Improving energy performance within the framework of the Energy Efficiency

Directive

JESSICA WILHELMSSON SIGNE ÅKERBLOM

Master of Science Thesis Stockholm, Sweden 2015

Förbättra energiprestanda inom ramen för Energieffektiviseringsdirektivet

JESSICA WILHELMSSON SIGNE ÅKERBLOM

Examensarbete Stockholm, Sverige 2015

Improving energy performance within the framework of the Energy Efficiency Directive

Jessica Wilhelmsson Signe Åkerblom

Master of Science Thesis KTH School of Industrial

Engineering and Management Energy Technology EGI-2015-029MSC

Division of Energy Systems Analysis SE-100 44 STOCKHOLM

Master of Science Thesis INDEK 2015:67 KTH Industrial Engineering and

Management Industrial Management

SE-100 44 STOCKHOLM

Förbättra energiprestanda inom ramen för Energieffektiviseringsdirektivet

Jessica Wilhelmsson Signe Åkerblom

!

Examensarbete KTH Industriell teknik och

management Energiteknik EGI-2015-029MSC

Avdelningen för Energisystemsanalys SE-100 44 STOCKHOLM

Examensarbete INDEK 2015:67 KTH Industriell teknik och

management Industriell ekonomi och organisation

SE-100 44 STOCKHOLM

Master of Science Thesis INDEK 2015:67

Master of Science Thesis EGI 2015:029

Improving energy performance within the framework of the Energy Efficiency Directive

Jessica Wilhelmsson

Signe Åkerblom

Approved

2015-06-08 Examiner

Cali Nuur Mark Howells

Supervisor

Staffan Laestadius Mark Howells

Commissioner

N/A Contact person

N/A

Abstract It! is! necessary! for! large! companies! to! understand! and! be! able! to! adapt! to! the! industrial!transformation!towards!an!increasing!focus!on!energy!efficiency,!which!takes!place!today.!The!Energy!Efficiency!Directive!(EED)!issued!by!the!European!Union!has!enlarged!the!focus!on! working! with! energy! efficiency! within! large! companies.! Further,! the! Swedish!government! has! introduced! the! law! about! energy! auditing! in! large! companies,! which! is!based! on! the! EED.! These! regulations! encourage! companies! to! develop! a! management!system!that!includes!requirements!on!conducting!energy!audits!and!propose!costDeffective!measures.!!Energy! efficiency! is! already! an! important! aspect!within!many! companies! environmental!work,!however!a!more!developed!and!systematic!approach!to!energy!efficiency!than!most!companies!already!have!is!needed!in!order!to!fulfill!the!legal!requirements.!The!Company!investigated!in!this!study!is!one!the!worlds!leading!technology!companies!with!more!than!9000! employees! in! Sweden.! Currently,! they! have! energy! as! a! significant! aspect! in! their!environmental! work! according! to! the! international! management! system! standard! ISO!14001.!Today!they!are!also!developing!their!energy!work!by!conducting!energy!audits! in!order!to!comply!with!the!new!legislation.!This!gives!a!more!detailed!view!of!the!energy!use!and! potential! improvements! that! can! be! done,! but! in! order! to! ensure! continual!improvements!over!a!long!period!of!time!further!measures!are!needed.!!!Within!this!study!it!was!investigated!what!measures!a!large!company!needs!to!implement!in! order! to! increase! their! energy! performance! and! comply! with! the! legislation.! By! a!literature! review! focusing! on! management! systems! as! well! as! interviews! within! the!Company,! a! complementary! study! with! two! companies! covered! by! the! EED! and! three!expert! interviews,! five! key! factors! were! identified.! These! factors! are;! top! management!commitment,! awareness,! goals,! measurements! and! evaluation.! A! model! was! then!developed! aligning! these! factors.! Further,! concrete!proposals! for! action! to!manage! these!factors!were!presented.!By!increasing!focus!on!these!key!factors!and!implement!proposed!measures! companies! will! increase! their! energy! performance! and! also! make! the!organization!aware!of!how!actions!affect!a!company’s!energy!performance.! Key-words: Energy Efficiency Directive, Swedish law about energy auditing in large companies, management systems, energy auditing

Examensarbete INDEK 2015:67

Examensarbete EGI 2015:029

Förbättra energiprestanda inom ramen för Energieffektiviseringsdirektivet

Jessica Wilhelmsson

Signe Åkerblom

Godkänt

2015-06-08

Examinator

Cali Nuur Mark Howells

Handledare

Staffan Laestadius Mark Howells

Uppdragsgivare

N/A Kontaktperson

N/A

Sammanfattning Det! är! nödvändigt! för! stora! företag! att! förstå! och! kunna! anpassa! sig! till! den! industriella!omvandling! mot! ett! ökat! fokus! på! energieffektivitet! som! sker! idag.!Energieffektiviseringsdirektivet!som!Europeiska!Unionen!har!utfärdat!har!ökat!fokus!på!att!arbeta! med! energieffektivitet! i! stora! företag.! Vidare! har! den! svenska! regeringen! infört!lagen! om! energikartläggning! i! stora! företag! som! är! baserad! på!Energieffektiviseringsdirektivet.! Dessa! lagstadgade! krav! uppmuntrar! företag! att! utveckla!ett!ledningssystem!som!ställer!krav!på!genomförande!av!energikartläggningar!samt!föreslå!kostnadseffektiva!åtgärder.!!!!Energieffektivitet!är!redan!en!viktig!del! i!många! företags!miljöarbete,!dock!krävs!ett!mer!utvecklat!och!systematiskt!arbetssätt!än!det!många!företag!redan!har!för!att!uppnå!kraven!i!Energieffektiviseringsdirektivet! och! den! svenska! lagen.! Företaget! som! har! undersökts! i!denna!studie!är!ett!världsledande!teknikföretag!med!mer!än!9000!anställda!i!Sverige.!För!närvarande!har!de!energi! som!en! signifikant! aspekt! i! sitt!miljöarbete! i! enlighet!med!den!internationella!standarden!för!miljöledningssystem!ISO!14001.!Idag!utvecklar!de!även!sitt!energiarbete!genom!att!utföra!energikartläggningar!för!att!uppfylla!den!nya!lagstiftningen.!Detta!ger!en!mer!detaljerad!insikt!över!energianvändningen!och!möjliga!förbättringar!som!kan! göras,!men! för! att! säkerställa! ständiga! förbättringar! över! en! längre! tidsperiod!krävs!ytterligare!åtgärder.!!!!!I!den!här!studien!har!det!undersökts!vilka!åtgärder!som!ett!stort!företag!måste!införa!för!att! öka! energiprestandan! och! följa! lagstiftningen.! Genom! en! litteraturstudie! som!fokuserade!på!ledningssystem!i!kombination!med!intervjuer!på!det!undersöka!företaget,!en!kompletterande!studie!av!två!företag!som!omfattas!av!direktivet!samt!tre!expertintervjuer!identifierades! fem! nyckelfaktorer.! Dessa! faktorer! är:! högsta! ledningens! engagemang,!medvetenhet,! mål,! mätningar! och! utvärdering.! En! modell! för! att! strukturera! faktorerna!utvecklades! sedan.! Vidare! presenterades! konkreta! förslag! på! hur! dessa! faktorer! ska!implementeras.!Genom!att!öka!fokus!på!dessa!nyckelfaktorer!och!implementera!föreslagna!åtgärder! kommer! företag! öka! sin! energiprestanda! och!medvetenhet! i! organisationen! om!hur!olika!handlingar!påverkar!företagets!energiprestanda.!! Nyckelord: Energieffektiviseringsdirektivet, Lagen om energikartläggning i stora företag, ledningssystem, energikartläggning

!!

Acknowledgements.We!would! like! to! thank!our! supervisor! at! the!Company!who!provided!us!with!information,! valuable! knowledge! and! support! in! this! project.! Further,! we! are!grateful! for! the! valuable! information! the! interviewees! within! the! Company!participating! in! this! study! gave! us! by! taking! time! to! answer! our! questions.!Furthermore,! a! thanks! to! the! participating! companies! in! the! complementary!study!who!let!us!take!part!of!their!work!and!provided!useful!information!for!the!study.! In! addition,! we! want! to! thank! the! experts! that! were! consulted.! They!provided!valuable!insights!in!specific!areas,!which!were!important!for!this!study.!!!!!!A!special!thanks!to!our!supervisors!Staffan!Laestadius!and!Mark!Howells!at!KTH,!who! have! provided! us!with! valuable! insights! and! knowledge! in! the! subject! as!well!as!feedback!during!this!study.!!!We!would!also!like!to!thank!our!seminar!group!who!has!been!a!valuable!source!for!feedback!and!discussions.!!!!Stockholm,!June!2015!!!Jessica!Wilhelmsson!&!Signe!Åkerblom!!

!!

Table.of.contents.1.! Introduction!.................................................................................................................................!1!1.1! The!Company!........................................................................................................................!2!1.2! Problem!formulation!.........................................................................................................!2!1.3! Objective!and!research!questions!...............................................................................!2!1.4! Contextualization!................................................................................................................!3!1.4.1! Increasing!pressure!on!energy!efficiency!.......................................................!3!1.4.2! Energy!Efficiency!Directive!and!corresponding!Swedish!law!................!4!1.4.3! Introducing!the!law!...................................................................................................!6!

1.5! Delimitations!........................................................................................................................!9!1.6! Outline!...................................................................................................................................!10!

2.! Methodology!..............................................................................................................................!12!2.1! Document!analysis!...........................................................................................................!12!2.2! Interviews!............................................................................................................................!12!2.3! Expert!opinions!from!experienced!professionals!..............................................!13!2.4! Complementary!study!....................................................................................................!14!2.5! Data!analysis!.......................................................................................................................!15!2.6! Quality!of!research!...........................................................................................................!16!2.6.1! Reliability!....................................................................................................................!16!2.6.2! Validity!.........................................................................................................................!17!2.6.3! Generalizability!.........................................................................................................!18!

3.! Management!systems,!ISO!standards!and!energy!auditing!...................................!19!3.1! Management!systems!.....................................................................................................!19!3.1.1! Environmental!management!systems!............................................................!21!3.1.2! Energy!management!systems!.............................................................................!22!

3.2! ISO!standards!.....................................................................................................................!32!3.3! Energy!auditing!.................................................................................................................!35!

4.! Analysis!........................................................................................................................................!39!4.1! Managing!increasing!pressure!on!energy!efficiency!.........................................!39!4.2! Energy!Efficiency!Directive!and!the!Swedish!law!..............................................!40!4.3! Management!systems!.....................................................................................................!41!4.3.1! Top!management!commitment!.........................................................................!43!4.3.2! Awareness!...................................................................................................................!45!4.3.3! Goals!..............................................................................................................................!48!4.3.4! Measurements!...........................................................................................................!49!4.3.5! Evaluation!...................................................................................................................!50!

4.4! Energy!auditing!.................................................................................................................!51!5.! Discussion!and!conclusion!...................................................................................................!53!5.1! Conclusion!...........................................................................................................................!59!

!

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5.2! Reflection!on!generalizability,!validity!and!reliability!.....................................!61!

5.3! The!contribution!...............................................................................................................!61!

5.4! Implications!........................................................................................................................!62!

5.4.1! Policy!.............................................................................................................................!62!

5.4.2! Managerial!..................................................................................................................!62!

5.4.3! Academic!.....................................................................................................................!63!

5.5! Future!studies!....................................................................................................................!64!

6.! Bibliography!...............................................................................................................................!65!

Appendix!1!–!Interview!guideline!

List.of.figures. .Figure!1:!Two!ways!of!handling!an!increasing!transformation!pressure.!.................!3!

Figure!2:!Projections!of!primary!energy!use!in!year!2020!showing!the!difference!

between!prognosis!of!energy!use!in!2007,!the!energy!efficiency!goal!set!by!

the!European!Union!and!the!forecast.!.............................................................................!5!

Figure!3:!The!Swedish!Energy!Agency's!three!steps!to!introducing!the!law.!...........!7!

Figure!4:!The!link!between!an!increasing!transformation!pressure!on!improving!

energy!performance!to!how!a!large!company!can!manage!this!and!fulfill!the!

EED!and!Swedish!law.!.............................................................................................................!8!

Figure!5:!The!outline!of!this!report.!.........................................................................................!10!

Figure!6:!The!data!analysis!in!this!study.!...............................................................................!16!

Figure! 7:! Combination! between! management! and! technology! is! important! to!

succeed!in!energy!management.!(Energywise,!2011)!............................................!20!

Figure!8:!Comparison!between!four!energy!management!models.!............................!23!

Figure!9:!Managerial!and!technical!aspects!in!an!energy!management!system.!..!25!

Figure!10:! Information!gaps!within!an!organization!regarding!energy!use.! (The!

Energy!Research!Institute,!2014)!....................................................................................!28!

Figure!11:!Method!for!conducting!energy!audits!according!to!IEA!(1987).!...........!37!

Figure! 12:! A! model! showing! identified! key! factors! to! improve! energy!

performance! and! succeed! with! energy! management! based! on! the!

requirements!in!the!EED!and!corresponding!Swedish!law.!.................................!54!

Figure!13:!Measures!to! increase!top!management!commitment!to!energy!work.

!........................................................................................................................................................!56!

Figure! 14:! Measures! to! increase! awareness! of! energy! performance! within! a!

company.!....................................................................................................................................!56!

Figure!15:!How!to!set!goals!for!efficient!energy!management.!....................................!57!

Figure!16:!Important!factors!for!taking!measurements!in!energy!management.!58!

Figure!17:!Important!parts!for!evaluating!energy!performance.!................................!58!

List.of.tables!Table!1:!Indexation!of!expert!opinions.!..................................................................................!14!

Table!2:!Four!basic!types!of!energy!audits.!!(IEA,!1987)!.................................................!36!

!

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Nomenclature.ECO!! ! Energy!Conservation!Opportunities!EED! ! Energy!Efficiency!Directive!EPI! ! Energy!performance!indicator!IEA! ! International!Energy!Agency!ISO!! ! International!Organization!for!Standardization!KPI! ! Key!performance!indicator!SEA! ! Swedish!Energy!Agency!

!

1!!

1. Introduction.This% chapter% holds% an% introduction% to% the% subjects% of% sustainability% and% the% link%between% energy%and% environmental% consideration%within% today’s% development,% as%well% as% reasons% for% the% increasing% requirements% to% consider% energy% efficiency.%%Further,% information% on% handling% an% increasing% pressure% on% energy% efficiency% is%presented%together%with%the%requirements%from%the%Energy%Efficiency%Directive%and%the%corresponding%Swedish%law.%Also,%problem%formulation,%objective%and%research%questions,%delimitations%and%outline%of%the%report%are%presented.%This%provides%the%reader%with%background%information%to%the%subject.%!Sustainability! is! today! a! widely! considered! topic.! An! increasing! awareness! of!how!various!choices!affects!the!environment,!economy!and!society!has!created!a!transformation!pressure!on!companies!to!act!upon.!Energy!is!an!important!part!within!this,!and!by!using!energy!more!efficiently!and!integrating!environmental,!economical!and!social!aspects!into!decisionemaking,!companies!can!minimize!the!negative!effects!on!climate,!nature!and!health.! It! is!necessary! for! companies! to!take! responsibility! for! their! impact! within! these! areas! in! order! to! stay!competitive!on!the!market.!This!creates!a!significant!incentive!for!companies!to!work! actively! with! improving! their! energy! performance! and! increase! the!awareness! throughout! the! organization.! (Hong! &! Pham,! 2014;! International!Organization! of! Standardization,! 2004)! Moreover,! energy! savings! has! the!potential! to! lead! to! economical! savings,! which! is! another! reason! to! why!companies!work!to!improve!in!this!area.!(Thollander!&!Ottosson,!2010)!Energy!efficiency! is! also! an! important!method! of! improving! security! of! energy! supply!within!and!among!countries.!To!regulate!and!navigate!companies’!impact!on!the!environment! and! requirements! on! reducing! energy! use,! legislations! both!internationally!and!nationally!are!applied.!(The!European!Union,!2012)!!!The!European!Commission!issued!the!20e20e20!targets!in!2007,!which!includes!reducing!greenhouse!gas!emissions!by!20!percent!between!the!years!1990!and!2020,!increasing!use!of!renewable!energy!resources!to!20!percent!and!improving!energy!efficiency!with!20!percent!to!2020!compared!to!2007!years!levels,!within!the! European! Union.! (European! Commission,! 2014b)! However! the! projection!until! now! has! shown! that! the! energy! efficiency! target! will! not! be! reached.!(European! Commission,! 2014a)! The! European! Commissioning! has! therefore!issued! an! Energy! Efficiency! Directive! (EED)! in! order! to! reach! the! target.! The!directive!affects! large!companies!and!requires! them! to!carry!out!energy!audits!and! propose! cost! effective! measures! with! the! intention! of! saving! energy! and!improve! energy! efficiency.! Large! companies! are! defined! by! having! more! than!250! employees! and! an! annual! turnover! above! 50! million! EUR! or! total! assets!exceeding!43!million!EUR!per!year.! ! ! (The!European!Union,!2012)!Further,! the!Swedish! government! has! issued! the! law! about! energy! auditing! in! large!companies!based!on!the!EED,!which!is!referred!to!as!the!Swedish!law!or!the!law!in!this!report.!(The!Swedish!Government,!2014)!!To!structure! the!work!with! improving!energy!efficiency!and!be!able! to!achieve!longeterm!results!a!management!system!can!be!applied.!A!management!system!

!

2!

!

includes!processes!and!instructions!for!how!the!work!in!an!organization!ought!to!

be! structured! in! order! to! achieve! its! targets! and! ensure! systemized! work.!

(International! Organization! for! Standardization,! 2011)! There! are!management!

systems!standards!issued!by!the!International!Organization!for!Standardization!

(ISO)!within!which!companies!can!be!certified.!By!having!a!certified!management!

system!the!EED!declares!that!the!energy!audit!can!be!done!with!internal!instead!

of!external!resources,!which!is!further!described!in!the!report.!!

1.1 The.Company.The! investigated! company! is! one! of! the!world’s! leading! technology! companies!

and! provides! energy! efficient! products! and! solutions.! The! Company! have! a!

turnover!above!40!billion!USD!in!2013!and!around!150!000!employees!around!

the! world.! Within! Sweden! the! Company! has! around! 9000! employees! and! a!

turnover!around!35!billion!SEK.!The!Swedish!organization!is!divided!into!several!

divisions!with!different!areas!of!operation.!Today,!the!Company!has!a!developed!

management! system! covering! the! areas! of! health! and! safety,! quality! and!

environment.!They!have!a!combined!certification!of! their!management!systems!

according!to!OHSAS!18001,!ISO!9001!respectively!ISO!14001.!The!Company!has!

previously!been!working!with!energy!performance!through!their!environmental!

management!system!but!is!currently!changing!their!work!based!on!the!EED!and!

corresponding!Swedish!law.!The!Company!has!begun!their!work!with!improving!

energy! efficiency! according! to! these! new! requirements! by! conducting! energy!

audits! using! internal! resources! from! the! Energy! Efficiency! Unit! within! the!

Company.!!

1.2 Problem.formulation.The!EED!affects!about!1500!companies!in!Sweden!that!must!adapt!and!adjust!to!

the!new!requirements!(Ministry!of!Enterprise!and!Innovation!in!Sweden,!2014).!

