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ISO 50001 : 2018 Energy Management System (EnMS)

What is ISO 50001:2018 Energy Management System (EnMS)?

ISO 50001 makes good business sense as energy costs are a significant portion of an organization’s budget. Therefore, a systematic focus on energy management is expected to reduce costs through optimum use of resources and waste reduction. It can also lead to increased production, Improved energy performance, higher profits, and reduced impacts due to rising energy prices.

ISO 50001 2018 Energy Management System

This Standard is based on a continual improvement management system model and other well-known standards such as ISO 9001 or ISO 14001. This makes it easier for organizations to integrate energy management into their overall efforts to improve quality and environmental management.

Related: ISO 50001 Standard – Why You Need It?

Supporting Standards of ISO 50001:2018

ISO 50002:2014 EnMS: Energy Audits – Requirements with guidance for use.

ISO 50003:2014 EnMS: Requirements for bodies providing audit and certification of energy management systems.

ISO 50004:2014 EnMS: Guidance for implementing, maintaining, and improving an energy management system.

ISO 50005 EnMS: Modular energy management system implementation, including energy performance evaluation techniques.

ISO 50006:2014 EnMS: Measuring energy performance using energy baselines (EnB) and energy performance indicators (EnPI)

  • General Principles and guidance.

ISO 50007:2017 EnMS: Energy Services- Guidelines for the assessment and ——implementation of the energy service to users.

ISO 50008:2018 EnMS: Energy management and energy savings – Building energy data management for energy performance.

  • Guidance for a systemic data exchange approach.

ISO 50009:2014 EnMS: Guidance for multiple organizations implementing a common energy management system.

ISO 50015:2014 EnMS: Monitoring, Measurement, Analysis & Verification of organizational energy performance.

ISO 50047:2016 EnMS: Energy Savings-Determination of energy savings in an organization.

4 Key Points of ISO 50001:2018

  • It gives you guidelines to know How much energy you can save, And How to measure and verify quantities.
  • The standard explains which data must be selected to

–  Monitor Energy Efficiency.

–  Achieve Your Objectives.

–  Measure and communicate it to your partners.

  • You can improve your energy performance continuously through verifiable indicators. Using best practices gives you expertise and recognition to boost energy efficiency and save in the long run.
  • You are sure of your Return of Investment (ROI) and can tell investors when they can be reimbursed by collecting accurate data on future energy savings.

Related: 5 Energy Advantages of Your Business – ISO 50001

What is the purpose of ISO 50001?

  • Provides organizations with a well-recognized framework for integrating energy efficiency into their management/business practices.
  • Provide a logical and consistent methodology for identifying and implementing improvements that can contribute to a continual increase in energy efficiency across the facilities.
  • Assist Organizations in utilizing existing energy-consuming assets better, thus reducing costs and avoiding expanding capacity.
  • Offer guidance on benchmarking, measuring, documentation, and reporting energy efficiency Improvements.
  • Lead Organizations to meet overall climate change mitigation goals by reducing their energy-related greenhouse gas emissions.
  • Assist facilities in evaluating and prioritizing the implementation of state-of-the-art energy-efficient technologies. 
  • To manage energy well, an organization requires an effective Energy Management System (EnMS) to be established, implemented, maintained, and continually improved.

5 Benefits of Implementing ISO 50001:2018

  • Energy & Cost Reduction.
  • Carbon Reduction.
  • Structured Organizational Engagement.
  • New Dimension to Public Positioning of an Organization.
  • Regulatory Compliance.

ISO 50001:2018  provides a framework of requirements for 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 about energy use.
  • Measure the results.
  • Review how well the policy works.
  • Continually improve energy management.

Why Undertake ISO 50001:2018?

Achieving ISO 50001 helps shape our desire to be a socially responsible business and demonstrates to our customers and stakeholders that Viridor is committed to transforming itself into a company with reduced costs and less reliance on fossil fuels, ready for the future.

PDCA Approach to ISO 500012018

  • CSR and sustainability-future-proofing.
  • Raises awareness amongst staff and increases accountability.
  • Impending Legislation- Energy Audits under EU EE Directive, Article 8.
  • Minimizes risk to future operations.
  • It reduces your carbon footprint and saves money and energy.
  • Eliminates waste- adding to the bottom line- company profit.

What are the Requirements of ISO 50001:2018?

  • Government.
  • Authorities.
  • Suppliers.
  • Contractors and Sub-Contractors.
  • Visitors.
  • Local Community.
  • Shareholders.
  • Legal Requirements.
  • Employees.
  • Owners.
  • Employees Union.
  • Safety Committee.

What is PDCA Approach to ISO 50001:2018?

