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TRANSCRIPT
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DISCLAIMER
The designations employed and the presentation of the material in this publication do not imply
the expression of any opinion whatsoever on the part of PUMA concerning the legal status of
any country, territory, city or area or of its authorities, or concerning delimitation of its frontiers
or boundaries. Moreover, the views expressed do not necessarily represent the decision or the
stated policy of PUMA, nor does citing of individual companies, trade names or commercial
processes constitute endorsement. The factories and individuals using this guideline shall
ensure utmost care and diligence in implementing any suggestions, recommendations in this
guideline, and PUMA shall not be held accountable.
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PREFACE
This sustainability guideline is an industry specific knowledge resource developed to address
the sustainability management program in the Footwear, Apparel and Accessories (FAA)
industry.
This guideline does not focus on the compliance requirements from Governments, Buyers and
other relevant organizations. Its main purpose is to inform any company in the FAA value chain
about the potential opportunities and best practices in the areas of resource efficiency and
cleaner production.
The subject of Sustainability Management is a vast domain. This guideline focuses on only four
components, namely, Energy Management, Green House Gas Reduction, Water Conservation
and Waste Management. The guideline will have four volumes such as Energy, Water, Waste
and Resource Efficiency- Cleaner Production & Management System.
This guideline is developed as part of a PUMA sustainability project; SAVE. “Sustainable Action
and Vision for a better Environment” (SAVE) is a PPP (Public Private Partnership) project jointly
co-financed by DEG, co-financed and implemented by PUMA and H&M in cooperation with
ASSIST (Asia Society for Social Improvement and Sustainable Transformation).
This guideline was prepared by ASSIST and PUMA with inputs from technical experts,
namely Enviro Consultants Ltd and Reset Carbon. The document is intended to be a generic
guideline and companies are suggested to use this first step in developing their sustainability
action plans for the long term.
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TABLE OF CONTENTS
1. INTRODUCTION .................................................................................................................................12. RESOURCE EFFICENCY AND CLEANER PRODUCTION...............................................................32.1. Resource Efficiency and Cleaner Production (RECP) Introduction...........................................32.2. RECP Practical Implementation Methodology...........................................................................42.2.1. Planning & Organization ............................................................................................................52.2.2. Pre-assessment .........................................................................................................................62.2.3. Assessment................................................................................................................................62.2.4. Feasibility Analysis.....................................................................................................................62.2.5. Implementation & Continuation..................................................................................................72.3. RECP Team Structure in a Factory ...........................................................................................72.4. Onsite Assessment Methodology ............................................................................................102.4.1. Preparing a Detailed Material and Energy Balance including Losses .....................................102.4.2. Cause Diagnosis ......................................................................................................................112.4.3. Generating Options..................................................................................................................112.4.4. Screening Options ...................................................................................................................123. MANAGEMENT SYSTEM .................................................................................................................133.1. Introduction to Management System .......................................................................................133.2. Overview of ISO 14001: Environmental Management System ...............................................143.3. Overview of ISO 50001: Energy Management System ...........................................................154. Energy Management System ISO 50001:2011 .................................................................................174.1. Energy Management System Implementation Process...........................................................174.2. Energy Management System (EnMS) Framework ..................................................................184.3. General Requirements (Clause 4.1) ........................................................................................184.4. Management Responsibility (Clause 4.2) ................................................................................204.4.1. Responsibilities of Management in EnMS (Clause 4.2.1) .......................................................204.4.2. Roles, Responsibility and Authority (Clause 4.2.1)..................................................................204.5. Energy Policy (Clause 4.3) ......................................................................................................244.6. Energy Planning (Clause 4.4) ..................................................................................................254.6.1. General (Clause 4.4.1).............................................................................................................254.6.2. Legal and Other Requirements (Clause 4.4.2) ........................................................................264.6.3. Energy Review (Clause 4.4.3) .................................................................................................264.6.4. Energy Baseline (Clause 4.4.4) ...............................................................................................284.6.5. Energy Performance Indicators “EnPI’s” (Clause 4.4.5)..........................................................294.6.6. Energy Objectives, Energy Targets and Energy Management Action Plans ..........................304.7. Implementation and Operation (Clause 4.5)............................................................................324.7.1. General (Clause 4.5.1).............................................................................................................324.7.2. Competence, Training and Awareness (Clause 4.5.2) ............................................................324.7.3. Communication (Clause 4.5.3) ................................................................................................324.7.4. Documentation (Clause 4.5.4) .................................................................................................334.7.5. Operational Control (Clause 4.5.5) ..........................................................................................364.7.6. Design (Clause 4.5.6) ..............................................................................................................384.7.7. Procurement of Energy Services, Products, Equipment and Energy (Clause 4.5.7) ..............384.8. Checking (Clause 4.6) .............................................................................................................394.8.1. Monitoring, Measurement and Analysis (Clause 4.6.1) ...........................................................394.8.2. Evaluation of Legal Requirements and Other Requirements (Clause 4.6.2) ..........................394.8.3. Internal audit of the EnMS (Clause 4.6.3)................................................................................404.8.4. Nonconformities, correction, corrective, and preventive action (Clause 4.6.4) .......................414.8.5. Control of Records (Clause 4.6.5) ...........................................................................................434.9. Management Review (Clause 4.7)...........................................................................................444.9.1. General (Clause 4.7.1).............................................................................................................444.9.2. Input and Output Management Review (Clause 4.7.2 & 4.7.3) ...............................................444.9.3. Master list of document to be prepared for EnMS ...................................................................465. CASE STUDY....................................................................................................................................495.1. General information .................................................................................................................495.2. Energy Consumption of selected SEU (baseline 2013) ..........................................................49
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5.3. Energy Drivers .........................................................................................................................505.4. Energy Management System Implementation.........................................................................505.4.1. Project timeline:........................................................................................................................505.4.2. Scope of project .......................................................................................................................505.4.3. Project Team............................................................................................................................505.5. Achievements after implementing ISO 50001:2011 ................................................................515.5.1. Quality Improvement Activities:................................................................................................515.5.2. Investment................................................................................................................................515.6. Challenges ...............................................................................................................................525.7. Lesson learnt............................................................................................................................52Bibliography ............................................................................................................................................54LIST OF FIGURES .................................................................................................................................56LIST OF TABLES ...................................................................................................................................56
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GLOSSARYAbbreviations Description
CSR Corporate Social Responsibility
CA Corrective Action
EnMS Energy Management System
EnMT Energy Management Team
EM Energy Manager
EnPI Energy performance indicators
FAA Footwear, Apparel, Accessories
HW Hazardous Waste
MR Management Representative
NC Non Conformance
PA Preventive Action
QA Quality Assurance
QC Quality Control
RECP Resource Efficiency and Cleaner Production
SOP Standard Operating Procedure
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TERMS AND DEFINITIONS
Energy Management System (EnMS)“Set of interrelated or interacting elements to establish an energy policy and energy
objectives, and processes and procedures to achieve those objectives.”
Procedure“Specified way to carry out an activity or a process.”
NOTE 1 Procedures may or may not be documented.
NOTE 2 when a procedure is documented, the term “written procedure” or “documented
procedure” is frequently used.
NOTE 3 Adapted from ISO 9000:2005, definition 3.4.5.
Records“Document stating results achieved or providing evidence of activities performed.”
NOTE 1 Records can be used, for example, to document traceability and to provide
evidence of verification, preventive action and corrective action.
NOTE 2 Adapted from ISO 9000:2005, definition 3.7.6.
Energy“Refers to the various forms of energy, including renewable, which can be purchased,
stored, treated, used in equipment or in process, or recovered the capacity of the system
to produce external activity or perform work.”
Energy baseline“Quantitative(s) reference providing a basis for comparison of energy performance.”