This! is! a! new! initiative! and! the! concerned! companies! need! to! create! a! larger!

focus! on! energy! performance! within! their! business! and! its! operations.! Most!

companies!will!have!to!make!changes!in!their!work!to!focus!more!on!energy!and!

find!effective!methods!to!do!so.!It!will!also!be!necessary!to!implement!measures!

to! meet! the! requirements! and! this! will! in! turn! mean! that! resources! must! be!

dispensed.!The!Energy!Efficiency!Unit!within!the!Company!has!begun!their!work!

with! identifying! and!mapping! the! energy! aspects! and! impacts! of! the! company.!

However,! the! existing! environmental! management! system! does! not! cover! the!

scope! of! the! EED! and! corresponding! Swedish! law,! and! therefore! factors! to!

succeed! with! improving! energy! efficiency! as! well! as! measures! to! fulfill! the!

legislations!needs! to!be! identified!respectively! implemented.!Consequently! it! is!

desirable! for! the! Company! as! well! as! for! other! companies! to! increase! their!

knowledge! for! how! to! succeed! in!managing! energy! and! develop!methods! and!

processes! for! working! with! energy! performance! that! secure! a! continuous!

improvement!according!to!the!EED.!!

1.3 Objective.and.research.questions.The!objective!of!this!analysis!is!to!investigate!how!large!companies!can!work!to!

improve! their! energy! performance,! within! the! framework! of! the! Energy!

Efficiency! Directive! and! corresponding! Swedish! law.! With! this! analysis,!

measures!for!how!to!succeed!in!improving!energy!performance!are!presented!by!

answering!the!following!research!questions:!

!

3!!

• How!can! large!companies!manage!the! increasing!pressure!on! improving!energy!performance!and!fulfill!the!Energy!Efficiency!Directive?!

!

• What! measures! are! needed! to! improve! energy! performance! in! large!companies!within!the!framework!of!the!Energy!Efficiency!Directive?!

1.4 Contextualization.Energy! has! become! an! important! topic! within! sustainability! and! there! are!

increasing!requirements!on!companies!to!reduce!their!energy!use!and!increase!

their! energy! efficiency.! (European! Commission,! 2014b)! Electricity,! fuels,! heat,!and! steam,!which! can! be! purchased,! stored,! treated! and!used! in! equipment! or!

process,!are!examples!of!energy.!Further,!ISO!(2011)!defines!energy!efficiency!as!“!the!ratio!or!other!quantitative!relationship!between!an!output!of!performance,!

service,!goods!or!energy,!and!an!input!of!energy”.!(International!Organization!for!

Standardization,! 2011)! The! increased! awareness! of! how! various! actions! affect!the! environment! has! created! expectations! from! both! the! government! and! the!

society!that!companies!should!take!responsibility!and!work!with!improving!their!

energy!efficiency.!(Dobers!&!Wolff,!1997)!!

1.4.1 Increasing.pressure.on.energy.efficiency.The! Energy! Efficiency! Directive! and! corresponding! Swedish! law! requires! that!

companies!are!aware!of!their!energy!use!and!work!more!actively!within!this!area!to!improve!their!energy!performance.!A!pressure!on!companies!to!change,!and!in!

this! case! focus! more! on! reducing! their! energy! use! and! improve! their! energy!efficiency,! is! named! transformation! pressure.! (Dahmén,! 1970;! Hong! &! Pham,!

2014)!

!According!to!Dobers!&!Wolff!(1997)!there!are!two!main!categories!of!companies’!

ways! of! handling! an! increased! transformation! pressure,! and! specifically! an!increased! pressure! on! improving! environmental! performance,! according! to!

Figure!1.!Either!a!company!sees!the!pressure!as!a!problem!to!overcome,!which!

also! can! be! defined! as! negative! transformation! pressure! according! to!Dahmén!(1970)! or! a! company! uses! the! pressure! as! their! mission,! which! is! defined! as!

positive! transformation! pressure! since! possible! opportunities! are! considered.!

(Dahmén,!1970;!Dobers!&!Wolff,!1997)!!

!

!Figure'1:'Two'ways'of'handling'an'increasing'transformation'pressure.'

Problem!Opportunity!

!

4!!

A! company!with! a! problemeoriented! view! is! steered! by! the! surroundings! and!work!reactively!on!new!requirements.!Within!the!area!of!increased!pressure!on!environmental!performance,!the!focus!in!a!problemeoriented!company!is!on!how!to! reach! legislative! requirements! and! make! appropriate! investments! in! new!equipment!to!take!responsibility! for!the!environment.!Companies!that!consider!the! increased! pressure! as! an! opportunity!work! according! to! their! own! values!and! create! a! culture! and! mission! to! overcome! the! increased! pressure.! To!establish!a!company!culture! that!considers! the!environment,!a!company!works!actively! both! internally,! by! engaging! the! employees,! and! externally! by! putting!requirements!on!suppliers!and!by!that!steer!the!surroundings!to! improve!their!work!environmentally.!(Dobers!&!Wolff,!1997)!!Considering! the! opportunities! with! the! increasing! pressure! on! improving! a!company’s! energy! performance,! a! company! can! both! increase! their!competitiveness!on!the!market!and!reduce!costs.!Also,!possibilities!owing!to!new!markets!for!energy!efficient!solutions!appear.!There!will!be!a!higher!demand!on!innovative! energy! efficient! products! and! solutions,! and! companies! using! this!opportunity! and! enter! such!market! can! increase! their! competitiveness.!On! the!other! hand,! the! increasing! legislative! requirements! because! of! the! EED! and!Swedish!law,!and!demands!from!the!society!on!increasing!energy!efficiency!can!be! seen!as! a!negative! transformation!pressure!within! companies.! It! becomes!a!necessity! to! adapt! and! change! ways! of! working! to! survive! on! the! market.!(Dahmén,!1970;!The!European!Union,!2012)!!!Because! of! the! EED! and! Swedish! law,! companies! need! to! increase! their!awareness! and! map! their! energy! use,! but! if! a! company! wants! to! change! and!achieve!longeterm!results!in!increased!energy!efficiency!the!opportunities!should!be! in! focus.! Also,! in! some! cases! the! company! management! can! see! many!advantages!to!also!move!beyond!compliance!and!further!develop!a!commitment!to! continual! improvement! and! ongoing! environmental! and! energy! efficiency!consideration.! In! those!cases! the!energy!management!can!be!expanded!beyond!the!scope!of!the!EED!and!Swedish!law!due!to!positive!pressures.!(Hong!&!Pham,!2014)!

1.4.2 Energy.Efficiency.Directive.and.corresponding.Swedish.law.The!European!Commission!aims!to!reduce!the!primary!energy!use!within!the!EU!by!increasing!the!energy!efficiency!with!20!percent!until!2020.!Primary!energy!is!defined! as! “gross! inland! consumption,! excluding! noneenergy! uses”. Yet! the!forecast!in!2010!showed!that!new!measures!are!needed!in!order!to!achieve!the!target.! The! prognosis! from! 2007! showed! that! the! primary! energy! use! will! be!1842!Million!ton!oil!equivalents!(Mtoe)!in!2020!and!a!decrease!with!20!percent!means!that!the!number!should!be!down!to!1474,!which!is!a!reduction!with!368!Mtoe.!This!is!illustrated!in!Figure!2.!(The!European!Union,!2012)!!!

!

5!!

!Figure'2:'Projections'of'primary'energy'use'in'year'2020'showing'the'

difference'between'prognosis'of'energy'use'in'2007,'the'energy'efficiency'goal'set'by'the'European'Union'and'the'forecast.'''

There!is!a!small!difference!between!goal!and!forecast!according!to!Figure!2.!This!represents!the!1e2!percent!within!which!the!energy!efficiency!target!will!not!be!reached,! considering! today’s!projections.! In!order! to! reach! the! target!and!set!a!common! framework! for! future! energy! work! within! EU! the! Energy! Efficiency!Directive!was!issued!in!2012.!The!directive!requires!that!all!countries!within!the!Union! shall! report! their! progress! with! the! national! energy! efficiency! targets!yearly,! and! every! third! year! present! a! national! plan! of! actions! in! order! to!increase!the!energy!efficiency.!The!action!plan!shall!include!revised!estimates!of!the! predicted! primary! energy! use! in! 2020.! (The! European! Union,! 2012)! The!majority!of!the!EED!provisions!was!transposed!into!Swedish!national!law!by!15th!of!May!2014!and!came!into!force!by!1st!of!June!2014.!(Statens!energimyndighet!,!2015!)!!The! member! states! shall! ensure! that! large! companies! are! objects! for!independent!and!cost!effective!energy!auditing!according!to!national!legislation!at!the!latest!of!5th!of!December!2015!and!every!fourth!year!after.!(The!European!Union,!2012)!The! International!Organization!of!Standardization! (2011)!defines!an! energy! audit! as! “a! systematic! inspection! and! analysis! of! energy! use! and!energy! consumption! of! a! site,! building,! system! or! organization! with! the!objectives! of! identifying! energy! flows! and! the! potential! for! energy! efficiency!improvements!and!reporting!them!“.!Though,!if!a!company!has!an!environmental!or! energy! management! system! that! is! certified! according! to! national! or!international!standards!and!includes!the!requirements!from!the!EED!before!the!5th!of!December!2015,! they!are!exempted!from!the!requirement!to!conduct!the!

0!

200!

400!

600!

800!

1000!

1200!

1400!

1600!

1800!

2000!

Prognosis'from'2007' Goal' Forecast'

Mtoe'

Projections'of'primary'energy'use'year'2020''

!

6!!

energy!audit!before!the!same!date.!Thus,!the!member!states!need!to!ensure!that!the! environmental! or! energy! management! system! within! these! companies!includes!requirements!on!conducting!energy!audits!according!to!requirements!in!the!EED.!(The!European!Union,!2012)!A!company!that!has!operations!in!different!countries!will!be!handled!by!the!various!national!legislations!where!the!plant!is!located! and! may! need! to! provide! information! regarding! energy! audit! to! the!authorities!in!each!country.!(Statens!energimyndighet!,!2015!)!!The!Swedish!government!has!set!national!goals!within!the!20e20e20!targets,!and!their! goals! for! year! 2020! are! 20! percent! energy! efficiency! improvements!compared! to! 2008.! (Miljöe! och! Energidepartementet,! 2015)! Based! on! the!European! Commission’s! Energy! Efficiency! Directive,! the! Swedish! government!has! issued! the! law! (2014:266)! about! energy! audits! in! large! companies,!which!aims! to! promote! improvements! of! energy! efficiency.! The! law! states! that! the!energy!audit!shall!include!detailed!review!of!the!energy!usage!in!a!company!and!further! suggestions! for! costeeffective! measures! to! save! energy! and! improve!energy!efficiency.! ! (The!Swedish!Government,!2014)!The!conducted!audit! shall!be!made!according!to!an!international!ISO!standard,!European!EN!standards!or!Swedish! SSestandard! or! equivalent,! which! requires! energy! auditing! in!accordance! with! the! law! on! energy! audits! of! large! companies.! Other!systematically! described! energy! audits! thereof! or! equivalent! may! be! used! in!large!companies!with!their!own!implemented!systems!for!energy!audit.!(Swedish!Energy!Agency,!2014)! In! the!next! chapter! it! is!described!how! to! introduce! the!Swedish! law! about! energy! auditing! in! large! companies,!which!differs! from! the!EED.! The! reason! is! that! a! directive! includes! common! goals! for! EU! and! every!county! decides! what! legislation! that! is! needed! in! order! to! fulfill! these! goals.!(Sveriges!Riksdag,!2014)!!

1.4.3 Introducing.the.law.The!Swedish!Energy!Agency!(SEA)! is! the!authority!overseeing!the!Swedish! law!(2014:266)! on! energy! audits! in! large! companies! and! is! responsible! for! the!regulations! that! have! been! issued! in! connection! with! the! law.! Provisions!included! in! the!regulations!are! for! implementation!and!reporting!of! the!energy!audits! as! well! as! rules! for! certification! of! the! management! system! and! the!person(s)!who!may!undertake! the! audits.! (Swedish!Energy!Agency,! 2014)!The!SEA!is!planning!to!introduce!the!law!in!three!steps!according!to!Figure!3.!!!

!

7!!

!Figure'3:'The'Swedish'Energy'Agency's'three'steps'to'introducing'the'law.''

Firstly,!by!the!5th!of!December!a!company!needs!to!report!if!they!are!covered!by!the!law!and!which!parts!of!the!business!that!will!be!audited.!The!second!step!is!to!report!that!the!company!has!contracted!a!certified!auditor!or!ensured!internal!resources!for!conducting!energy!audits,!and!that!all!relevant!data!is!available!for!planning!and!conducting!the!energy!audit.!When!the!energy!audit!is!completed!it!shall! be! reported! to! the! Swedish! Energy! Agency! and! saved! within! the!organization,!which! is! the! last! and! third! step! according! to! Figure! 3.! ! (Swedish!Energy! Agency,! 2015)! The! end! product! of! the! work! shall! be! presented! in! a!written!report!to!be!filed!for!at!least!seven!years!and!specific!key!figures!shall!be!reported!to!the!Swedish!Energy!Agency!(SEA).!(The!Swedish!Government,!2014)!!The! energy! audit! shall,! according! to! the! regulations;! “include! an! overall!description! of! the! company's! total! energy! consumption! and! a! more! detailed!survey! of! the! activities! or! areas! that! correspond! to! the! company's! significant!energy!use.!Boundaries!and!priorities!for!the!energy!audit!should!be!set!in!order!for! the! survey! to! provide! a! representative!picture!of! a! company's! total! energy!usage”.! The! audit! shall! also! include! identification! of! costeeffective!measures! to!improve!energy!efficiency!and! these!shall!be!documented,!monitored!and! later!on!evaluated!and!verified!when!implemented.!Onesite!visits!shall!be!conducted!to!ensure! a! representative! picture! of! a! company’s! organization,! buildings! and!transports.!There!are!also! competency! requirements!on! the!person!conducting!the!energy!audit.!The!auditor!needs!to!have!experience!in!working!with!energy!efficiency!and!energy!auditing!or!energy!management.!Depending!on!education,!at!least!three!years!of!working!experience!is!required!but!in!many!cases!longer!working!experience!is!required.!(Swedish!Energy!Agency,!2014)!!!There! are! two! possibilities! to! comply! with! the! requirements! of! contracting! a!certified! energy! auditor! in! the! law.! Either! a! company! engages! an! independent!third! party,! who! meets! the! competence! requirements,! to! conduct! a! complete!

2015!•  if!they!are!covered!by!the!law!• which!activities!to!be!audited!

2016!•  contracted!a!certipied!auditor!or!ensured!internal!resources!•  retrieved!relevant!data!for!planning!and!conducting!the!energy!audit!

2017!•  done!the!energy!audit!•  saved!the!energy!audit!report!within!the!company!

Before!the!5th!of!December,!a!company!shall!report:!

Report!that!the!company!has:!

Report!that!the!company!has:!

!

8!!

energy!audit!during!the!years!2016!and!2017,!and!every!fourth!year!thereafter.!The!second!option!is!to!include!a!corresponding!energy!audit!within!a!certified!energy! or! environmental!management! system! and! use! an! internal! resource! to!conduct! the! energy! audit,! and! thereby! be! certified! within! the! management!system! standard.! If! a! company! chooses! the! second! alternative! both! the!management! system! and! energy! auditing! process! shall! be! done! according! to!approved! national! or! international! standards.! Also,! the! energy! audit! shall! be!performed! by! a! person! or! persons! who! meet! the! competency! requirements!specified!in!the!regulations.!(Swedish!Energy!Agency,!2014)!Figure!4!shows!the!conceptualization! of! how! the! different! laws! and! regulations! are! linked! to!transformation! pressure! and! possibilities! for! large! companies! to! comply! with!these.!!

!!

Figure'4:'The'link'between'an'increasing'transformation'pressure'on'improving'energy'performance'to'how'a'large'company'can'manage'this'

and'fulfill'the'EED'and'Swedish'law.'

Initial!transformation!

pressure!

EED!

Swedish!law!

Regulations!from!the!SEA!

• Consult!an!external!certipied!auditor!

•  Include!requirements!on!energy!auditing!in!a!certipied!management!system!!

Two!possibilities!for!

large!companies!

!

9!!

There!are!several!standards!for!management!systems!that!companies!can!follow!and! be! certified! within,! which! correspond! to! the! second! possibility! for! large!companies! according! to! Figure! 4.! Those! considered! in! this! investigation! are!mainly! issued! by! the! International! Organization! for! Standardization! (ISO)! and!the! standards! have! been! customized! to! an! European! standard! and! a! Swedish!standard,! indexed!by!EN! respectively! SS.! The! ISO! standards! for! environmental!management!systems,!ISO!14001,!and!energy!management!systems,!ISO!50001,!are! considered! in! this! study! where! ISO! 50001,! that! focus! on! energy,! has!requirements!on!conducting!energy!audits.!However,!ISO!14001!does!not!include!requirements! on! energy! audits! and! to! fulfill! the! EED! and! by! using! an!environmental! management! system,! this! requirement! needs! to! be! added.!Further,! within! these! international! standards! the! companies! are! obligated! to!comply!with!all!legislative!and!other!relevant!requirements.!!!The! standards! provide! an! organization! with! managerial! practices! that! guides!them! in! how! to! implement! a! management! system! and! achieve! continuous!improvements.! However,! it! is! each! organizations! responsibility! to! build! the!management! system! according! to! their! organization! with! for! example! setting!targets!and!criteria!for!measuring!environmental!performance.!(Boiral!&!Henri,!2012)!!In!this!study,!management!systems!standards!are!therefore!considered!as!toolboxes.! Besides,! it! is! important! to! understand! that! the!management! system!standards!are!one!solution!among!many.!!!

1.5 Delimitations.This! investigation! is! delimited! to! large! companies! in! Sweden,! in! which! large!companies! is! defined! by! the! Energy! Efficiency! Directive! and! corresponding!Swedish!law.!Sweden!has!set!its!own!energy!efficiency!targets!as!well!as!issued!a!national!legislation!based!on!the!EED.!It!is!therefore!needed!to!analyze!countries!individually!and!by!that!also!companies!working!within!these!countries.!In!order!to! clarify;! this! study! considers! both! the! effect! of! the! EED! and! corresponding!Swedish! law!on! large! companies! in!Sweden! since! the!Swedish! law! is!based!on!the!EED.! !Further,!the!Swedish!Energy!Agency!has!stated!regulations!according!to! the! Swedish! law! about! energy! audits! in! large! companies,!which! is! a! part! of!fulfilling! the!Energy!Efficiency!Directive.!Their! statements!are!used! in!order! to!understand! the! law! and! what! is! required! from! companies! but! their! role! in!evaluating!and!follow!up!on!companies!if!they!work!according!to!the!directive!is!not!further!analyzed.!!!There!are!several!areas!covered!by!the!EED!that!member!states!need!to!consider!to!ensure!an!effective!energy!use,! and!energy!audits!and!management!systems!are! in! focus! in! this! study! since! it! covers! the! role! enterprises! play! within! the!directive.! The! EED! and! Swedish! law! provide! two! options! for! how! large!companies!should!work!to!increase!their!energy!efficiency!and!comply!with!the!requirements.! Either! a! company! consults! an! external! certified! auditor! that!conducts! the!whole!energy!audit!at!once,!or! they!develop!an!environmental!or!energy! management! system! including! requirements! on! conducting! energy!audits.!Both!of!these!options!are!analyzed!but!when!using!a!third!party!there!are!no!requirements!on!incorporating!energy!work!within!a!company’s!management!

