Energy performance indicators (EnPIs) are developed using the information from the energy review (Task 8 Energy Data Collection and Analysis). The responsibility for developing a list of potential EnPIs typically is left to the energy team and others assigned to assist. Top management is responsible for ensuring that the EnPIs appropriately represent energy performance. Most often, this is accomplished through the management review process (see Task 23 Management Review).

It may be necessary to develop different EnPIs for different stakeholders. Stakeholder needs can vary significantly, and their requirements should be considered in EnPI development. Top management typically will be interested in an EnPI that is related to your organization’s strategic business goals and improves the bottom line. Operations or production personnel may want a metric that provides guidance for operating equipment and systems at maximum efficiency. External agencies may require specific performance metrics to provide information related to regulatory or other requirements.

While there are no limits on the number of EnPIs that your organization can have consider selecting a handful that provide immediate value to key stakeholders. It is recommended that each SEU should have one associated EnPI. EnPIs should be developed so you have an ability to monitor energy performance and demonstrate energy performance improvement of SEUs and other parts of your organization that are of interest.

ISO 50001 requires organizations to demonstrate energy performance improvement. This requirement necessitates the development of at least one EnPI and EnB. There is no requirement for what scope and boundaries for which energy performance improvement needs to be demonstrated. If you are planning on seeking 50001 Ready recognition for this project please refer to the, “Get Ready Recognized,” page to ensure you select an EnPI, EnB, and method for demonstrating energy performance improvement allowed by the recognition program. To achieve Ready recognition energy performance improvement is demonstrated for the same scope and boundaries as your 50001 Ready EnMS.

The meaning and usefulness of an EnPI may be enhanced if it is normalized by a relevant variable that affects the energy consumption pertaining to the EnPI. See Task 8 Energy Data Collection and Analysis for additional details on relevant variables

EnPIs are typically established in one of three forms:

• a single metric, such as consumption;
• a ratio or per unit basis such as Btu/square foot or Btu/pound or Btu/unit; or
• a numerical model that accounts for one or more relevant variables.

A single metric, such as consumption, is frequently adequate to determine and monitor energy performance if the equipment, system, or process is not affected by other variables or if the relevant variables are constant. Single metrics are also easily conveyed to those not familiar with the details of energy uses or who wish to connect energy consumption to financial costs and environmental impacts.

A ratio or a per unit basis EnPI may be desired so it is possible to make comparisons over time at different output levels or at different locations of a similar process. These EnPIs typically relate energy consumption, cost, or environmental impact to an appropriate organizational output. One form of a ratio EnPI that relates performance to production or to one single output is commonly referred to as simple energy intensity. An energy intensity EnPI is defined and calculated by dividing energy consumption by productive output for an organization, site, department, product, equipment, system, process, or other part of the organization under consideration.

When calculating the EnPI, the energy measurement must accurately capture energy consumption for the unit under consideration, and the chosen unit, such as production measure, must cover the same time frame as the energy consumption.

A numeric model may provide a more meaningful measure of energy performance than a single metric or simple ratio to accurately represent the relationship between operational activities and energy consumption. In this case, more sophisticated models that allow the use of one or more factors for estimating energy consumption may be required. Depending on your needs, regression analysis or calculations using engineering theory may be required to provide a sufficiently accurate model. Modeling based on regression analysis or engineering theory can be complex, and typically requires analysis by someone skilled in the systems, processes, operations, or equipment being modeled. The U.S. Department of Energy offers a regression-based tool called the Energy Performance Indicator Tool Lite. If you are located outside the US, please consult your program administrators program guide for tools available in your area.

An energy baseline (EnB) is the quantitative reference(s) for comparing current EnPI values to determine if energy performance has improved. Typically, EnBs are associated with EnPIs and represent the value of an EnPI during a time interval known as the baseline period. Like EnPIs, the EnB can be established at any level of your organization. An EnB can be established for the entire site and/or there can be baselines for individual equipment, systems, or processes. The following inputs will help you determine the appropriate EnBs:

• How will each EnPI be used for evaluating energy performance? Is there a logical EnB for each?
• What are the historical changes to site, equipment, systems, processes, or organization that would change how energy performance is evaluated?
• What stakeholder interests should be considered when establishing EnB for the EnPI?
• Are there strategic initiatives that would be measured or influenced by one or more of the established EnPIs? Is there an EnB associated with these strategic initiatives?
• What are the historical periods that have reliable, consistent data for the established EnPIs?

The answers to these questions will help identify the relevant EnBs for the established EnPIs.

Documented information must be maintained on the methods you use to determine and update your organization’s EnPIs. Some organizations document their methods within an energy manual, which is not required but can be useful as a “roadmap” to the energy management system (EnMS). Other organizations address their methods for determining and updating EnPIs within an energy planning procedure. How and in what format the documented information is maintained is up to your organization.