Energy consumption“Quantity of energy applied.”
Energy Efficiency“Ratio or other quantitative relationship between an output of performance, service, goods
or energy, and input of energy.”
Energy Management Team“Person(s) responsible for effective implementation of the energy management system
activities and for delivering energy performance improvements.”
Energy Objective“Specified outcome or achievement set to meet the organization’s energy policy related
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to improved energy performance.”
Energy performance“Measurable results related to energy efficiency, energy use and energy consumption.”
Energy Performance Indicator (EnPI)“Quantitative value or measure of energy performance, as defined by the organization.”
Energy services“Activities and their results related to the provision and/or use of Energy Policy. Statement
by the organization of its overall intentions and direction of an organization related to its
energy performance, as formally expressed by top management.”
Energy use“Manner or kind of application of energy (examples: ventilation, lighting, heating, cooling,
and transportation).”
Boundaries“Physical or site limits and/or organizational limits as defined by the organization
EXAMPLE: A process; a group of processes; a site; an entire organization; multiple sites
under the control of an organization.”
Continual improvement“Recurring process which results in enhancement of energy performance and the energy
management system.”
NOTE 1 the process of establishing objectives and finding opportunities for improvement
is a continual process.
NOTE 2 Continual improvement achieves improvements in overall energy performance,
consistent with the organization's energy policy.
CorrectionAction to eliminate a detected nonconformity
NOTE Adapted from ISO 9000:2005, definition 3.6.6.
Corrective action“Action to eliminate the cause of a detected nonconformity.”
NOTE 1 there can be more than one cause for a nonconformity.
NOTE 2 Corrective action is taken to prevent recurrence whereas preventive action is
taken to prevent occurrence.
Energy policy
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“Statement by the organization of its overall intentions and direction of an organization
related to its energy performance, as formally expressed by top management.”
NOTE the energy policy provides a framework for action and for the setting of energy
objectives and energy targets.
Energy review“Determination of the organization's energy performance based on data and other
information, leading to identification of opportunities for improvement.”
NOTE In other regional or national standards, concepts such as identification and review
of energy aspects or energy profile are included in the concept of energy review.
Energy services“Activities and their results related to the provision and/or use of energy.”
Energy target“Detailed and quantifiable energy performance requirement, applicable to the organization
or parts thereof, that arises from the energy objective and that needs to be set and met in
order to achieve this objective.”
Energy use“Manner or kind of application of energy.”
E.g Ventilation; lighting; heating; cooling; transportation; processes; production lines.
Internal Audit“Systematic, independent and documented process for obtaining evidence and evaluating
it objectively in order to determine the extent to which requirements are fulfilled”
Nonconformity“Non-fulfilment of a requirement.”
Organization“Company, corporation, firm, enterprise, authority or institution, or part or combination
thereof, whether incorporated or not, public or private, that has its own functions and
administration and that has the authority to control its energy use and consumption.”
Preventive action“Action to eliminate the cause of a potential nonconformity.”
NOTE 1 there can be more than one cause for a potential nonconformity.
NOTE 2 Preventive action is taken to prevent occurrence, whereas corrective action is
taken to prevent recurrence.
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1. INTRODUCTIONThe sustainability goal of achieving reduction in energy, green-house-gas water and waste
demand an innovative approach to introspect the production and management process in the
factory. There are two proven approach to systematically identify, analyze and implement the
best practices or saving opportunities, one is the RECP “Resource Efficiency and Cleaner
Production” methodology which helps in assessing the production process to find opportunities
for implementation, and other approach is the management system (ISO) approach which helps
in identifying the management system weakness in the organization and implementing a
sustainable management system to achieve and continuously improve the sustainability
targets.
In summary we can consider the RECP methodology as the technical process to identify and
implement the opportunities and the management system approach is the management
process to monitor and control the implementation plan. The factory should implement an
integrated approach of combining these two approaches to successfully implement the
sustainability project. If the factory already has an ISO system in place, then the RECP
methodology could be integrated into the existing management system. Some of the ISO based
management system which would be applicable to the factories from a sustainability
management perspective includes the ISO 14001 (Environmental Management System), ISO
26000 (Corporate Social Responsibility Management System) and ISO 50001 (Energy
Management System).
This volume of the FAA Sustainability Guideline on “RECP Methodology and Management
System”, will provide some detail guidance on implementation of these two approaches in the
factory. The management system will focus on the ISO 50001, Energy Management System
requirements and how to understand and implement those requirements. Some the required
forms, checklist, and report templates would be provided for more understanding and could be
implemented in the factory with some minor customization.
‘Sustainability’ is about ensuring long term business success while contributing towards
economic and social development, a healthy environment and a stable society. We use the
term in this report to refer to the private sector’s contribution to sustainable development —
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generally defined as ‘meeting the needs of the present generation without compromising the
ability of the future generations to meet their needs’1.
In the footwear, apparel and accessories sector, the business case for a more sustainable
supply chain is driven by a twin goal of ensuring consumer satisfaction and reducing resource
costs of production. The most significant opportunities available through actively pursuing more
sustainable approaches to business are to:
Save costs by making reductions to environmental impacts and treating employees well;
Increase revenues by improving the environment and benefiting the local economy;
Reduce risk through engagement with stakeholders;
Build reputation by increasing environmental efficiency;
Develop human capital through better human resource management;
Improve access to capital through better governance.
1 UN Documents, Towards Sustainable Development, viewed December 2013,http://www.un-documents.net/ocf-02.htm
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2. RESOURCE EFFICENCY AND CLEANER PRODUCTION2.1.Resource Efficiency and Cleaner Production (RECP) Introduction
The Cleaner Production Assessment can be defined as: A systematic review of a company's
processes and operations designed to identify and provide information about opportunities to
reduce waste, reduce pollution and improve operational efficiency. It is a different way of
thinking about environmental management issues. When environmental effects are
anticipated, changes can be made to the activities themselves to prevent those effects from
occurring. Wherever an activity involves the use of significant amounts of energy, water or
resources, or results in the generation of wastes/emissions, pollution prevention can be used
to reduce environmental impact, and often to reduce costs2.
Resource Efficient & Cleaner Production (RECP) was developed by United Nations
Environment Program (UNEP) as a preventive strategy to reduce environmental pollution and
simultaneously reduce consumption of natural resources. Its main focus is on processes and
on reduction of the resources they use. RECP is a new and creative way of thinking about
products and processes that implies continuous application of strategies to prevent and/or
reduce the occurrence of waste. Practitioners of RECP call on an established RECP
methodology to identify and implement solutions.
The traditional approach to environmental protection has been an end-of-pipe strategy that
captures or removes pollutants after they are generated, or cleans up contamination after it has
occurred. A cleaner production or preventive strategy is different, it means not creating pollution
in the first place. This can be accomplished by substituting less toxic materials in product
designs, recycling within industrial processes or increasing process efficiencies, and extending
product lifetimes. Cleaner production usually entails cost savings in terms of reductions in waste
treatment and disposal costs, reduced liability for environmental damages, lower raw material
costs and process efficiencies3.
2 UNEP’s Cleaner Production Energy Efficiency Manual, 2010
3 The Fourth international Conference on Environmental Compliance and Enforcement, InternationalCapacity Building for Industrial Compliance and Enforcement – the UNEP Experiences,http://www.inece.org/4thvol1/aloisi.pdf
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2.2.RECP Practical Implementation MethodologyIn order to attain maximum benefits of reduced energy consumption, water and waste, a proper
step by step assessment methodology needs to be identified and setup. The assessment
methodology should be flexible enough to accommodate unforeseen circumstances and
problems, and to allow solutions to be identified. The methodology ensures better usage of
available resources (manpower, machinery, material, money) and should stand-in structure
logical thinking.