!

10!

!

system.! Since! this! study! focuses! on! how! to!manage! energy! efficiently!within! a!

company!the!option!of!using!a!third!party!is!discussed!briefly.!

!

Within!the!EED!there!are!requirements!on!having!certified!management!systems!

according! to! a! standard! when! conducting! the! energy! audit! with! internal!

resources.! The! standards! within! management! systems! and! energy! auditing!

considered! in! this! study! are! issued! by! the! International! Organization! of!

Standardization! since! they! are! most! commonly! used.! Also,! the! Company! and!

participating! companies! in! the! complementary! study!are! certified!according! to!

ISO! standards.! Further,! to! identify! key! factors! and! measures! to! succeed! with!

energy! management,! several! nonecertified! energy! management! systems! are!

analyzed.!!!!

1.6 Outline.This! report! begins! with! an! introduction! to! the! subject! of! sustainability! and!

energy,! where! the! Energy! Efficiency! Directive! and! management! systems! are!

introduced,!according!to!Figure!5.!Following,!a!deeper!explanation!of!the!context!

is!presented,!which! includes! the! transformation!pressure!on! improving!energy!

performance! in! a! company,! the! EED! and! the! Swedish! law.! The! methodology!

describes! the!different!choices!of!methods! that!have!been!used! to!conduct! this!

study!and!analyses!how!the!choices’!affect!the!quality!and!ethical!aspects!of!the!

research.!!

!

!

Figure'5:'The'outline'of'this'report.'

The! chapter,! Management! systems,! ISO! standards! and! energy! auditing,!

presented! after! the! methodology! as! seen! in! Figure! 5,! includes! theory! on! the!

Introduction!

Methodology!

Management!systems,!ISO!standards!and!energy!

auditing!

Analysis!

Discussion!and!conclusion!

!

11!!

three! areas.! A! comparison! between! several! energy! management! models! is!presented! in! order! to! get! a! deep! understanding! of! how! to! manage! energy!efficiently.! Further,! ISOestandards! are! presented! with! an! analysis! on! previous!research! on! how! successful! these! standards! are.! The! last! part! of! this! chapter!covers!energy!audits!and!explains!different!types,!as!well!as!how!to!conduct!an!energy! audit! and!use! the! information! efficiently.!This!part! of! the! report!builds!the!foundation!of!theory!for!analyzing!the!empirical!material.!!!The! next! part! of! the! study! is! the! analysis,! where! the! empirical! material! is!analyzed! together! with! the! theory! presented! in! the! chapter! Management!systems,! ISO! standards! and! energy! auditing,! in! relation! to! the! objective! and!research! questions! presented! in! the! introduction.! From! this,! key! factors! to!succeed! in! energy! management! and! measures! that! large! companies! need! to!implement! to! improve!energy!performance!are! identified.!Further,! a!model! for!how! to!manage! energy! efficiently! as!well! as! fulfill! the! EED! and! corresponding!Swedish! law! is! developed! and! discussed! in! the! Discussion! and! conclusion!chapter.! To! summarize! the! findings,! a! conclusion! is! presented! together! with!implications!and!future!research.!!!!!

.!! .

!

12!!

2. Methodology.This%chapter%describes%the%methodology%used%in%this%study%and%evaluates%the%quality%of%the%research.%Also,%an%illustration%of%the%data%analysis%is%presented.%This%provides%the%reader%with%an%understanding%of%how%the%study%has%been%conducted.%%!In! order! to! answer! the! research! questions! and! fulfill! the! objective! several!methods! for! gathering! information! has! been! used.! These! include! literature!review,!interviews,!complementary!study,!and!expert!opinions.!Since!this!area!of!investigation!is!based!on!the!Energy!Efficiency!Directive!issued!by!the!European!Union,! documents! regarding! the! directive! and! the! corresponding! Swedish! law!were! analyzed.! These! are! however! general! and! an! experienced!professional! at!the!Swedish!Energy!Agency!was!consulted!to!get!a!more!specific!understanding!and!knowledge!of!the!definitions!and!the!requirements.!In!order!to!understand!how! companies! manage! their! work! with! increasing! their! energy! efficiency! as!well! as! handling! the! increasing!demands!on! reducing! energy!use,! a! qualitative!approach!has!been!used.!This!was!done!since!collected!data!is!transient,!and!can!therefore! change,! and! it! is! also! based! on! people’s! interpretations.! (Collis! &!Hussey,! 2009;! Patton,! 2015)! To! analyze! how! the! Company! works! to! increase!their! energy!efficiency!as!well! as!how! they!manage! the! increasing!pressure!on!becoming! more! energy! efficient,! interviews! within! the! Company! were!conducted.!In!order!to!get!a!broader!understanding!of!the!process!of!increasing!the! focus!on!energy!efficiency!and! its!management,! two!companies! covered!by!the! EED,! respectively! three! experts!within! the! areas!were! consulted.! By! using!several! sources! to!gather!empirical! information,! the!subjectivity! that!can!occur!while!investigating!one!company!as!a!case!is!reduced.!(Scapens,!1990)!Since!the!qualitative!data! in! this! study!needed! to!be!understood!within!context! (Collis!&!Hussey,!2009),!other!written!sources!were!used.!Previous!work!was!investigated!in! order! to! get! a! broader! understanding! of! the! subject! in! general! as! well! as!substantiate! the! findings.! These! sources!were! chosen! regarding! relevance! and!credibility.!!!

2.1 Document.analysis.In! a! qualitative! study,! document! analysis! is! an! important! source! for! gathering!information.! (Patton,! 2015)! To! get! a! deep! understanding! of! the! EED! and!corresponding!Swedish! law,!which! this! study! is!based!on,! a!document!analysis!was! conducted.! The! documents! analyzed! included! the! directive! and! its!associated!articles,!the!Swedish!law!and!its!related!regulations!issued!by!the!SEA.!Within!this,! the!requirements!were! identified!and!summarized.!However,! these!were!somewhat!unclear!and!to!strengthen!the!findings!employees!working!at!the!SEA!were!consulted.!Since!the!SEA!continuously!develops!instructions!for!how!to!introduce! the! law,! the! document! analysis!was! an! iterative! process! throughout!the!whole!study.!!

2.2 Interviews.Interviews!were! conducted!with! eight! employees!working!with! environmental!management,! energy! efficiency! and/or! management! systems! within! the!Company.!The!interviewees!were!chosen!from!different!divisions!of!the!Swedish!organization.!This!choice!was!made!in!order!to!get!an!overall!understanding!of!the! work! with! energy! efficiency! and! Energy! Efficiency! Directive! within! the!

!

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Company!as!well!as!information!from!the!different!divisions!in!the!organization.!To! get! inedepth! information! and! also! gather! the! interviewees’! opinions,! semiestructuring! the! interviews! were! considered! appropriate.! Semiestructured!interviews!are!appropriate!when!exploring!and!gathering!broad!information!and!when! the! subject! includes! several! aspects! not! logically! linked! together.!(EasterbyeSmith! et! al.,! 2002)! Having! more! unstructured! interviews! were!considered!inappropriate!since!there!is!a!larger!risk!of!losing!focus.!Further,!for!this!type!of!study!where!broad!information!was!to!be!gathered!including!peoples!interpretations,!more! structured! interviews,!which! in! general! focus! on! getting!factual! information,! would! not! have! covered! all! information! needed.! All!interviewees!are!kept!anonymous!to!increase!the!truthfulness!of!the!information!as! well! as! for! the! interviewee! to! be! confident! explaining! his/hers! opinions.!(Collis!&!Hussey,!2009)!!The!interviews!were!divided!into!five!themes;!general!information,!management!systems,!energy!efficiency,!EED!and!mapping!of!environmental! factors,!and!the!template!for!the!interviews!within!the!Company!can!be!seen!in!Appendix!1.!This!was!done!in!order!to!get!overall!information!about!the!current!work!within!the!Company! and! information! in! all! relevant! areas! for! this! study.! Since! the!interviews! were! semiestructured! the! template! worked! as! a! frame! for! the!interviews,! but! additional! questions! were! asked! depending! on! the! interview.!Also,! if! interesting! information! was! gathered! during! the! different! interviews,!questions!were! sometimes! added! to! the! template! for! continuing! interviews! in!order!to!validate!the!findings.!!The! interviews!were!between!40!minutes! and!one!hour.!They!were! conducted!during!different!days!during!a!period!of!three!weeks.!Notes!were!taken!during!all!interviews! and! the! interviewees! were! asked! for! permission! to! record! the!interview,!which!all!agreed!upon.!By!recording!the!interviews!it!was!possible!to!reelisten! and! therefore! avoid! any! uncertainties! regarding! the! information.! The!notes!were!used!as!summarizes!of!the!interview!and!also!containing!important!statements!observed!during! the! interview!that!could!be!useful! for! the!analysis.!All! interviewees! were! also! asked! for! permission! for! further! contact! if! more!questions,!which!all!agreed!upon.!!!!!In!the!report!the!different!interviewees!within!the!Company!are!indexed!A1!up!to!A8.!Four!environmental!managers,! one!manager!of!production! technologies,!two!quality!managers!and!one!environmental!specialist!were!interviewed.!Their!roles!and!responsibilities!are!not!attached! to! the!source! in! the! text! in!order! to!maintain!confidentiality.!!

2.3 Expert.opinions.from.experienced.professionals..Several!experts!were!consulted!during!this!study!to!increase!the!understanding!of!certain!subjects!and!to!refine!the!analysis.!In!this!study,!an!expert!is!defined!as!a!person!with!a!high!level!of!knowledge!within!a!certain!field!and!not!necessarily!a! specialist.! The! focus! for! the! expert! opinions! was! to! understand! the! Energy!Efficiency! Directive,! get! a! deeper! understanding! of! strategic! work! and!certification! of! management! systems.! Therefore,! an! expert! from! the! Swedish!Energy! Agency,! a! management! consultant! and! a! certifier! were! consulted! and!

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these!are!further!explained!in!the!following!paragraphs.!The!experts!are!indexed!according!to!Table!1!in!the!report.!!!

Table'1:'Indexation'of'expert'opinions.''

Index' Expert'E1! Swedish!Energy!Agency!E2! Certification!authority!E3! Management!consultancy!

!An! expert! from! the! Swedish! Energy! Agency!was! consulted! regarding! the! EED!and! the! Swedish! law! to! get! a! deeper! understanding! of! those! as! well! as!information! about! how! their! work! proceeds.! The! Swedish! Energy! Agency! is!responsible! for! implementing! the! law! and! is! therefore! important! to! consult! in!this!study.!The!expert!consulted!is!one!of!the!responsible!for! implementing!the!EED!and!therefore!has!large!insights!in!the!requirements!and!progression!of!the!SEA’s!work.! In!addition,! to!get! information!about! the! rules!and!regulations! the!expert!provided!information!about!how!SEA!try!to!encourage!companies!to!work!continuously! with! energy! efficiency! and! how! they! cooperate! with! large!companies!to!ensure!that!the!requirements!are!reasonable.!!!One!of!the!most!important!parts!during!business!development!is!to!incorporate!the!change!in!a!strategy.!(Mintzberg,!1987)!Therefore,!a!management!consultant!working!as! the!head!of!a! corporate!management!consultant! function! in!a! large!industrial!company!was!consulted!as!an!expert!opinion!regarding!strategies!and!strategy!development.!The!management!consultant!does!not!work!closely!with!energy! efficiency! and! therefore! gave! general! information! about! strategic!work!and!important!steps!in!succeeding!with!new!requirements.!!!!!!In!the!Energy!Efficiency!Directive! it! is!described!that!either!a!company!need!to!consult!a!certified!energy!auditor!to!conduct!the!energy!audit!or!a!company!has!a!certified! environmental/energy! management! system! and! conduct! the! energy!audit!with!internal!resources.!Either!way!a!certifier!is!needed.!Because!of!these!requirements,! a! certification! authority! was! consulted! to! understand! their!requirements!and!the!reasons!for!why!companies!chose!to!get!certified.!!

2.4 Complementary.study.A! complementary! study! was! conducted! in! order! to! gather! information! about!how!other! companies! are! handling! the! increasing! pressure! on! becoming!more!energy! efficient,! how! they! work!with!management! systems! and! how! they! are!planning!to!fulfill!the!EED.!The!complementary!study!was!done!by!interviewing!employees,! working! at! two! industrial! companies! with! similar! size! as! the!Company,!with!insights!in!energy!work!and!the!requirements!of!the!EED.!In!the!first! case,! an! energy! manager! was! consulted! and! in! the! second! case! two!environmental! managers! were! consulted.! These! companies! provide! their!customers! with! both! product! and! services! similar! to! the! Company! but! it! was!important! that! the! companies! were! not! competitors.! Further,! the! two! studied!companies!in!the!complementary!study!represent!large!companies!according!to!the!definition!provided!by!the!EED!and!the!Swedish! law.! In! the!report! the! first!

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company!in!the!complementary!study!is!named!Case!A!and!the!second!is!named!Case!B.!!!!The! first! company! compared!with,! named! Case! A,! was! valuable! for! this! study!since! it! revised! a! large! company! that! has! already! begun! their! work! with!improving! their! energy! performance! and! are! currently! reviewing! the! Swedish!law! based! on! the! EED.! An! energy! manager! was! consulted! who! is! involved! in!energyerelated! matters! including! energy! performance.! They! already! have! an!environmental! management! system! according! to! ISO! 14001,! integrated! with!other! standards! including! quality,! health! and! safety,! in! place! and! they! have!earlier!started!an!energy!auditing!program!because!of! increasing!requirements!from! top!management! to! reduce! carbon! dioxide! emissions.! They! are! however!not!planning!to!implement!and!integrate!ISO!50001!in!their!current!system!and!the! focus!of! the!energy!audits!are! today!on!simple! spaces! such!as!office! space,!improved!ventilation,!heating,!lighting.!The!top!management!did!not!understand!the!possibilities!of!saving!energy!until!a!few!years!ago!but!with!their!increasing!commitment!the!energy!work!has!become!an!important!part!on!the!agenda.!Case!A!uses!a!third!party!to!conduct!the!energy!audit.!!!Case!B!is!a!large!company!certified!according!to!the!environmental!management!system! standard! ISO!14001,! integrated!with! other! standards! including!quality,!health! and! safety,! and! they! have! set! their! own! energy! efficiency! targets! and!previously! conducted! energy! audits! within! their! organization,! which! makes!them!interesting!to!study.!Two!environmental!managers!were!consulted!who!are!involved! in!both! increasing!the!company’s!energy!efficiency!as!well!as!working!with!the!management!systems.! It! is!explained!that! the!company!has!previously!made! an! energy! audit! as! the! Swedish! court! made! this! demand! because! they!practice! environmentally! hazardous! activities.! Case! B! has! their! own! internal!certification! system! besides! ISOecertifications! where! they! consider! aspects!important! for! their!particular! organization.!They! explain! that! they!will! include!the!new!demands! from!EED! in! the!existing!management! system.!The!company!emphasize! that! ISO! is! a! framework!but! its! results!depends!on!how!a! company!uses! it.! Case! B! uses! internal! resources! to! conduct! the! energy! audit! and! work!actively! with! their! management! systems.! The! top! management! demonstrates!that!energy!work! is! important!and!has! for!example!decided!that!measures!that!have! longer! payback! but! are! better! in! terms! of! energy! performance! can! be!prioritized,!although!there!are!less!expensive!measures!available.!

2.5 Data.analysis.When! using! a! qualitative! data! approach! and! analyzing! it! qualitatively! it! is!important! to! continuously! collect! and! reduce! data.! (Collis! &! Hussey,! 2009)!During! this! study,! the! facts! have! therefore! been! collected! in! different! forms!throughout! the!whole!project! and!after! each!part! that!data!has!been!analyzed.!The!data!has!been!analyzed!both!separately!within!and!between! the! five!areas!shown! in! Figure!6.! By!using! this! approach,! a! deep!understanding! in! each! area!was! collected.! Also,! the! areas! were! analyzed! during! the! process,! which! is!important!for!a!qualitative!study.!(Collis!&!Hussey,!2009)!!

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!Figure'6:'The'data'analysis'in'this'study.'

Figure! 6! shows! that! the! process! of! this! study! began!with! analyzing! rules! and!regulations!regarding!the!Energy!Efficiency!Directive!and!the!Swedish!law.!With!that! information,! the! requirements! that! companies! are! facing! were! mapped.!Further,! an! extensive! literature! was! conducted! focusing! on! management!systems,! which! included! analyzing! several! energy! management! models,! and!energy! auditing.! This! focus! was! chosen! in! order! to! understand! the! option! of!including!the!requirements!on!energy!auditing!in!a!management!system!and!how!the!energy!work!should!be!managed!efficiently.!This!information!was!a!helping!tool!when!structuring!the!interviews,!conducting!the!complementary!study!and!consulting! the! experts.! The! empirical! data! from! interviews,! complementary!study,! experts! and! mapped! requirements! were! first! analyzed! separately! and!then! compared! to! conclude! themes! to! focus! on.! Further,! the! themes! were!analyzed!in!relation!to!the!requirements!in!the!EED!and!Swedish!law!as!well!as!the!theory!gathered!from!literature,!which!explains!the!vertical!arrow!on!the!left!side! of! the! different! areas.! The! horizontal! arrow! above! the! different! areas!represent! the! separate! analysis! done! within! each! area,! described! in! the!beginning! of! this! paragraph.! Finally,! after! analyzing! the! different! information!and!data!gathered!in!this!study!separately!and!in!combination,!the!results!of!how!large! companies! should! manage! the! transformation! pressure! on! improving!energy!performance!and!what!measures!companies!need!to!implement!to!fulfill!the!EED!and!the!Swedish!law!was!concluded.!!

2.6 Quality.of.research.The!study!is!evaluated!according!to!reliability,!validity!and!generalizability!to!be!able!to!state!the!quality!of!the!research.!(Collis!&!Hussey,!2009)!!

2.6.1 Reliability.The! degree! of! reliability! depends! on! how! the! results! have! been! affected! by!different!circumstances!during!the!study.!(Patton,!2015)!The!reliability!is!high!if!

EED!and!Swedish!law!

Theory!

Interviews!

Complementary!study!

Expert!opinion!

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a! repeated! study! can! be! done! and! provide! the! same! results.! (Collis! &!Hussey,!2009;!Merriam,!2009)!This!study!is!based!on!semiestructured!interviews,!which!during!the!interviews!have!had!different!focus!areas,!and!it!is!thereby!difficult!to!repeat!the!study!with!the!same!results.!Further,!this!study!is!based!on!qualitative!data,!which!often!is!characterized!by!low!reliability.!(Collis!&!Hussey,!2009)!!To!increase!the!reliability!of!this!study!transparency!of!the!empirical!material!is!important.!Therefore! it! is!presented!which!roles!the! interviewees!had!and!how!the! interviews! were! conducted.! Also,! the! interview! guideline! can! be! found! in!Appendix!1.!However,!since!the!interviews!were!semiestructured!areas!brought!up! during! the! interviews,! beyond! the! interview! guideline! but! that! were!considered! interesting! are!not! included!and! can! therefore! affect! the! reliability.!This! is!not!considered!as!a!major!issue!in!this!study!since!valuable!information!was!possible! to!be!gathered!when!exploring!other!areas!relating! to! the!subject!without! losing! focus.!Also,! the!results! from!the! interviews!are!presented! in! the!report! in! relation! to! theory.! However,! the! promised! anonymity! for! the!interviewees!is! lowering!the!reliability!but! it! is!considered!to!give!more!honest!and!trustworthy!information!when!it!is!not!possible!to!identify!the!interviewee.!Further,! the! interviews!were!held! in!Swedish,!which!both!the! interviewees!and!interviewers! were! most! comfortable! with,! which! could! have! affected! the!reliability! because! of! translation! issues.! This! is! however! not! considered! as! a!major! issue! since! there! is! less! risk! of! misunderstandings! when! using! the!language!all!parties!are!most!comfortable!with.!!

