Energy Management System Standards Reply

For those of you who are still eagerly awaiting the release of  the ISO 50001 energy management system standard (due to be released early next year), there is a British Standard, BS EN 16001, that can be used now.  This British energy management system standard has been a key priority for European delegates contributing to the development of the ISO standard in the much slower international standards setting arena.  These delegates are working closely with ISO to make sure there will be no disincentive for the early adopters of EN 16001 when ISO 50001 is released.  The use of this standard is also providing some information to those writing the ISO 50001 standard. 

The aim of this European standard is to help organizations establish the systems and processes necessary to improve energy performance and make reductions in both cost and emissions of greenhouse gases.  Launched in July 2009, this standard effectively presents a business with a roadmap of the various steps to be taken to ensure it is viewed as being serious about energy management.  The promotion of the standard notes that the combination of energy reduction and risk management is more financially advantageous than merely buying additional carbon credits or offsets to lower the carbon emissions that are reported to the public. 

The standard helps businesses ask the right questions of themselves and adjust their internal processes and decision-making accordingly.  These businesses use the plan-do-check-act (PDCA) framework to establish objectives and processes, implement some changes, monitor their results and finally act again to deliver incremental improvements in performance over time.  Some companies in the UK are required to certify to this standard because of the “Carbon Reduction Commitment Energy Efficiency Scheme” that was launched in April 2010 to support attempts to reduce the greenhouse gas emissions in accordance with the Climate Change Act of 2008.  There are similar requirements in the European Union.

To keep up to the demand in the United States, the US Department of Energy is making draft copies of ISO 50001 available to certain technical assistance providers to use for their own energy conservation programs.  However, no climate change legislation has been enacted in the United States.  A company can purchase a draft of ISO 50001 and use it while the final standard is being subject to its final international ballot.  You do not need to be involved in these Department of Energy projects to do so.

It is important to note that the “aspects” determination in ISO 14001 was designed for looking at all resources:  water, energy and materials.  Energy is very important to all companies and their stakeholders.  Unless you find that you need to certify to an energy management standard, you may be better off looking at both the BS EN 16001 and the draft ISO 50001 and using the information to strengthen your existing ISO 14001 program.

ISO 26000:2010 (Social Responsibility Guidance) Released 1

The ISO 26000:2010 social responsibility guidelines have been finalized and published.  It is now possible to add social responsibility “core subjects” from this new standard to an ISO 14001:2004 or ISO 9001:2008 program.  This would create an integrated sustainability management standard.  ISO 26000:2010 cannot be used alone as a sustainability management system.

CAPACCIO likes this standard since it clearly articulates a wide range of social responsibility issues that sustainable companies need to watch closely; e.g., community involvement, human rights, labor issues, and consumer/customer issues.  Incorporating conformance to social issues within a management system will help coordinate those who manage the environmental responsibilities with those that manage the social responsibilities.

A recent survey found that 86% of employees are not engaged by their employers on sustainability even though the same amount – 86% – said that their organization promotes employee sustainability.  It is possible to engage employees more effectively using a management system rather than relying on only on training and awareness.  A properly implemented management system can make sustainability part of what every employee does every day by including it in the work instructions and every aspect of their involvement with the organization.  CAPACCIO is already seeing this make a difference with our clients that are integrating their sustainability efforts directly with their sustainability efforts.  The new ISO 26000:2010 standard will make this effort easier and more effective.

CAPACCIO is preparing a “white paper” on how to use ISO 26000:2010 with your management systems.  Please reserve a copy by contacting Bob Pojasek at rpojasek@capaccio.com or calling him – 508-970-0033 Ext. 137.

Separating Energy Management from Environmental Management 1

Voting on a draft Energy Management System (ISO/DIS 5001) came to an end on August 26, 2010. The project committee (ISO/PC 242) will seek to resolve comments and issue the final standard by mid-2011. Companies will be able to seek certification to this standard or use it to self-declare their energy management system. It is interesting to note that this energy management system will NOT be part of the widely used ISO 14000 (EMS) series. The separation of this management system standard was supported by ANSI and Georgia Tech. They teamed up in the past to write ANSI MSE 2000 – the predecessor to ISO 50001. More…

Sustainability as a Regulatory Requirement Reply

Sustainability developed initially as a voluntary activity.  Some companies have even referred to their sustainability or corporate responsibility efforts as, “doing well by doing good!” however, there are some changes in the works that would move at least parts of sustainability into a company’s regulatory compliance program.  Some of your customers may be demanding that you have a formal sustainability program.  Walmart is a good example of a company who has an initiative that many retail customers are following.  It consists of a number of required sustainability elements. Walmart enforces these requirements by training and sending out a cadre of auditors to make sure that the requirements are being adhered to. 

The United States Government has also notified 600,000 government contractors that they have to adhere to the greenhouse gas emission reduction requirements articulated in the Presidential Executive Order #13514. If these contractors do not begin making progress against these established goals, they could lose their contracts.

If your firm is publicly traded, or you work for a customer that is publicly traded, there is growing pressure from investors to have sustainability programs implemented throughout a supply chain.  Investors are organizing in an effort to share information and keep pressure on their targets.  One such group, Investor Network on Climate Risk, has supported a large number of stockholder proxies at annual meetings this year.  These groups have websites with best practices and toolkits to help investors be more effective at demanding sustainability throughout a supply chain.

The Securities and Exchange Commission and other watchdog government groups are making sure that companies are properly disclosing their risks associated with climate change and other environmental, social and economic issues.  Investor groups have been relentless in making sure that their concerns are addressed in the disclosure process, such as Form 10K reports.

Corporate Responsibility Magazine reported on the “100 Worst Corporate Citizens.” As transparency is considered the holy grail of sustainability, they were looking for companies that had little to no sustainability information on their websites.  There are also demands for accountability – setting goals and targets followed by reporting on the progress being made to attain these goals.  It is amazing just how much information on a company’s sustainability is being posted on the Internet these days. This makes it easier to conduct valid benchmarking unless, of course, the data is not accurate.