Step 2.

2 Identify energy sources

and uses
This step is relevant to section 4.4.3 a) of the ISO 50001-2011 standard.
The first step in the energy review process is to identify the energy sources used by
your organization. To ensure that all energy sources are identified, this effort should
include identifying the facilities, equipment, systems and processes associated with
each energy source. Understanding the sources of energy used and how they are
used sets the stage for determining, collecting and analyzing the data needed to
evaluate your organization’s energy performance.

How to do it
There are three tasks associated with identifying energy sources and energy uses:

 2.2.1 Identify current energy sources

 2.2.2 Identify energy uses

 2.2.3 Identify data needs

2.2.1 Identify current energy

sources
Identify and document your organization’s current energy sources. For ISO 50001,
energy sources are the forms of energy that come across your organization’s
boundaries. This includes both primary energy and secondary energy. Primary
energy is energy in its natural state such as natural gas. Secondary energy is
derived from primary energy and includes sources such as electricity, steam and
compressed air. Some examples of energy sources are:

 Electricity
 Natural Gas
 Fuel oil
 Diesel
 Gasoline
 Propane
 Coal
 Wind
 Geothermal
 Biomass
 Steam
 Compressed air
  Chilled water

For each energy source, identify the associated facilities, equipment, systems and
processes. This helps ensure all energy sources are identified and none are
overlooked. Use one or more of the following to help identify energy using facilities,
equipment, systems and processes and account for all energy sources:

 Floor plans
 Process flow charts
 Facility plan with equipment locations
 Building schematics
 Wiring diagrams
 Utility diagrams
 Equipment lists

2.2.2 Identify energy uses

In ISO 50001 terminology, energy use is not the same as energy consumption.
Energy use is defined as “manner or kind of application of energy.” Examples include
ventilation, heating, cooling, lighting and transportation. Energy uses are associated
with the facilities, equipment, systems and processes that use the energy. Some
examples of these energy uses are:

 Indoor lighting
 Outdoor lighting
 Space heating
 Space cooling/air conditioning
 Commercial/industrial hot water or steam boilers
 Domestic type hot water heaters
 Office equipment
 Maintenance building
 Boiler house
 Main production building
 Accounting office
 Air compressors
 Pumps
 Ovens or process heating
 Refrigeration systems
 Conveyors/conveying systems
 Fans and ventilation (not associated with space heating/cooling)
 Cooling towers
 Motors
 Water chillers
 Paint line
 Assembly
 Purchasing
 Information technology
Energy uses can be identified in any way that suits your organization. In Step
2.2.1 you associated energy sources with their appropriate facilities, equipment,
systems and processes to ensure all relevant sources were identified. Organize
equipment, systems and processes into logical groupings or categories (i.e. uses)
that would best allow for evaluating and improving energy performance. Some
categories to consider (with examples in parenthesis) are:

 Processes (all the equipment associated with a printing process or a drying

process)
 Similar equipment (all air conditioners or all compressors)
 Departments (computer lab or painting department)
 Systems (lighting or compressed air)
 Utility distribution (panel A or all 50 amp circuit breakers)
 Specific Equipment (a specific main frame computer or boiler)
 Facilities (administration building or production shop)

Energy uses do not have to be collected into one specific category. Some
combination of the categories listed above may be used for categorizing uses. An
example is:
The computer lab, the printing process, the boiler and the electricity used by the
remainder of the facility could each be identified as separate energy uses.

2.2.3 Identify data needs

A successful energy management system (EnMS) relies on accurate and
appropriate data. The energy review is intended to profile your organization’s energy
situation and serve as a guide for collecting and analyzing the data needed to
determine energy performance and identify improvement opportunities.
ISO 50001 requires that the following data and information be included in the energy
review:
 Energy sources – Ensure all energy sources are identified as discussed
in Step 2.2.1. Data for energy sources is generally available from utility bills or
source energy provider (see Example Types of Energy Management Data