2.6.2 Validity.When!the!results!of!a!study!accurately!reflect!the!studied!phenomena!the!validity!is! high.! Qualitative! data! is! often! transient! and! needs! to! be! understood!within!context.! (Collis! &! Hussey,! 2009;! Patton,! 2015)! Therefore! several! methods! for!gathering! empirical!material!were! used! in! order! to! understand! how! energy! is!managed! today,! different! perspectives! of! the! EED! and! corresponding! Swedish!law! as! well! as! to! be! able! to! identify! important! factors! to! manage! energy!efficiently.!!!!Combining! the! empirical! data! gathered! from! the! interviews,! complementary!study!of!companies!covered!by!the!EED!and!expert!opinions!with!theory!and!the!document! analysis! enhances! the! validity! of! this! study.! The! reason! is! that! the!qualitative!data!is!then!understood!within!context!and!comparison!of!empirical!qualitative! data! increases! the! possibilities! that! the! results! reflect! the! studied!phenomena.! (Merriam,!2009)!To! further! increase! the! validity,! interviews!were!held! with! environmental! managers! and! employees! working! with! energy!efficiency! within! different! divisions! of! the! Company.! They! have! knowledge!within! the! area! of! investigation! and! also! gave! a! broad! view!of! how! they!work!with! energy! efficiency! and! management! systems.! The! anonymity! of! the!interviewees!in!the!study!increases!the!validity!further!since!the!possibilities!for!gathering! truthful! information! are! higher! when! interviewees! understand! that!their! answers! cannot! be! identified.! By! having! semiestructured! interviews,! the!risk! of! losing! focus! is! higher! than!with! structured! interviews,!which! can! affect!the! validity! negatively.! Also,! open! questions! can! be! interpreted! differently.! To!handle! this! risk,! follow! up! questions!were! asked! if! an! interviewee! focused! on!subjects! not! of! interest! in! this! study.! Also,! when! areas! of! interest! beyond! the!

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interview!guideline!were!brought!up,!questions!within! these!areas!were!asked!on! following! interviews! to! validate! the! findings.! All! gathered! information!was!analyzed! qualitatively! which! implies! that! the! issues! with! semiestructured!interviews!do!not!affect!the!validity!negatively!to!a!high!degree!and!therefore!not!considered!as!a!problem!in!this!study.!The!answers!presented!in!the!report!are!reflecting!all!answers!of! interest!regarding!that!subject!and!if!an!interviewee!is!not!mentioned!it!means!that!the!interviewee!did!not!answer!the!question.!!When!gathering!information!from!the!experts!!!Besides!the!interviews,!the!empirical!information!gathered!from!experts!and!the!complementary! study! made! it! possible! to! compare! and! confirm! the! gathered!information.! Also,! it! was! important! that! the! case! companies! were! not!competitors!to!the!Company!and!anonymous!both!because!of!ethical!aspects!as!well!as!the!possibility!to!get!the!desired!information.!This!increases!the!validity!further! since! the! possibilities! that! the! results! reflect! the! studied! phenomena!increases.!!

2.6.3 Generalizability.Generalizability!refers!to!the!extent!the!results!can!be!applied!for!other!studies.!(Collis!&!Hussey,!2009;!Merriam,!2009)!The!problem!investigated! in! this!study!origins! from! the! Energy! Efficiency! Directive! initiated! by! the! European! Union.!Further,! the! Swedish! law! about! energy! auditing! in! large! companies! puts!requirements!on!large!companies!to!fulfill.!These!requirements!on!companies!to!improve! their! energy! performance! and! change! ways! of! working! with! energy!apply!to!all!companies!covered!by!the! law.!Further,!management!systems!were!analyzed!in!depth,!where!important!factors!to!succeed!in!managing!energy!were!identified.! Those! parts! of! the! study! apply! to! all! companies! in! Sweden,! which!increase! the! generalizability! of! the! study.! Though,! the! empirical! material!gathered! for! this! study! is! primarily! based! on! interviews!within! the! Company.!Therefore,! the! provided! results! in! this! study! are! somewhat! specific! for! the!investigated!company,!which!reduces!the!generalizability.!However,!since!many!large!companies!are!facing!the!requirements!from!the!EED!and!the!Swedish!law!the! results! can! be! used! by! other! organizations,! taken! into! consideration! that!some! factors! or! measures! are! more! or! less! relevant! depending! on! the!organization.! It! is! therefore!argued! that!some!of! the!results!can!be!generalized!for!an!organization!with!the!similar!size!as!the!investigated!company.!However,!identified!key!factors!and!important!measures!to!fulfill!the!EED!and!the!Swedish!law!can!differ!between!organizations!and!those!presented!in!this!study!primarily!focus!on!the!Company.!!! !

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3. Management.systems,.ISO.standards.and.energy.auditing.This% chapter% includes% information%gathered% from% the% literature% review.% It% focuses%on%management%systems,%and%specifically%environmental%and%energy%management%systems.% Further,% standards% within% the% two% areas% issued% by% the% International%Organization% of% Standardization% are% presented% and% discussed.% This% provides% the%reader% with% an% understanding% of% management% systems,% which% are% an% important%aspect%of%the%EED.%%!Because!of!the!increasing!legislative!requirements!there!is!a!need!for!companies!to! become! more! energy! efficient.! Also,! with! many! options! available,! the!expectations!are!higher!on!a!company! to!satisfy! their! customers!as!well!as! the!stakeholders.! In! order! to! manage! this! change! it! is! important! to! continuously!learn!and!evaluate!in!combination!with!developing!a!systematic!way!of!working.!(Fenga! et! al.,! 2014)!Management! systems! are! one!way! to! ensure! a! systemized!work.!Further,! to! improve!energy!performance!and! fulfill! the!Energy!efficiency!directive! and! the! Swedish! law,! organizations! are! encouraged! to! implement!management!systems!that! include!requirements!to!conduct!energy!audits.!(The!European!Union,!2012)!

3.1 Management.systems.A!management!system!is!a!key!factor! for!success!within!companies.!Used!in! its!most! efficient! way! it! gives! a! company! a! holistic! and! comprehensive!understanding! of! the! organization! to! achieve! high! rate! of! improvement! and!process! optimization.! This! gives! the! organization! possibilities! to! survive! in! an!increasingly! competitive! market.! (Salah! et! al.,! 2013)! In! addition! to! a!management! system! a! strategy! for! improvements! in! areas! covered! by! a!management! system! is! needed.! The! strategy! is! on! a! higher! level! than! the!management!system!and!provides!a!direction! for! the!company,!which!aims! for!the! strategic! direction! to! be! a! part! of! everyone’s! mind! when! working.!(Mintzberg,!1987)!!!There!are!several!definitions!of!management!systems.!Karapetrovic!&!Willborn!(1998)!define!it!as!“a!set!of!processes!that!function!harmoniously,!using!various!resources!to!achieve!management!objectives”.!According!to!Kazmi!&!Naaranoja!(2014)! a! management! system! can! be! defined! as! “a! strategic! process! of! an!organization! based! on! a! comprehensive! framework! of! instructions! and! welledesigned! set! of! guiding! rules,! for! undergoing! organizational! operations! for!achieving! organization! targets.”! The! International! Organization! for!Standardization! (2015)! describes! that! a! management! system! includes!procedures! to! ensure! a! systemized! work! among! employees! in! order! for! a!company! to! achieve! its! objectives.! (International! Organization! for!Standardization,!2015)!Commonly!for!these!three!are!that!a!management!system!is!a!plan!for!how!a!company!should!work!in!order!to!achieve!its!objectives!and!support!the!organization!to!continuously!work!with!improvements,!which!is!an!important! factor! in! achieving! corporate! effectiveness! and! sustainability.! An!organization! can! have! several! management! systems! with! different! purposes!(Salah!et!al.,!2013),!and! to! fulfill! the!Energy!Efficiency!Directive!environmental!management! systems! and! energy! management! systems! are! in! focus! (The!European!Union,!2012).!

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!As! there! are! several! definitions! of!management! systems! there! are! also! several!opinions!of!what!a!management!system!should!include!and!how!to!work!with!a!management!system.! In!general,! there!are! four!key! functions! in!a!management!system.! These! are! performance! measurement,! reporting! of! progress,! quality!processeidentification!of!performance!gaps!and!performance!standard!practices.!Between! these! components! activities! such! as! resource! planning,! business!planning,!continuous!business!improvement!and!continuous!evaluation!are!parts!of! the! process.! (Kazmi! &! Naarananoja,! 2014)! In! previous! studies! it! has! been!shown!that!reasons! for!why!companies!do!not!succeed!with!their!management!systems!often!results!from!too!much!focus!on!technical!aspects!and!lacking!focus!on!social!aspects,!such!as!awareness!and!commitment.!(Thollander!&!Ottosson,!2010)! The! management! systems! need! to! combine! managerial! and! technical!aspects!to!achieve!large!savings!in!respective!area!(Energywise,!2011),!and!this!is!illustrated!in!Figure!7.!!!

!Figure'7:'Combination'between'management'and'technology'is'important'

to'succeed'in'energy'management.'(Energywise,'2011)'

The! importance! of! combining! managerial! and! technological! factors! is! further!emphasized! by! Ronnenberg! et! al.! (2010),! who! describes! that! management!systems! often! focus! on! technical! aspects,! such! as! setting! goals! and! taking!measurement,!but!not!social!aspects,!such!as!awareness!and!commitment,!which!also! needs! to! be! considered! in! managing! systems.! Colleagues! are! the! most!important! information! source! among! employees! according! to! Thollander! &!Ottosson!(2010),!which!makes!the!employees!an!important!source!for!spreading!information! and! create! a! common! direction.! It! has! also! been! shown! for! both!environmental!management!systems!and!energy!management!systems!that! the!results! of! reduced! environmental! impact! respectively! improved! energy!efficiency! are! dependent! on! technical! and! managerial! aspects! but! also! on!employees’!participation!and!engagement.!(Thollander!&!Ottosson,!2010;!Boiral!&!Henri,!2012)!!!!

Management!

Technology!

!

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The! international! organization! for! standardization! has! issued! two! general!standards! in! the! area! of! environment! and! energy;! the! environmental!management! system! (ISO! 14001)! respectively! the! energy!management! system!(ISO!50001).!These!are!further!presented!in!the!chapter!ISO!standards,!after!the!general!presentation!of!environmental!and!energy!management!systems!below.!!

3.1.1 Environmental.management.systems.With! the! increased! awareness! of! environmental! consequences! of! different!actions! and! stricter! laws! and! regulations! there! is! an! increasing! number! of!organizations!working! to! achieve! a!high! environmental! performance.! (Testa! et!al.,! 2013)! In! addition,! the! environmental! policy! is! to! a! lager! extent! based! on!market! incentives! in! improving!environmental!performance,!which!means! that!with! more! options! available! for! improving! environmental! performance! the!stricter!the!regulation!becomes.!This!has!created!a!shift!of!how!companies!work!with! managing! their! environmental! impact.! Companies’! have! moved! from!focusing! on! regulationedriven! management! to! proactively! set! strategies! for!voluntary!work!with!environmental!management.!(Anton!et!al.,!2003)!It!has!also!been!shown!that!voluntaryedriven!management!is!better!since!regulatoryedriven!is!hard!to!handle!and!often!more!costly.!(Arimura!et!al.,!2008)!!Adopting! an! environmental! management! system! is! voluntary! and! aims! to!improve! environmental! performance! as!well! as! provide! tools! to! achieve! longeterm!results!in!reduced!environmental!impact!of!a!company.!This!means,!among!other! things,! increased! process! efficiency,! reduced! use! of! resources! and!materials,! reduced! waste! production,! and! to! continuously! reduce! the! total!environmental! impact.! (International!Organization! of! Standardization,! 2004)! It!has! been! shown! that! an! increasing! pressure! from! a! company’s! customers,!investors! and! the! public! on! a! company! to! improve! their! environmental!performance!motivates!a!company!to!improve!their!environmental!performance!by!adopting!an!environmental!management! system.!Further,! companies’! trying!to!overcome!this!pressure!by!implementing!environmental!management!systems!adopts!a!more!comprehensive!environmental!management!system!compared!to!companies!with!lower!ambitions!in!their!environmental!performance.!(Anton!et!al.,!2003)!Anton!et!al.!(2003)!argues!that!an!environmental!management!system!affects! a! company’s! environmental! performance! in! a! positive! way! and! the!pressure! from! stakeholders! affects! a! company! indirectly! to! changes! in! their!management! of! environmental! concerns.! Only! adopting! an! environmental!management!system!is!however!not!a!guarantee! to! improve!a!company’s!work!with!reducing!their!environmental!impact.!To!achieve!results!the!focus!needs!to!be!on!reducing!environmental!impact!rather!than!on!implementing!a!tool!such!as!an!environmental!management!system.!(Ammenberg!&!Hjelm,!2002)!!!The! focus! in! an! environmental! management! system! is! to! reduce! a! company’s!environmental!impact!and!sets!up!the!structure!for!a!company’s!environmental!work.!Within! an! environmental!management! system! the! information! gathered!from!the!audits!is!structured!and!integrated!in!the!overall!strategy.!By!doing!that,!a! company! can! establish! an! environmental! policy,! set! targets! for! their!environmental! work,! and! introduce! processes! and! measures! to! improve! the!

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environmental! performance! of! the! organization.! (Rondinelli! &! Vastag,! 2000;!International!Organization!of!Standardization,!2004)!!!Commitment!of! top!management! as!well! as! engagement! throughout! the!whole!organization! is! important! to! improve! environmental! performance! with! an!environmental! management! system.! (Testa! et! al.,! 2013)! This! is! further!confirmed! by! Ronnenberg,! Graham! and!Mahmoodi! (2010)!who! have! analyzed!integration! of! an! environmental! management! system! in! relation! to! change!management.!They!have! also! found! that! commitment! from! top!management! is!important! but! the! effect! on! environmental! performance! because! of! employee!involvement!depends!on!how!effectively!their!involvement!is!handled.!In!a!case!study!of!214!Chinese!manufacturing!companies!analyzing! the!relation!between!environmental!management!systems!and!organizational!learning!they!found!that!an! efficient! and! successful! environmental! management! system! is! in! need! of!commitment! to! learning’s,! shared! vision,! openemindedness! and! knowledge!sharing.! (Fenga! et! al.,! 2014)! Aspects! relating! to! how! data! is! gathered! and!analyzed! as!well! as! their! comparability! are! also! important! factors! for! success.!(Testa! et! al.,! 2013;! Boiral! &! Henri,! 2012)! Testa! et! al.! (2013)! also! describes!several! technical! aspects! important! in! energy! management! system.! These!aspects! are! that! set! targets! and! goals! corresponding! to! measurements,! clear!levels!of!reporting!and!available!data!saved!over!time!to!compare!with.!!(Testa!et!al.,!2013)!

3.1.2 Energy.management.systems.The! reason! for! companies’! need! to! improve! their! energy! performance! is! that!energy!has!become!an! important!part!within!sustainability!and!a!resource!that!needs!to!be!managed,!as!well!as!a!requirement!in!the!Energy!Efficiency!Directive.!(European! Commission,! 2014b)! Further,! there! is! a! new! customer! tendency!where! the! customers! make! their! choices! considering! a! company’s! energy!performance! as! an! important! aspect.! This! pressure! affects! companies! to!work!more! actively! with! improving! their! energy! performance! and! manage! energy!efficiently.! (Hong! &! Pham,! 2014;! Introna! et! al.,! 2014)! Even! though! there! is! a!larger!focus!on!energy!today,!there!is!still!a!trend!within!companies!to!focus!on!their!core!business!which!lead!to!that!energy!work!is!not!enough!prioritized!in.!(Thollander!&!Ottosson,!2010)!!!The!main!purpose!of!energy!management!is!to!engage!the!organization!to!work!with! energy,! and! potentially! minimize! costs! by! reducing! energy! use! and!improving!energy!efficiency.!Further!objectives!with!energy!management!are!to!communicate! energy! within! an! organization,! continuously! and! effectively!measure!and!report!energy!use,!and!propose!costeeffective!measures.!(Capehart!et!al.,!2006;!Introna!et!al.,!2014)!!Within!this,!it!is!possible!to!analyze!energy!data!from! all! levels! within! an! organization! in! order! to! develop! holistic! energy!efficiency!strategies.!(Vikhorev!et!al.,!2013)!One!way!to!structure!the!work!with!improving! energy! performance! for! a! company! is! by! implementing! an! energy!management! system.! The! energy! management! system! structures! information!and!by!using!that!information!opportunities!for!energy!savings!can!be!identified.!Important! parts! in! an! energy! management! system! are! top! management!commitment,!communication,!energy!policy,!energy!audits,!monitoring!of!energy!

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use! and! programs! for! energy! savings.! In! addition! to! adopting! an! energy!management! system,! a! strategic! approach! for! an! organization’s! energy! work!needs!to!be!set.!!(Simon!et!al.,!2011;!Thollander!&!Ottosson,!2010)!!!In!Figure!8,! four!models! for!energy!management!are!presented!and!compared.!First,!every!model!is!described!shortly!for!an!understanding!of!how!it!is!built!up!and!then!similarities!and!differences!are!described.!!

!Figure'8:'Comparison'between'four'energy'management'models.'

Piper!(1998)!

• Planning'• Create!understanding!• Establish!goals!• Identify!programs!• Develop!processes!

• Implementation'• Top!management!commitment!• Energy!database!

• Control'feedback'• Evaluate!achievements!• Visualize!progress!

Vikhorev!et!al.!(2013)!

• RealVtime'monitoring'• Data!standards!• Communication!interfaces!

• Data'analysis'• KPIs!• Targets!

• Evaluation'• Decision!support!• Visualization!

• Optimization'• Measures!• Improvments!

Energywise!(2011)!

• ShortVterm'measures'• Engage!top!management!• Create!awareness!• Set!goals!• Delegation!of!responsibilities!

• LongVterm'measures'• Develop!energy!strategies!• Communicate!energy!work!• Monitoring!energy!use!• Investigate!potential!energy!reduction!projects!• Prioritize!energy!efpiciency!measures!

Capehart!et!al.!(2006)!

• Management'commitment'• Communicate!energy!• Reward!employees!

• Energy'manager'• Ensure!continous!work!with!energy!

• Energy'committee'• Improve!energy!performance!• Create!awareness!

• Cost'allocation'• Allocate!energy!costs!on!cost!centers!

• Reporting'and'monitoring'• Measure!energy!use!• Reporting!system!

• Training'• Increase!knowledge!and!understanding!

