ISO 50001 Touted as a Path Forward on the Industrial Roadmap for Continuous Improvement

One of the early executive dialogue session of  EE Global 2012 was, “The Roadmap for Continual Industrial Improvement,” featuring a panel of international industrial representatives. Subject matter experts from South Korea, Canada the United States, and the Czech Republic each weighed in on the value of systematic energy management to advance energy, economic and environmental outcomes, and referenced the ISO 50001 energy management standard as a strong first step to establish energy management as a standard business practice internationally.

The Five Fs of ISO 50001

Ron Morrison, President of RC Management, a Canadian industrial consultant, opened the panel’s remarks framing energy management as a fundamental principle to control the affordability and availability of energy on a national scale.  As multiple countries around the world  plan for long-term growth, responsible management of energy use must be a part of the conversation.

As Morrison discussed recent developments in energy management on the world stage, he used artful alliteration to discuss the merits of ISO 50001, the first internationally-recognized energy management standard: 

• Fits – ISO 50001 meets the needs of a diversity of end users including all industrial operations, commercial buildings, institutional bodies, and transportation fleets.
• Flexible – the standard is customizable and can be shaped to fit each user’s business interests.
• Focused – ISO 50001 promotes direct engagement with energy efficiency, instead of a broad and general sustainability approach.
• Financially Beneficial – tightly managed energy use provides quick returns from energy cost savings.
• Friendly – the standard is clear and simple, promoting a proven energy management framework rather than prescriptive requirements.

South Korea’s Economic Growth Strategy Features Energy Efficiency as the “Fifth Fuel”

Tae Won Moon, leader of the Energy Efficiency Division of the Korea Energy Management Corporation (KEMCO), represented South Korea’s perspective on energy management.  Moon described energy management as a central pillar of a broader sustainable economic growth strategy. To achieve an ambitious national target of a 47 percent improvement in  against a 2006 baseline, ISO 50001 is being aggressively rolled out in South Korea. In fact, 23 large industrial end users are already engaged in the implementation of the standard—12 of which have achieved certification.

U.S.-based Multinational, HP, Sees ISO 50001 as a Tool to Align its Supply Chain

Hewlett-Packard, a global heavyweight in information technology and computing, discussed its plans to use ISO 50001 to manage energy across its supply chain, as described by Ken Hamilton, Director of Energy and Sustainability Management in HP’s Technology Consulting group. For HP, which is currently applying ISO 50001 in its own facilities, most of the heavy energy use associated with its products takes place upstream, in its suppliers’ facilities. To promote energy efficiency, HP has begun to pilot ISO 50001 with some of its Chinese suppliers, and has already seen dramatic energy intensity improvements on the order of 20 percent.

Hamilton explained the value of an energy management system by saying that “ISO 50001 is like a MBA for energy.” He went on to explain that to approach energy efficiency from an individual technology standpoint alone is not sufficient. Energy efficiency needs to be monitored on a systemic and continuous basis to be effective. ISO 50001 engages organizations to approach energy efficiency in this manner.

Czech Efforts in Energy Management

To conclude the session, Milan Grohmann, CEO of the Czech-based INSTAR reported on ongoing energy management initiatives in the Czech Republic and around the world. Using INSTAR’s proprietary tools, their efforts are focused on compiling verified energy efficiency improvements and a robust energy management benchmarking scheme.  Moving forward, Grohmann believes energy management will continue to receive recognition as a tool to enhance business operations and competitiveness.  

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