The assessment methodology consists of the following principles:
Planning & Organization
Pre-assessment
Assessment
Feasibility Analysis
Implementation & Continuation
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Figure 1: Phases in a Cleaner Production project based on the US/EPA manual4.
2.2.1. Planning & OrganizationDuring the planning stage, critical components / desired output of the assessment need to be
identified and finalized. Critical components are composed of the scope / boundary of the
assessment, resources required, collecting the existing information, and the final output which
needs to be attained. In order to accomplish these tasks, the, following activities have been
defined:
Activity 1: Commitment from the top management
Activity 2: Employees participation
Activity 3: Define the assessment team
Activity 4: Collect existing available information
4 Dieleman H., 2007, Cleaner production and innovation theory; social experiments as a new model to
engage in cleaner production.
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Activity 5: Identify boundaries / obstacles in conducting the study
Activity 6: Agree on the focus / output of the study
2.2.2. Pre-assessmentIn this principle, an initial assessment of the collected data is conducted and an implementation
methodology is defined. This phase serves as the checkpoint of the assessment as a proper
plan is developed for the complete study during this principle. In order to accomplish this, the
following activities have been defined:
Activity 7: Develop the process / activity flow diagram
Activity 8: Conduct Initial screening / walkthrough
Activity 9: Develop material input – output flow diagram for the processes under the scope
Activity 10: Finalize the base data
2.2.3. AssessmentDuring this stage, the actual assessment onsite is conducted. It consists of following activities:
Activity 11: Preparing a detailed material balance with losses
Activity 12: Organizing cause diagnosis
Activity 13: Generate options
Activity 14: Screen options
2.2.4. Feasibility AnalysisAfter conducting the assessment, a feasibility analysis is conducted to identify the viability of
the assessment in techno-economic-environmental conditions. This study will help in identifying
the most suitable and preferred outcomes, which need to be implemented. The critical activities
performed during this step are:
Activity 15: Conduct technical, economical & environmental feasibility study
Activity 16: Identify & select the most suitable / preferred option
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2.2.5. Implementation & ContinuationThe most suitable option shall now be implemented to attain the desired results. But for effective
implementation, the implementation plan, resources and regular monitoring and evaluation
needs to be performed. Therefore during this step an effective implementation plan is
developed. The critical activities performed during this step are:
Activity 17: Develop implementation plan
Activity 18: Sustain the assessments
2.3.RECP Team Structure in a FactoryA committed project team can ensure the successful implementation of the RECP project in the
factory. The supplier should nominate the core project team members, mentioned below. As
the project focuses on different areas, namely energy / GHG, water and waste management,
the core project team should include an expert from each domain to supervise the specific
technical team.
The core project team will also need support from different departments, such as Finance,
Administration and Human Resources.
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Table 1: Roles and Responsibilities
Sr.No
Project TeamMember Role Responsibilities
1 ProjectSponsor
CEO / COO /Operations Head
Manage overall commitment of thesuppliers / project team
Supervise project team Final decision maker
2 ProjectManager
Operations ManagerHave extensiveexperience on thefactory management
Support project leader Supervise the implementation of project Instruct team members
3 Energy & GHGManager
Manager of the Energyspecialist team
Carry out energy & GHG specificimplementation
Support the Project Leader & ProjectManager
Supervise energy team Work in close cooperation with the local
energy consultant appointed for theproject
4 WaterManager
Manager of the Waterspecialist team
Carry out water specific implementation Support the Project Leader & Project
Manager Supervise the water team Work in close cooperation with the local
energy consultant appointed for theproject
5 WasteManager
Manager of the Waterspecialist team
Carry out waste specific implementation Support the Project Leader & Project
Manager Supervise the waste team Work in close cooperation with the local
energy consultant appointed for theproject
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Figure 2: RECP Team Structure in a Factory
Other employees are critical change agents of factory development. Without engagement and
support from entire factory employees, it is difficult to implement sustainability programs.
Factories are usually in one or several stages which may occur simultaneously and not
necessarily in linear order.
Figure 3: Stage of Engagement5
5 Modified diagram of BrownFlynn at http://www.greenbiz.com
Awareness•Education•Multi-channel
communication•Visual identity
Connection•Promote interaction
and sense ofbelonging
•Make connection•Share best practice
Commitment•Reward involvement•Foster innovation•Celebrate
accomplishment
Action
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2.4.Onsite Assessment MethodologyThe Onsite Assessment Methodology depends on four major activities:
2.4.1. Preparing a Detailed Material and Energy Balance including LossesThe principle of conservation of energy states that energy can neither be created nor be
destroyed, but can be transformed from one form to another. Therefore, all the input material
used for any process will be converted into the output material once the activity is completed.
Therefore all the materials & energy (M&E) used to perform the activity will be converted into
waste heat and residual waste which should be accounted for as a part of the resources utilized.
A detailed list of all the input & output material including energy should be created to clearly
understand the process flow during the actual onsite assessment.
Figure 4: Material and Energy Balance6
6 Bureau of Energy Efficiency, India,
Raw material
Energy Facility/Utility Production Facility
TransformerDG SetBoilersChillers
Water SuppliesAir
compressors
EnergyInput
HeatOutput
Product
(Coal, oil, gas,electricity)
Electricity
Steam
Chilled Water
Compressed Air
(Waste Stream-Flue gas,Water vapour,heat andemissions)
Energy ConversionEnergy Conversion Energy UtilisationEnergy Utilisation
Water
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2.4.2. Cause DiagnosisAfter categorization and quantification of M&E, an analysis must be conducted to
identify the causes of the waste generation during the process. The cause diagnosis
exercise involves asking the question: ‘Why did such a problem or outcome occur?’
Essentially, cause diagnosis is an exercise in finding the root causes of a problem.
One tool which can be used for the analysis is the Fishbone Diagram. This tool aids
in analyzing the root cause of the waste generation. A sample fishbone diagram is
shown below for reference.
Figure 5: Fishbone Diagram7
2.4.3. Generating OptionsGenerating options is a creative process. Like cause diagnosis, it is best performed by the team
in collaboration with other associated members. Involving colleagues in this activity will help to
develop a sense of ownership of the options generated and to gain insight into why a particular
option is recommended for implementation.
Options are generated by brainstorming, a commonly used tool for generating ideas. When
faced with a particular problem, the team and relevant company staff must think of a solution.
They must ask the question ‘How?’ i.e. ‘How do we solve this problem effectively?’ The output
7 UNEP Cleaner Production Energy Efficiency Manual, 2010
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from the fishbone diagram during the cause diagnosis will provide an initial framework for the
brainstorming exercise.
2.4.4. Screening OptionsOnce brainstorming has helped to identify RECP options, preliminary and rapid screening
should be carried out to decide on implementation priorities.
This screening exercise will place options in two categories:
Options that can be implemented directlySimple and obvious options can be implemented straightaway. In general, housekeeping (e.g.
plugging leaks and avoiding spills) or simple process optimization (e.g. control of excess air in
combustion systems) options fall into this category. No further detailed feasibility analysis is
required for these options. Moreover, their immediate implementation results and tangible
benefits are visible in a short time period, thus increasing management’s confidence in the
assessment process.
Options requiring further analysisSome options are technically and/or economically more complex and a decision to implement
them would require examination of their technological economic and environmental feasibility.
Most management improvement, raw material substitution, and equipment or technology
change options fall into this category.
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3. MANAGEMENT SYSTEM
3.1. Introduction to Management SystemA typical “Management System” according to the ISO (International Organization of
Standardization) follows the Deming’s cycle of PDCA (Plan, Do, Check, Act) which is common
framework of all ISO standards such as ISO 9001, ISO 14001, ISO 18001, ISO 26001, and ISO
50001. All these ISO standards have some common requirements and so when an organization
implements many ISO standards, they need to integrate and implement only one common
integrated management system.
