Sarah, can you tell us about Siemens Energy?
Siemens Energy was formed in April 2020 following a carve-out from Siemens AG. The company has about 91,000 employees worldwide and 3,500 employees in the UK, operating globally along nearly the entire energy value chain. Our products include gas turbines, steam turbines, generators, transformers, and compressors. Siemens Energy is a global market leader in renewable energy, with a 67% stake in Siemens Gamesa Renewable Energy.
Our mission is to empower our customers to meet the growing demand for energy while transitioning to a more sustainable world. With our innovative technologies and energy experience, we are committed to decarbonizing global energy systems and driving the energy transition. We contribute directly or indirectly to most of the United Nations’ Sustainable Development Goals (SDGs). To ensure maximum impact, we focus our activities on the following: SDG 5 -Gender Equality; SDG 7 - Affordable and Clean Energy; SDG 8 - Decent Work and Economic Growth; SDG 9 – Industry, Innovation & Infrastructure; and SDG 13 - Climate Action.
What prompted Siemens Energy to adopt ISO 50001?
I started working towards ISO 50001 in 2015 while working for Siemens (Siemens Energy was formerly Siemens’ Gas and Power division), and several key drivers formed the business case for the standard. Firstly, we wanted to meet the goal of compliance with the Energy Savings Opportunities Scheme (ESOS) regulation and the implementation requirements of the EU Energy Efficiency Directive. Secondly, the announcement of Siemens’ global energy efficiency and carbon reduction targets required us to take action. We also faced the expectation of increasing costs if we didn’t act on the forecast increase in energy pricing and taxation. And crucially, we believe that Siemens should mirror the same significant savings we offer our external manufacturing customers internally.
How does ISO 50001 fit in with any broader goals to achieve net zero?
The ISO 50001 standard focuses on emission scopes 1 and 2, which support Siemens Energy’s target of climate neutrality in operations by 2030. Siemens Energy has committed to reducing absolute scope 1 and 2 by 46% by 2025 (based on the 2019 baseline) and 100% green electricity by 2023. Also, in the UK, we have established a Decarbonization Programme with a dedicated workstream for on-site energy performance targets that support the overall Siemens Energy targets.
What were the most accessible and most challenging parts of implementing ISO 50001?
Evidence of the tangible results began promptly after the standard implementation.
We also found integrating our existing management systems with ISO 50001 was simple. Our businesses are certified to ISO 45001 and 14001, and we found we could combine them smoothly.
Where we experienced some challenges in establishing processes was ensuring that energy efficiency is considered in procurement decisions and considered for design. Communicating the importance of planning and outcomes (clause 3 vs. clause 9) was also challenging. The requirement for technical knowledge, for example, energy engineers, was underestimated, but we’ve been able to work through the aforementioned with a particular focus.
What were some common blockers you experienced?
- Lack of infrastructure project funding
- ROI/payback period seen as too high (ROI for PV has been seen as too high before energy costs increased)
- Competence & available resources (for delivery of projects, development, and business case, etc.)
- Length of site lease impacts on investment decisions
- Technology not developed yet
- Access to alternative fuels is difficult
- Fuel costs
- No additional space on site for storage (e.g, for batteries, fuel cells)
- Efficiency improvements are preferable to generating our energy
What was the biggest lesson learned for Siemens Energy?
The biggest takeaway was the importance of data! Recording data was the most challenging message to convey to energy site representatives, but it is critical to a systematic approach to energy performance improvements. The standard requires recording actual vs. expected energy consumption to verify the achievement of objectives.
Were there any quick wins you identified when you first implemented ISO 50001?
Yes, we had several quick wins straight after implementation. For instance, we introduced employee suggestion schemes for actional feedback on our sites. One factory began saving heat by moving a walkway to prevent the automatic roller doors from opening and closing. We have also installed LED lights across our sites to reduce energy consumption. An Internal Carbon Price competition was also run to get project funding, resulting in many suggestions and some good projects. We continued engaging with our employees using baseline studies and out-of-hour surveys.
What has the impact on your organization been so far?
Siemens Energy has seen noticeable impacts across the business. We’ve been able to bring a wider focus on energy and carbon, supporting our Climate Neutral and Net Zero programmes. We’ve also seen a heightened awareness of legal compliance across the business and an improvement in the management of internal and external stakeholders. In terms of actual results, we have seen an overall energy reduction. For example, at our Lincoln factory, we’ve seen a 17% decrease in electricity since the baseline year in 2014/5, a 16% reduction in gas heating, an 80% reduction in diesel oil, and an overall decrease in gas used for testing turbines.
What difference has this standard made during the current energy crisis?
The standard helps demonstrate how a register of opportunities can help; it is not static but dynamic, and changing external factors will enable a rethink of priorities. For example, PV panels could’ve produced a higher ROI due to the energy costs, and from a carbon perspective, there was reluctance because we are on a 100% renewable electricity contract. But it does make sense in terms of energy resilience and security with the current prices. We now have three sites going for approval for solar PV and battery storage compared to none last year.
Standards and certification are about continual improvement, so what are you planning next?
Currently, not all of our sites are certified. We are bringing another factory on board this year and our Transmission project business. The Transmission project business is challenging as projects typically take 2-3 years and are not on a fixed site, but we still need to consider improving energy consumption on these sites. We have made many small changes, but we need to invest in the following steps – looking at options for replacing gas heating at all of our sites, ASHP to replace diesel heating as an option, and installing more EV charge points due to uptake and PV panels. Decisions about further reducing energy costs hit in 2023/24 will involve a greater engagement with management on how we use the spaces on site and employee behaviour.
Any tops tips for other organizations looking to implement ISO 50001?
I suggest getting buy-in from senior management at the start of your journey. It’s also helpful to link to other requirements to show how good management can support stakeholder expectations – e.g., statutory ESOS, SECR, Net Zero, and wider stakeholders such as the public and local communities. It’s also beneficial to try to focus on building energy teams on-site. One person, typically the EHS manager, cannot drive the required actions without support from all other business functions. And, importantly, don’t forget that the standard requires technical advice. You should ensure you have expert energy advice available through your Facilities Management or a third party that you can call on.
For more information on ISO 50001 Energy Management click here: https://www.bsigroup.com/en-GB/iso-50001-energy-management/
