As ISO 50001:2018 adopts a high level structure, to ensure a high level compatibility with other management standards. Context of the organization is the new requirement which is to be addressed in ISO 50001:2018 and other standards like ISO 9001, ISO 14001, ISO 45001 etc. stating that organization shall determine external and internal issues relevant to its purpose and that can affect intended outcome of EnMS and organization energy performance. So, lets understand what this clause actually require?
Clause 4 of ISO 50001:2018 requires the organization to analyse itself and its context by understanding impact of various factors on the organization energy performance, EnMS, organization culture, objectives & energy targets, interaction of processes etc. and it also provides a means to address risk and identify opportunities by understanding needs and expectations of interested parties.
Where to begin?
If you are already certified for ISO 50001:2011, then first you have to identify what are the requirements that you already met as some of the requirements in old version helps you to fulfill the requirement of this clause for that you can visit Unlock differences and changes in new energy management standard. And, in case if you are starting from scratch then follow following process:
Understanding Internal and External context of an Organization
To fulfill requirement of this clause, organization should focus on energy performance (energy efficiency, use and consumption) of the organization. The analysis of organizational context will provide a high‐level conceptual understanding of the external and internal issues that can affect, either positively or negatively, energy performance and the EnMS of the organization.
An internal context of an organization means internal environment of your organization which aims to achieve its objectives and energy targets. Following are some examples of internal issue that can help you to understand better:
- core business objectives and strategy;
- asset management plans;
- financial resource (labour, financial, etc.) affecting the organization;
- energy management maturity and culture;
- sustainability considerations;
- contingency plans for interruptions in energy supply;
- maturity of existing technology;
- operational risks and liability considerations.
Where external context includes issues arising from social, technological, environmental, ethical, political, legal, and economic environment. Following are some examples of external issue:
- Issues related to interested parties such as existing national or sector objectives, requirements or standards
- Restrictions or limitations on energy supply, security and reliability
- Energy cost or the availability of types of energy
- Effect of weather
- Effect of climate change
- Effect of greenhouse gas emissions
How to identify internal and external issues?
In order to identify issues and pen it down on a piece of paper, organization can go for SWOT analysis, which will help in analyzing where an organization currently stands.
Action plans can be made accordingly against the issues that have negative impact on your organizations energy performance. As and when implemented, help organization to improve energy performance and EnMS of the organization.
What is the Impact of not meeting interested parties needs and expectations?
Before knowing impact of not meeting needs and expectation of interested parties, organization should be aware of who are their interested parties. It could be:
In simple terms, interested parties are those relevant interested parties whose opinion about your company you should care about. So, if you are not meeting interested parties needs and expectation it can lead you towards:
- Poor brand image
- Loss of business
- Penalization
- Poor relations with customers and suppliers
- Lack of ownership
- Delays in deliveries, etc.
Determining Scope and Processes needed for EnMS
Identifying and establishing a scope plays an important role, as it would help in recognizing the applicability of requirement of EnMS. Thus, while defining scope consider the identified issues and needs & expectation of interested parties and make sure to not exclude any energy type within the defined scope. After the scope being established, make sure to establish, implement, maintain and continually improve the processes needed for continually improving energy performance and EnMS of the organization.
Conclusion
Monitoring context of organization by conducting management review meetings at regular interval of time will help organization to know whether there is any change in the organization context and what else can be done to improve energy performance. Thus, understanding organization internal and external context, impact of not meeting requirements of interested parties, scope of EnMS and process needed will help organization to improve energy performance and EnMS of the organization.
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