In ISO 50001, the term objective means “results to be achieved.” No specific results are mandated by the standard, and in turn objectives are established by you so long as they are consistent with the commitments documented in the energy policy. It is important to note that the definition of objective accommodates both quantitative and qualitative results. This means that objectives can relate to the continual improvement of the energy management system (EnMS), energy performance, or other business objectives. Objectives related to improvement of the EnMS are often qualitative, although it is preferable that the improvement be quantified in some way.

Energy targets are quantifiable objectives of energy performance improvement. Energy targets can be associated with other objectives, or they can be stand-alone results to be achieved.

An important first step in establishing objectives and setting energy targets is to get the right people together and provide them with the inputs needed to develop relevant objectives and energy targets. The energy team is a key participant in this activity, but involving other functions can be beneficial if they are not already represented on the energy team.

There are specific requirements that objectives and energy targets must meet. They must be consistent with the energy policy. This means that the objectives and energy targets are the mechanisms for putting the energy policy commitments into action. For example, an objective to reduce overall energy consumption by 2022, with an energy target to reduce natural gas consumption by 5 percent by the end of this fiscal year is intended to achieve energy performance improvement, one of the commitments made in the energy policy.

Objectives and energy targets must take into account applicable requirements and opportunities for energy performance improvement. Applicable requirements include the legal, voluntary, and other requirements of interested parties that you determined in Task 2 People and Legal Requirements Affecting the EnMS. This means that you need to consider and meaningfully incorporate the potential energy improvement opportunities that you identified, prioritized, and can realistically achieve as part of the energy review in Task 10 Improvement OpportunitiesYour objectives and energy targets should focus on the requirements your organization has to meet and the potential energy projects identified as a high priority that can be achieved realistically.

Your objectives and energy targets should also consider the significant energy uses (Task 9 Significant Energy Uses (SEUs)) you have identified. The fact that significant energy uses (SEUs) must be considered in objectives and energy targets recognizes that not all SEUs may be candidates for improvement, in spite of the fact that they are major energy consumers. However, if there is an attractive improvement opportunity related to an SEU, you are encouraged to set an objective and/or energy target related to that improvement.

Other inputs that you may want to consider in the objectives and energy targets are the realities of your organization’s business and financial situation, operating conditions, and constraints. The goal is to set objectives and energy targets that are achievable and compatible, and that align with your organization’s strategic business plans and result in successful improvement of energy performance and the EnMS.

Objectives can be:

• strategic, tactical or operational.
• results to be achieved for multiple disciplines (e.g., achieve energy, environmental, and financial results).
• applied at different levels (e.g., strategic, organization-wide, project or process specific).
• expressed in different ways (e.g., aim, goal, purpose).

An example of an objective related to energy performance improvement is: “Reduce energy consumption 10 percent in five years from the 2019 baseline.”

An example of an objective related to improvement of the EnMS is: “Improve energy-related communications to on-site suppliers and contractors by the end of FY2020.”

Energy targets are quantitative and may or may not be associated with objectives.

Examples of energy targets that may or may not be associated with the previous example of an objective related to energy performance improvement are:

• “Reduce electricity consumption 5 percent compared to a 2019 baseline by the third Quarter of 2021.”
• “Reduce lighting system consumption 10 percent compared to a 2019 baseline by the end of FY 2020.”

As part of taking into account energy performance improvement opportunities in objectives and energy targets (see “Gather and review appropriate inputs” above), you may find it necessary to closely evaluate the potential energy savings associated with a specific energy opportunity to determine an appropriate objective or energy target. Or, alternatively, an objective or energy target will drive the choice of which energy opportunities are implemented to achieve that objective and/or energy target.

Objectives and energy targets must be monitored through an ongoing process of review. The extent to which objectives and energy targets have been achieved is reported to top management through the management review process (see Task 23 Management Review). Sometimes after the initial establishment of the objectives and energy targets, an organization discovers that the data or metrics needed to measure or monitor the objective and/or energy target needs to be revised.

Documented information on the objectives and energy targets must be retained. The information retained may be in any format appropriate for your organization. The optional Playbook worksheet is one tool to recording objectives and energy targets and the required inputs.

