Energizing Energy Efficiency – Management Course
Energy Efficiency Methodology, Workshop Exercise A – Meeting with Top
Management
Explanation of the Energy Management Matrix
The Energy Management Matrix (“Matrix”) is shown in the next page. It can give an insight into
the way a company manages its energy. The Matrix includes six energy management
components:
 Policy & systems: does the company have policies and management systems for energy/
environment?
 Organization: are there organizational structures in place to facilitate energy/ environmental
management?
 Motivation: are staff encouraged to improve energy/resource efficiency?
 Information systems: are information systems effective to measure and communicate energy/
environmental performance?
 Training & Awareness: are staff sufficiently trained and aware to be able to improve energy/
resource efficiency?
 Investment: is energy/ environment considered explicitly when investment decisions are
made?
For each component the company will be at level 0 (lowest), 1, 2, 3 or 4 (highest level).
At the meeting with top management of a company (task 1a of the methodology), the
assessor/auditor has to find out where on the Matrix this company is by asking questions for each
component. Based on the answers a bullet is put in the right level, and a line is drawn to connect
the bullets.
The results of the Matrix can be used for:
 Task 1b: forming a team (maybe the team can be based on an existing energy / environmental
committee)
 Task 1c: pre-assessment (after filling out the matrix you should know who to get information
from and what information is available)
 Task 1e: preparing assessment proposal for top management approval (the results of the
Energy Management Matrix will have an influence on the approach, the team, time planning
and budget)
 Task 3b: identifying options (options to improve energy management at the company fall
under “improved process management” options)
Energizing Cleaner Production – Training Package
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WORKSHEET 2: ENERGY MANAGEMENT MATRIX1
LEVEL
1
POLICY AND
SYSTEMS
ORGANIZATION
MOTIVATION
INFORMATION
SYSTEMS
TRAINING AND
AWARENESS
INVESTMENT
4
Formal energy /
environmental policy
and management
system, action plan
and regular review
with commitment of
senior management or
part of corporate
strategy.
Energy / environmental
management fully
integrated into
management structure.
Clear delegation of
responsibility for energy
use.
Formal and informal
channels of
communication
regularly exploited by
energy /environmental
manager and staff at
all levels
Comprehensive system
sets targets, monitors
materials and energy
consumption and wastes
and emissions, identifies
faults, quantifies costs
and savings and provides
budget tracking
Marketing the value
of material and energy
efficiency and the
performance of energy
/ environmental
management both
within the
organisation and
outside it.
Positive discrimination
in favour of energy /
environmental saving
schemes with detailed
investment appraisal of
all new build and plant
improvement
opportunities
3
Formal energy /
environmental policy,
but no formal
management system,
and with no active
commitment from top
management
Energy / environmental
manager accountable to
energy committee, chaired
by a member of the
management board
Energy /
environmental
committee used as
main channel together
with direct contact
with major users
Monitoring and targeting
reports for individual
premises based on submetering / monitoring,
but savings not reported
effectively to users
Programme of staff
training, awareness
and regular publicity
campaigns
Same pay back criteria
as for all other
investments. Cursory
appraisal of new build
and plant improvement
opportunities.
2
Unadopted / informal
energy /
environmental policy
set by energy /
environmental
manager or senior
departmental manager
Energy / environmental
manager in post, reporting
to ad-hoc committee but
line management and
authority are unclear
Contact with major
users through ad-hoc
committee chaired by
senior departmental
manager
Monitoring and targeting
reports based on supply
meter /measurement data
and invoices. Env. /
energy staff have ad-hoc
involvement in budget
setting.
Some ad hoc staff
awareness and
training
Investment using short
term pay back criteria
mostly
1
An unwritten set of
guidelines
Energy / environmental
management the part-time
responsibility of someone
with only limited influence
or authority
Informal contacts
between engineer and
a few users
Cost reporting based on
invoice data. Engineer
compiles reports for
internal use within
technical department
Informal contacts used
to promote energy
efficiency and
resource conservation
Only low cost measures
taken
0
No explicit policy
No energy / environmental
manager or any formal
delegation of
responsibility for env /
energy use.
No contact with users
No information system.
No accounting for
materials and energy
consumption and waste
No awareness raising
of energy efficiency
and resource
conservation
No investment in
increasing
environmental
performance / energy
efficiency in premises
Modified from BRESCU (Building Research Energy Conservation Support Unit) and the Sustainable Energy Authority of Victoria, Australia, www.seav.vic.gov.au
Energizing Cleaner Production – Training Package
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Workshop exercise - AUDITOR
This workshop exercise is a role play. One person is the auditor and 1 person is the company’s
managing director. Below is the information for the auditor.
You are the auditor and have a meeting with the company’s managing director. You have to
determine how well the company manages energy by filling out the Energy Management Matrix.