).
 Analysis of past energy use and energy consumption – The manner and detail
in which this data is collected will depend on the metering installed or
available in your organization. Metering may have only been available at a
utility level and analysis capability may be limited. Collect data over the last
several years to establish the history of the organization’s energy
performance (See Step 2.4.2).
 Analysis of present energy use and consumption – Collection of this data will
also depend on the meters installed (or that you will install) in your facility. If
utility meters are the only meters installed, you may need to consider
additional metering if your organization desires more granularity in the
evaluation of energy use and consumption. Use this data to establish current
energy performance (see Step 2.4.2).
  Significant energy uses (SEUs) and their current performance – Significant
energy uses are the facilities, systems, equipment, processes and personnel
that consume a significant amount of energy and/or have a good opportunity
for energy performance improvement. Use the information in the data
collection and analysis of opportunities part of the energy review to determine
your SEUs (see Step 2.5). Focusing on SEUs allows your organization to
concentrate resources in the areas that consume the greatest amount of
energy and/or that have the greatest potential for energy performance
improvement.
 Relevant variables affecting the significant energy uses – Relevant variables
are the factors that can have an impact on the energy performance of your
significant energy uses. Determine the relevant variables using the data from
the energy review (see Step 2.5.4).
 Estimates of future energy use and energy consumption – Prepare estimates
of future energy use and energy consumption for your significant energy uses
(see Step 2.5.6). These estimates can help with managing your significant
energy uses, establishing energy objectives and targets, and provides a level
of expectation you can use for comparison with actual results (see Step
4.1.7).
 Prioritized opportunities for improving energy performance – Identify
improvement opportunities using the energy review data and analysis, as well
as data from energy assessments and other methods (see Step 2.6).

In addition to collecting and analyzing data to determine your organization’s energy

performance, the energy review provides the basis for establishing the metrics for
energy performance measurement and opportunity identification. Use this data for:

 Selecting energy performance indicators (EnPIs) – EnPIs are the metrics

used to quantify your organization’s energy performance. It can be a simple
metric or a more complicated measure (see Step 2.7).
 Establishing the energy baseline – The baseline is the benchmark against
which current energy performance is compared to determine if your energy
performance has improved. The baseline can be a simple metric (e.g.
consumption) or can be a more complicated measure (see Step 2.8).
 Setting energy objectives and energy targets – Once your organization has
determined the status of its energy performance and identified opportunities, it
can establish objectives and set targets for achieving improved energy
performance (see Step 2.9).

Data requirements may include more than consumption data. Data may be related to
efficiency, loading, operating time, etc. Your energy team must determine the
appropriate data necessary for the identified metric.
In considering energy management data needs, your energy team also needs to
consider potential data needs related to requirements other than the energy review
and performance metrics, such as:

 Energy policy
 Legal and other requirements
 Operations data
  Production data
 Energy costs
 Organizational financial information

The energy policy addresses what is important to the organization in terms of energy
and provides strategic direction with respect to energy data (see Step 1.7). Energy
management can impact or be impacted by energy-related legal and other
requirements and specific data could be mandated by these requirements (see Step
2.1). Operation and production data could be important for determining energy
performance and energy performance indicators for building operations and
industrial operations (see Step 2.7.1). Information related to energy cost
considerations cannot be neglected since, for most organizations, top management
will usually want to know the impact on the organization’s bottom line.
The management representative is responsible for ensuring that the required data
and information for energy planning is identified, but additional staff can be
appointed to support this effort as appropriate. The resources needed to identify data
requirements are provided by top management. Information useful in data

identification is contained in Example Types of Energy Management Data .