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Piper! (1998)! describes! that! an! energy! management! system! mainly! should!include! three! elements;! planning,! implementation! and! control! feedback.!Planning! focus!on!creating!understanding!of! that!energy! is!a! resource!within!a!company!and! it! needs! to!be!managed!as!other! resources.!This! includes! setting!realistic! goals! and! preparing! for! measuring! energy! use.! To! prepare! for!measuring! energy,! appropriate! programs! needs! to! be! identified! and! processes!for!how!to!measure!needs!to!be!developed.!The!implementation!that!follows!the!planning! part! focuses! on! top! management! commitment! and! developing! a!database! for!how!to!store! information!regarding!energy.! It! is!necessary! for! the!top!management! to! commit! to!an!energy!management! system! if! adopted! in!an!organization,! since! resources! in! an! organization! are! limited! and! needs! to! be!prioritized! between! several! operations.! To! improve! energy! performance!resources! needs! to! be! allocated! to! energy! work.! The! function! of! an! energy!database!is!to!identify!energy!saving!opportunities!and!supports!an!organization!to!achieve! its!energy!goals.!The! last!part,!control! feedback!aims!to!evaluate!the!energy! management! systems! to! set! goals! and! provide! information! for! energy!reduction!investments.!In!this!part!the!results!of!an!organization’s!energy!work!should!be!visualized.!(Piper,!1998)!!Vikhorev!et!al.!(2013)!have!developed!an!energy!management!system!where!the!main!parts!are!realetime!monitoring,!data!analysis,!evaluation!and!optimization.!The!authors!focus!on!technical!aspects!throughout!their!model!since!they!state,!“one! cannot! manage! what! one! does! not! measure,! so! data! collection! is!fundamental!to!energy!management”.!Realetime!monitoring!focus!on!developing!data! standards,! that! explains! how! energy! measurements! shall! be! taken! and!communication! interfaces,! that! focus! on! the! interaction! between! the! energy!management! system! and! employees! within! an! organization.! It! is! emphasized!that! measurements! need! to! be! taken! in! realetime! for! the! employees! to!understand! how! different! actions! affect! the! energy! use! directly.! Data! analysis!focus!on!establishing!key!performance!indicators!on!energy!and!set!goals,!which!gathered! data! is! compared! with.! In! the! evaluation! phase,! gathered! data! is!evaluated! and! used! as! decision! support! for! energy! reduction! investments! and!the! results! needs! to! be! visualized.! The! last! part,! optimization! focuses! on!implementing!measures!and! to! improve!an!organization’s!energy!performance.!(Vikhorev!et!al.,!2013)!!In! order! to! manage! energy! efficiency! efficiently! both! shorte! and! longeterm!measures!are! important!according!to! the! third!model!described!by!Energywise!(2011).! Shorteterm! measures! are! defined! by! important! factors! for!implementation!and!longeterm!measures!focus!on!activities!that!are!a!part!of!the!ongoing!process!with!energy!management.!However,!there!is!no!clear!distinction!between! these! and! some! of! the! shorteterm! measures! can! be! considered!important! both! for! the! shorteterm! and! longeterm! energy!management! and! the!opposite!for!longeterm!measures.!The!shorteterm!measures!include!engaging!the!top!management,!set!clear!and!measurable!goals!for!energy!efficiency,!delegation!of! responsibilities! within! energy! work! and! establish! of! an! internal! reward!program! to! reward! employees! driving! the! energy! work! forward.! Longeterm!measures! focus! on! developing! energy! strategies,! communicating! the! energy!work! and! goals! within! the! organization,! monitoring! of! energy! use,! and!

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investigate!potential!energy!reduction!projects!and!set!up!a!plan!for!investment!in!those.!(Energywise,!2011)!!The! fourth! energy!management!model! is! developed! by! Capehart! et! al.! (2006)!and! compared! to! the! other! models;! this! has! a! larger! focus! on! organizational!structure.! In! addition! to! having!management! commitment,! an! energy!manager!working! to! ensure! continuity! in! the! energy!work,! and! an! energy! committee! to!work! with,! and! communicate! energy! are! needed.! Further,! cost! allocation! of!energy! on! each! part! of! an! organization! is! important! to! increase! the!understanding!of!how!much!energy!costs,!measurements!needs!to!be!taken!and!a!reporting! system! for! energy! needs! to! be! established,! and! training! to! increase!knowledge!of!energy!in!the!organization!are!needed.!!(Capehart!et!al.,!2006)!!!All! energy!management! systems!show! that! there!needs! to!be!a! combination!of!managerial! and! technical! aspects! to! succeed! with! energy! management.! The!identified!managerial!and!technical!aspects!in!the!four!models!are!presented!in!Figure!9.!!!

!Figure'9:'Managerial'and'technical'aspects'in'an'energy'management'

system.'

The! most! common! managerial! aspect! is! commitment! from! top! management,!which! is! described! by! Piper! (1998),! Energywise! (2011)! and! Capehart! et! al.!(2006).!Further,!delegation!of!responsibilities!and!reward!employees!as!well!as!communicate! energy,! creating! awareness! and! provide! the! employees! with!training! are! important! managerial! factors! to! succeed! in! energy! management.!Measure! energy! use! and! set! goals! are! the! most! common! technical! factors!described!in!the!four!energy!management!systems.!Other!important!factors!are;!

Managerial!aspects!

Top!management!commitment!

Delegation!of!responsibilities!

Reward!employees!

Communicate!energy!

Create!awareness!

Training!

Technical!aspects!

Set!goals!and!EPI's!

Establish!data!standards!and!develop!energy!database!

Identify!programs!and!develop!processes!

Measure!energy!

Evaluation!of!results!

Visualization!

!

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data!standards,!developing!processes,!evaluation!of!results!and!potential!energy!reduction!projects,! and!visualization.! (Capehart! et! al.,! 2006;!Energywise,!2011;!Piper,!1998;!Vikhorev!et!al.,!2013)!!Capehart! et! al.! (2006)! and! Energywise! (2011),! argue! for! top! management!commitment! as! the! most! important! aspect! to! succeed! with! an! energy!management! system.! The! top! management! needs! to! show! their! commitment!from! the! beginning! when! an! organization! works! to! improve! their! energy!performance! and! implements! an! energy!management! system.! (Capehart! et! al.,!2006)! Piper! (1998)! also! describes! its! importance! and! means! that! success! in!energy!management! and! improving! a! company’s! energy! performance! is! in! the!need! of! allocating! resources! for! energy! work.! Top! management! is! therefore!important!since!they!have!the!authority!to!provide!an!organization!with!backing,!personnel!and!financing!to!achieve!its!goals!within!energy.!(Piper,!1998)!Further,!the! top! management! has! the! authority! to! take! actions! to! improve! the! energy!performance! and! establish!motivation! among! the! employees! by! showing! their!interest.!(The!Energy!Research!Institute,!2014)!!!Compared!to!Capehart!et!al.!(2006),!who!includes!top!management!commitment!from!the!beginning,!Piper!(1998)!argues!that! top!commitment! is!needed! in! the!implementation! part,! and! that! the! planning! part! can! be! done! without! their!commitment.!Vikhorev!et!al.!(2013)!includes!commitment!of!top!management!in!their!research,!though!it!is!not!included!in!the!energy!management!model!since!it!is!considered!a!critical!factor!through!all!parts!of!an!energy!management!system!and! always! needed! for! an! organization! to! succeed! in! any! area.! Energywise!(2011)!has!top!management!commitment!as!a!shorteterm!measure,!which!means!that! it! is! important! during! the! implementation! phase! but! their! commitment! is!not! as! important! in! the! longeterm.! There! are! differences! about! when! top!management!should!be!integrated!in!a!management!system!but!it!is!clear!that!it!is!an!important!factor!to!manage!energy!efficiently.!!For! the! top! management! to! show! commitment! they! shall! establish! an! energy!policy! that! describes! the! direction! of! a! company’s! energy! work! and! the!management’s! interest! in! improving! the! company’s! energy! performance.!(Energywise,! 2011)! Gopalakrishnan! et! al.! (2014),! who! have! analyzed! the!implementation!of!ISO!50001!in!manufacturing!companies,!confirms!that!the!top!management!establishes!the!energy!policy,!which!builds!a!framework!for!actions!the!organization!shall!take!in!energy!and!setting!objectives,!and!they!should!also!be!part!of!reviewing!internal!energy!audits.!To!prioritize!and!provide!resources,!such!as!staff!and!money,!for!energy!work!is!crucial!to!show!the!organization!that!energy!is!important.!(Capehart!et!al.,!2006;!Piper,!1998)!Specifically,!resources!in!staff! such! as! assigning! an! energy! manager! and! energy! committee! need! to! be!provided!by!the!top!management,!(Gopalakrishnan!et!al.,!2014)!and!they!need!to!be!open!to!and!prioritize!energy!investment!suggestions.!(Capehart!et!al.,!2006)!!!Delegation! of! responsibilities! within! the! area! of! energy! is! the! step! after! top!management! has! provided! the! resources! needed.! It! focuses! on! assigning! an!energy!manager,!who!is!responsible!for!driving!the!energy!work!forward,!and!in!some!cases! also! an!energy! committee,!which! is!described! further!down! in! this!

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study.!(Capehart!et!al.,!2006;!Energywise,!2011;!Piper,!1998)!Energywise!(2011)!has!delegation!of!responsibilities!as!a!shorteterm!measure,!which!means!that!the!role! is! set! during! the! implementation! of! an! energy! management! system.! It! is!described! that! the! energy! manager! works! across! an! organization! with!identifying! energy! saving! opportunities! and! communicate! the! importance! of!working!with!energy!in!an!organization.!(Energywise,!2011)!Also,!Capehart!et!al.!(2006)! has! energy! manager! as! an! individual! part! of! the! energy! management!system!and!the!main!responsibilities! for!that!role! is!to!ensure!continuity! in!the!energy! work,! which! is! similar! to! the! description! by! Energywise! (2011).! The!energy!manager!shall! report!up! in! the!organization! in!order! to!make!sure! that!the! top! management! is! aware! of! the! company’s! energy! performance! and! in!return! the! top! management! is! willing! to! support! the! energy! manager! with!resources! and! staff.! In! large! organizations! it! is! needed! to! have! an! energy!manager!for!each!division!as!well!as!for!each!plant.!(Capehart!et!al.,!2006)!Piper!(1998)! describes! the! importance! of! having! an! energy!manager! in! his! research!but! has! not! included! delegation! of! responsibilities! in! the! energy!management!model.!Compared!to!Capehart!et!al.!(2006)!and!Energywise!(2011),!Piper!(1998)!argues! that! the! energy!manager! is! part! of! setting! up! the! energy!management!system!and!not!included!throughout!the!system.!!!Rewarding! employees! working! with! energy! and/or! contributing! to! improving!the!energy!performance!is!an!important!activity!to!motivate!employees!and!for!the! top! management! to! show! their! interest! in! energy! work.! (Capehart! et! al.,!2006;! Energywise,! 2011)! Energywise! (2011)! argues! that! an! energy! reward!program!needs! to!be!established!as!a! shorteterm!measure!within!engaging! top!management,! and! employees! in! the! organization! should! be! assigned! energy!champions.!In!management!commitment!in!Capehart!et!al.!(2006)!model,!reward!employees’! is!an! important!part!and!one!of! the! first!parts! the!authors!describe!for!an!energy!management!system,!similar!to!the!model!by!Energywise!(2011).!By! rewarding! employees,! the! motivation! to! continue! working! with! energy!increases! and! it! creates! an! understanding! of! how! different! actions! affect! a!company’s! energy! performance.! Also,! top! management! needs! to! continuously!show! their! interest! by! including! energy! in! their! communication! to! their!employees!as!well!as!prioritize!energy!investment!suggestions.!(Capehart!et!al.,!2006)! To! communicate! energy! efficiently,! already! established! communication!channels!should!be!used.!(Energywise,!2011)!!Creating! awareness! in! an! organization! is! important! to! avoid! information! gaps,!which! is! common! regarding! energy! work! within! an! organization.! The!information!gaps!are!illustrated!in!Figure!10.!!!

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!Figure'10:'Information'gaps'within'an'organization'regarding'energy'use.'

(The'Energy'Research'Institute,'2014)'

This!lack!of!information!in!different!parts!of!an!organization!can!make!it!difficult!to!manage! the!energy!efficiency!work.!When! top!and!middle!management! lack!information,!which!is!illustrated!in!the!left!pyramid!(situation!A)!in!Figure!10,!it!is! difficult! to! change! the! direction! of! an! organization.! Considering! lack! of!information!among!the!operational!staff,!they!often!have!little!knowledge!of!how!their!way!of!working!affects!an!organization’s!energy!performance.!(The!Energy!Research!Institute,!2014)!!!Awareness!of!why!energy!is!important!and!why!a!company!prioritizes!energy!is!a!part!of!Piper’s!(1998)!planning!phase,!who!names!it!by!create!understanding.!Further,! it! is!a!shorteterm!measure!according!to!Energywise!(2011),!however!a!factor!that!needs!to!be!considered!longeterm!as!well!but!categorized!as!a!shorteterm!since!it! is! important!from!the!beginning!of! improving!a!company’s!energy!performance! by! managing! energy! more! efficiently.! In! the! second! model! for!energy! management! awareness! is! not! included! but! the! authors! argue! that!awareness! in! the! organization! is! crucial! to! succeed!with! energy!management.!(Vikhorev!et!al.,!2013)!Capehart!et!al.!(2006)!argues!that!creating!awareness!is!part! of! an! energy! committee’s! responsibilities.! Representatives! on! different!levels! in! an! organization! are! needed! in! order! to! increase! the! awareness!throughout! the! whole! organization! and! make! sure! that! the! most! competent!people!have! the! authority! to! improve! a! company’s! energy!performance.!Those!representatives!are!creating!an!energy!committee.!The!committee!should!consist!of! people! with! both! technical! expertise’s! as! well! as! skills! to! steer! the!organization.! By! guiding! activities! and! communication! of! the! energy!management!program!the!committee!work!to!improve!the!energy!performance!and! assist! the! energy!manager.! The!members! of! the! committee! are! employees!working!in!different!positions!within!the!company.!(Capehart!et!al.,!2006)!!To!ensure!that!all!employees!are!aware!of!the!energy!work!and!contribute!to!it,!training! to! increase!knowledge!and!skills! is!needed.!Training! is! included! in! the!energy!management!models!by!Energywise! (2011)! and!Capehart! et! al.! (2006).!Energywise! focus! on! describing! how! the! training! should! be! conducted! while!

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Capehart!et!al.!(2006)!explain!the!necessity!of!training!for!the!energy!managers!and! energy! committee.! The! training! should! be! done! in! all! levels! of! the!organization!and!the!recommendations!are!to!keep!it!short!and!integrate!it!into!already! established! processes! to! ensure! effectiveness.! Further,! the! training!should! be! enjoyable! and! informative! as! well! as! encourage! employees’!suggestions! regarding! improving! the! company’s! energy! performance,! and!encouraging! suggestions! should! be! part! of! the! company! culture.! (Energywise,!2011)! Also,! training! to! increase! the! knowledge! both! for! energy!managers,! the!committee! and! the! organization! as! a!whole,! is! needed.! The! energy!manager! is!responsible!for!the!training!and!this!is!a!continuing!work.!(Capehart!et!al.,!2006)!!!A! technical! factor! that! is! mentioned! in! all! investigated! energy! management!models! is! setting! goals! and! targets.! (Capehart! et! al.,! 2006;! Energywise,! 2011;!Piper,!1998;!Vikhorev!et!al.,!2013)!It!is!an!important!factor!in!the!planning!phase!according! to! Piper! (1998)! in! order! to! set! the! direction! for! the! energy! work.!Further,! the! goals! should! be! clear! and! realistic.! (Piper,! 1998)! Vikhorev! et! al.!(2013)!have!in!the!phase!data!analysis!to!use!key!performance!indicators!(KPI)!and! targets! to! compare! measured! results! with,! which! emphasize! the! need! of!setting! clear! targets.! Compared! to! Piper! (1998),! Vikhorev! et! al.! (2013)! also!describes!the!goals’!purpose!as!to!provide!a!direction!for!the!company.!Though,!Piper!(1998)!has!setting!goals! in!the!planning!phase!but!Vikhorev!et!al.! (2013)!includes!that!activity!after!the!first!phase,!which!shows!a!difference!between!the!models.!Energywise!(2011)!explains!setting!goals!as!a!shorteterm!measure!since!it! is!done! in! the!beginning!of!building!up!an!energy!management! system! in!an!organization,!though!the!goals!are!active!during!the!whole!process!and!following!work! with! energy! management.! For! the! employees! to! understand! what! the!organization! is! aiming! for! it! is! important! that! the! goals! are! clear! and!measureable.! (Energywise,! 2011)! Further,! Capehart! et! al.! (2006)! has! not!included! setting! goals! as! a! factor! in! the! energy! management! model,! but! it! is!described!that!goals!needs!to!be!set!in!energy!management!and!they!need!to!be!tough! but! achievable! as! well! as! clear,! measurable! and! realistic.! As! the! other!researchers,! Capehart! et! al.! (2006)! also! emphasize! that! the! goals! need! to! be!comparable!to!results!provided!in!the!energy!management!system.!!!Identify!energy!programs,!develop!energy!databases!and!set!data!standards!are!aspects! that! set! the! structure! for!how! to!measure!and! report!energy.!They!are!included! in! the! energy! management! systems! developed! by! Piper! (1998)! and!Vikhorev!et!al.!(2013).!Piper!(1998)!describes!that!by!identifying!programs!the!structure! for! the! energy!management! system! is! set! and! the!programs! are! also!needed! for! an! organization! to! achieve! its! goals.! Together! with! identifying!programs,! processes! for! how! to! monitor! performance! should! be! developed.!(Piper,!1998)!This! is!confirmed!by!Vikhorev!et!al.! (2013)!who!describes! that!a!procedure!for!how!to!measure,!which!is!based!on!previous!energy!data,!needs!to!be!developed!as!well!as!a!procedure!for!how!to!set!targets.!!!Energy!data!standards!included!in!the!energy!management!model!developed!by!Vikhorev! et! al.! (2013)! are! needed! in! order! to! ensure! accurate! and! useful!information!that!are!used!on!all!levels!in!an!organization.!Information!regarding!methods!for!how!to!extract!information!from!data!and!how!to!process!and!store!