During the meeting, introduce yourself, and explain that you want to get an understanding of the
company’s systems and processes that are in place to manage energy before you start with the
energy assessment.
Then you have to ask questions for each Matrix category. Suggested questions are included
below, but you can also make up your own questions. Based on the managing director’s answers
you can put a bullet in the matrix under each category and connect the bullets to draw a line.
Suggested questions are:
Policy & systems
Is there a formal energy / environmental policy? (ask for a copy)
Is there a formal energy / environmental management system (ask to see copy of manual, ISO
14001 certificate)
What role does top management play?
Organization
Is there a person or department responsible for energy / environmental management? (ask for
name, title and department, and if this person reports to management)
Is there an official committee that deals with energy / environmental issues? (ask name of
committee, who is in it, if a management representative is in this committee, are meeting
minutes prepared).
What role does top management play?
Motivation
How are staff motivated to come up with new ideas for energy / environmental improvements?
(ask what type of communication like meetings, newsletters, notice boards; who communicates
with staff; which staff are covered)
Does the company give rewards or recognise staff for good ideas? (ask how)
What role does top management play?
Information systems
What energy / environmental data are collected? (ask if this covers: energy, greenhouse gas
emissions, materials, water, waste, other emissions; ask if it covers quantities, costs, savings)
How are data collected (from supplier invoices meters or measured by the company) and at what
level (at plant level or for each department / production process also) and how often (daily,
monthly, quarterly, annually)?
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What information is reported to top management (how, by whom and how often, e.g. Monthly
Management Report, ask for a copy!) and what does management do with this information (e.g.
set targets, determine future energy consumption, give feedback to departments)?
Training and awareness
Is there training for staff on energy / environmental management and conservation? (ask who is
trained, what the training is about, who gives the training)
Is there awareness raising for staff on energy / environmental management and conservation?
(ask how awareness is raised, what the awareness is about, for which staff, who does the
awareness raising)
Is there marketing of the importance and results of energy and environmental management
outside the organization? (ask to whom, how often, how this is done, does this include energy
and greenhouse gas emissions)
Investment
What is the process for evaluating and approving projects? (ask who needs to approve, are there
any standard forms or procedures, how long this takes, if it needs to coincide with budgeting
process)
What criteria are used for the evaluation of any projects (e.g. impact on safety, labour and
product quality, investment costs, savings, payback period, ease of implementation etc)? Are
energy and greenhouse gas emissions considered in all project evaluations?
What are the minimum criteria that a project (including an energy project) must meet? (ask
maximum investment, maximum pay back period e.g. 2 years, so that you know if you can look
at all options later, or maybe just as low cost options with a short payback period)
Have there been projects that were not implemented? (ask why!)
Energizing Cleaner Production – Training Package
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Workshop exercise – COMPANY’S MANAGING DIRECTOR (1)
This workshop exercise is a role play. One person is the auditor and 1 person is the company’s
managing director. Below is the information for the managing director of a multinational
company.
You are the company’s Managing Director and have a meeting with an auditor who wants to
carry out an energy assessment of your plant. You don’t know what he will be asking, but your
answers should be based on the information about your company provided below.
Your plant is based in a developing country and part of a multinational from Europe and employs
570 staff. Head office has been making environmental management a priority over the last years
and wants you to do more in this area. So far you have a written environmental policy that also
covers energy and that was signed by yourself. You also have appointed an Environmental
Manager who is part of the Production Management Team and reports directly to you. This
committee is responsible for informing senior management about production aspects, including
environmental performance, through meeting minutes and the monthly Management Reports.
However, you rely on departmental team meetings for improvement suggestions. All
environmental and energy improvement options have to go through the regular decision-making
process, require approval by the Senior Management Team and are treated the same as other
investments. One important criterion is that the payback period is less than 2 years, except for
options that cost less than US$5000. For example, a proposal to install a new crusher was
rejected because the investment costs were too high and the payback period was almost 5 years.
You are implementing an environmental management system in accordance with ISO 14001
because this is required by head office, but this will not be ready until early next year. The
existing information system already includes the collection and reporting in the Management
Report of key environmental and energy data and costs. These data are monitored for each
department, such as fuel and electricity consumption, water usage, but no data is gathered for
waste and emissions. There are also targets for each parameter and energy use is now a selection
criterion for all investment decisions. There is an extensive training program for senior
management but it is left to the department heads to organize training for staff if needed and the
department heads should also make staff aware of the importance of energy and environmental
management, although at this stage this is rather informal and infrequent. Communication is
limited to within the company and you report to head office and local authorities only what is
strictly necessary. You are simply too busy to communicate with anybody else.
Energizing Cleaner Production – Training Package
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Workshop exercise – COMPANY’S MANAGING DIRECTOR (2)
This workshop exercise is in the form of a role play. One person is the auditor and one person is
the company’s managing director. Below is the information for the managing director of a
small/medium family-owned business.