Understand the context of the organization, establish an energy policy and an energy management team, consider actions to address risks and opportunities, conduct an energy review, identify significant energy uses (SEUs) and establish energy performance indicators (EnPIs), energy baseline(s) (EnBs) objectives and energy targets, and action plans necessary to deliver results that will improve performance by the organization’s energy policy.

  • General requirements.
  • Management Responsibility.
  • Energy Policy.
  • Energy Planning.
  • Implementation & Operation.
  • Training.
  • Documents.
  • Communication.
  • Design.
  • Operation Control.
  • Procurement.
  • Measuring & Monitoring.
  • Internal Auditing.
  • Non-Conformances.
  • Management Review.
  • Corrective and Preventive Action.


Energy Policy Development

  • Requires top management support.
  • It needs a capital budget.
  • Must state improvement intentions.
  • Outline a suitable timescale.
  • Assign a management representative.

Energy Assessment

  • Assess energy usage.
  • Intended measurement methods.
  • Energy performance improvement.


Action Plan

  • Set Budgets.
  • Allocate Resources.
  • Define Measurement.

Set Targets

  • Set Timescale.
  • Improvement Targets.
  • Challenging but achievable.

Implement Plan

  • Document any changes.
  • Outline results.
  • Evidence for audits.


The collected data must:

  • Be Credible.
  • Strike a Balance.
  • Energy Baseline Forms Your Benchmark.

Purpose of Baseline

  • The purpose of a baseline is to determine the point from which to measure continual progress.
  • Establish an energy baseline considering a minimum of 12 months of data.
  • A baseline considering the average of part two to three years is more desirable.
  • Identify energy performance indicators.

Energy Policy (Example)

The company is committed to purchasing and using energy in the most efficient, cost-effective, and environmentally responsible manner possible. Towards this end, The company will improve energy efficiency by implementing effective energy management that supports all operations and customer satisfaction while maintaining a safe and comfortable working environment.

The policy applies to our entire site.


  • Benchmark all premises by March 2021.
  • Reduce energy use per output by 15 percent, relative to the 2019 base year, by 2022.
  • Implement a program of staff awareness and education on energy issues.
  • Purchase 10 percent of our energy use from renewable resources by 2022.

Energy Baseline

Energy Baseline is defined as a quantitative reference or references providing a basis for comparison of energy performance.

  • The energy baseline is the reference for measuring energy performance over time.
  • The baseline is always about a period which is known as the baseline period. This period should be representative of one complete cycle of the variations in the organizational operation.

Energy Performance Indicators (EnPIs)

  • EnPIs are the measurable indicators that are used to monitor the continual energy performance of the organization.
  • Typical examples are per unit production/electricity consumed coefficient of chiller performance, heat rate of the thermal power plant, percentage loading of motors, etc.

Energy Review

To Perform an energy review, it is necessary to understand how, why, and where energy is consumed and identify opportunities to improve existing.

  • To energy, the review is the analytical part of the tactical energy planning process.
  • Its purpose of obtaining an overall picture of an organization’s energy use.

Energy Planning: Monitoring & Targeting

The essential elements of the M&T system are:

Recording: Measuring and recording energy consumption.

Analyzing: Correlating Energy consumption to a measured output, such as production quantity.

Comparing: Comparing energy consumption to an appropriate standard or benchmark.

Setting Targets:  Setting targets to reduce or control energy consumption.

Monitoring: Comparing Energy consumption to set the target regularly.

Reporting: Reporting the results, including any variances from the targets which have been set.

Why Consider ISO 50001:2018 When ISO 14001 Already Exists?

  • It has been designed solely for the management of energy.
  • Energy management is often overlooked with ISO 14001.
  • Most companies do not truly understand how much energy they currently use and how much money they can save by implementing an EnMS.
  • Forces companies to establish baselines and identify areas for significant improvements in energy performance.
  • Encourages companies to look into renewable energy sources.

What are the External and Internal Issues of ISO 50001:2018?

External Issues:

  • Issue related to interested parties such as existing national or sector objectives, requirements, or standards.
  • Effect on greenhouse gas (GHG) emissions.
  • Effects of climate change.
  • Energy costs of the availability of types of energy.
  • Restrictions or limitations on energy supply, security, and reliability.

Internal Issues:

  • Operational risks and liability considerations.
  • Maturity of existing technology.
  • Consistency plans for interruptions in energy supply.
  • Sustainability Considerations.
  • Energy management maturity and culture.
  • Financial resources (labor, financial, etc.) affect the organization.
  • Core business objectives and strategy.

It would help if you worked out

  • Areas of significant energy use.
  • Scope & boundary of your organization.
  • Performance assessment methods.
  • Energy performance indicators (EnPis).

In Addition, to ISO 50001:2018 audits TUV Austria BIC. also offer a range of complimentary services:

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