A management system ensures that all the process, policies and related process assets are
defined, implemented, monitored, improved and maintained to meet the objectives of the
management system; for example in the case of ISO 14001 standard (Environmental
Management System) the objective is to ensure environmental compliance and improve
environmental performance.
Any best practices including resource efficiency when implemented need to follow a
management system approach so that they could be maintained, improved and sustained for
a long period. If the best practices are not implemented within the management system
framework then they might not be maintained and would stop with one time implementation.
Some of the standard “mandatory requirements” of management system based on ISO
framework include a) management system scope b) management system policy c)
management system objectives d) management commitment & responsibilities e) document &
record control f) awareness and training g) internal audit h) management review and i)
continuous improvement.
There are so many ISO standards which cover several areas such as quality, safety, social
compliance, and environment and as part of this volume of the sustainability guideline, only the
ISO standards focusing on Environmental management and Energy management will be
covered.
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The relationship between Environment Management and Cleaner Production concepts has
been introduced by Hamner (1996) as below figure 4. Concepts higher up the staircase include
the concept below and add additional elements of scope and complexity. Cleaner Production
is a broad concept that a sound Environment Management System is supposed to implement.
Figure 6: Staircase of Concepts in Environmental Management System and CleanerProduction8.
3.2. Overview of ISO 14001: Environmental Management SystemThe ISO 14000 family addresses various aspects of environmental management. It provides
practical tools for companies and organizations looking to identify and control their
environmental impact and constantly improve their environmental performance. ISO 14000
family standards on the following area:
Environmental management systems – ISO 14001
Environmental auditing and related environmental investigations – ISO 19011
Environmental performance evaluation – ISO 14031
Environmental labeling – ISO 14020
8 Burton Hammer W., What is the relationship among Cleaner Production, Pollution Prevention, WasteMinimization and ISO 14000
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Life cycle assessment – ISO 14040
Environmental communication – ISO 14063
Environmental aspects of product design and development – ISO 14062
Greenhouse gas Inventory & Accounting – ISO 14064
Measuring the carbon footprint of products – ISO 14067
3.3. Overview of ISO 50001: Energy Management SystemISO 50001 specifies requirements for establishing, implementing, maintaining and improving
an energy management system, whose purpose is to enable an organization to follow a
systematic approach in achieving continual improvement of energy performance, including:
energy efficiency, energy use and consumption. It specifies requirements applicable to energy
use and consumption, including measurement, documentation and reporting, design and
procurement practices for equipment, systems, processes and personnel that contribute to
energy performance.
This guideline is focused only on Requirement or Clause Number 4 of the EnMS standard
(Energy Management System, ISO 50001 standard), which covers the core part of the
standard and are the auditable clauses if the organization would go for the 3rd party
certification. Each standard clause/requirement is presented with an explanation as “SALIENT
POINTS” followed by an example to make things clear.
All examples given (where necessary) in this guideline are for better understanding, and
reflects a manufacturing industry. If need be, the example can be modified by the user of this
manual to suit any conversion system and sector.
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GapAssessment
•Conduct an onsite analysis of the current system against the ISO 50001: 2011standard
•Identify the gaps with the standard and prepare the report
EnergyReview
•Review and analyze the energy consumption pattern for a defined time period(minimum: 3 years, maximum: 5 years)
•Analyse the impact of variables like climate and market on energy consumptionand energy performance during energy review
EnergyBaseline
•Identify the most productive year in terms of production with lower energyconsumption
•Consider the impact of climate and market force on the energy performance inidentifying the energy baseline
EnergyPerformance
Indicator(EnPi)
•Calculate the energy consumption per product
SignificantEnergy Use
(SEU)
•List all equipments consuming significant energy•Calculate the theoritical and actual energy consumption of the equipments•Identify the most inefficient or most energy consuming equipment as SEU(Significant Energy Use)
EnergyObjective &
Target
•Set objectives to achieve the identified energy baseline parameters•Set targets for individual departments in the organisation to achieve overallobjective
ManagementReview(Initialreview)
•Appoint the energy management representative and energy management team•Define & approve the energy policy•Approve the identified Energy Baseline, SEU and the Objectives & Targets
Figure 7: EnMS Methodology
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4. Energy Management System ISO 50001:20114.1.Energy Management System Implementation Process
Figure 8: EnMS Implementation Process
EnergyAction Plans
•Define roles and responsibilities of the energy management team•Appoint person(s) to monitor and achieve the specified targets•Create energy action report summarising the methodology for achieving the set target
Training
•Conduct ISO 50001 training to top management and employees•Conduct an internal auditor training for 3 days to the identified person(s)•Conduct a training on energy conserving oppurtunities for SEU handlers
ImplementAction Plans
•Impelement the identified action plans•Regularly monitor and measure the output from the action plans•Report reductions achieved•In the case of no reductions, identify the sources of leakage in reductions
InternalAudit
•Conduct an internal audit by the trained internal auditors to check the systemimplementation
•Report the findings to the management•Create CA/PA (Corrective Action/Preventive Action) report based on the internal auditfindings
Management Review (SecondReview
Meeting)
•Review the internal audit findings•Check the progress of energy action plans
Stage 1Audit
•Initial audit done by certification agency•Record and document stage 1 audit findings and take correctiveand preventive action
CertificationAudit
• Auditors will review the organisation compliance to the standard clause• Record findings and prepare a report detailing the CA/PA undertaken, if findings arereported
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4.2. Energy Management System (EnMS) Framework
Figure 9: EnMS Framework
4.3. General Requirements (Clause 4.1)SALIENT POINTS
Define and document the Scope for EnMS
Determine how you will meet the requirements of the standard
Establish your EnMS
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Company Name, place has established and maintaining the Energy Management
System (EnMS) as per the requirements of ISO 50001:2011 and also strives to
continually improve the effectiveness of the system.
The EnMS requirements are based on the dynamic cyclic process of commitment and
policy, planning, implementation, measurement and evaluation, review and
improvement.
Scope & Boundary
Scope of the EnMS includes “MANUFACTURE OF PRODUCT 1 & PRODUCT 2”.
Company Name, place has the following departments to effectively carry out the various
processes in line with the EnMS
1. Management representative (MR);
2. Purchase;
3. Warehouse;
4. Production Planning;
5. Production Engineering;
6. Production;
7. Quality;
8. Maintenance (Mechanical & Electrical);
9. Utilities (Civil, Mechanical & Electrical);
10.Logistics;
11.Human Resources;
12.General Administration;
13.Finance;
14.Legal;
15.Top Management
Company Name, place produced the following during year (on an average):
Product 1 : Units per Day;
Product 2 : Units per Day;
Figure 10: General Requirements Sample
P a g e | 20
4.4. Management Responsibility (Clause 4.2)4.4.1. Responsibilities of Management in EnMS (Clause 4.2.1)
SALIENT POINTS
Formulate, develop and implement an energy policy in compliance with the
standards core elements
Identify and appoint competent person(s) as Management Representative and
Energy Management Team Members
Allocate adequate resources for compliance and continuous of the energy
management system
Define the scope and boundary for the implementation of the EnMS
Communicate the importance of energy management to the organization, either by
print/ electronic or both
Review energy performance impact & aspect during long-term planning
Approve the identified Energy performance Indicators
Approve and provide support to the energy objectives & targets set in relevance with
EnMS core elements
Monitor and to provide support for compliance with the standard and for continuous
improvement of the system
Conduct management review on a regular basis and maintaining a record of the
minutes of the meeting
4.4.2. Roles, Responsibility and Authority (Clause 4.2.1)
SALIENT POINTS
Identify and appoint energy management representative(s) and energy management
team member(s) and communicate the selected members within the organization
The role & responsibility of the team members and the collective responsibility of
individual members in the organization should be defined and communicated
Management review must be conducted periodically
All discussions held in the Management Review and supporting documents analyzed
in the meeting should be recorded and documented
P a g e | 21
Da
Sub: Appointment of EnMS Management Representative – reg.