Top management defines and documents the scope and boundaries of your
organization’s energy management system (EnMS). The scope and boundaries of
the management system allows your organization to focus its efforts and resources
by defining the extent of the EnMS.The scope of the EnMS may be a building, plant,
facility, site or corporation or some component of these but will cover the activities,
facilities, and decisions associated with the energy sources within the scope. The
boundaries are the physical or organizational limits the organization identifies which
may include one or more processes, sites, equipment, or other relevant limitations.
The scope may include several boundaries.
How to do it
There are three tasks needed to define the scope and boundaries of
the energy management system (EnMS):

 1.6.1 Identify extent of activities, facilities, decisions to be included in EnMS

 1.6.2 Define site limits and/or organizational limits of EnMS

 1.6.3 Develop a scope and boundaries statement for your EnMS

Resources available within your organization that may be useful in identifying the
scope and boundaries of the EnMS include:

 Organization chart
 Site map or plat
 Site photographs
 List of on-site contractors and related operations
 Facility/building layout
 Process layouts/maps
 Process flow diagrams
 Utilities drawings
 Facility/building energy consumption data
 Equipment energy consumption data

1.6.1 Identify extent of activities,

facilities, decisions to be included in
EnMS
Consider the answers to these questions when defining the extent of activities,
facilities and decisions to be included in the scope and boundaries of your energy

management system. The Scope and Boundaries Worksheet can be used to

help formulate the scope.

 Is there an area on which you do not have energy information?

  Is there an area where you cannot gain employee involvement or participation?
 Are there areas that have a different management team or decision structure?
 Do you have a building or location that you are not including?
o Can you isolate the energy consumption of those locations?

1.6.2 Define site limits and/or

organizational limits of EnMS
Now that you have considered and answered the questions related to the extent of
activities, facilities and decisions to be included in the scope of your EnMS, what are
the physical implications of your decision? How would they be translated into a
statement of the boundaries of your energy management system? Consider your
answers to these questions when defining the boundary of your EnMS. The Scope

and Boundaries Worksheet can be used to help formulate the boundary to be

defined in the statement.

 What are the physical limitations of the areas that are included?
 What are the physical limitations of the areas that are NOT included?
 How do the areas that are included and are not included compare to the site map or
plat?

1.6.3 Develop a scope and

boundaries statement for your
EnMS
Using the output of the first two tasks, develop a written statement of the scope and

boundaries of the EnMS. See Example Scope and Boundaries for additional
guidance on how to formalize a statement of scope and boundaries. The statement
of the EnMS scope and boundaries is often documented within an energy manual,
which is not required, but which many organizations find useful as a “road map” to

their EnMS. (See the Energy Manual Guidelines for additional information.)

This step is relevant to sections 4.2.1, 4.5.2 and 4.5.3 of the ISO 50001-2011
standard.
Creating organizational awareness about energy is an important part of getting buy-
in to your energy management system (EnMS). It is top management’s job to
communicate the importance of energy management and to support the participation
of employees in using energy effectively. Top management takes the first steps in
conveying this message which is then supported by ongoing processes for internal
energy communications (see Step 3.4).
How to do it
There are two tasks associated with creating initial organizational
awareness of the importance of energy management:

 1.8.1 Develop the message

 1.8.2 Deliver the message

1.8.1 Develop the message

At this early stage of EnMS implementation, the goals of the initial EnMS
communication to employees are to:

 announce your organization's commitment to energy performance improvement,

 announce the undertaking of EnMS implementation,
 encourage active participation and input by employees, and
 set the stage for ongoing energy-related communications.

Information that can effectively deliver this message generally includes:

 What are we doing? (Implementing an EnMS)

 Why are we doing it? (Business drivers)
 How will an energy management system help us? (Benefits)
 Who is leading the effort? (Management representative, Energy team)
 Who else is involved? (Everyone!)
 What energy commitments have we made? (Energy policy)
 Why do your actions matter? (Impacts of energy behaviors)
 What's next? (Expectations)

Developing the content for this initial communication is usually done by the
management representative and the energy team, with input from top management
 1.8.2 Deliver the message
Once the content for the communication has been developed, a decision is needed
on how the information will be formatted and delivered to the workforce. Regardless
of the method(s) used, it is critical that it be top management who delivers this initial
message. Top management sets the strategic direction for your organization and
provides the resources for organizational initiatives, so it is top management who
must establish energy as an important organizational priority. The active participation
and visibility of top management also sets a positive example for employees.
Common approaches to formatting and presenting the message include:

 slide presentations
 videos
 voice recordings
 closed-circuit TV
 newsletters
 brochures
 all-hands email
 paycheck inserts

If print communications are used, you need to ensure it is clear that the message
comes from top management. Live events led by top management such as a kick-off
activity, employee luncheon, or all-employees meeting tend to be more effective in
delivering the message and garnering employee attention and support than more
passive approaches.