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that! data! should!be! included! in! the! standards.!More! specifically,! the! standards!should!contain! information!about!sampling!period,!units,!descriptions!and!data!precision.!Data!analysis! focuses!on!collecting! the!data!and!analyzes!continuous!data!streams,!which!makes!it!possible!for!employees!to!directly!understand!their!impact!on!the!energy!use.!(Vikhorev!et!al.,!2013)!Piper!(1998)!describes!that!an!energy! database! shall! be! developed! in! the! implementation! part! of! an! energy!management! system.! Its! function! is! to! identify! how!much! energy! that! is! being!used!and!what!type!of!energy!that!is,!resulting!in!new!information!about!where!to! save! energy.! The! energy! database! is! an! important! tool! for! fulfilling! an!organization’s!energy!targets.!(Piper,!1998)!!Piper!(1998)!argues!that!identifying!programs!and!develop!processes!are!part!of!the! planning! phase,! while! data! standards! are! set! during! the! implementation!phase.! ! In! the! management! system! developed! by! Vikhorev! et! al.! (2013),! data!standards! are! included! in! the! first! phase! realetime! monitoring,! and! the! data!analysis! phase! also! focus! on! how! to! analyze! and! process! the! data.! This! shows!that! setting! up! the! structure! for! how! to! manage! energy! and! also! identifying!programs! and! develop! processes! including! information! needed! for! gathering!energy! data! is! important! to! do! in! the! beginning! of! setting! up! an! energy!management!system.!Also,!they!are!important!parts!to!develop!when!reviewing!a!management!system.!(Piper,!1998;!Vikhorev!et!al.,!2013)!!All!energy!management!systems!have!energy!metering!included!as!an!activity!in!the!energy!management!systems.!Energywise!(2011)!argues!that!measurements!are!needed!to!be!able!to!control!the!energy!use!and!thereby!work!to!reduce!it!or!increase! the! energy! efficiency.! Further,! Capehart! et! al.! (2006)! describes! that!measuring! energy! use! is! important! for! a! company! to! understand! how! it! is!possible! to! reduce! it,! which! confirms! previous! argument.! As! described! about!Vikhorev! et! al.! (2013)! model,! taking! measurements! is! central! to! be! able! to!manage! energy.! ! To! build! the! energy! database! according! to! Piper! (1998)!described! above,! measurements! needs! to! be! taken! and! this! should! be! done!during!the!implementation!phase!of!the!energy!management!program.!!!Energywise!(2011)!describes!that!measurements!should!be!taken!for!individual!parts! or! processes! within! an! organization! to! advantage! the! most! from! the!information.!Also,! the! information! gathered! from! the!measurements! should!be!monitored! over! time! to! see! changes,! and! it! is! therefore! a! longeterm!measure.!(Energywise,! 2011)! In! the! energy! management! system! developed! by! Piper!(1998)! it! is! described! that! energy! information! takes! two! forms;!metered! data!and! results! of! an! energy! audit.! There! are! different! areas! where! the! different!forms! of! information! fit! best.! The!metered! data! is! useful!when!measuring! the!energy! use! building! by! building! and! can! be! used! to! analyze! performance! and!compare! between! buildings.! Also,! by! using! a! meter! on! a! specific! process! the!metered!data!is!appropriate!when!evaluating!a!specific!process!or!machine.!The!energy!audit!focus!on!identifying!energy!saving!opportunities!and!which!parts!of!a! system! that! uses! the! most! energy.! (Piper,! 1998)! Capehart! et! el.! (2006)!describes! that! within! measuring! energy;! energy! use! monitoring,! energy! use!record! and! performance! measurements! are! important! factors.! The! energy!management!in!collaboration!with!the!committee!works!together!to!measure!the!

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energy! use! and! compare! it! to! set! targets.! However,! many! organizations! lack!meters!and!those!are!needed!in!order!to!be!able!to!understand!exactly!where!the!energy! is!used!and!what!measures!are!needed,!also!described!by!Piper!(1998).!Though,! to!motivate! investments! in!meters! they!need! to!be! accurate! and! costeeffective.!(Capehart!et!al.,!2006)!Vikhorev!et!al.!(2013)!further!describes!the!use!of!meters! for!effectively!take!measurements.!To!be!able!to!provide! information!and!results!in!realetime!it!is!needed!for!a!company!to!take!measurements!using!meters!and!sensors,!and!the!data!needs!to!be!gathered!within!the!framework!of!data!standard.!Further,!energy!performance!measurements!are!needed!in!order!to!measure! energy! use! and! set! up! targets! for! increasing! the! energy! efficiency.!These! indicators! can! be! based! simple! figures! such! as! measuring! output! for! a!specific! activity! compared! to! the! energy! used! to! conduct! it.! (Vikhorev! et! al.,!2013)!!Evaluation! is! included!in!all!management!systems!as!a!part! for! following!up!all!activities!conducted!in!the!management!system!and!how!a!company’s!results!are!compared! to! set! goals.! The! evaluation! phase! is,! according! to! all! energy!management! systems! important! for! investigating! possible! energy! reduction!projects! to! improve!energy!performance.!Within!this!phase,! it! is!also!explained!that!visualization!of!results!are!a!key!factor!for!the!employees!to!understand!how!their!actions!affect!the!energy!use!and!the!progress!of!a!company’s!energy!work!compared! to! set! goals.! (Capehart! et! al.,! 2006;! Energywise,! 2011;! Piper,! 1998;!Vikhorev! et! al.,! 2013)! Further,! the! information! from! the! evaluation! should! be!used! as! decision! support! for! energy! investments! and! prioritizing! energy!efficiency!measures.!(Energywise,!2011;!Vikhorev!et!al.,!2013)!!Vikhorev! et! al.! (2013)! emphasize! the! importance! of! evaluating! gathered!measurements,!which! in! their! energy!management! system! is! called!evaluation.!Companies! today! conduct! energy! audits! where! they! target! and! monitor! their!energy! use! but! in! order! to! take! advantage! of! that! information! is! needs! to! be!evaluated!and!correlated!with!information!from!all!levels!in!the!company!as!well!as! compare! to! set! targets.! Also,! it! is! possible! to! develop! energy! management!strategies! from! evaluating! the! energy! performance! in! an! organization.! Control!feedback!is!the!third!part!of!Piper’s!(1998)!energy!management!system!and!this!part! includes! evaluation! of! the! results! compared! to! set! targets,! which! is! the!similar! purpose! of! the! evaluation! as! in! Vikhorev! et! al.’s! (2013)! energy!management!system.!Further,!Piper!(1998)!argues!that!the!part!control!feedback!also! is! used! to! build! the! energy! database! and! the! energy! manager! provides!feedback!on!the!energy!management!systems.!!!As! a!part!of! the!evaluation!phase,! the! results! from! the!data! analysis! should!be!visualized,! for! example! by! showing! power! profiles! of! current! and! cumulative!energy! use.! (Capehart! et! al.,! 2006;! Piper,! 1998;! Vikhorev! et! al.,! 2013)! It! is!described!by!Piper!(1998)!that!visualization!is! in!the!control!evaluation!part! in!the! system! and! by! visualizing! the! results! employees’! motivation! can! increase.!Vikhorev! et! al.! (2013)! and! Capehart! et! al.! (2006)! focus! on! information!technology!systems!when!describing!how!to!make!the!energy!information!visible!and!available! in!an!organization.!Capehart!et!al.! (2006)!argues! that! to! take! the!most!advantage!of!taking!measurements,! these!need!to!be!used!in!combination!

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with! a! system.! The! system! works! to! gather! and! record! the! data! to! useful!information!and!provided!in!realetime!is!to!prefer.!Showing!realetime!changes!in!energy!use! increases! the!understanding!of!how!different!actions!directly!affect!the! energy!performance! of! a! company.! (Capehart! et! al.,! 2006)! In! the! realetime!monitoring!phase,!Vikhorev!et!al.!(2013)!explains!that!communication!interfaces!need!to!be!developed.!These!focus!on!creating!easy!understandable!information!of! the! energy! use! and! how! it! can! be! reduced.! Compared! to! the! energy!management!system!model!developed!by!Capehart!et!al.!(2006),!Vikhorev!et!al.!(2013)! describes! communication! interfaces! as! an! activity! in! the! beginning! of!developing! an! energy! management! system.! Further,! researchers! propose! that!the! energy! management! systems! should! be! integrated! with! factory! systems!(Karnouskos! et! al.,! 2009;! Vijayaraghavan!&!Dornfeld,! 2010)! ! and! a! systematic!approach! should! be! applied.! This! enhances! the! correlation! respectively! the!possibilities! to! understand! the! energy! use! within! a! company.! (Thiede! et! al.,!2012)!!The! evaluation! of! energy! use! is! further! done! and! used! for! taking! decisions!regarding! energy! efficiency! investments.! (Energywise,! 2011;! Vikhorev! et! al.,!2013)!Vikhorev!et!al.!(2013)!includes!decision!support!in!the!evaluation!phase,!and!has!another!part!of!the!system!called!optimization,!which!focus!on!measures!and!improvements!for!improving!a!company’s!energy!performance.!Energywise!(2011)! have! the! activities,! investigate! potential! energy! reduction! projects! and!prioritize!energy!efficiency!measures!in!their!energy!management!system,!which!corresponds!to!Vikhorev!et!al.’s!(2013)!optimization!phase.!They!are!according!to!Energywise!(2011)!longeterm!measures!and!need!to!be!focused!on!both!when!implementing! a! system! and! to! sustain! the! energy! work.! Piper! (1998)! also!explains!in!the!part!control!feedback!that!evaluation!of!measures!for!improving!energy!performance!is!included.!!!!Only!Capehart!et!al.!(2006)!includes!cost!allocation!in!their!energy!management!system.!By!allocating!costs!on!different!parts!of!an!organization! they!are!given!the! responsibility! to! manage! energy! costs! as! well! as! it! can! increase! the!understanding! of! the! energy! costs! for! a! specific! part! and! how! measures!implemented!have!affected!the!energy!costs.!(Capehart!et!al.,!2006)!

3.2 ISO.standards.The!two!management!system!standards!according!to!ISO!that!are!one!alternative!to!fulfill!the!certification!requirements!in!the!Energy!Efficiency!Directive!and!the!Swedish!law!are!ISO!14001,!for!an!environmental!management!system,!and!ISO!50001,! for! a! energy! management! system.! Both! are! built! up! on! the! PlaneDoeCheckeAct!cycle!(PDCA),!which!was!developed!by!Deming!(1986),!who!used!the!base! of! the! Stewhart! cycle.! In! the! plan! phase! the! objectives! and!processes! are!established!in!relation!to!a!specific!area,!for!example!energy.!This!is!followed!by!the! do! phase,! which! focus! on! implementation! of! the! plan! and! conducting! the!processes,! and! check,! which! focuses! on! analyzing! the! results! compared! to!expected!output.!The!last!phase,!act!focus!on!how!an!organization!should!move!forward!with!their!work!in!the!specific!area.!!!

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More! than! 4000! companies! are! certified! to! the! standard! for! environmental!management! systems! indexed! by! ISO! 14001,! which! was! issued! in! 1996.! The!standard!ISO!50001!for!energy!management!systems!was!issued!in!2011!and!is!not!as!commonly!used!as! ISO!14001.!The!purpose!of! the!standards!are! to!help!companies! and! organizations! to! establish! systems,! processes! and! elements!necessary! to! achieve! their! goals! through! an! effective! management! system!respectively!energy!management!system.!As!described,!the!standards!follows!the!PDCAecycle! described! above! and! more! specifically,! plan! for! an! environmental!management! system! means! setting! targets! and! develop! processes! that! are!required! to! deliver! results! aligned!with! the! environmental! policy.! !Within! the!energy!management!systems!the!plan!phase!of!the!PDCAecycle! focus!on!energy!auditing,!key!performance! indexes! for!energy,! targets!and!action!plans!that!are!needed! to! improve! the! energy! efficiency.! During! the! doephase! processes! are!established! that! enables! the! organization! to! fulfill! its! environmental! policy!respectively! energy! policy! and! conducting! the! action! plan! described! for! an!energy!management! system.! ! The! checkephase! focus! on! that! the!processes! are!measured!according! to!environmental!policy,! targets,! laws!and!regulations!and!the!results!are!reported.! In! the! ISO!50001! the!checkephase! includes!measuring!processes!and!key! factors! that!affect! the!energy!performance! in!relation! to! the!energy! policy! and! the! overall! energy! targets.!Within! the! actephase! focus! is! on!analyzing! results! and! identify! measures! to! continuously! improve! the!environmental! respectively! energy! management! system’s! performance.! The!timescale! for! both! standards! are! flexible! and! the! only! requirement! is! to!continually! improve.! ! (International! Organization! for! Standardization,! 2011;!International!Organization!of!Standardization,!2004)!!There!is!broad!structural!correspondence!between!the!ISO!standard!for!energy!e!and!environmental!management!systems!and!the!procedures!can!be! integrated!and!used!together.!However,!even!though!the!characteristics!of!the!standards!are!similar! the! technical!work! needed! is! quite! different! because! of! the! differences!between! the! energye! and! environmental! aspects.! By! integrating! several!management! systems! the! similarities! between! the! systems! are! used! to! form! a!single! structure! of! the! company’s!management! systems.! This! reduces! costs! in!administration!and!auditing.!(Jörgensen!et!al.,!2005)!!The!prerequisite!of!a!policy,!objectives!and! targets!are!shared! for! the! two! ISOestandards.! The! policy,! which! shall! be! written! by! the! top! management,! is!described! as! “the! driver! for! implementing! and! improving! an! organizations´!management!system”.!Both!standards!also!emphasize!the!importance!of!that!the!policy! reflects! the! commitment! from! top! management! and! that! it! is!communicated! to! all! employees!within! the! organization.! The! policy! is! also! the!foundation! for! the! objectives! and! targets,! which! should! be! specific! and!measurable!goals.!These!shall!in!turn!be!compared!to!a!baseline!created!based!in!an! initial! review! of! energy! use! and! opportunities! respectively! environmental!aspects.! (International! Organization! for! Standardization,! 2011;! International!Organization!of!Standardization,!2004)!!Both! standards! states! that! top! management! shall! demonstrate! their!commitment,! provide! resources! and! communicate! the! importance! of! energye!

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and/or! environmental! management! to! the! organization.! They! also! have! the!responsibility!to!review!the!development!of!the!management!system.!Also,!both!standards! require! a! specific! management! representative! who! among! other!things!shall! communicate!and!promote!awareness!and!report! the!development!of! the!management!system!to! top!management.! (International!Organization! for!Standardization,!2011;!International!Organization!of!Standardization,!2004)!!The!communication!and!documentation!requirements!are!also!similar!as!well!as!the!monitoring!and!measurement!and!the!internal!audits!and!reviews.!That!said,!methodology! and! implementation! are! equal! and! the! only! large! differences! are!due! to! the! dissimilarities! within! the! areas! of! energy! and! environment.!(International! Organization! for! Standardization,! 2011;! International!Organization!of!Standardization,!2004)!!!There! are! different! opinions! of! the! benefits! of! an! environmental!management!system!and!using!the!standard!ISO!14001.!(To!&!Lee,!2014;!Boiral!&!Henri,!2012)!Boiral! &! Henri! (2012)! describes! that! the! environmental! performance! of!implementing! a! standard! varies! depending! on! the! purpose! of! the! certification!within! a! company.! If! a! company! aims! to! get! certified! because! of! external!pressures!the!likelihood!to!improve!the!environmental!performance!is!less!than!if! it! is! a! managerial! priority.! (Boiral! &! Henri,! 2012;! Dobers! &! Wolff,! 1997)!Comoglio! &! Botta! ! (2012)! are! positive! to! the! implementation! of! an! energy!management! system! according! to! ISO! 14001! but! emphasize! that! the! standard!does! not! imply! any! lowest! level! of! improvements! or! provide! the! user! with!methods!for!measuring!improvements.!However,! there!are!requirements! in!the!standard! that! a! company! needs! to! monitor! and! measure! performance,! but! a!common!mistake!is!that!companies!measure!their!environmental!impact!without!correlating! it! to! other! factors,! for! example! time! or! production.! This! makes! it!difficult! to! compare! and! interpret! the! results.! (Potoski! &! Prakash,! 2005;!Comoglio!&!Botta,!2012)!What!measures!and!ways!of!monitoring!that!a!company!uses! are! important! parts! to! improve! a! company’s! environmental! performance.!Also,!considering!whole!systems!within!a!company!is!needed!to!succeed!with!an!environmental! management! system.! This! to! avoid! that! focusing! on! one! part!reduces! the! environmental! impact! while! other! parts! within! the! company!increase! their! environmental! impact! and! therefore! negatively! affects! a!company’s!environmental!performance.!!(Ammenberg!&!Hjelm,!2002)!Rondinelli!&! Vastag! (2000)! is,! like! Ammenberg! &! Hjelm! (2002),! not! convinced! that! only!implementing!an!environmental!management!system!improves!the!performance!of! a! company,! however! it! is! not! negative! to! implement! it.! This! since! some!companies! implement! it! to! create! a! better! image! instead! of! focusing! on! the!environmental! performance! of! the! company.! ! (Rondinelli! &! Vastag,! 2000)!!Arimura! et! al.! (2008)! are! positive! to! an! implementation! of! an! environmental!management!system!and!emphasize! that! it! is!more!common! today! than!before!that!companies!put!demands!on!their!customers!to!be!certified.!!!Since! the! energy!management! standard! ISO! 50001!was! issued! in! 2011,!which!means! it! is! a! rather! new! standard,! there! is! limited! research! on! how! its!implementation! affects! a! company’s! energy! performance.! (Thollander! &!Ottosson,! 2010;! Hong! &! Pham,! 2014)! ! An! empirical! study! of! 108! German!

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!

automotive! companies! focusing! on! carbon! and! corporate! performance! in!

relation! to! energy! management! systems! found! that! there! is! no! direct!

relationship!between!these.!However,!they!found!that!a!company’s!performance!

within!carbon!and!economic!performances!are!indirectly!affected!positively!with!

an! energy! management! system! since! choices! of! low! carbon! production! and!

logistics!practices!were!more!often!made.!The!positive!effects!were!larger!when!

companies! have! a! certified! energy! management! system.! (Böttcher) &) Müller,)2014)! Thollander! &! Ottosson! (2010)! have! analyzed! energy! management!

practices! in! two! different! Swedish! energyeintensive! industries! and! found! that!

less! than! half! are! successful!within! their! environmental!management! systems.!

On!the!other!hand,!they!have!found!that!adopting!an!energy!management!system!

can! reduce! the! energy! use! by! 40! percent.! A! study! focusing! on! ISO! 50001! in!

combination! with! a! software! tool! to! manage! energy! use! is! positive! to! the!

implementation!of!an!energy!management!system.!This!since!it!has!been!shown!

that!an!energy!management!system!reduces!the!energy!use!and!can!be!used!as!a!

costeeffective!tool.!(Gopalakrishnan!et!al.,!2014)!The!results!of!a!study!made!by!

Chiu!et!al.!(2012)!at!a!large!company!making!electronic!parts!in!China!show!that!

implementation! of! an! energy! management! system! according! to! ISO! 50001!

lowers!the!energy!intensity.!!

3.3 Energy.auditing.Energy! auditing! is! a! process!where! energy!use! is! systematically! inspected! and!

analyzed! in! order! to! identify! energy! flows! and! possibilities! for! increasing! the!

energy! efficiency!within! these.! (International!Organization! for! Standardization,!

2011)!This!is!an!important!tool!in!order!to!detect!and!achieve!energy!efficiency!

and!is!therefore!a!requirement! in!the!Energy!Efficiency!Directive.!The!directive!

defines! an! audit! as! “a! systematic! procedure! with! the! purpose! of! obtaining!

adequate!knowledge!of!the!existing!energy!consumption!profile!of!a!building!or!

group! of! buildings,! an! industrial! or! commercial! operation! or! installation! or! a!

private! or! public! service,! identifying! and! quantifying! costeeffective! energy!

savings!opportunities,!and!reporting!the!findings”.!The!energy!audits!within!the!

EED! shall! cover! energy! flows! in! the! areas;! processes,! buildings! and!

transportation,! which! in! turn! requires! different! skillsets! from! the! auditor(s).!

(The!European!Union,!2012)!

!