The Top management of Company name, place has appointed
Mr. , as Management Representative for EnMSfrom , who in addition to existing responsibilities has responsibility
and authority to:
Implement, maintain and improve EnMS at Company name, place.
Ensure that the processes of the EnMS are established, implemented and
maintained.
Ensure that the EnMS manuals, procedures and other documents / formats are
prepared, issued and controlled.
Co-ordinate with Energy Management Team.
Organise awareness sessions and other training related to EnMS for employees
and others engaged in Company name, place.
Plan, schedule and execute the internal audits.
Ensure closure of non-conformance reports.
Organise for management review meetings.
Prepare the minutes of the meeting and circulate it to the concerned people.
Ensure that the decisions taken in the meeting are implemented by the persons
responsible.
Report to top management on the performance of the EnMs, including needs for
improvement.
Promote awareness of legal and other requirements throughout the organisation.
Liaison with external agencies on matters relating to the EnMS.
Managing Director
Figure 11: Appointment Letter for Management Representative Sample
P a g e | 22
Date
Sub: Appointment of Energy Management Team – reg.
The Top management of Company name, place has appointed an Energy
Management Team comprising the following members from different departments.
Serial Number Energy Management Team
This team will be led by Mr. , who is also the Energy Manager and
Management Representative for EnMS. This team will start working
from .
The team members are responsible for the following activities of EnMS, in addition
to their existing responsibilities:
Implement, maintain and improve EnMS in their respective areas.
Co-ordinate with the other members of Energy Management Team.
Measure, monitor and control energy consumption.
Collect data, consolidate, analyse, review and report to MR (Management
Representative) on the energy performance, including the needs for improvement.
Organise for purchase and usage of energy efficient fuels and equipment in their
respective areas.
Plan for EnMS objectives and achieve effectively through action plans and periodic
reviews.
Ensure compliance to legal and other requirements in their respective areas.
Create awareness about EnMS among all employees and assess, review, monitor
the effectiveness of their understanding and improve continually.
Managing Director
Figure 12: Appointment Letter for Energy Management Team Sample
P a g e | 23
Managing Director
Is the overall governing body of Company name, place.
To establish EnMS Policy and strategy of Company name, place and
establish, revise and approve the EnMS Manual.
Shall chair the EnMS Management Review Meeting (MRM).
To provide adequate resource as required and assign trained personnel for
management, performance of work and verification activities including
EnMS Audits.
To review EnMS to ensure its continuing suitability and effectiveness.
To appoint Management Representative and Energy Management Team
for ensuring continuing suitability of EnMS.
To execute production planning with respect to the sales operation plan.
.Management Representative – EnMS
MR is accountable for the achievement of the EnMS and has the
Responsibility & Authority to establish, document, implement and maintain
effectively the EnMS.
Interacting with external agencies like certification body and interested
parties.
Organizing periodical assessment as per internal audit plan, and
Initiating CA/PAs for effective closure of identified Non Conformities (NC),
if any.
Conducting Management Review Meeting.
EnMS Manual preparation.
EnMS Procedures preparation.
Recommendations for improvements to Top management.
Identify and evaluate all applicable legal and other requirements.
Energy Manager:
To initiate and achieve energy saving.
To support EnMS MR in implementing, maintaining and improving EnMS.
Energy Management Team:
P a g e | 24
4.5.Energy Policy (Clause 4.3)SALIENT POINTS
Define and document the following:
Energy policy
Top management commitment
Monitoring and continuous improvement
Objectives and targets
We, at Company name, place, are committed to:
Ensure purchase and use of energy efficient products and services.
Ensure improvement in energy performance.
Comply with all applicable legal and other requirements relating to energy – usage,
consumptions and efficiency.
Create awareness among our employees, suppliers, sub-contractors and service
providers on the importance of energy saving and monitor the performance.
Date:
Managing Director
It has been ensured that this policy suits the nature and scale of energy use and
consumption of the organization.
Figure 14: Energy Policy - Sample
To coordinate with EnMS MR and Energy Manager.
To organise for measurement, monitoring and improving energy efficiency.
To initiate and achieve energy saving.
Head Purchase:
To identify and organise for purchase of energy efficient materials etc.
Communication to suppliers on importance of EnMS.
Figure 13: Role & Responsibility Sample
P a g e | 25
4.6. Energy Planning (Clause 4.4)4.6.1. General (Clause 4.4.1)
SALIENT POINTS
Collection of data for the energy review including all the variables (weather & market
impact) as mentioned in the below figure
The energy planning must be recorded and documented
Planning Inputs Energy review Planning Outputs
Past & presentenergy use
Relevant variablesaffecting SEU
Performance
A. Analyze Energyuse & consumption
B. Identify Areas ofSEU & consumption
C. Identifyopportunities forimproving Energyperformance
Energy Baseline EnPi (s) Objectives Targets Action Plans
Figure 15: Energy Review methodology
P a g e | 26
4.6.2. Legal and Other Requirements (Clause 4.4.2)
SALIENT POINTS
Create a document listing all the legal aspects the organization adheres too.
Table 2: Sample of Legal document - Sample
4.6.3. Energy Review (Clause 4.4.3)
SALIENT POINTS
Request for the various parameters utilized by the organization for monitoring energy use
and consumption for individual work area and department wise
Formulate a methodology for energy review with the final output relating to identification of
energy performance indicators, energy baseline and setting up of objectives & targets
The data collection should be in the following order:
i. Identification of energy sources
ii. Utilization of energy at various levels
iii. Variables impacting the energy performance to the output of products
iv. List of energy consuming equipment’s in individual work area and department wise
v. Energy use, consumption pattern for a given period of time, for both present and past
vi. Status of the current energy performance
vii. Listing of energy conserving opportunities at various levels and for individual equipment
S.No. LegalDocumentName
DocumentNumber /RevisionNumber
Date Amend Date Clause ClauseDescription
Compliance
1 Boiler Act 001/100/19
48
Rev no 4
1.11.1
948
15.4.2010 Sec 2.2 Boilers will be
operated by
person(s)
who are
certified by
the Boiler
Association
of Ireland
Yes
P a g e | 27
Table 3: List of energy use - Sample
Plant Name
Area Name
Serial
Number.
Type of Energy Source Reason for
Usage
Factors
Driving
Usage
Source of
Consumption
Data
Type of
meter
Theoretical
Consumption
per day
Actual
Consumption
per day
Plant Name
Area Name
S.
No.
