SQUAIR | Blog

ISO 50001: How to Reduce Costs and Implement in Practice!

Written by Wagner Soares | Aug 14, 2023 9:50:36 PM

The implementation of ISO 50001 is one of the most effective methods for continuous improvement of the energy management system. It is used to reduce operational costs, increase production, and decrease environmental impacts.

Having energy-efficient management triggers a series of benefits for the business. Therefore, it is up to the leadership to instruct their employees to act in accordance with the best practices outlined in ISO.

For instance, the maintenance engineer is responsible for monitoring and controlling the used machines. Meanwhile, a facilities manager should track the results and returns obtained from production, including energy consumption matters.

Want to learn more about ISO 50001? Keep reading this article and understand how it works and what is required to obtain certification.

Happy reading!

 

How does ISO 50001 work?

The functioning of the standard follows the same structural pattern as other ISOs, the PDCA model (Plan, Do, Check, Act). Thus, implementation is carried out through internal analysis to gain knowledge about the energy characteristics of the company.

To understand how energy management occurs, it's necessary to have an efficient monitoring system. This is because it will aid in decision-making for quality energy performance management.

Based on the initial guidelines, ISO 50001 operates as follows:

Plan

With the collection of current data regarding energy consumption, influential sectors and/or equipment are identified. These are areas that generate higher costs directly or indirectly, possibly due to the lack of system updates or defective parts.

These pieces of information allow the planning to consider:

  • Establishing indicators of energy performance;
  • Organizing a team responsible for internal audits;
  • Identifying costs and setting reduction goals;
  • Creating an action plan.

Do

The action plan should be put into practice during this stage, along with process optimization. If necessary, managers should provide resources to achieve the goals, such as offering training.

Check

The monitoring system plays an important role in the verification stage, as it generates real process data. The actions taken up to this point must be reviewed and analyzed according to the established goals.

This way, comprehensive reports can be generated that contribute to smarter decisions. It's important to emphasize that documenting everything is essential to understand performance and energy efficiency.

Act

Based on the results obtained during verification, managers can determine which strategic priorities should be followed. For example, if a space with high energy consumption was identified during verification, it should be revisited.

Thus, if there isn't frequent foot traffic, there's no need to keep the lights on all the time. Or perhaps if some equipment is outdated, this is the time to act by replacing or updating the machinery.

During the action phase, plans that failed and those that didn't yield the expected results are also analyzed.



Practical Benefits of Implementing ISO 50001

Despite offering numerous benefits to businesses, by 2019 Brazil had only recorded 96 ISO 50001 certifications. Even though the number is not substantial, the standard is considered one of the safest means to promote energy efficiency.

As seen, one of the key advantages is associated with cost reduction, but that's not the only one. Next, we'll present a few more outcomes of energy management based on the ISO, take a look:

  • Systemic view of energy use and consumption;
  • Adoption of digital transformation;
  • Increase in energy efficiency;
  • Credibility in the market.

Systemic View of Energy Use and Consumption

ISO 50001 encourages a systemic view of energy use and consumption within a company through monitoring resources. This allows the identification of activities or sectors that are using more energy and why this is happening.

For example, instances of spaces consuming electricity even when there's no continuous activity. Among the key actions that can have an effect is remote monitoring, which enables the turning on and off of lights, air conditioning, etc.

Adoption of Digital Transformation

The standard suggests that companies also adopt technological resources to enhance energy efficiency plans. This proposal includes energy management platforms, considered essential for obtaining certification.

In the market, you can find startups dedicated entirely to the sustainable development of companies. Squair is an example, as it joined the Brazil Network of the Global Compact in 2022, an initiative by the UN.

Increase in Energy Efficiency

Resource management becomes more conscious when all the norm's requirements are put into practice. In this way, the expected result to achieve is energy efficiency that brings forth two essential benefits, namely:

  • Reduction in operational costs;
  • Fewer impacts on the environment.

Credibility in the Market

Companies certified with ISO 50001 gain credibility in the market and global recognition. The interested public also comes to trust that the brand practices efficient environmental management, which translates to profits for the business.

 

How Does ISO 50001 Help Reduce Costs?

All the work carried out in the implementation of ISO 50001 leads to the identification of energy consumption bottlenecks. As a result, decisions are made based on improving results, prioritizing the correction of waste.

The increase in energy efficiency directly impacts operational costs related to electricity bills. This is because measures are adopted to enhance processes, such as automation, which allows remote control of devices.

Therefore, we can affirm that by obtaining ISO 50001, a company ensures a favorable long-term return on investment.

 

How to Obtain ISO 50001 Certification?

In order for a company to receive ISO certification, it needs to follow certain specifications outlined in the document. The standard is viewed as a practical tool that assists in the implementation of an efficient Energy Management System.

The first step is to acquire the standard from the ABNT website, the institution that regulates ISO in Brazil. Subsequently, find a consultancy specialized in the standard.

 

After these initial two steps, the company should actually begin implementing the following steps:

  • Form an internal team with individuals from various departments and positions to compose the energy management committee;
  • Analyze the company's situation against the requirements laid out in the standard and identify areas that need improvement;
  • Chart the path to be followed and what is expected, explaining when and how it should be done;
  • Define indicators that allow for the evaluation of results obtained after the implementation of the plan;
  • Develop continuous improvement actions based on the guidance of the standard, which can include technological resources as allies;
  • After implementing all the guidelines, it's suggested to conduct an internal audit for some final touches;

With all the steps followed, you should request an external audit for the final evaluation. If all prerequisites are met, the company receives the ISO 50001 certificate. The expected outcome is financial savings and a reduction in total energy consumption.

 

Read also: 10 Tips on How to Reduce Energy Consumption in the Company!

 

How Can Squair Assist You?

Offering operational intelligence and environmental responsibility, Squair provides effective solutions for monitoring and controlling energy consumption. With the help of IoT, the startup assists you in standardizing processes and using resources conscientiously.

Our technology will become your ally in obtaining the ISO 50001 certificate, enabling more informed decision-making. Come learn more about Squair and achieve energy efficiency in your business.