Step 2.9 Establish energy performance improvement objectives and targets
This step is relevant to section 4.4.6 of the ISO 50001-2011 standard.
Energy objectives are specific outcomes that your organization sets for itself to meet its energy policy commitment to improved energy performance. Energy targets are the quantified energy performance requirements set by your organization that need to be met to achieve the associated energy objectives. The energy objectives and targets, along with their related action plans (see Step 2.11), are the driving force for continual improvement in your organization’s energy performance.
Organizations with ISO 14001-2004 environmental management systems have similar processes for reviewing pertinent information and setting improvement-focused objectives and targets. Those processes can be integrated with the objectives and targets setting processes of ISO 50001.
The following tasks will take you through this part of the energy planning process:
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 involving other functions can be beneficial if they are not already represented on the energy team.
For the purpose of establishing energy objectives and targets, consider whether the energy team should be supplemented with:
Individuals with energy expertise
Personnel in specialized functions e.g. accounting, finance
Personnel familiar with operational or production equipment
Management familiar with organizational plans and goals
Suppliers or contractors that provide energy equipment or resources
Customers
Interested parties
When setting (and later, when reviewing) the energy objectives and targets, you need to take into account the significant energy uses (Step 2.5) and the prioritized energy opportunities (Step 2.6) that were identified as part of your energy review, as well as the energy-related legal and other requirements that apply to your organization (Step 2.1). This is how the information generated by the energy review becomes an input into the energy performance improvement objectives and targets your organization sets for itself. These items represent your organization’s priority energy uses, best potential energy projects and energy-related compliance obligations.
However, there are a few other items that also need consideration when you set and review your energy objectives and targets. These items ensure that the realities of your organization’s business situation and operating conditions and constraints are part of the context in which energy objectives and targets are established. After all, the goal is to set objectives and targets that are achievable, align with your organization’s strategic business plans, and result in successful energy performance improvement. These other items to be considered are:
Financial requirements,
Business and operational conditions and constraints,
Potential technological solutions, and
Views of interested parties.
The Energy Objectives and Targets Worksheet can help you work through the required considerations in the objectives and targets setting process. A separate worksheet should be completed for each energy objective.
2.9.2 Define and document energy objectives and targets
As specific outcomes that an organization sets to meet its energy policy commitment to achieve improved energy performance, 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 needs to 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% compared to a 2014 baseline by 3rd Quarter 2018."
"Reduce lighting system consumption 10% compared to a 2014 baseline 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 influence 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. Although this eGuide for ISO 50001 follows the flow of energy planning requirements as set out in the ISO 50001 standard, the setting of energy objectives, energy targets and the selection of the energy opportunities (or “energy projects”) to be implemented to achieve them (see Step 2.10) is not necessarily a linear process.
The extent to which energy objectives and targets have been met is reported to top management through the management review process (see Step 5.1). Progress towards achieving the energy objectives and targets should be monitored and reviewed on an ongoing basis. Sometimes after initial implementation of the energy objectives and targets, an organization discovers that the initial data or metrics used to measure the energy target needs to be revised to meet the energy objective. This should not be discouraging, but rather a valuable learning experience for the energy team.
Energy objectives and targets must be documented. Documenting them benefits your organization by:
Clarifying the objectives and targets
Preventing misunderstanding or assumptions
Providing structure to the process
Supporting training
Providing a means for accurate communication
Documentation may be in any format appropriate for your organization. The Energy Objectives and Targets Worksheet is one approach to documenting the energy objectives and targets and the required considerations. The second part of the worksheet helps your organization plan for how it will monitor progress and measuring the performance improvement associated with each objective and target.
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.
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 approves the objectives and targets or provides direction for any needed changes.
The Energy Objectives and Targets Worksheet provides one convenient way to communicate the proposed objectives and related targets to management. This helps inform management on the inputs that were considered and identifies how they will be monitored.
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 the communication and training processes of the EnMS (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 behaviour. Periodically update personnel on progress made towards achieving the energy objectives and targets and celebrate success when they are achieved.
The following resource can help you set and document your energy objectives and targets and provide evidence of the required considerations:
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 involving other functions can be beneficial if they are not already represented on the energy team.
For the purpose of establishing energy objectives and targets, consider whether the energy team should be supplemented with:
Individuals with energy expertise
Personnel in specialized functions e.g. accounting, finance
Personnel familiar with operational or production equipment
Management familiar with organizational plans and goals
Suppliers or contractors that provide energy equipment or resources
Customers
Interested parties
When setting (and later, when reviewing) the energy objectives and targets, you need to take into account the significant energy uses (Step 2.5) and the prioritized energy opportunities (Step 2.6) that were identified as part of your energy review, as well as the energy-related legal and other requirements that apply to your organization (Step 2.1). This is how the information generated by the energy review becomes an input into the energy performance improvement objectives and targets your organization sets for itself. These items represent your organization’s priority energy uses, best potential energy projects and energy-related compliance obligations.
However, there are a few other items that also need consideration when you set and review your energy objectives and targets. These items ensure that the realities of your organization’s business situation and operating conditions and constraints are part of the context in which energy objectives and targets are established. After all, the goal is to set objectives and targets that are achievable, align with your organization’s strategic business plans, and result in successful energy performance improvement. These other items to be considered are:
Financial requirements,
Business and operational conditions and constraints,
Potential technological solutions, and
Views of interested parties.
The Energy Objectives and Targets Worksheet can help you work through the required considerations in the objectives and targets setting process. A separate worksheet should be completed for each energy objective.
2.9.2 Define and document energy objectives and targets
As specific outcomes that an organization sets to meet its energy policy commitment to achieve improved energy performance, 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 needs to 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% compared to a 2014 baseline by 3rd Quarter 2018."
"Reduce lighting system consumption 10% compared to a 2014 baseline 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 influence 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. Although this eGuide for ISO 50001 follows the flow of energy planning requirements as set out in the ISO 50001 standard, the setting of energy objectives, energy targets and the selection of the energy opportunities (or “energy projects”) to be implemented to achieve them (see Step 2.10) is not necessarily a linear process.
The extent to which energy objectives and targets have been met is reported to top management through the management review process (see Step 5.1). Progress towards achieving the energy objectives and targets should be monitored and reviewed on an ongoing basis. Sometimes after initial implementation of the energy objectives and targets, an organization discovers that the initial data or metrics used to measure the energy target needs to be revised to meet the energy objective. This should not be discouraging, but rather a valuable learning experience for the energy team.
Energy objectives and targets must be documented. Documenting them benefits your organization by:
Clarifying the objectives and targets
Preventing misunderstanding or assumptions
Providing structure to the process
Supporting training
Providing a means for accurate communication
Documentation may be in any format appropriate for your organization. The Energy Objectives and Targets Worksheet is one approach to documenting the energy objectives and targets and the required considerations. The second part of the worksheet helps your organization plan for how it will monitor progress and measuring the performance improvement associated with each objective and target.
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.
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 approves the objectives and targets or provides direction for any needed changes.
The Energy Objectives and Targets Worksheet provides one convenient way to communicate the proposed objectives and related targets to management. This helps inform management on the inputs that were considered and identifies how they will be monitored.
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 the communication and training processes of the EnMS (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 behaviour. Periodically update personnel on progress made towards achieving the energy objectives and targets and celebrate success when they are achieved.
Resources & Examples
The following resource can help you set and document your energy objectives and targets and provide evidence of the required considerations:
