There are two tasks for incorporating energy considerations in your procurement process:

• 3.7.1 Inform suppliers of energy performance as an evaluation factor for SEU-related purchases
• 3.7.2 Establish lifetime energy performance criteria for purchases that can significantly impact energy performance

3.7.1 Inform suppliers of energy performance as an evaluation factor for SEU-related purchases

You identified significant energy uses (SEUs) to focus your resources in the areas where you can achieve the most benefit (see Step 2.5). When an energy use is identified as significant, you must address a number of ISO 50001 requirements that apply specifically to SEUs (see Step 2.5.3), including those related to procurement.

Purchases related to SEUs can include:

• Repair parts
• Add-on equipment
• Replacement parts/equipment
• Maintenance materials
• Maintenance services
• Operational/maintenance controls
• Supplies
• Input materials
• Operator services
• Engineering services
• Consultants

For purchases related to an SEU, procurement specifications need to clearly identify any energy performance-related requirements. These requirements must be communicated to suppliers and they must be informed that energy performance is part of the evaluation criteria. Consider leveraging your existing processes for communicating this information to your suppliers.

You will need a process for evaluating and selecting the product, equipment or service for the SEU. Your organization determines what role energy performance will play in the procurement selection process. Energy performance does not have to be the sole or most heavily weighted criterion but is one of the factors you use to make the final purchase decision. You may incorporate energy performance into existing procurement selection processes.

Service providers who will impact SEUs also must be informed that energy performance is part of the evaluation for procuring their services. The major assessment component for service providers is competency, but there are other factors you may consider. Some evaluation factors may include:

• Training records
• Certifications
• Experience with similar uses
• Skilled trades available
• Parts/materials procurement practices
• Client recommendations/reviews

3.7.2 Establish lifetime energy performance criteria for purchases that can significantly impact energy performance

In an ISO 50001 energy management system (EnMS), you must evaluate energy use, energy consumption and energy efficiency over the planned or expected operating lifetime for any purchased items or services that are expected to have a significant impact on energy performance. Your organization must determine the evaluation criteria. These criteria look beyond just your SEUs, and consider the bigger picture of how procurement impacts any item that affects energy performance.

Energy performance is determined by the key characteristics (see Step 4.1). It is important that your organization makes the connection between procurement and its impact on energy performance. At a minimum, energy performance for your organization is determined by:

• Energy performance of the significant energy uses,
• Significant energy uses relevant variables
• Energy performance indicators (EnPIs)
• Effectiveness in meeting energy objectives and targets through action plans
• Actual vs. expected energy consumption evaluation

If a purchase can impact one of more of these key characteristics, your organization must establish criteria for evaluating whether there is a significant impact on energy performance. Some examples are:

• Significant energy use: Assume that your lighting system has been determined to be a SEU. You may define a significant impact as the purchase of certain lighting items, the number of items, a cost level or any purchase associated with lighting.
• Significant energy use relevant variables: A relevant variable for the lighting system SEU is the amount of daylight. If your organization has skylights and you are considering a new roof that would eliminate the skylights, the loss of daylight could result in a significant impact on the operation, and energy consumption, of the lighting system. A significant impact could be defined as a certain consumption increase or the potential for consumption increase.
• Effectiveness in meeting energy objectives and targets through action plans: The purchase of a service or piece of equipment could determine whether an energy target is reached for an energy improvement project. Failure to meet the target could be a significant impact on energy performance.

Brainstorm other factors that can have a major impact on energy performance such as controls for SEUs, controls to sustain past energy improvements and energy system maintenance activities.

Significant impact can be a specific hurdle or limit, or it can be an evaluation based on your organization’s experience. Be mindful of using cost as a hurdle for determining significant impact as it can be misleading. For example:

Buying a few light bulbs on a frequent basis can have a bigger impact on energy performance than replacing one large piece of machinery once over a long time span.

Note that a significant impact on energy performance does not have to relate to large items or complex services. It can result from a relatively inexpensive maintenance item including:

• High efficiency air filters
• Synthetic lubricants
• Cogged v-belts
• Low leakage couplings
• Electronic condensate drain valves on compressed air systems

As an example:

Quick disconnect ‘O’ rings for an air compressor can cost from two cents to one dollar. The more expensive rings result in an improved system efficiency of as much as 8% – 12%. Despite higher first cost, the increased efficiency of high quality ‘O’ rings results in a significant savings over their life cycle.

If a purchase can have a significant impact on energy performance, your organization must evaluate the purchase and its energy performance over its planned or expected operating lifetime. There are many tools that can be used to calculate life cycle cost and the one that is best for your organization will depend on the items purchased and their application, as well as the complexity of your accounting system. The Life Cycle Cost Assessment Worksheet provides a simple accounting based tool for calculating life cycle cost. Other resources for life cycle calculation methods are provided in the Life Cycle Resource List.

To ensure that procurement actions support the EnMS, it is critical that procurement personnel be kept informed about the needs of the EnMS, including the SEUs and the types of items and services that have the potential to significantly impact your organization’s energy performance. This information enables them to make appropriate procurement decisions. Procurement personnel must be familiar with the key characteristics of operations that determine energy performance and mindful that energy performance and life cycle assessment may be part of the procurement decision. Once personnel are aware of the EnMS, it is their responsibility to purchase items in a manner consistent with the EnMS needs.

For example:

Your Maintenance Director evaluated the energy use of compact fluorescent and incandescent bulbs over their planned or expected lifetime for your lighting system. The analysis showed that substituting compact fluorescent bulbs for the currently used incandescent bulbs would result in a substantial energy performance improvement. Savings are realized from reduced energy consumption as well as reduced maintenance costs because the longer life of the compact fluorescent bulbs reduces the frequency of bulb replacement. The fluorescent bulbs cost more initially, but over time will use less energy. Procurement typically tries to minimize costs and if they are not made aware of the life cycle analysis and provided with appropriate specifications, they likely would continue buying the less expensive bulbs.

The Example Life Cycle Cost Assessment Worksheet uses the lighting example to demonstrate how life cycle cost may be calculated.

Procurement in your organization may be handled by a corporate or headquarters function. To satisfy the ISO 50001 requirements you may need to work with the corporate procurement function to implement the necessary procurement processes. Some ideas to consider in establishing these processes are provided in Working with Corporate to Establish Energy Related Procurement Processes.

The Procurement Checklist can assist with the implementation of the ISO 50001 requirements related to procurement processes.

These resources can help you incorporate energy considerations into procurement activities:

• Life Cycle Cost Assessment Worksheet
• Tool Life Cycle Resource List
• Example Life Cycle Cost Assessment Worksheet
• Working with Corporate to Establish Energy Related Procurement Processes
• Procurement Checklist

The following resources provide information needed to understand EnMS documentation and decide what documents and records are needed for your EnMS.

• Understanding EnMS Documentation
• EnMS Documentation Guidance Table
• Energy Manual Guidelines

The following resource is designed primarily for organizations that plan to seek third-party certification to ISO 50001-2011. It helps you understand how to check and use your EnMS records to demonstrate the implementation of the system (you are doing what you say), and the effectiveness of the system in generating the intended results (what you are doing is working).

• EnMS Records: Check and Use the Evidence