The! International!Energy!Agency!(IEA)! (1987)!outlines!a!standard!approach! in!

how!to!organize!and!conduct!an!energy!audit.!This!method! is!divided! into! four!

basic!types;!The!Benchmark!Audit,!The!Walkethrough!Audit,!The!Standard!Audit!

and!The!Computer!Simulation.!The!basic!types!are!widely!accepted!and!shown!in!

Table!2.!Which!one!is!more!suitable!to!use!depends!on!the!depth!of!the!analysis!

and!the!scope!of!the!project.!

!

!

!

!

!

!

!

!

!

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Table'2:'Four'basic'types'of'energy'audits.''(IEA,'1987)'

Energy'Audit' Explanation'Benchmark!Audit! A!broad!preliminary!analysis!of!costs!and!energy!use!and!

determining!benchmark!directories!for!comparison.!Walkethrough!Audit!

A!more!detailed!visual!facility!inspection!to!collect!relevant!energy!data!and!detect!relevant!energy!patterns.!

Standard!Audit!! More! substantial! review! quantifying! energy! usage! and!losses.! This! audit! also! contains!measurement! and! testing!as!well!as!energy!e!and!cost!saving!calculations.!

Computer!Simulation!

A!comprehensive!computer!simulation!of!the!energy!usage!and! energy! patterns! is! made! with! a! large! number! of!measurements! and! data.! The! computer! model! of! the!system!is!used!to!simulate!a!baseline!and!various!changes!of!energy!efficiency!improvements!for!comparison.!!

!The! first! type,! The! Benchmark! Audit,! is! also! called! type! 0! and! includes! a!preliminary! analysis! of! costs! and! energy! use! and! in! addition! determining!benchmark!directories! for! comparison.!This! is! by!Krarti! (2011)!described!as! a!Utility!Cost!Analysis! and! the!author! further! recommends!an!evaluation!of!data!collection!over!several!years!in!order!to!identify!the!patterns!of!energy!use.!Type!I,!The!Walkethrough!Audit,!is!a!visual!facility!inspection!to!collect!relevant!energy!data!and!detect!patterns.!This! is!often!used!as!a!preliminary!analysis! to!collect!information!and! identify!saving!potentials.! (IEA,!1987;!Krarti,!2011)! It!can!also!be! used! to! gather! information! if! a! more! extensive! energy! audit! is! needed.!(Thumann,!2002)!The!Standard!Audit,!type!II,!also!named!Minieaudit!by!Thuman!(2002),! is! a!more! substantial! review!quantifying!energy!usage!and! losses.!This!also! contains! measurements! and! testing! as! well! as! energye! and! cost! savings!calculations.!(IEA,!1987;!Krarti,!2011)!!Finally,!type!III!includes!a!comprehensive!computer!simulation!of! the!energy!usage!and!patterns.!The!computer!model!of!the! system! is! then! used! to! simulate! a! baseline! and! various! changes! of! energy!efficiency! improvements! for! comparison.! This! is! the! most! expensive! type! of!auditing!since!a!large!number!of!measurements!and!data!are!needed!to!create!an!accurate! model.! (IEA,! 1987;! Thumann,! 2002)! This! type! of! audit! is! named!Computer!Simulation!by!IEA!(1987),!Detailed!Energy!Audit!by!Krarti!(2011),!and!Maxieaudit! by! Thunmann! (2002).! IEA! (1987)! also! describes! the! relationship!between!cost!and!audit!since!collecting!and!analyzing!a!large!amount!of!data!is!costly,! even! though! the! number! of! improvement! opportunities! found! often! is!larger!with!a!more!thorough!analysis.!The!found!energy!saving!opportunities!is!prioritized! depending! on! its! cost! effectiveness.! (IEA,! 1987)! There! are! some!auditing!procedures!developed!such!as!the!one!in!the!ASHRAE!handbook,!which!describes!the!four!types!of!energy!auditing!of!HVAC!systems!in!a!similar!way!as!described!above!(Thumann!et!al.,!2013).!!!The!IEA!outline!a!method!for!energy!auditing!according!to!Figure!11,!where!the!first! step! involves! a! brief! inspection! identifying! the! total! energy! usage! and!specific!parts!within! that!have!good!potential! for! energy! conservation.!Further!the! total! energy!usage! is!disaggregated! into! components! and! the! accuracy! and!detail!of!these!divisions!varies!and!depends!on!different!aspects!like!availability!

!

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of!data,!budget!of!audit!and!complexity!of!the!study.!This!method!of!structure!is!helpful!when!identifying!the!major!areas!of!energy!usage!and!their!conversation!potential!to!further!prioritize!and!investigate!major!components.!Also,!the!result!can! be! used! to! develop! processes! in! order! to! crosscheck! energy! models! and!calculations! later! on.! Energy! Conservation! Opportunities! (ECO)! are! thereafter!identified,!evaluated!and!prioritized.!The!ECOs!can!for!example!be!prioritized!on!payback! time,! cost! versus! benefit! and! possible! energy! savings,! and! the! most!promising! ones! are! investigated! in! more! detail.! Post! implementation!performance! analysis! is! thereafter! conducted! in! order! to! provide! reasons! and!techniques! to! monitor! and! measure! the! energy! conversation! measures! after!implementation.!(IEA,!1987)!!!

!Figure'11:'Method'for'conducting'energy'audits'according'to'IEA'(1987).'

A! working! description! for! energy! audits! has! been! developed! within! the!Environmental!Cooperation!Östergötland!outline!five!steps;!collect!data,!analyze!data,! make! an! inventory! of! installed! power,! draw! conclusions! and! perform!measurements! in!specific!cases.!The!aim!of! these!steps! is! to!work!as!a!support!for!implementing!an!overall!energy!audit!and!energy!plan.!(Eskilson!et!al.,!2009).!!The! working! description! for! energy! audits! also! notes! the! importance! of! to!appoint! an! energy! manager.! There! is! also! said! that! internally! developed! and!performed!energy!work! is! an!advantage,! if! sufficient! expertise! exist!within! the!company.! Otherwise! a! consultant! can! be! hired.! The! benefits! of! an! outside!consultant!are!new!ideas!and!perspectives.!Eskilson!et!al.!(2009)!also!notify!the!importance! of! continuous! and! longeterm! work! on! energy! savings! within! the!energy! plan.! They! also! note! that! an! overall! picture! of! the! energy! usage! is!important! to! detect! the! root! cause! of! an! unnecessary! usage! and! be! able! to!prioritize! and!make! the! activities! and! investments! in! the!most! efficient! order.!Another!tip!is!to!map!the!energy!usage!during!nighttime!to!easier!distinguish!the!“users”.!(Eskilson!et!al.,!2009)!!

Identify!total!energy!usage!and!parts!with!potential!energy!

conservation!

Diaggregate!energy!usage!

into!components!

Identify,!evaluate!and!prioritze!energy!

conservation!measures!

Post!implementation!performance!

analysis!

!

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The!economy!of!an!energy!audit!can!be!explained!in!terms!of!costeeffectiveness.!Within!the!process!of!conducting!the!audit!this!depends!on!the!costs!of!carrying!out! the! audit! and! on! the! costeeffectiveness! of! the! energy! saving! measures!implemented!as!a!result!of!the!audit!together!with!the!savings.!This!effectiveness!can!be!improved!by!using!a!systematic!process.!Audit!costs!can!often!be!seen!as!a!fixed! cost!while! the! costs! and! savings!of! the!measures!vary.!The! total! cost! can!then!be!lowered!by!minimizing!the!cost!of!the!audit!and!maximize!the!effects!and!this! can! be! achieved! by! collecting! only! the! data! needed! with! regard! to! the!management! plan! and! clear! goals.! By! initially! collecting! simple! data! and!proceeding!with!collecting!detailed,!but!with!no!greater!accuracy!then!required,!a!costeeffective!process!may!be!achieved.!(IEA,!1987)!!The!awareness!of!energy!use!within!an!organization!is!dependent!on!continuous!measurements!and!mapping!energy!data!onto!business!performance!measures.!(Vikhorev!et!al.,!2013)!The!ISO!50001!standard!states!that!the!organization!shall!establish! an! energy! baseline! based! on! the! energy! data! from! an! initial! energy!review!together!with!energy!performance!indicators!appropriate!for!monitoring!and! measure! the! energy! usage.! The! energy! performance! indicators! are! then!compared! to! the! energy! baseline! in! order! to! monitor! the! performance.!(International!Organization!for!Standardization,!2011)!The!energy!performance!indicators! shall!be!a!quantitative! index! representing! the!specific!organization’s!performance.! They! indexes! should! be! selected! so! that! the! data! are! easy! to!understand! in! order! to! facilitate! communicating! and! sharing! the! information.!(Chiu!et!al.,!2012)!!Also,!the!EPIs!should!be!represented!in!the!annual!report!to!both!show!that!energy!is!important!for!the!organization!to!work!with!as!well!as!people! outside! the! organization! can! take! part! of! the! information.!(Pricewaterhouse!Coopers,!2007)This!enhances! the!motivation!to!make!energy!efficiency!improvements.!(Chiu!et!al.,!2012)!!Companies! usually! have! a! number! of! energy! performance! indicators!representing! the! organizational! operations.! Indicators! can! be! used! to!monitor!annual! energy! use! and! later! compare! it! with! their! set! targeted! use.! Specific!energy! use! are! often! calculated! as! use! divided! by! production! or! saved! energy!because! of! implemented!measures! compared! to! total! energy! used! (Chiu! et! al.,!2012) IEA! explains! that! energy! indicators! are! often! used! to! for! comparison!within! a! certain! category! and! the! numbers! can! also! be! normalized! against! a!functional!unit!such!as!production!amount.!The!indicators!can!be!used!to!show!where! energy! savings! can! be!made! and! can! also! be! used! for! comparison! over!time!and!between!compatible! facilities!and!processes.!Further! the! indicators,! if!collected!over!time,!can!show!trends!and!help!project!and!model! future!energy!savings.!Target!values!can!be!used! for!comparison!and!to!set!measurable!goals!for!the!indicators.!These!target!values!can!be!established!by!statistical!analysis!or!from! theoretical! calculations.! (IEA,! 2014)! Energy! performance! indicators! can!also! be! useful! for! top! management! to! support! strategic! goals! and! make!comparisons!between!different!parts!of!an!organization.!(Chiu!et!al.,!2012)!

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4. Analysis.This% chapter% presents% the% results% from% the% interviews% and% complementary% study,%and% analyses% this% together% with% the% theory% presented% in% previous% chapters.% This%describes% how% the% Company% and% the% two% companies% in% the% complementary% study%perceive% the% increasing% pressure% on% increase% energy% efficiency% and% how% they%currently% work% to% improve% their% energy% performance% as% a% part% of% fulfilling% the%Energy%Efficiency%Directive.%Also,%the%work%with%their%current%management%systems%and% energy% auditing% are% analyzed% together% with% views% and% opinions% for% further%development% and% improvements.% This% gives% the% reader% an% understanding% of% the%current% state% within% the% Company% with% additional% information% from% the%complementary%study%and%expert%opinions%as%well%as%important%aspects%in%order%to%improve%energy%performance%within%companies.%%!There!is!a!general!opinion!among!the!interviewees!and!in!Case!A!and!Case!B,!that!the! transformation! pressure! to! focus!more! on! energy! performance! is! positive.!(A1eA8,! Case! A,! Case! B)! Also,! there! is! an! awareness! of! the! Energy! Efficiency!Directive!but!the!requirements!within!are!considered!vague!(A2,!A3,!A7,!E1,!Case!A,! Case! B).! In! this! chapter! it! is! analyzed! what! is! needed! to! fulfill! the! Energy!Efficiency!Directive!and! the!Swedish! law,!but!also!what!measures! they!need! to!implement! in! order! to! succeed! with! continuously! improving! their! energy!performance.!The!importance!of!the!energy!work!is!increasing!and!the!Company!as! well! as! in! two! companies! in! the! complementary! study! have! adapted! some!parts!of!an!energy!management!system!according!to!Vikhorev!et!al.!(2013),!Piper!(1998),! Capehart! et! al.! (2006)! and! Energywise! (2011).! Further,! both! the!Company! and! in! Case! A! and! Case! B,! have! activities! in! their! environmental!management! system,!which! is! required! in! ISO!14001,! that! also! corresponds! to!activities!described!for!an!energy!management!system!such!as!an!environmental!manager,!which!in!an!energy!management!system!is!called!an!energy!manager.!(A1,!A2,!A3,!A4,!A7,!Case!A,!Case!B)!Moreover,! the! interviewees,!and! in!Case!A!and! Case! B! it! is! described! that! they! are! focusing! on! improving! their! energy!performance,!but!still!more!resources!are!needed.!This!could!be!a!result!of!that!other! areas,! such! as! health! and! safety! or! other! business! optimization,! is! being!prioritized!within!companies.!(A2)!(Thollander!&!Ottosson,!2010)!!To!further!enhance!the!focus!on!energy!within!organizations!there! is!a!need!to!develop! a! structure! for! the! energy! work! based! on! the! energy! management!frameworks!as!well!as!consider!certain!measures.!These!measures!are!identified!further!down!in!this!report!using!empirical!results!together!with!the!frameworks!for!energy!management.!!

4.1 Managing.increasing.pressure.on.energy.efficiency.The!increasing!transformation!pressure!from!both!the!society!and!the!market!on!companies! to!work!with! improving! their!energy!performance!has!resulted! in!a!larger! focus! on! energy.! Especially! in! energy! intensive! companies! is! energy!management! important! to! minimize! energy! use! and! consequently! also! costs.!(E1)!!!

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40!!

The!expert! from! the!SEA,!E1,!perceives! that! the! law! is!often! seen!as!a!positive!incentive!since! it!gets! focus!on! the! topic!of!energy!and!environment!and! it! can!affect!the!companies!to!put!more!resources!into!investigating!their!energy!usage!more! thorough! (E1).! Further! on,! expert! E1! also! describes! that! results! from!energy!improvements!within!companies!depends!to!a!large!extent!on!whether!a!company!see!the!potential!and!value!of!the!changes!and!have!the!determination!to!change!in!order!to!succeed,!(E1)!which!can!be!related!to!how!a!company!adapt!to!the!increasing!pressures.!(Dobers!&!Wolff,!1997)!!!The! interviewees! within! the! Company! explains! that! saving! energy! is! both! an!opportunity!since!can!reduce!a!company’s!environmental! impact!depending!on!energy! source! et! cetera! and! also! a! possibility! to! save! money.! (A1eA8)! This!confirms! a! theory! by! Introna! et! al.! (2014)! and! Hong! &! Pham! (2014)! who!explains!that!reduction!in!environmental! impact!and!reduced!costs!depends!on!the!measures!a!company!decides!to!take.!!In!Case!A!it!is!emphasized!that!“energy!is!money”!and!they!also!felt!that!their!competitive!advantage!has!increased!with!their! increasing! focus! on! reducing! energy! use.! Further,! it! is! described! that! an!increased! demand! for! energy! efficiency! and! reduced! energy! use! is! an!opportunity! to! save!money,! it! gives! a! positive! image! of! the! company,! and! it! is!also! important! to! consider! because! of! a! growing! awareness! within! the!community.! (Case! A)! However! it! is! also! argued! that! saving! energy! due! to! a!directive! is! not! enough! incentive! to!work! continuously!with! improving! energy!performance!(A2).!!!Further,!all!interviewees!within!the!Company!described!that!it!is!important!for!a!company! delivering! products! that! improves! energy! efficiency! and! market!themselves! as! energy! efficient! to! also! work! with! energy! efficiency! internally.!(A1eA8)! Also,! with! new! requirements! on! companies! to! increase! their! energy!efficiency!the!demands!for!the!Company’s!energy!efficient!products!can!increase!as!predicted!in!the!EED.!(The!European!Union,!2012)!This!is!further!an!incentive!for! applying! the! ISO! 50001! within! the! Company;! since! it! is! explained! that!certification! of! management! systems! can! increase! a! company’s! competitive!advantage! and! show! that! they! are! working! systematically! with! energy!performance.!(E1,!A4)!(Thollander!&!Ottosson,!2010)!!

4.2 Energy.Efficiency.Directive.and.the.Swedish.law.The! SEA! has! no! specific! energy! savingegoal! relating! to! the! EED! and! the!corresponding! Swedish! law,! but! expects! improvements! in! companies’! energy!performance,! such! as! reduced! energy! use! and! increased! energy! efficiency,! in!order! to! be! able! to! fulfill! the! 20e20e20! targets.! (E1)! Though,! E1! believes! that!many!energy!intensive!companies!already!work!with!reducing!their!energy!use,!which!is!further!suggested!by!the!Company!and!in!Case!A!and!Case!B.!Therefore!the!savings!can!be!larger!for!companies!less!aware!of!their!energy!use!since!they!are!less!likely!to!already!be!working!with!energy!audits.!!!All! of! the! interviewees! are! aware! of! the! Energy! Efficiency! Directive! and! the!Swedish!law!about!energy!auditing!in!large!companies!and!that!the!Company!are!covered!by!it.!A4,!A5,!A6!and!A7!describes!that!they!know!that!the!EED!implies!that! a! company! should! conduct! energy! audits! every! fourth! year! and! propose!

!

41!!

measures!to!reduce!the!energy!use,!which!is!described!in!both!the!EED!and!the!Swedish! law.! (Swedish! Energy! Agency,! 2015;! The! European! Union,! 2012)A2!described!that!the!certification!authorities!did!not!know!about!the!law!when!the!Company! contacted! them,! which! could! be! a! problem! when! the! Company!implement!the!energy!audits!in!their!certified!management!system.!However,!the!expert!from!the!SEA,!E1,!explains!that!the!certifying!authorities!are!not!obligated!to!learn!how!to!certify!against!the!new!directive!so!they!have!to!see!a!profitable!business! to! do! so.! SEA! supports! factual! issues! (for! example! definitions)! to! the!certifying!authorities!but!the!companies!have!to!request!and!put!pressure!on!the!update!in!their!certification.!(E1)!!!!The! companies! also!need! to!make! sure! that! they!have! all! resources! needed! to!fulfill! the! directive! and! the! law.! (E1)! However,! instructions! and! guidelines! as!well!as!a!reporting!process!and!certifying!authorities! is!not!yet! in!place,!except!for!a!description!of!how!to!determine! if! a! company! is! covered!by! the!directive!and!the!corresponding!Swedish!law.!(Swedish!Energy!Agency,!2015)!This!makes!the! requirements! unclear! for! businesses,! especially! with! regard! to! certain!definitions!in!the!directive!and!the!law.!(E1)!This!is!confirmed!both!in!Case!A!and!B.!Three!interviewees!describes!that!the!directive!and!law!does!not!give!enough!information! about!what! to! report.! (A2,!A3,!A7)! In!Case!A! there! is! a! belief! that!they!are!doing!at! least!what! is!needed!according!to!the!requirements,!however!there! are! large! uncertainties! of! how! and!what! to! report! their! energy!work.! In!Case!B!it!is!explained!that!they!have!worked!with!energy!efficiency!continuously!for!a!long!time!and!therefore!plan!to!incorporate!the!new!requirements!from!the!EED!in!their!current!management!system,!but!again,!the!information!about!what!to!report! is! lacking.!The!expert!at!the!Swedish!Energy!Agency!describes!that! in!the!next!step!the!companies!shall!fill!in!a!digital!form!and!enter!their!total!energy!use!and!the!energy!use!of!the!parts!being!mapped!in!percentage!of!the!total.!The!investment! volume! of! the! measures! and! the! calculated! savings! shall! also! be!presented.!This!is!equivalent!to!the!information!the!energy!authority!will!report!to!the!EU,!but!in!a!compilation!of!Sweden!(E1).!Even!though!this!is!known!within!the!SEA!there!is!a!desire!among!the!interviewees!and!in!Case!A!and!Case!B!to!get!that! information! in! order! to! reduce! uncertainties! and! feel! more! confident! of!what! to! do.! It! is! also! important! to,! within! a! company,! have! resources! that!interpret!the!directive!and!create!a!base!in!order!to!communicate!it!right!and!do!what!is!right!according!to!the!EED!and!the!Swedish!law.!(A7)!!!!Another!interesting!note!made!considering!the!EED!and!the!Swedish!law!is!that!the! directive! identifies! the! companies! affected! by! the! directive! by! number! of!employees!and!turnover.!This!could!be!a!problematic!definition,!according!to!the!expert!from!SEA,!since!many!transport!and!property!owners!often!have!a! large!energy! usage! but! low! numbers! of! employees.! This!makes! a! loophole! for! large!energy! users! and! undermines! the! purpose! of! the! directive.! A! proposal! is! to!identify!the!companies!based!on!their!energy!use.!(E1)!!!!