EnPI values are reviewed and compared to their respective EnBs, as appropriate. Typically, this is done on a regular basis to ensure continuing applicability for the energy performance being measured. Changes in site, equipment, systems, processes, operating procedures, materials, relevant variables, and many other factors could result in a change in the validity of the EnPI used to measure energy performance. When changes occur, they are evaluated so the EnPI can be updated as needed. Recall that top management is responsible for ensuring that the EnPIs are appropriate for the organization (see Task 4 Management Commitment). As changes occur that affect the validity of the EnPIs, this information is included in Task 23 Management Review.

Calculated EnPI values and their associated EnBs are retained as documented information and periodically reviewed to determine if adjustments are required.

The process of updating EnPIs should include an evaluation of the EnBs to determine if they remain a meaningful point of comparison to determine energy performance improvement. Adjustments to an EnB should be made in the following instances:

• When the EnPIs no longer accurately reflect the organization’s energy performance
• When there are major changes to static factors, the process, operational patterns, or energy systems
• According to a predetermined method

Records of modifications and updates to EnBs must be retained. Maintaining EnBs keeps the measures of energy performance relevant and meaningful.

Calculated EnPI values and EnBs should be recorded and reviewed on a regular basis. Updated EnPIs and EnBs are an input to management review (Task 23 Management Review) and used to help monitor energy performance and demonstrate energy performance improvement. These metrics can be used to verify the success of activities such as energy-efficiency projects, operator or maintenance personnel energy-efficiency training, and energy management awareness programs. This provides a positive message for middle and top management to build support for the EnMS. Improvements in EnPIs are indicators of growing sophistication of the EnMS. Accurately recording and storing EnPIs and EnBs creates a historical registry that will display the impact of energy management practices over time.

The components of EnPIs that are measured or calculated will be managed for accuracy and repeatability in the energy data collection plan (addressed in Task 8 Energy Data Collection and Analysis). Top management’s review of energy performance must include a review of performance as determined by the EnPIs and the related EnBs. Top management must ensure changes are made when these metrics are no longer appropriate.

Review your EnPIs and confirm that they are still relevant and appropriate.  Also review the methodology for updating EnPIs and update as needed.

Consider revising the EnBs only if any of the following apply:

• EnPIs no longer reflect your energy performance
• there have been major changes to static factors
• you previously established a methodology for revising your EnBs

EnPIs can take many forms and should be appropriate to the processes, systems, and complexity of the EnMS.

Types of EnPIs can include:

• A single metric, such as energy consumption (kWh, MMBTU)
• A ratio or per unit basis, such as MMBTU/ton, MMBTU/sqft, kWh/widget
• A numerical model that accounts for one or more relevant variables, such as Y = (M1 x Product1) + (M2 x CDD) + B

EnBs are the historical record for the selected EnPIs.  The EnPIs are compared to the EnBs to determine energy performance improvement.

If you do not have an existing 50001 Ready-based EnMS and want to build one that also helps your organization manage GHG emissions, you should follow the guidance in the “Full Description” tab keeping the following in mind:

1. Establish energy-related GHG emission performance indicators.   Establish energy-related GHG emissions performance indicators following the guidance above.  Keep in mind that different indicators might be needed for different internal and external stakeholders.
2. Establish energy-related GHG emission baselines.  Establish baselines for any energy-related GHG emissions performance indicators.  Ensure the baselines meet both your internal and external stakeholder interests.  Records of modifications and updates to both performance indicators and baselines must be retained.
3. Create a methodology for determining and updating energy-related GHG emissions performance indicators.  Create a methodology for determining and updating performance indicators based on the new energy-related GHG emissions performance indicators and baselines. Keep in mind the frequency of GHG-related reporting needed by different GHG emissions-related stakeholders.
4. Create a methodology for adjusting energy-related GHG emissions baselines.  Create a methodology for reviewing performance indicators and baselines based on the new energy-related GHG emissions performance indicators and baselines. 
5. Create a process for monitoring and analyzing energy-related GHG emissions performance indicators.  Create a process to monitor and analyze EnPIs and energy-related GHG emissions performance indicators. Updates to energy-related GHG emissions performance indicators and baselines should be inputs to the management review (Task 23 Management Review).
6. Review your process for monitoring and analyzing EnPIs.  Monitor and analyze the energy-related GHG emissions performance indicator values.  Updates to energy-related GHG emissions performance indicators and baselines should be included as inputs to the management review (Task 23 Management Review)

If you have an existing 50001 Ready-based EnMS and want to adapt it to manage energy-related GHG emissions, you should:

1. Review your current EnPIs and add energy-related GHG emission performance indicators.   Review your current list of EnPIs to determine which additional energy-related GHG emissions performance indicators should be established.   Keep in mind that different indicators might be needed for different internal and external stakeholders.
2. Review your current energy baselines and add energy-related GHG emission baselines.  Establish baselines for any energy-related GHG emissions performance indicators.  Ensure the baselines meet both your internal and external stakeholder interests.  Records of modifications and updates to both performance indicators and baselines must be retained.
3. Review your methodology for determining and updating EnPIs.  Review and revise your methodology for determining and updating performance indicators based on the new energy-related GHG emissions performance indicators and baselines. Keep in mind the frequency of GHG-related reporting needed by different stakeholders.
4. Review your process for adjusting EnBs.  Review your process for reviewing performance indicators and baselines based on the new energy-related GHG emissions performance indicators and baselines. 
5. Review your process for monitoring and analyzing EnPIs and energy-related GHG emissions performance indicators.  Updates to energy-related GHG emissions performance indicators and baselines should be included as inputs to the management review (Task 23 Management Review).

The guidance for this task is from the following sections from the ERP Framework: ERP Framework Milestone 2.

As mentioned earlier in Task 8 (Energy Data Collection and Analysis), the IMP ensures standardization and repeatability in methods of calculating and reporting GHG emissions year over year by documenting the organization’s process for data management, methods to quantify emissions and methods for auditing and verification. Make sure that the IMP clearly defines energy performance indicators as well as energy baselines and methodologies for determining and updating them.

Next, select the key characteristics that will be used to prioritize and categorize the buildings in the portfolio. When selecting characteristics, consider what differentiates buildings within the portfolio. An organization with similar building types across the country might identify climate zone and energy prices as key characteristics, while an organization with many buildings in one location might identify building type and HVAC system as key characteristics. The table below lists common building characteristics that can be used to help prioritize and categorize buildings in the portfolio. GHG emissions intensity or site energy use intensity should always be selected as a characteristic. (Milestone 2)

Most Common Building Characteristics Used in Portfolio Categorization

Many organizations find it useful to pair either GHGI and total GHG emissions or EUI and total energy use so that both total emissions and emissions intensity are captured. Though organizations are more familiar with a site’s EUI than GHGI, EUI does not adequately capture the difference in emissions intensity between different fuels (such as natural gas and electricity) or the variation in electrical grid carbon intensity between regions. Organizations can apply the same emissions factors used in their GHG inventory to calculate GHG intensity on a building level. However, some organizations may find EUI more readily available at this step of their emissions reduction planning efforts. If EUI or energy use are selected as a characteristic, then an additional characteristic such as on-site fossil fuel combustion should be included to help portfolios target high natural gas-consuming buildings. (Milestone 2)

Other common characteristics include building type, HVAC system type, and climate zone. These characteristics can be paired to identify solutions appropriate to specific groups of buildings. For example, an organization may look at groups of buildings that have packaged gas-fired units in warm climates and packaged gas-fired units in cold climates to identify appropriate heat pump solutions for both groups of buildings. Additionally, organizations may want to consider groups of buildings with and without planned renovations or major equipment reaching end-of-life. This will ensure that strategies for both situations are identified. (Milestone 2)

Establishing a baseline is as important for GHG emissions as it is for energy, and that GHG emissions baseline will be determined based on the GHG inventory.  Comparing the baseline GHG inventory to emissions reduction potential and achieved targets can serve as performance indicators for emissions reductions.

The guidance for Task 11 is found within the following sections of the ERP Industrial Framework:

Milestone 1:

Establish a greenhouse gas inventory management plan – Develop and document standardized data management processes and methods to collect, quantify, verify, and roll up emissions data from the facility level to the portfolio level to create a GHG inventory. Many organizations may have already completed a GHG inventory and have these processes in place; it may be worth revisiting them for completeness, however. Inventories should follow the Greenhouse Gas Protocol and cover all significant sources of GHG emissions. At a minimum, inventories must include all direct emissions from sources owned or operated by the organization, such as boilers, furnaces, and vehicles (Scope 1) as well as indirect emissions associated with purchased energy such as electricity (Scope 2). In addition to energy-related emissions, Scope 1 emissions may also include non-energy emissions, such as direct process emissions from certain industrial processes or leaks of fluorinated gases or other GHGs. Indirect emissions that occur in the value chain, both upstream and downstream, may also be included (Scope 3).

Define evaluation criteria – Emission reduction potential is the amount a given project, measure, or scenario will reduce GHG emissions, relative to the baseline. In general, this should be the primary metric considered by plan developers; functionally, it is the metric that defines success or failure of the plan. Emission reduction potential of individual projects will likely depend on what other projects are implemented (e.g., electrifying a thermal process will have a greater emission reduction potential if the facility is powered by renewable electricity). Other considerations will be important as well, depending on organizational priorities.