Top management is responsible for ensuring that objectives and energy targets are established, for ensuring they align with the organization’s strategic direction, and for providing the resources needed to achieve them.

Present the objectives and energy targets to management for review and approval in a clear and understandable format. Sufficient information should be provided to justify the purpose of the objective(s) and energy target(s) and its relationship to the organization’s business goals and energy policy commitments. Management approves the objectives and energy targets or provides direction for any needed changes.

The optional Playbook worksheet provides a convenient way to communicate the proposed objectives and related targets to management. This helps inform management on the relevant inputs and identifies how the objectives and energy targets will be monitored.

Once the objectives and energy targets have been approved by top management, they are broadly communicated across the organization using the communication and training processes of the EnMS (see Task 15 Awareness and Communication). Start by communicating the objectives and energy targets back to the energy team and then, to all personnel who can affect them or have a role in achieving them. While some personnel may not have direct responsibility for achieving the objectives and energy targets, broad awareness of your organization’s improvement efforts promotes a culture of energy efficiency and supports positive energy behavior.

Employees and on-site contractors will need to be aware of how they contribute to achieving the objectives and energy targets, so ensure that this information is incorporated into your organization’s EnMS Awareness Training (see Task 15 Awareness and Communication). Periodically update personnel on progress made towards achieving the objectives and energy targets, and celebrate success when they are achieved.

Review your objectives and energy targets; update as necessary and confirm that they are still aligned with the energy policy.

Confirm that you continue to document the objectives and energy targets.  They should support the goals of the energy policy and reflects the operations of the EnMS and the processes to improve energy performance.

 As part of an internal audit, interviews of office and facility personnel should include a question on awareness about any site energy objectives or targets.

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. Gather and review appropriate inputs to establish EnMS objectives and targets.  Review any inputs that may dictate or influence your GHG-related objectives and targets.  Establish GHG-related objectives and targets EnMS objectives and targets considering the documents discussed above.  The energy team should be a key participant in this activity but may choose to involve other organizational functions.
2. Obtain management approval for the objectives and targets. Top management should approve the GHG emission-related objectives and targets and understand their relationship to the organization’s GHG-related business goals and GHG-related energy policy commitments.
3. Communicate the objectives and targets. Employees and contractors need to be aware of how they contribute to achieving the GHG-related energy objectives and targets.  Make sure this is incorporated into your communication and training processes (see Task 15 Awareness and Communication).

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

1. Review and update your existing EnMS objectives and targets.  Review any inputs that may dictate or influence your GHG-related objectives and targets.  If needed update your EnMS objective and targets and, considering the documents discussed above, add GHG-related objectives and targets.  The energy team should be a key participant in this activity but may choose to involve other organizational functions.
2. Obtain management approval for the updated objectives and targets. Top management should approve the GHG emission-related objectives and targets and understand their relationship to the organization’s GHG-related business goals and GHG-related energy policy commitments.
3. Communicate the updated objectives and targets. Employees and contractors need to be aware of how they contribute to achieving the GHG-related energy objectives and targets.  Use your existing communication and training processes (see Task 15 Awareness and Communication).

The guidance for this task is from the following sections from the ERP Framework: ERP Framework Milestone 1.

After establishing the GHG inventory, the organization can define the baseline year and timeline for GHG emissions reduction targets. Target setting is typically a percent reduction in GHG emissions compared to a baseline year in a certain time frame for a specific scope (e.g., 50% reduction in Scope 1 and 2 GHG emissions by 2030 from a 2020 baseline). Some organizations may complete portfolio-level analysis prior to publicly announcing reduction targets to increase confidence in their ability to achieve the targets. (Milestone 1)

While GHG emissions reduction objectives and targets will often align with energy-related objectives and targets, there may be occasions where GHG emissions reduction objectives and targets are at odds with energy-related objectives and targets. GHG emissions might also be direct process emissions and not related to energy use. In such situations, the energy team and top management will need to review their energy policy and broader energy and environmental goals to seek alignment.

The guidance for Task 12 is found within the following section of the ERP Industrial Framework:

Milestone 1:

Set GHG emissions reduction targets – Publicly reported GHG targets provide transparency, accountability, and credibility to emissions reduction efforts. They also help organizations accurately measure and quantify emissions reductions. Setting ambitious GHG emissions targets may help increase support from senior management and secure funding for internal GHG reduction opportunities.

