What is ISO 50001 Energy Performance Management?

An energy (or fuel) performance improvement programme. ISO 50001 provides a practical, continuous improvement framework, to using less fuel and energy, for the same or more activity or output.

Why is it important?

Fuel and energy costs have doubled in the since 2022 and will continue to rise as fossil fuel producers sweat their assets to maximise returns as the world progresses towards a renewable energy supply(1).

Since 29th September 2014, there is a mandatory requirement for all organisations with 250+ employees* to identify the energy saving opportunities across 85% of their energy use every 4 years, or be ISO50001 certified for same.

NB this obligation will reduce to 10Tj (2.8GWh / 280,000L of diesel), with a new obligation for companies using 85Tj or 24GWH (roughly 2.4 million litres of diesel) to be ISO50001 certified upon transposition of the EED 2023 to Irish law in 2025 (deadline for audit is 10th October 2026 and certification deadline is 10th October 2027). The penalty for non-compliance is (currently) a Class A fine.

Act now.  Business Case

The business case for an Energy Management System (an EnMS or ISO 50001):

  • Assume an energy spend of € 5m per annum, or 40+GWh in energy terms
  • Fossil fuel usage at half this, approx. 2m litres per annum or 20GWh and € 2.5m
  • Electricity @ 20GWh costing € 2.5m (@ 12c AUP – including all charges)

Energy management systems (EnMS) typically deliver a 10% saving from low and no cost actions; even assuming a 5% reduction in energy use, in this example that’s a €250,000 return assuming energy prices stay the same (they may go up or down).

Costs

Allowing € 50k in internal & external costs, this example business sees a profit of €200,000+ over 12 months. How many new sales would be needed to produce this same amount of profit?  

If the business opts for third party certification, training and internal costs are 50% refunded by Enterprise Ireland.

For SME’s costs are lower, a budget of c.€ 10,000 will more than cover external costs, these costs can be 50% grant-aided and the rest commercially funded i.e. 100% funding is possible before cost savings are taken into account.

How much time commitment? A lot less time than you think!

We implement the structures, processes and reporting procedures to suit your business, staff and needs. We are with you every step of the way. As trainers and advisors, we have the templates and experience to make 50001 time effective in day-to-day business, your team focus on the actions that deliver results, helping to motivate staff, increase profit and sustain effort.

 “Matthews completed our 50001-certification audit in November 2012. We are indebted to Conor Molloy of Authentic who has been with us through every step of this process,”

– Noel Matthews, Matthews.ie

ISO 50001 is highly relevant for fleets aiming to manage fuel consumption and reduce CO2 emissions. This international standard provides a framework for establishing, implementing, maintaining, and improving an energy management system (EnMS). Here are some key points on its relevance:

  1. Energy Efficiency: ISO 50001 helps organizations improve their energy performance, which includes fuel efficiency. For fleets, this means optimizing fuel usage, which directly reduces CO2 emissions1.
  2. Systematic Approach: The standard follows a Plan-Do-Check-Act (PDCA) cycle, ensuring a systematic approach to energy management. This helps fleets continuously monitor and improve their fuel management practices2.
  3. Cost Savings: By improving fuel efficiency, fleets can significantly reduce operational costs. This not only benefits the environment but also enhances the financial performance of the organization3.
  4. Compliance and Reputation: Adopting ISO 50001 can help fleets comply with environmental regulations and demonstrate their commitment to sustainability. This can improve their reputation and competitive advantage1.
  5. Data-Driven Decisions: The standard emphasizes the importance of data collection and analysis. Fleets can use this data to make informed decisions about fuel management and identify areas for improvement2.

Implementing ISO 50001 can be a strategic move for fleets looking to enhance their sustainability efforts and reduce their carbon footprint. If you have any specific questions about how to get started or need more details, feel free to ask!

(1) IEA and others report on the rapid adoption of renewable energy over fossil fuels, Ireland’s electricity supply is averages 40+% renewables each year and is progressing towards 75-80% renewable by 2030. You can track global progress via the IEA https://www.iea.org/data-and-statistics/data-tools/renewable-energy-progress-tracker