An Example Initial EnMS Awareness Presentation and an Initial EnMS

Awareness Presentation Template , which can be customized to your

organization, is provided.
As indicated in Overview, creating initial organizational awareness of the EnMS and
your organization’s energy commitments is just the first step in developing a process
for ongoing energy awareness. As you move forward with EnMS implementation,
there will be a need to expand the topics in energy awareness and implement energy
awareness among your onsite contractors and suppliers (see Step 3.4).
(For ISO 9001:2015 & ISO 50001:2018)

At [Your Organization Name], we are committed to delivering products and services that meet or
exceed customer expectations while improving energy performance and ensuring sustainable
operations. Our Integrated Management System (IMS) is built on the principles of quality and energy
efficiency, aligning with the requirements of ISO 9001:2015 and ISO 50001:2018.

Our Commitments:

 Customer Focus: Understand and meet customer requirements consistently to enhance

customer satisfaction and long-term relationships.
 Leadership and Engagement: Promote a culture of quality and energy efficiency through
committed leadership, active employee participation, and continuous improvement.
 Process Approach and Risk-Based Thinking: Manage our operations through a structured
process approach and identify and address risks and opportunities to achieve desired
outcomes.
 Compliance Obligations: Comply with all applicable legal, regulatory, and other
requirements related to quality and energy use, consumption, and efficiency.
 Energy Performance: Improve energy performance by enhancing energy efficiency, reducing
energy consumption, and promoting the use of energy-efficient technologies and renewable
energy sources.
 Resource Management: Ensure availability of information and necessary resources to
achieve our quality and energy objectives and targets.
 Continual Improvement: Continually improve the effectiveness of the Integrated
Management System by monitoring performance, analyzing data, conducting audits, and
acting on feedback.
 Communication and Awareness: Communicate this policy and its importance to all
employees and relevant stakeholders and ensure it is understood, implemented, and
maintained at all levels.
1. Internal and External Issues
(Clause 4.1 of ISO 9001 & ISO 50001)

Type Description of Issue Relevance to QMS/EnMS

Lack of awareness on energy conservation among Impacts achievement of energy

Internal
employees objectives (ISO 50001)

Inefficient maintenance processes leading to

Internal Affects product quality and energy use
quality and energy losses

Inadequate monitoring of product conformity and Affects decision making and continual
Internal
energy usage improvement

Leads to energy inefficiency and product

Internal Existing infrastructure with outdated technology
nonconformity

Increases operational risk and cost (ISO

External Rising energy costs and unstable energy supply
50001)

Changes in customer requirements and quality Affects product and service conformity
External
expectations (ISO 9001)

New regulations on energy usage and

External Non-compliance risk (ISO 50001)
environmental impact

Competitive market requiring higher quality and Affects customer satisfaction and
External
energy-efficient products sustainability
👥 Needs and Expectations of Interested Parties
(Clause 4.2 of ISO 9001 & ISO 50001)

Interested Party Needs and Expectations Relevance to QMS/EnMS

High product quality, on-time delivery, energy- Drives QMS objectives & EnMS
Customers
efficient solutions innovation

Safe, energy-aware work environment, training, Motivates continual

Employees
engagement in improvements improvement

Compliance, performance improvement, cost Strategic alignment of

Top Management
control, and reputation management QMS/EnMS

Compliance with quality and energy regulations

Regulatory Bodies Avoids legal nonconformity
(e.g., BIS, energy reporting)

Clear requirements, long-term relationship, fair Enables consistent inputs and

Suppliers
evaluation efficient energy

Predictable energy consumption, peak load Improves energy procurement

Utility Providers
management planning

Reduced environmental and energy impact, safe Enhances corporate

Local Community
operations responsibility

Shareholders / Operational efficiency, ROI, risk mitigation, long- Links QMS/EnMS with business
Owners term sustainability performance