Define GHG emissions reduction targets relative to a baseline year representing typical operations, with clear deadlines. Organizations may set multiple targets on different time scales – long-term, ambitious goals (e.g., net-zero emissions by 2050) combined with interim goals on shorter time scales (e.g., 50% reduction by 2030).

Targets should be set with buy-in from corporate leadership, and should be aligned with other strategic goals. For example, in the process of setting a GHG emissions reduction target, organizations may also set an energy intensity reduction target or a renewable electricity procurement target. Whether aligning with pre-existing targets or setting new ones, these targets must be weighed simultaneously as the overall GHG target is defined as they may impact progress towards the GHG target. The same is true for sub-targets that apply to specific subsets of the organization, for example, targets that apply to a specific region or business unit.

Objectives and water targets, along with their related action plans (see Task 13: Action Plans for Continual Improvement) are important outputs of the planning process and a key driving force for water management. Establishing water use reduction objectives and water efficiency performance targets will help drive the organization’s continual improvement of water use efficiency.

Once the water management team understands how the facility is currently using water, the next step in the water management planning process is to gather building owners, facility management staff, senior management, and any other key decision-makers to develop a list of water management goals and policy initiatives. Employees from all different parts of the organization should be included in the goal-setting process to obtain a range of perspectives and promote a sense of ownership. The goals will drive the water management program and help fuel continuous improvement.

In setting water-related objectives and targets, consider the following:

• Any applicable water-related requirements from your corporate offices or others that you determined in Task 2: People and Legal Requirements Affecting the EnMS
• The potential water efficiency improvement you identified and prioritized in Task 10: Improvement Opportunities
• The significant water uses you identified in Task 9: Significant Energy Uses (SEUs)
• Any financial, operational, or business constraints

To develop a comprehensive strategic plan, the facility or agency should set specific water use reduction targets. An agency should coordinate these targets with a federal water-efficiency policy such as Executive Order (E.O.) 14057 (replacing E.O. 13834) or the Energy Independence and Security Act of 2007.

Objectives can be strategic, tactical, or operational, and can be expressed in different ways. Two common ways to express water objectives are as (1) absolute water use reductions over a defined period of time (example: reduce water use by 45 percent below 2000 levels by 2030), and (2) intensity of water use reductions relative to a business metric over time (example: reduce water use by 12 percent per building occupant between 2020 and 2028).

Water-related targets should provide a quantifiable objective of water performance improvements. For example:

• Reduce irrigation water use by 20 percent compared to a 2019 baseline by the end of the fourth quarter of 2021.
• Reduce steam system water use by 15 percent compared to a 2019 baseline by the end of the fourth quarter of 2021.

When your energy team sets objectives, consider the results your organization is seeking related to energy performance improvement. Be sure the targets set are quantifiable. The Energy Objectives and Targets Worksheet in the Playbook for task 12 is very helpful for organizing and documenting your objectives and targets, and the Full Description text under task 12 in the 50001 Ready Navigator provides example objectives and targets to help kickstart the energy team’s brainstorming process. Additional examples can be found in the example hotels Playbook for task 12.

Objectives and information on when the objectives will be completed is required by ISO 14001:2015 and ISO 9001:2015. The processes used to establish environmental and/or quality objectives may be suitable for setting objectives and energy targets for the ISO 50001:2018 system. Different personnel may be involved, but the overall objectives-setting process could be the same. Often, the setting of quality, environmental, safety and health, and energy objectives are part of the outcome of the organization’s annual process for setting its overall business objectives. Note that unlike ISO 50001, ISO 14001 and ISO 9001 do not use the construct of “targets.” Also, ISO 50001:2018 contains additional requirements for objectives and energy targets that are not present in ISO 9001 or ISO 14001.

Your organization may have already established objectives and energy performance improvement targets using guidance from step 3.3 and 4.1 of the ENERGY STAR^® Guidelines for Energy Management. This 50001 Ready Navigator task provides specific guidance to ensure your organization’s objectives and energy targets meet the criteria specified in the ISO 50001 standard.