-19 compliance year by the end of October 2019.
- The full Government’s consultation response on this review was published alongside the budget. It announces a plan to rebalance CCL rates for gas and electricity. From April 2019, it will move to a ratio of 2.5:1 (electricity: gas), compared to the current 2.9:1 ratio. In the longer term, the government intends to move to a ratio of 1:1 (electricity: gas) by 2025, suggesting this will more strongly incentivise reductions in the use of gas, in support of the UK’s climate change targets
- Importantly for Energy Intensive businesses, the existing Climate Change Agreement (CCA) scheme eligibility criteria will remain in place until at least 2023. The CCL discount for electricity will increase from 90% to 93%, and the discount for gas will increase from 65% to 78% from 1 April 2019.
- The budget confirmed plans to consult in summer 2016 on a simplified energy and carbon reporting framework for introduction by April 2019. It will propose mandatory annual reporting for the organisations within its scope, with board or senior level sign-off and some public disclosure of data. The consultation will cover issues such as the range and size of organisations to be covered and will make proposals about the amount and type of information to be collected and disclosed, data collection timetables and how information is reported.
- Due to the continued low price of the EU Emissions Trading System (EU ETS), the government is maintaining the cap on Carbon Price Support (CPS) rates at £18 t/CO2, uprating this with inflation in 2020-21, in order to continue protecting businesses.
The full response to the consultation can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508159/reforming_business_energy_efficiency_tax_response_final.pdf
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