Certification
Conformance with ISO 9001 & 50001 standards Ensures system effectiveness
Bodies
Integrated Performance Indicators (ISO 9001 + ISO
50001)
✅ A. Quality Performance Indicators (QMS – ISO 9001)
# Indicator Unit / Measurement

1 Customer Satisfaction Score % or rating

2 Customer Complaints Number/month or % reduction

3 Product/Service Conformance Rate % of accepted products

4 Internal Audit Findings Number of non-conformities

5 Supplier Quality Performance % of conforming deliveries

6 First Pass Yield (FPY) %

7 On-Time Delivery %

8 Rework/Rejection Rate % or PPM

9 Corrective Action Closure Time Average number of days

10 Training Effectiveness Score from evaluation or test pass rate

⚡ B. Energy Performance Indicators (EnPIs – ISO 50001)

# Indicator Unit / Measurement

1 Total Energy Consumption kWh, GJ, or BTU

2 Energy Intensity Energy per unit of production (e.g. kWh/unit)

3 Energy Cost per Output Cost per product/unit (currency/unit)

4 Peak Demand Load kW or kVA

5 Power Factor Dimensionless (ratio)

# Indicator Unit / Measurement

6 Energy from Renewable Sources % or absolute value (kWh)

7 Energy Savings Achieved % reduction or absolute (kWh)

8 Equipment Energy Efficiency Specific consumption or efficiency %

9 Specific Energy Consumption (SEC) kWh per kg/unit

10 Energy Baseline Deviation % or kWh against established baseline

🛠️C. Cross-Functional Indicators (Useful for Both QMS & EnMS)

# Indicator Unit / Measurement

1 Process Efficiency Output/Input ratio

2 Downtime (Energy/Quality-related) Hours/month

3 Number of Improvements Implemented Count

4 Management Review Action Closure Rate %

5 Training Hours on Quality and Energy Topics Hours per employee

 What to Method / Responsible
Audience Frequency Purpose
Communicate Medium Person
IMS Policy Notice Boards, IMS At
All Awareness and
(Quality + Induction, Coordinator / Induction /
Employees alignment
Energy) Email HR Annual
Objectives & Dashboard, Performance
All QMS & Quarterly /
Targets (Quality Email, Review monitoring &
Departments EnMS MR As updated
& Energy) Meetings motivation
SOPs, Work At
Roles & All Department Clarity of
Instructions, Induction /
Responsibilities Departments Heads / HR responsibility
Induction Changes
Management IMS
Quality & Energy Top Monthly / Strategic
Review Coordinator /
KPIs Management Quarterly decision-making
Report Analysts
Customer
Concerned CRM, Email, Sales / Improve
Feedback / As received
Teams Meetings Quality Head product/service
Complaints
Top Ensure
Internal Audit Audit Report, Quarterly /
Management / Lead Auditor compliance &
Results Presentation Annually
Teams improvement
Non-
NCR Tracker,
Conformities and Relevant Quality / Ensure timely
Email, As Occurs
Corrective Stakeholders Energy MR resolution
Meetings
Actions
Energy Energy Energy Energy
Monitor energy
Performance Team / Dashboard, Manager / Monthly
efficiency
Reports Management Report Maintenance
Legal / Management / Email,
Compliance
Regulatory Relevant Circular, As required Legal compliance
Officer / MR
Updates Depts Meetings
Training
Training HR / QMS-
Programs Employees / Quarterly / Competence
Calendar, EnMS
(Quality + Operators As needed development
Email Coordinator
Energy)
Supplier Email, Ensure supplier
Purchase / Quarterly /
Performance Suppliers Supplier quality & energy
Quality As needed
Feedback Meetings efficiency
Top Strategic
Management Review IMS Annually /
Management / alignment and
Review Outputs Report, MOM Coordinator Bi-annually
MR direction
Energy Saving All Suggestion Energy Team Continuous Promote
 What to Method / Responsible
Audience Frequency Purpose
Communicate Medium Person
Ideas / participation &
Employees Box, Email
Suggestions innovation