Process
/
Activitie
s
Equipme
nt name
Type off
Equipme
nt /
machine
Equipme
nt owner
Energy
Applicatio
n
Sp. Energy
Consumpti
on (Units)
Efficiency
%
Source
Data
Existing
Control
for
Energy
Conservat
ion
Proportion
to Energy
Consumpti
on (A)
Saving
Potenti
al (B)
Potential
to use
Renewabl
e Energy
“source
(C)
Cost
Involve
d (D)
Legal
Requiremen
ts (E)
Evaluation
(A*B*C*D*
E)
SEU
(Significa
nt Energy
User)
1Assembl
y
Gas
Welding
Machine
Gas
Welding
Machine
John LPG 20 cum 50Flow
MeterNo 1 3 1 1 1 3 Yes
2Assembl
y
Bucket
conveyor
Conveyo
r beltjoseph Electricity 5 kw/hr 80
Energy
meterNo 1 2 1 1 1 2 probable
Note:
1. The points highlighted as A,B,C,D are points for evaluating the equipment's status and to identify the SEU's
2. For the points A,B,C,E it has been taken in scale of 1 to 5, 1 being the least and 5 being the highest
3. For the point D it has been taken in scale of 1 to 5, 1 being the highest and 5 being the least
P a g e | 28
The Energy Baseline for the summer, off-peak season is fixed as follows:
Product: 70 units/month
Energy Used (Oil): 57 cum/month
4.6.4. Energy Baseline (Clause 4.4.4)
SALIENT POINTS
Use your energy review to identify the energy baseline and various variables affecting the
energy performance
Identify the time period for setting up the energy baseline
Formulate a procedure of setting up the energy baseline
Document and record the energy baseline and maintain
Figure 16: Energy Baseline Example
P a g e | 29
4.6.5. Energy Performance Indicators “EnPI’s” (Clause 4.4.5)
SALIENT POINTS
Identify and document your EnPI’s
Formulate the methodology to determine, review, record and monitor the EnPI’s
Figure 17: Energy performance indicators (EnPI’s) Example
P a g e | 30
4.6.6. Energy Objectives, Energy Targets and Energy Management Action Plans
SALIENT POINTS
List your energy objectives & targets
Define the time frame to achieve the set objectives & targets including the person
responsible
Define the review period for status check on the defined objectives & targets
The objectives & targets need to be consistent with the energy policy developed and
consistent with top management commitment
The objectives & targets should take into account identified SEU’s
The objective & target can take into account development skill training, legal
requirements, technological advancement and many other variables
The objective & targets and action plans needs to regularly reviewed, documented
and recorded
Figure 18: Energy Objectives and Target Example
P a g e | 31
Figure 19: Energy Action Plan Example
P a g e | 32
4.7. Implementation and Operation (Clause 4.5)
4.7.1. General (Clause 4.5.1)
SALIENT POINTS
Review the action plans periodically for monitoring and effective implementation
4.7.2. Competence, Training and Awareness (Clause 4.5.2)
SALIENT POINTS
ISO 50001 training to the management
ISO 50001 awareness training to the employees
Internal Auditor training to the selected individuals
SEU training to the identified SEU handlers
Develop training content
Communicate the training schedule to the employees
Record and document skill matrices and competence matrices of the individuals
attending the training
Record and document the training procedures, schedule and attendance sheets
4.7.3. Communication (Clause 4.5.3)
SALIENT POINTS
Methods of communication
Will external communication approved by the top management.
Develop procedure for internal communication
Develop procedure for external communication if approved by top management
Propagate the energy policy, system and performance among the employees and
vendors (only if external)
Document and Record the communications
P a g e | 33
Table 4: Communication method – Sample
Method of communication Information communicated
Notice boardsEnergy performance (e.g. consumption
trends, energy objectives, targets), etc.
Circulars, instructions and letters
Energy performance, objectives, targets,
action plan, audit findings, corrective action,
preventive action
Management Review and
Departmental Meetings
Energy performance, objectives, resource
needs, EnMS, energy scenario etc.
Training programmesEnergy related information, procedures,
policy, objectives, action plan etc.
Network within organisation
Energy policy, objectives, manuals,
procedures, instructions, Government
guidelines, legal requirements etc.
4.7.4. Documentation (Clause 4.5.4)
a. Documentation Requirements (Clause 4.5.4.1)
SALIENT POINTS
Define methodology for establishing, implementing and maintain the information
describing the core elements of the standard
Define the medium of documentation (print media or paper medium)
P a g e | 34
b. Control of Documents (Clause 4.5.4.2)
SALIENT POINTS
Methodology for controlling the documents for approval, review and distribution
Update/ document revision
Control of external documents relating to energy
Table 5: Methodology for Control of Documents - Sample
S.No. Description Responsibility
1.Preparation of L1 (System Manual) & L2
(Procedure Manual) document.MR
2. Approval of L1 & L2 documents. MD
3. Issue of L1 & L2 documents. MR
4. Preparation of L3 document.Respective Head of Departments
(HODs)
5. Approval of L3 document. MR
6. Issue of L3 document. MR & Energy Management Team
7. Back up of all the documents. Head - IT
L1EnMS
Manual
L2 Procedure Manual
L3 Work instructions
L4 Records
Figure 20: Documentation structure - Sample
P a g e | 35
8.
Review & update L1, L2 & L3 once in twelve
months or any changes in facilities, systems
& process, legal requirements whichever is
earlier.
MR & Respective Head of
Departments (HODs)
9.
Amendment history must be updated with
reasons, revision number & version number
whenever L1, L2, L3 documents are
reviewed.
MR & Respective Head of
Departments (HODs)
10.Ensure that the documents are legible and
readily identifiable.
MR & Respective Head of
Departments (HODs)
11.Ensure that the external origin documents
are identified, maintained and controlled.
Respective Head of Departments
(HODs), Energy Manager & MR
12.
Obsolete documents related to EnMS are to
be retained for legal or knowledge
preservation and such archival documents
are suitably identified / stamped as "Obsolete
Document” / “Information only".
Respective Head of Departments
(HODs), Energy Manager & MR
P a g e | 36
Table 6: Documents List - Sample
4.7.5. Operational Control (Clause 4.5.5)
SALIENT POINTS
Develop methodology for SEU’s operational and maintenance activities
Work instructions or work procedures should be consistent with the core elements of the
energy management systems
Communication of the work instructions/ procedures must be understood and implemented
by the concerned employee(s)
Formulate a contingency plan or emergency plan to monitor energy performance of the
identified work place or equipment or machinery
Document Description Issue No.RevisionNo. / Date
Issuedby
Availablewith
RetentionPeriod
Controlledby
IS/ISO
50001 :
2011
Energy
Management
Systems -
Requirements
with Guidance
for Use
ICS.27.10 Jul-11 ISO MR
EnMSM
(Level 1)
Energy
Management
System Manual
A XXX MR All Users
EnMSP
(Level 2)
Energy
Management
System
Procedures
A XXX MR All Users
P a g e | 37
Table 7: Work Instructions - Sample
1.PRODUCT ……………..........
2. PROCESS ............................
3. INTRODUCTION
Efficient energy usage and control measures of .... process are given in the energy
planning / review procedure and the Management Guidelines are to be followed during
routine and non-routine activities.
4. SAFETY PRECAUTIONS
All the safety precautions as mentioned in the respective work instructions of IMS for ....
process are to be followed.
5. SAFETY EQUIPMENTS REQUIRED
All the required safety equipment as mentioned in the respective work instructions of
IMS for ...process are to be used.
6. TASK PROCEDURES
All the activities listed in the respective work instructions of IMS for ....process are to
be performed in the proper sequence.
7. METERING
Energy used in the ...process are to be measured, recorded, monitored, analysed by
the concerned in-charges, supervisors, operatives
8. DONT’S:
Energy saving aspects identified are not to be ignored. Leakages, spillages are not to
be allowed.
P a g e | 38
4.7.6. Design (Clause 4.5.6)
Energy opportunities in new, modified and renovated facilities can have a significant
impact on its energy performance
Evaluation of energy performance should be incorporated (where appropriate) into
the specification, design and procurement activities
Record and document
EXAMPLE
Basic design parameters for installing an Air Conditioner
Calculate the energy consumption for 5 star tonnage A/c vs 4 star tonnage A/c vs 3
star tonnage A/c
Installation of additional air conditioners in the work area.
Calculate the floor area
Calculate tonnage required
Calculate the no: of air conditioners already installed and their tonnage
4.7.7. Procurement of Energy Services, Products, Equipment and Energy (Clause
4.5.7)
SALIENT POINTS
Develop energy specification criteria of equipment, services and products
Communicate the energy specification criteria to the suppliers and service providers,
while procurement
9.10.CONTINGENCY PLANNING or EMERGENCY PLANNING :
…………….........
