Step 2.9 Establish energy performance improvement objectives and targets
In the prior steps, you have identified and prioritized specific energy performance improvement opportunities (Step 2.6), determined performance metrics (Step 2.7), and established baselines associated with each energy performance indicator (EnPI) (Step 2.8). In this step, you will specify energy performance improvement objectives and targets.
Energy objectives and targets are distinct, but related things. An energy objective is a specific organization-level outcome or achievement, often developed with your organization’s policies, strategies, and goals in mind. Often an energy objective is influenced by legal requirements or financial, operational or business conditions. An example of an objective is “Reduce energy consumption by 10% over the next five years”. An energy target, on the other hand, is a quantified energy performance goal or goals that must be met in order to achieve the broader energy objective. For example, associated with the previously mentioned objective could be several objectives such as “Reduce lighting systems energy consumption 10% over the next 2 years” and/or “Train all employees on weekend shutdown procedures by the end of the year.” Together, regularly setting and meeting appropriate energy objectives and targets will drive continual improvement in your organization’s energy performance.
Advancing from Foundational Level 1 to ISO 50001 Level 2 for Step 2.9
In foundational energy management (Level 1), you were provided with several tools for developing energy objectives and targets. These tools can serve as a resource for developing energy objectives and targets, but in ISO 50001 (Level 2) the process is more formal. ISO 50001 requires that you take into account legal and other requirements, significant energy uses (SEUs) and energy performance improvement opportunities when developing your organization’s objectives and targets. You must also consider technology, interested parties and financial, operational and business conditions. A team comprising the relevant expertise is generally employed to identify realistic objectives and targets and, once identified, the objectives and targets must be documented. Obtain management approval to ensure the resources are available to achieve them. Once they are developed, the objectives and targets are communicated to all personnel who can impact them or that have a role in achieving them.
An important first step in setting energy objectives and energy targets is to get the right people together and provide them with the inputs needed to develop relevant energy objectives and targets. The management representative and the energy team are key participants in this activity, but also consider including other interested parties such as other personnel with energy expertise, personnel in specialized functions such as accounting and finance, personnel familiar with production equipment, management familiar with organizational plans and goals, key customers, and suppliers that provide energy equipment.
When setting (and later, when reviewing) the energy objectives and targets, it’s important to take into account topics already covered in prior steps of this eGuide, such as your organization’s significant energy uses (Step 2.5) and prioritized energy opportunities (Step 2.6). These items represent your organization’s priority energy uses and best potential energy projects. Lastly, you should also ensure that the objectives and targets that you set take into account your organization’s strategic business plan and operating conditions and constraints. Re-examine the Business Drivers Worksheet that you filled out in Step 1.2.
2.9.2 Define and document energy objectives
Energy objectives are high-level goals that are communicated throughout the organization and are the basis for setting quantifiable energy targets. Timeframes for achieving the energy objectives and targets must be established. An example of an energy objective is:
“Reduce energy consumption 10% in 5 years from the 2014 baseline.”
After energy objectives are determined, your organization should set one or more energy targets for each objective. Energy targets define the specific, measurable energy performance improvements that contribute to the achievement of the energy objective. An energy target can apply organization-wide or only to a specific activity or part of the organization. Examples of targets that could be related to the previous example of an energy objective:
“Reduce electricity consumption 5% by 3rd Quarter 2018.”
“Reduce lighting system consumption 10% by end of FY 2017.”
Targets may be developed in conjunction with the energy objective or additional input may be required to identify specific targets that will enable the organization to meet the objective(s). For example, you may find it necessary to closely evaluate the potential energy savings associated with a specific energy opportunity to determine an appropriate energy target. In this case, the potential energy savings of the energy opportunity will inform the setting of the energy target. Or, alternatively, an energy target will drive the choice of which energy opportunities are implemented to achieve the energy target and energy objective.
To help you establish and document energy performance improvement objectives and targets for your organization, consider filling out the Energy Objectives and Targets Worksheet with your energy team. This worksheet can be used to help you work through the different considerations of establishing energy objectives and will also help you document your objectives and targets.
2.9.3 Obtain management approval
Top management is responsible for ensuring that energy objectives and targets are established and for providing the resources needed to achieve them. Management ensures the energy objectives and targets are in line with overall organizational goals and strategies.
To obtain management approval, present the objectives and targets to management for review and approval in a clear and understandable format. Sufficient information should be provided to justify the objective’s or target’s purpose and its relationship to the organization’s business goals and energy policy commitments. Management will then be able to either approve the objectives and targets or provide direction for any needed changes.
2.9.4 Communicate the energy objectives and targets
Once the energy objectives and targets have been formally documented and approved by management, they should be broadly communicated across the organization using your organization’s energy management program communication and training processes (see Step 3.4). At a minimum, communicate the objectives and targets to the energy team and to all personnel who can impact them or have a role in achieving them. While some functions may not have direct responsibility for achieving the objectives and targets, broad awareness of your organization’s improvement efforts promotes a culture of energy efficiency and supports positive energy behavior. Periodically update personnel on progress made towards achieving the energy objectives and targets and celebrate success when they are achieved.
Resources & Examples
Energy Objectives and Targets Worksheet: This worksheet can be used to help you work through the different considerations of establishing energy objectives and will also help you document your objectives and targets.
EPA ENERGY STAR Guidelines for Energy Management: Contains a step-by-step road map for continuous improvement, based on best practices as compiled by the EPA ENERGY STAR Program. Refer to Step 3 of the ENERGY STAR Guidelines for guidance specific to eGuide Step 2.9.
Energy Management Package for Small Commercial Buildings: Best practices guide and energy management package for heating, ventilation, and air conditioning (HVAC) contractors to deliver energy management services to small commercial buildings. Refer to Element E3 of the Package for guidance specific to eGuide Step 2.5.
Sustainable Energy Authority of Ireland (SEAI) Energy MAP: SEAI’s Energy MAP tool provides a step-by-step guide to creating a best practice action plan for energy management. Refer to Step 10 of the SEAI Energy MAP for helpful guidance specific to eGuide Step 2.9.
