With many organisations setting themselves net zero targets, along with rapid and dramatic changes in energy markets and the tightening of legislation such as the Energy Savings Opportunity Scheme (ESOS), the way energy is managed within the real estate sector is increasingly important.

Navigating this can be extremely challenging, but an energy management system such as ISO 50001 can help make things easier.

The next phase of ESOS requires that all private organisations with over 250 employees and/or €50 million turnover must undergo a compulsory energy audit by 5 December 2023, or face significant fines. ISO 50001, however, provides automatic compliance, but what actually is it?

This internationally recognised standard sets out the requirements an organisation can use to continually improve its energy performance, including energy efficiency, energy use and energy consumption. ISO 50001 provides a framework for organisations to define and implement a structured approach to energy management.

It is widely recognised by investors, asset managers, property managers and occupiers as a key indicator of commitment to addressing energy efficiency.

For landlords and occupiers achieving the standard has many benefits:

• Improved efficiency through a better understanding of how energy is used operationally to monitor and reduce consumption. This can yield significant financial benefits.
  
  
• It can provide a framework to deliver on an organisation’s energy objectives, covering energy efficiency, energy security, energy use and consumption.
  
  
• Legal compliance and reduced risk through proactive management of energy legislative requirements. In most cases, ISO 50001 is a compliance route across Europe in response to Article 8 of the EU Energy Efficiency Directive (EU EED) (transposed as ESOS in the UK), in place of an energy audit.
  
  
• Reduced emissions through energy consumption reductions.
  
  
• Improved engagement with senior management, staff, contractors and occupiers on energy issues.
  
  
• A continual improvement model for managing an organisations’ energy consumption.
  
  
• Potential to enhance the marketability and credentials of organisations and property assets.
  
  
• Broad applicability to any organisation, regardless of its size, type and nature. It can either be implemented to a single or multi-site organisation.
  
  
• Independently verified by accredited certification bodies.
  
  
• Once gained, the certification lasts for three years, subject to successful periodic external surveillance audits.

Other benefits include helping to support a net zero pathway. The focus of ISO 50001 is on energy efficiency and the hierarchy for achieving net zero carbon, in line with World Green Building Council guidelines (and the UK Green Building Council adaptation), states that reductions in energy demand and consumption should be prioritised over all other measures.

While ISO 50001 does not focus on the reduction of non-energy related greenhouse gas emissions that are required in achieving a net zero future, ultimately, by adopting ISO 50001 the journey to net zero and minimising our operational energy use should become a little bit easier.

Further information

Contact Tanya Broadfield

Savills Sustainability