11.CONCLUSIONS :
This work instruction has to be followed by all concerned employees to improve the
energy performance.
P a g e | 39
Table 8: Energy specific criteria for purchasing equipment’s / machine - Sample
S.No. Equipment Capacity Criteria
1 Motor >50 HP 5 star rating
2 Lightning System >50 watts LED or CFL lamps
Note:
1. Products should fulfil the energy criteria
2. Vendor should provide energy efficiency calculation for the specified product
3. Vendor should provide with payback period calculation of the specified
product
4.8. Checking (Clause 4.6)4.8.1. Monitoring, Measurement and Analysis (Clause 4.6.1)
SALIENT POINTS
List the instruments used for energy monitoring
Calibration records must be maintained and updated
4.8.2. Evaluation of Legal Requirements and Other Requirements (Clause 4.6.2)
SALIENT POINTS
List the legal and other requirements related to energy adhered to by the organization
List the review methodology of legal and other compliances
Figure 21: Calibration Record - Sample
P a g e | 40
4.8.3. Internal audit of the EnMS (Clause 4.6.3)
SALIENT POINTS
Develop internal auditors
Develop internal audit schedule
Develop checklist for the auditors
Record and maintain the findings for further improvement
EXAMPLE
Internal Audit checklist – Refer the Annexures
Table 9: Internal Audit Schedule - Sample
IA No. : 001 Month: July’13
Serial
Numbe
r.
Department to
be Audited
Process to be
Audited
Auditee (s) Auditor(s) Date of
Audit
Time of
Audit
1 Utility Lightening
Systems,
Cooling
systems
Morning
(before
noon)
2 Main office Lightening
Systems,
Cooling
systems
Afternoon
Figure 22: A list of legal documents the organization adheres to - sample
P a g e | 41
Table 10: Internal Audit report - sample
S.N
AuditFindings
Department /ProcessAudited
Auditee(s)Auditor(s) ISO 50001 : 2011
Clause No.Category ofFindings
1 Non
Conformit
y (NC)
Utility Joseph John 4.3 Low
awareness
4.8.4. Nonconformities, correction, corrective, and preventive action (Clause 4.6.4)
SALIENT POINTS
Develop methodology for identifying Non Conformity (NC)
Define procedure to initiate and implement corrective and preventive action
Record and maintain the Non Conformity (NC) and their CA/PA taken
P a g e | 42
Figure 23: Typical Non-conformance report - Sample
P a g e | 43
4.8.5. Control of Records (Clause 4.6.5)
SALIENT POINTS
List all the records and their retention period
Mention review period
EXAMPLETable 11: A typical master list of records - Sample
SerialNumber
DescriptionISO
50001Maintained
ByFiling
Method
Retentionperiod(Year)
Management Responsibility
EnF:4.1:01 Organization chart (Annexure I)
EnF:4.2:02MR (Management Representative)
Appointment Letter (Annexure II)
EnF:4.2:03Energy Management Team Letter
(Annexure I)
EnF:4.2:04Roles & Responsibility (Annexure
III)
Energy Policy
EnF:4.3:05 Energy Policy
Energy Planning
EnF:4.4.3:06List of Energy use & Significant
Energy Use
EnF:4.4.5:07 Energy Performance
EnF:4.4.5:08EnPIs (Energy Performance
Indicators)
EnF: 4.4.4:09Estimation of Future Energy
Consumption
EnF: 4.4.4:10 Energy Baseline
EnF:4.4.6:11 Department Objectives, Targets
EnF:4.4.6:12 Energy Management Action plan
P a g e | 44
4.9. Management Review (Clause 4.7)4.9.1. General (Clause 4.7.1)
At planned intervals, top management shall review the organization’s EnMS to ensure its
continuing suitability, adequacy and effectiveness. Records of the management review shall be
maintained.
4.9.2. Input and Output Management Review (Clause 4.7.2 & 4.7.3)
SALIENT POINTS
Develop agenda for the management review
Develop the schedule for management review
P a g e | 45
Figure 24: A typical Management review Minutes of Meeting report - Sample
P a g e | 46
4.9.3. Master list of document to be prepared for EnMS
SerialNumber.
Description
Management Responsibility
1 Organization Chart
2 MR Appointment Letter*
3 Energy Management Team Letter*
4 Roles & Responsibility*
Energy Policy
5 Energy Policy*
Energy Planning
6 List of Energy Use & Significant Energy Use*
7 Energy Performance
8 EnPIs* (Energy Performance Indicators)
9 Estimation of Future Energy Consumption
10 Energy Baseline*
11 Department Objectives & Targets*
12 Energy Management Action Plan*
Competence, Training and Awareness
13Competency Criteria for Employees Working in Relation d to
Significant Energy Use & Skill Mapping
14 Training Needs of Employees
15 Training Records - Attendance & Training Material
Communication
16 Internal Communication Record
17 External Communication Record
P a g e | 47
SerialNumber.
Description
Control of Documents
8 Master List of Documents with Amendments.*
Design
19 Results of Design Activity & Parallel Deployment*
Procurement of Energy Services, Products, Equipment andEnergy
20 Criteria for Assessing Energy Use, Consumption and Efficiency.*
21 Energy Purchasing Specifications
22 Technical Recommendation
Monitoring, Measurement and Analysis
23 Energy Measurement Plan & Compliance
24 Calibration Records*
25 Deviation Reporting and Investigation Report
Evaluation of compliance with legal requirements and otherrequirements
26 Legal & Other Requirements Compliance Report*
Internal Audit of the EnMS
27 List of Trained Auditors
28 Internal Audit Plan*
29 Internal Audit Schedule*
30Audit Reports of Internal Audits and Corrective & Preventive
Action Taken.*
EnMS31 Nonconformity Report*
Control of records
32 Master List of Records ( Annexure VIII)*
P a g e | 48
33 Amendment History
SerialNumber.
Description
Management Review
34 Minutes of Management Review Meeting*
Note:The (*) marked documents sample are given in the manual for user referral.
P a g e | 49
5. CASE STUDY9
5.1.General information
Company Name FPT Telecom – Data Center – Network Operation Center
Profile
FPT Telecom is a member company of FPT Joint Stock Co., oneof the leading companies operating in the field oftelecommunications and online services in Vietnam . Currently,FPT JSC has more than 3,200 employees and has presence in36 cities across Vietnam.
FPT Telecom has its head quarters in FPT Cau Giay buildingsince 2009. The total number of employees in this membercompany is 300 people, including two areas
1. 05 Data centers (Data Center - Network Operations Center)and
2. Offices
Corporation FPT Telecom is one of four Internet providers firstline in Vietnam, currently accounting for 35 % market share withmore than 350,000 subscribers
Website www.fpt.vn
Service Provide services server place
Data Center Number 04
No. of employee inthe center
40
Revenue Not disclosed in this report
Selected SEU Data Room
5.2.Energy Consumption of selected SEU (baseline 2013)
Energy type Average Consumptionper month
Average Cost(VND)/ month
Electricity (kWh) 301,000 495,461,000
Diesel ( ton) N/A N/A
9 TV Nord Vietnam and KfW (DEG), PROSPECT, 2013, Business Case.
P a g e | 50
Energy type Average Consumptionper month
Average Cost(VND)/ month
Gas (liter) N/A N/A
5.3.Energy Drivers
No. Drivers Percentage
1 Servers 55%
2 Chilling system 40%
3 Others 5% (PCs, Laptops, Electronic facilities,…)
5.4.Energy Management System Implementation5.4.1. Project timeline:
Months from March 2013 till July 20135.4.2. Scope of project
Selected SEU is Data Room of Data Center Number 04 – FPT Telecom5.4.3. Project Team
Project TeamMembers
ProjectManager
Project SteeringCommittee
CenterManager
OperationManager
Enertyengineers
Operationstaff
P a g e | 51
5.5.Achievements after implementing ISO 50001:20115.5.1. Quality Improvement Activities:
The center has equipped with capacitor system for electric supply (at the low-
voltage installation). This system increases cosφ to 0.99 and utilises and
stabilized the grid, reduces energy consumption.