You are the company’s Managing Director and have a meeting with an auditor who wants to
carry out an energy assessment of your plant. You don’t know what he will be asking, but your
answers should be based on the information about your company provided below.
Your plant is a family-owned business since five generations located in a developing country
with about 80 staff. As competition is fierce you have to be focused on reducing costs all the
time, and energy is a large proportion of your production costs. Therefore all staff know the
senior management’s policy to reduce energy, although this was never formally put in writing.
You are proud of your staff as they are very motivated to help reduce costs wherever they can.
Staff are made aware of this during the monthly meetings that all staff and senior management
attend, during team meetings and even during casual conversations between management and
staff because you often walk through the plant. Suggestions to reduce energy and costs are raised
frequently by staff even though it is not clear who should follow up on these. But you have
implemented many options already. One month ago a staff member suggested turning off the
fans inside the factory when the temperature was below 25oC and you rewarded him with a
dinner voucher. Energy management is part of every staff’s task, although the Production
Engineer takes a bigger role in energy management which has been included as one of his tasks
in his job description. All staff receive training on a regular basis and this also covers energy and
environmental issues because this is part of production.
The existing information system collects key environmental and energy data and costs. These
data are monitored for each department, such as fuel and electricity consumption, water usage,
but no data is gathered for waste and emissions. There are also targets for each parameter
although these are not written down. The data are included in monthly Production Reports of
which management gets a copy for their information. Local authorities get information only
when they ask for it so no one outside the company really knows about past efforts to improve
energy and resource efficiency.
As a relatively small family business it is more difficult to raise funds for investments in the
plant. Therefore investments in options to improve energy efficiency have to pay themselves
back quickly, preferably within one year. A consultant suggested to install Variable Speed
Drives on the fans but this was simply too expensive and you are not sure if it actually would
result in the high electricity savings that the consultant promised. This is different for
investments to expand production because the demand for your product is high.
Energizing Cleaner Production – Training Package
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WORKSHEET 2: ENERGY MANAGEMENT MATRIX
LEVEL
POLICY AND
SYSTEMS
ORGANIZATION
MOTIVATION
INFORMATION
SYSTEMS
TRAINING AND
AWARENESS
INVESTMENT
Formal energy /
environmental policy
and management
system, action plan and
regular review with
commitment of senior
management or part of
corporate strategy.
Energy / environmental
management fully
integrated into
management structure.
Clear delegation of
responsibility for energy
use.
Formal and informal
channels of
communication
regularly exploited by
energy /environmental
manager and staff at all
levels
Comprehensive system sets
targets, monitors materials
and energy consumption and
wastes and emissions,
identifies faults, quantifies
costs and savings and
provides budget tracking
Marketing the value of
material and energy
efficiency and the
performance of energy
/ environmental
management both
within the organisation
and outside it.
Positive discrimination in
favour of energy /
environmental saving
schemes with detailed
investment appraisal of all
new build and plant
improvement opportunities
3
Formal energy /
environmental policy,
but no formal
management system,
and with no active
commitment from top
management
Energy / environmental
manager accountable to
energy committee, chaired
by a member of the
management board
Energy / environmental
committee used as
main channel together
with direct contact with
major users
Monitoring and targeting
reports for individual
premises based on submetering / monitoring, but
savings not reported
effectively to users
Programme of staff
training, awareness and
regular publicity
campaigns
Same pay back criteria as
for all other investments.
Cursory appraisal of new
build and plant
improvement
opportunities.
2
Unadopted / informal
energy / environmental
policy set by energy /
environmental
manager or senior
departmental manager
Energy / environmental
manager in post, reporting
to ad-hoc committee but
line management and
authority are unclear
Contact with major
users through ad-hoc
committee chaired by
senior departmental
manager
Monitoring and targeting
reports based on supply
meter /measurement data and
invoices. Env. / energy staff
have ad-hoc involvement in
budget setting.
Some ad hoc staff
awareness and training
Investment using short
term pay back criteria
mostly
1
An unwritten set of
guidelines
Energy / environmental
management the part-time
responsibility of someone
with only limited influence
or authority
Informal contacts
between engineer and a
few users
Cost reporting based on
invoice data. Engineer
compiles reports for internal
use within technical
department
Informal contacts used
to promote energy
efficiency and resource
conservation
Only low cost measures
taken
0
No explicit policy
No energy / environmental
manager or any formal
delegation of responsibility
for env / energy use.
No contact with users
No information system. No
accounting for materials and
energy consumption and
waste
No awareness raising
of energy efficiency
and resource
conservation
No investment in
increasing environmental
performance / energy
efficiency in premises
4
Multinational
Family
owned
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