Milestone 2:

Characterizing the portfolio by magnitude of emissions, organizations should select other useful characteristics to sort or order their portfolio. This allows an organization to direct its focus, understand commonalities across the portfolio, and identify key metrics they can use to benchmark performance. Finding commonalities via a methodical portfolio characterization will ultimately enable organizations to quickly scale the implementation of decarbonization projects via repetition of successful strategies across similar systems or facilities.

Benchmark SGEs - Benchmark SGEs relative to similar systems to gauge performance. This can be done internally (e.g., across facilities within the same portfolio) or externally, depending on data availability. In the absence of reliable data on comparable systems, SGEs can instead

be benchmarked against their own past performance. Benchmarking can be used to identify best practices and ideal operating conditions as well as opportunities for performance improvement.

To ensure the success of your water management efforts, you need to understand your baseline water consumption and determine water management performance indicators. FEMP’s Water Manual section 4.6 (Track and Report Performance) provides guidance that could help you accomplish this task.

A key element of a good water management program is to track performance. All water equipment and system performance must be measured throughout its life to ensure proper operations, maintenance, and repair. In addition, water savings must be measured and verified. Quantitative metrics for tracking water efficiency improvement help you to verify the success of your projects and investments in efficiency. The process of determining water performance indicators is similar to that of determining the energy performance indicators as described in the 50001 Ready Navigator.

After determining the right performance metrics for your water management system, determine baseline measurements for each metric. The first step in developing a baseline should be collecting water use data. After collecting water use data, the following steps need to be taken:

• Determine a baseline annual water use for a specific year or an average water use over several years. If monthly data are available, plot the monthly use over time. Is water use increasing, decreasing, or steady?
• Try to determine what caused the major trends. Is there a seasonal pattern to water use? This is often the case when irrigation water is used, or cooling water demand increases in the summer months. Analyzing the data in this way will help you understand current water use trends.
• Continue to plot total water use as new water bills become available. Also, plot any available submetered data. Evaluate trends and investigate and resolve any unexpected deviations in water use.

• Consider incorporating water-efficiency policies and goals into the facility’s environmental management system (EMS), if one has been developed, and track progress on the goals through the EMS process.

Tools and Resources:

• Water Metering Resources (https://www.energy.gov/eere/femp/water-metering-resources)
• Metering in Federal Buildings (https://www.energy.gov/eere/femp/metering-federal-buildings)

It is essential for sites to establish relevant and reliable metrics for understanding the degree to which energy practices are improving, and as such, users should accomplish this through the identification of EnPIs. For hotels, energy consumption per gross square foot is one logical EnPI for this task.  The example hotels Playbook for task 11 provides additional examples.

There is a requirement in the ISO 50001: 2018 standard that “the organization shall demonstrate continual energy performance improvement” (section 10.2). The selection of EnPIs and their associated EnBs is critical to achieving this continual improvement.

This Navigator task may be used to establish the appropriate EnPIs for measuring energy performance and assessing compliance with any energy reduction targets you have established.

Developing EnPIs through this task can be used as a means for demonstrating progress towards compliance with any internal or corporate goals and targets.

Both ISO 14001:2015 and ISO 9001:2015 management systems involve the use of indicators, but not necessarily EnPIs. However, existing processes used to determine appropriate indicators for environmental or quality likely could be applied to determining EnPIs appropriate for an ISO 50001:2018 EnMS.

ISO 14001:2015 uses indicators to evaluate progress towards environmental objectives. Since ISO 14001 also requires the determination of the criteria against which environmental performance is evaluated, some organizations may be using environmental indicators to evaluate energy performance as well. In ISO 9001:2015, indicators are focused on effective operation and control of processes. Indicators in ISO 50001:2018 are quantitative values or measures of energy performance.

Overall, indicators in these standards are different from one another in terms of focus and purpose. But, organizational familiarity with the development and use of indicators can be helpful in implementing EnPIs for an ISO 50001 EnMS. Neither ISO 9001 or ISO 14001 include the concept of baselines.

Your organization may already be using energy performance indicators (EnPIs) to monitor, measure and evaluate energy performance. Steps 3.2, 4.1, 5.5, 6.0, and 6.1 of the ENERGY STAR^® Guidelines for Energy Management provide tips related to this topic, including establishing EnPIs such as Btu/square foot or Btu/product. Energy performance indicators used in the ENERGY STAR program may be applicable to the EnMS but should be reevaluated to ensure all EnMS requirements are met. And, Appendix 4 of the ENERGY STAR guidelines provides detail on normalizing data. This 50001 Ready Navigator task provides additional guidance, and U.S. Department of Energy tools referenced in this task can help your organization establish a simple energy model that is often a more meaningful measure of energy performance than a single metric or simple ratio, to accurately represent the relationship between operational activities and energy consumption.