In addition, the center also uses high-capacity UPS systems for power storage
in case of power failure to stabilize the operation of the system.
The center also applies RECP techniques in lighting such as partition switches,
change T8 to LED in office area, turn-off appliances when not in-use,
For the chilling system, installation of air-lock partition helps to split cooling
areas and move the outside units of ACs away from direct sunlight.
Energy saving from Aug 2013 – Aug 2014 is 398,456 kWh whichcontributes to 11% reduction compared to the baseline
5.5.2. Investment
No. OpportunitiesEnergySaving Cost Saving Investment Payback
time
Kwh VND VND Year
A No investment or minorinvestment
1 Energy Management Policy
15,230 22,327,180 Minor 02Rearrange the partitionswitches
Set temperature for eacharea
B With investment
1 Energy ManagementSystem and Certification 35,241 51,663,306 100,000,000 1,9
2 Change to LED for officearea 45,284 66,386,344 86,302,247 1,3
3 Installation of capacitorreactive power for theelectrical system to avoid
10,215 14,975,190 21,000,000 1,4
P a g e | 52
having to purchase reactivepower
4 Installation of air-lockpartition and insulation forblank racks
216,300 317,095,800 100,000,000 0,32
5 Move the outside units ofACs away from directsunlight.
59,686 87,500,000 140,000,000 1,6
6Hot air coming from theservers was taken andsucked on intakes ofconditioner
16,500 24,189,000 38,000,000 1,57
Total 398,456 584,136,820 485,302,247 0,83CO2 emission reduction 164,6
5.6.Challenges
One of the first 10 companies applies EnMS in Vietnam
Short timeline
Cooperation between different departments
Limited saving opportunities for telecommunication industry.
5.7.Lesson learnt
Commitment of the Management is the key success for the project especially for theimprovement investment.
P a g e | 53
Figure 25: Certification
P a g e | 54
BIBLIOGRAPHYADB – The Economics of Climate Changehttp://www.climatechange-foodsecurity.org/uploads/ABD_ec_climate-change-se-asia.pdf
Bureau of Energy Efficiency, India
Burton Hammer W., What is the relationship among Cleaner Production, Pollution Prevention,Waste Minizination and ISO 14000
Dieleman H., 2007, Cleaner production and innovation theory; social experiments as a newmodel to engage in cleaner production.
EIRIShttp://www.eiris.org/files/research%20publications/ClimateChangeTrackerAsia09.pdf
ISO 50001:2011https://www.iso.org/obp/ui/#iso:std:iso:50001:ed-1:v1:en
ISO 14001:2004https://www.iso.org/obp/ui/#iso:std:iso:14001:ed-2:v1:en
Measuring Sustainable Developmenthttp://unstats.un.org/unsd/broaderprogress/pdf/Measuring_sustainable_development%20(UNECE,OECD,Eurostat).pdf
MIT Sloan – Management Reviewhttp://sloanreview.mit.edu/reports/sustainability-strategy/commitment/
Modified diagram of BrownFlynn at http://www.greenbiz.com
Oxfam Research – Review of Climate Change & Adaption Practices in South Asiahttp://www.oxfam.org/sites/www.oxfam.org/files/rr-climate-change-adaptation-south-asia-161111-en.pdf
Sustainability Reporting Trends 2011https://www.globalreporting.org/resourcelibrary/GRI-Reporting-Trends-2011.pdf
The Fouth international Conference on Environmental Compliance and Enforcement,International Capacity Building for Industrial Compliance and Enforcement – the UNEPExperiences, http://www.inece.org/4thvol1/aloisi.pdf
TUV Nord Vietnam and KfW (DEG), PROSPECT, 2013, Business Case.
UN Documents, Towards Sustainable Development, viewed December 2013, http://www.un-documents.net/ocf-02.html
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UNFCCC – Kyoto Protocolhttp://unfccc.int/kyoto_protocol/doha_amendment/items/7362.php
UNEP – Global Partnership on Waste Managementhttp://www.unep.org/gpwm/InformationPlatform/WasteManagementGuidelines/tabid/104478/Default.aspx
UNEPCleaner Production Energy Efficiency Manual, 2010
United Nations Statistics Divisionhttp://unstats.un.org/unsd/environment/qindicators.htm
UNEP – Energy Efficiency Programmehttp://www.unep.org/resourceefficiency/
World Data Centerhttp://www.icsu-wds.org/services/data-portal
World Economic Forum – Sustainable Tomorrow’s Reporthttp://www3.weforum.org/docs/WEF_CI_SustainabilityForTomorrowsConsumer_Report_2009.pdf; http://www.epa.gov/iaq/combust.html
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LIST OF FIGURES
Figure 1: Phases in a Cleaner Production project based on the US/EPA manual...................................................5Figure 2: RECP Team Structure in a Factory...........................................................................................................9Figure 3: Stage of Engagement................................................................................................................................9Figure 4: Material and Energy Balance ................................................................................................................. 10Figure 5: Fishbone Diagram .................................................................................................................................. 11Figure 6: Staircase of Concepts in Environmental Management System and Cleaner Production. ..................... 14Figure 7: EnMS Methodology ................................................................................................................................ 16Figure 8: EnMS Implementation Process .............................................................................................................. 17Figure 9: EnMS Framework................................................................................................................................... 18Figure 10: General Requirements Sample ............................................................................................................ 19Figure 11: Appointment Letter for Management Representative Sample ............................................................. 21Figure 12: Appointment Letter for Energy Management Team Sample................................................................ 22Figure 13: Role & Responsibility Sample .............................................................................................................. 24Figure 14: Energy Policy - Sample ........................................................................................................................ 24Figure 15: Energy Review methodology................................................................................................................ 25Figure 16: Energy Baseline Example .................................................................................................................... 28Figure 17: Energy performance indicators (EnPI’s) Example ............................................................................... 29Figure 18: Energy Objectives and Target Example............................................................................................... 30Figure 19: Energy Action Plan Example................................................................................................................ 31Figure 20: Documentation structure - Sample....................................................................................................... 34Figure 21: Calibration Record - Sample ................................................................................................................ 39Figure 22: A list of legal documents the organization adheres to - sample........................................................... 40Figure 23: Typical Non-conformance report - Sample .......................................................................................... 42Figure 24: A typical Management review Minutes of Meeting report - Sample..................................................... 45Figure 25: Certification........................................................................................................................................... 53
LIST OF TABLES
Table 1: Roles and Responsibilities .........................................................................................................................8Table 2: Sample of Legal document - Sample ...................................................................................................... 26Table 3: List of energy use - Sample..................................................................................................................... 27Table 4: Communication method – Sample .......................................................................................................... 33Table 5: Methodology for Control of Documents - Sample ................................................................................... 34Table 6: Documents List - Sample ........................................................................................................................ 36Table 7: Work Instructions - Sample ..................................................................................................................... 37Table 8: Energy specific criteria for purchasing equipment’s / machine - Sample................................................ 39Table 9: Internal Audit Schedule - Sample ............................................................................................................ 40Table 10: Internal Audit report - sample ................................................................................................................ 41Table 11: A typical master list of records - Sample ............................................................................................... 43