4.3 Management.systems..The! investigated!company,!Case!A!and!Case!B!are!all! certified!according! to! ISO!14001!and!none!of!them!have!developed!a!complete!energy!management!system!(A1eA8,! Case! A,! Case! B),! therefore! questions! were! asked! about! their! current!

!

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management!system,!their!opinions!of!ISOecertification!and!what!they!considers!as!the!most!critical!factors!to!succeed!with!a!management!system.!Though,!since!there!are!disagreements!about!certified!manage!systems’!degree!of!success!and!this! study! focuses!on!how! to! fulfill! the!EED!and!manage!energy!efficiently,! the!conclusions!are!based!on!several!models!for!energy!management.!!Described! in! the! previous! paragraph,! the! Company,! Case! A! and! Case! B! have! a!certified!environmental!management!system!according!to!ISO!14001!already!in!place! and! have! energy! as! a! significant! environmental! aspect.! (A1eA8,! Case! A,!Case! B)! Though,! the! directive! and! Swedish! law! requires! a! more! detailed! and!systematic!method!of!identifying!and!investigating!the!energy!usage!than!what!is!required! in! a! certified! environmental! management! system.! (A1,! E1)! (The!European! Union,! 2012;! Swedish! Energy! Agency,! 2014)! ! If! a! company! has! an!environmental! management! system! according! to! ISO! 14001! with! no! in! depth!investigation!of!their!energy!usage!they!will!have!to!do!the!auditing!of!the!energy!and! secure! the! expertise!within! the! Company! as!well! as! include! all! processes,!instructions!and!documents!needed.!This!work!might!be!almost!as!extensive!as!building!and!integrating!an!energy!management!system!according!to!ISO!50001!(E1).!However,!companies!with! large!energy!usage!usually!monitor!energy!and!work! with! their! energy! performance! and! energy! auditing! already! (E1).!Interviewee!A1!describes!that!the!Company!will!deepen!the!work!within!energy!and!do!a!more!detailed!analysis!because!of! these! increasing! requirements,! but!also!keep!energy!as!a!significant!aspect!in!their!ISO!14001.!Further,!interviewee!A8! describes! a! successful! existing! energy!work! but! goes! on! saying! that! it! has!potential!for!development.!!!The!investigated!organization,!Case!A!and!Case!B!have!adapted!some!parts!of!an!energy!management! system! according! to! Vikhorev! et! al.! (2013),! Piper! (1998),!Capehart! et! al.! (2006)!&! Energywise! (2011),! such! as! taking!measurements! on!energy! use! and! set! goals! for! reducing! energy! use.! (A2,! A7,! Case! A)! Further,!activities! in! their! environmental! management! system! correspond! to! activities!described! for! an! energy! management! system,! such! as! they! are! having! an!environmental!manager!(A1,!A2,!A3,!A4,!A7,!Case!A!&!Case!B)!and!for!an!energy!management! system,! an! energy! manager! is! needed.! (Capehart! et! al.,! 2006;!Energywise,! 2011;! Piper,! 1998)! However,! none! of! the! interviewees! or!participating! companies! in! the! complementary! study! explained! that! they! are!working! to! manage! energy! as! an! individual! activity,! it! is! included! in! the!environmental!management.!(A1eA8,!Case!A!&!Case!B)!!!By! all! interviewees! and! in! Case! A! and! Case! B,! it! is! described! that! they! do! not!know! whether! the! ISOestandards! provide! any! results! but! there! is! a! general!opinion! that! the! ISOestandards! provides! a! framework! for! how! to! work!systematically!in!a!specific!area.!This!confirms!the!theories!that!there!is!no!clear!perception!of!the!value!of!adopting!a!certified!management!system!issued!by!the!ISO.!(Boiral(&(Henri,(2012;(Böttcher(&(Müller,!2014;!Gopalakrishnan!et!al.,!2014;!Thollander!&!Ottosson,!2010;!To!&!Lee,!2014)! In!Case!B! it! is! further!described!that! they! see! ISO! as! a! framework! and! the! result! from! using! an! ISOecertified!management! system!depends!on! the!ambitions!within!a! company.! Interviewee!A2!and!A7!also!describes!that!ISO!is!a!framework!for!how!to!work!rather!than!a!

!

43!!

direction!of! a! company’s! energy!or!environmental!work,!which!aligns!with! the!description! by! Ammenberg! &! Hjelm! (2002)! and! Kazmi! &! Naaranoja! (2014).!Further,! interviewee!A3!explains!that!the!ISOestandards!are!a!support!for!them!in! how! to! work! systematically! with! energy! and! environment.! It! also! gives!assistance! in! how! to! build! the! organization! and! a! platform! for! energy! or!environmental!work,!as!well!as!increasing!the!focus!on!continuous!improvement.!They! should! be! seen! as! guidance! for! how! a! company! needs! to! develop! its!routines!based!on! the! framework.! (A3)!A8!states! that! the! ISO!certification!sets!the! structure! that! affects! a! company's! performance! positively! and! that! a!management! system! is! an! important! part! in! order! to! allocate! responsibility.!Based!on!this!it!can!be!concluded!that!the!standards!provide!a!company!with!a!framework!and!not!necessarily!improved!environmental!or!energy!performance,!which! depends! on! the! company’s! targets! and! how! they! work! within! an! area,!which!confirms!the!theory!in!the!area.!(Boiral(&(Henri,(2012;(Böttcher(&(Müller,(2014;!Gopalakrishnan!et!al.,!2014;!Thollander!&!Ottosson,!2010;!To!&!Lee,!2014)!!!The!certification!authority!states!that!the!standards!provide!some!assurance!that!companies! and! organizations! have! controlled! processes! and! can! maintain! a!certain!level!when!it!comes!to!their!management!system,!which!corresponds!to!the! description! in! the! standards.! (E1)! (International! Organization! for!Standardization,! 2011;! International! Organization! of! Standardization,! 2004)! A!certification!is!also!a!help!to!control!their!business!since!an!audit!check!how!the!management! system! works! in! practice! and! if! it! is! effective! to! achieve! the!company’s! goals.! (E2)! Interviewee!A8! agrees! and!describes! the! internal! audits!within!the!Company!as!a!success!factor!for!a!functioning!management!system.!It!is! further! described! that! working! systematically! is! the! main! advantage! with!using!certified!management!systems.!However,!the!requirements!always!appears!from!the!market!or!industry!and!if!a!company!is!certified!they!are!more!likely!to!choose!them!as!supplier,!under!the!conditions!that!different!offers!are!similar!in!most!other!ways!such!as!price!and!quality.!(A4,!A5,!A6)!!According!to!E2!a!nonecertified!management!system!has!a!greater!risk!of!being!forgotten!and!loses!all!its!power.!When!the!interest!is!lost!all!activity!disappears!which! dissolves! in! employees! not! using! and! following! it.! Working! towards!continuous! improvement! are! challenging! organizations! to! become! better! and!more! efficient! in! their! energy! work! and! maintaining! the! certificates! are! an!incentive! to! work! more! continuously.! (E2)! Also,! A4! describes! that! companies!without! certifications! might! not! be! considered! in! investing! processes! if! the!buying!company!require! it.!An! issue!that! is!brought!up! in!Case!B!regarding!the!certification! of! the! management! system! is! that! when! hiring! a! certification!company,! they! want! to! retain! the! customer,! which!means! that! they! are!more!likely!to!be!less!harsh!in!the!valuation!of!the!management!system.!A!proposal!for!a!solution!is!to!have!a!central!authority!that!certifies!all!companies.!(Case!B)!

4.3.1 Top.management.commitment.There! is! a! shared! opinion! among! all! interviewees! within! the! Company,! the!interviewed!experts!and!in!Case!A!and!Case!B!that!top!management!is!important!in! order! to! succeed! with! managing! energy,! improving! energy! efficiency! and!reduce!energy!use.!Case!B!sees!a!committed!management!as!the!major!key!factor!

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in! succeeding! with! their! energy! work! and! further! improving! their! energy!performance,!even!before!the!Energy!Efficiency!Directive!was!initiated.!In!Case!A!it! is! explained! that! a! few! years! ago! the!management!was! not! as! interested! in!energy!and!it!was!difficult!to!find!support!and!resources!for!the!energy!efficiency!work.! However,! with! increased! demands! from!management! to! reduce! carbon!dioxide!emissions!a!natural!part!was! to! reduce!energy!use.! It! is!also!described!that!they!started!an!energy!audit!program!mapping!the!energy!usage!before!the!EU!directive!came!into!place!thanks!to!a!committed!management.!In!addition,!the!increased! awareness! of! environmental! threats! and! the! realization! that! energy!savings!can!lead!to!money!savings!has!led!to!increased!motivation!to!work!with!improving!energy!performance.!(Case!A)!Further,!the!top!management!in!Case!A!has! understood! that! improving! energy! performance! increases! the! company’s!competitive! advantage! and! also! improves! the! society’s! perception! of! the!company.! That! the! energy! work! in! Case! A! was! more! prioritized! when! top!management! showed! interest! in! it,! clearly! shows! that! top! management!commitment! is! needed! to! get! the! right! resources! and! motivation! for! energy!work.!(Capehart!et!al.,!2006;!Piper,!1998;!The!Energy!Research!Institute,!2014)!!The! certification! expert,! E2,! further! emphasize! top! management! commitment!and!states!management!commitment!as!the!largest!critical!factor!in!introducing!a!new!management!system!in!an!organization!with!multiple!existing!systems.!This!in! combination! with! Case! B! arguing! for! top! management! commitment! as! the!most! important! factor! for! them! improving! their! energy! work! confirms! the!theories!of!it!as!a!key!factor!for!success!in!energy!management.!(Capehart!et!al.,!2006;! Gopalakrishnan! et! al.,! 2014;! Thollander! &! Ottosson,! 2010;! Simon! et! al.,!2011;!Fenga!et!al.,!2014;!Piper,!1998;!Testa!et!al.,!2013)!!There! are! disagreements! among! the! interviewees! about! how! committed! top!management! is! today!within! the! Company.! Interviewee!A2! claims! that! the! top!management!does!not!feel!particularly!committed!and!one!example!brought!up!is! that! the! strategy! is! lacking! the! environmentale,! energye! and! sustainabilityedimensions.!These!areas!do!not!feel!like!a!priority!when!all!focus!is!put!on!safety!work.!It! is! important!for!a!company!trying!to!improve!within!a!specific!area,! in!this!case!energy,!to!link!their!work!to!the!company’s!strategy!to!have!a!common!direction! when! working.! (Mintzberg,! 1987)! One! of! A2´s! concerns! is! therefore!how!to!commit!the!subordinate!leaders!if!the!strategy!and!guidelines!are!unclear!about! energy! from! the! top! management.! However,! the! expert! working! with!management! consulting,! E3,! argues! that! within! a! company! the! shorteterm!matters!are!often!prioritized!since!they!tend!to!be!more!urgent!and!the!focus!is!more!often!on!the!shorteterm!results.!When!using!an!energy!management!system!energy! matters! are! forced! to! get! up! to! the! surface! and! are! therefore! more!difficult!to!forget.!The!company!has!to!be!on!top!of!things!when!it!is!time!for!an!audit! and! therefore! they! are! forced! to! put! some! effort! and! resources! to!work!with! it.! (E3)! Though,! the! strategy!works! to! provide! a! common! direction! for! a!company!and!energy!should!therefore!be!communicated!by!top!management!as!a!part!of!the!strategy!in!order!to!further!show!their!commitment!to!energy!work.!(Mintzberg,!1987;!Energywise,!2011)!!!

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Interviewee,! A7,! feels! that! it! is! difficult! to! influence! upward.! The! top!management!gives! them!mandate! to!work!with!energy!efficiency,!which!makes!them!somewhat!involved,!but!the!interviewee!are!not!sure!how!interested!they!are!of! the!results!produced.!They!present!the!results!at!quarterly!meeting!with!management! review! and! so! far! the! results! are! good! and! therefore! no! one! has!complained.!(A7)!However,!all!other!interviewees!feel!like!they!can!influence!to!some!extent.!!!Interviewee!A3,!A6!and!A8!are!experiencing!that!top!management!is!involved!in!environmental!work.!However,! faster!processes! and! clearer! guidelines!on!how!the!work!should!be!done!are!sometimes!desired! in!order!to!ensure!systemized!work.!Also,!there!is!room!for!improvement!and!top!management!probably!could!have!more!knowledge!on! the! subject! in!order! to! see! the!potential!with!energy!efficiency!work.!(A3)!A6!experiences!that!the!top!management!is!involved!since!they!have!to!do!energy!audits!every!4th!year,!but!right!now!it!is!mostly!to!follow!the!law!and!do!nothing!beyond!the!requirements.!(A6)!!!Expert! E3! explains! that! the! Company! is! working! with! energy! efficiency!internally,! but! it! is! not! high! on! the! agenda! and! therefore! not! spread! enough!throughout! the! organization.! There! is! not! much! talk! about! energy! efficiency!since!larger!savings!can!be!done!in!other!areas.!(E3)!This!is!confirmed!by!A7!who!describes!that!energy!is!not!a!main!focus!area!within!the!Company!and!it!must!begin! centrally! and! be! diffused! in! the! organization,! which! is! important! to!increase! motivation! among! employees! to! act! on! reducing! energy! use.! (The!Energy! Research! Institute,! 2014)! It! is! important! for! a! company! to! focus! on!several! aspects! to! stay! competitive,! where! energy! is! one! aspect! to! improve! a!company’s! energy! performance.! (Thollander! &! Ottosson,! 2010)! With! higher!demands!from!the!top!management!and!central!goals!more!money!and!resources!can! be! spent! on! energy! efficiency,! which! improves! the! outcome.! (A4)! This! is!according! to! A4! needed! since! the! interviewee! does! not! feel! that! the! top!management! realizes! the! extent! of! the! resources! needed! to! be! able! to! work!continuously! with! this.! Interviewee! A2! emphasizes! the! importance! to! get! the!measures!and!resources!needed!into!the!budget!process.!The!Company!has!the!skills! but! perhaps! not! enough! people! for! the! change! to! take! place.! Senior!management! must! consider! the! skills! and! variety! of! people! to! cope! with! any!challenge.! (A4,! A5,! A6)! This! shows! that! there! is! a! lack! of! top! management!commitment,! both! in! interest! to! increase! motivation! and! providing! necessary!resources!for!the!departments,!which!are!the!most! important!areas! in!with!top!management! commitment.! (Capehart! et! al.,! 2006;! Piper,! 1998;! The! Energy!Research!Institute,!2014)!

4.3.2 Awareness.A!common!problem!for!companies!trying!to!improve!their!energy!performance!is!the! lack! of! awareness! and! information! gaps! in! the! organization.! Often,! lower!managers!have!the!most!knowledge!about!energy!but!top!and!middle!managers!as!well!as!operational!staff!often!lack!information.!Yet,!operational!staff!is!often!the! ones! who! work! closest! to! the! processes! and! higher! managers! ensure!resources! and! work! towards! realizing! goals.! (A8)! (The! Energy! Research!Institute,!2014)!Several!of!the!interviewees!and!Case!B!mentioned!awareness!as!

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an! important!part!of! their!management!system.!(A1,!A4,!A5,!A6,!A7)!There! is!a!challenge!to!work!with!a!management!system!within!an!organization!and!there!is!a!need!for!a! lot!of! instructions!in!order!to!make!it! function.!Many!employees!are!not!aware!of!the!environmental!aspects!and!relevant!parts!need!to!be!built!into!the! instructions! in!order! to!make!the!management!system!a! living!system,!the!same!applies!for!energy.!(A1)!The!documentation!team!is!responsible!for!the!instructions! and! has! no! direct! link! with! the! energy! group! whom! represent!different! parts! of! the! business.! By! following! ISO,! procedures! and! instructions!affect! in! a! positive! way! and! make! a! mutual! system! for! the! communication!channels.!(A7)!!!The!certification!expert,!E2,!argues!that!organizational!awareness!is!the!second!most! important! factor! in! introducing! new! management! systems! and! ways! of!working.! There! is! a! need! to! create! understanding! among! the! employees! that!energy! efficiency! can! improve! a! company’s! performance! and! competitive!advantage,!as!described!by!Piper!(1998).!Also,!energy!efficiency!needs!to!be!part!of!everyone’s!everyday!work!according!to!E2,!which!confirms!the!importance!of!including!energy!in!the!strategy.!(Mintzberg,!1987)!Further,!interviewee!A4,!A5!and!A6!describes!that!when!introducing!a!new!management!system!there!will!be!new!requirements!on!how!to!measure!energy,!new!reporting!templates!on!how!to! account! for! energy,! and! new! activities! for! implementing! measures! and!improvements.!Changing!ways!of!working!and!thinking!is!slow!in!big!companies!and!a! company!must! communicate!and!agree!across! the!enterprise!and!on! the!lowest!possible!level!to!avoid!information!gaps.!(The!Energy!Research!Institute,!2014)!!(A4,!A5,!A6,!A7)!!!Both! in! Case! A! and! Case! B! it! is! emphasized! that! organizational! awareness! is!important! to! succeed!with! their! energy! efficiency!work.! It! is! essential! that! the!employees!know!what!is!being!done!within!the!company!and!in!what!ways!they!may! be! involved! or! affected.! Also,! interviewee! A4,! A5! and! A6! emphasize! the!importance! of! awareness! throughout! the! whole! organization! and! that! the!organization!has! a! common!direction!within! the! energy!work.!Also,! the! expert!from!the!Swedish!Energy!Agency!expects! that! the!best! results!will!be! from!the!companies! and! organizations! integrating! their! energy! efficiency!work! into! the!management! system! and! takes! it! even! further! to! a! strategic! level.! (E1)! These!arguments!confirm!the!importance!of!including!the!energy!work!in!the!strategy!according!to!Mintzberg!(1987).!!!Case!B´s!management!system!is!built!in!different!levels!with!specific!instructions!and! clear! interfaces! between! these.! Clear! interfaces! of! the! levels! in! the!organization!are! emphasized!as! an! important! factor! in! an!energy!management!system!according! to!Vikhorev!et! al.! (2013).!The! instructions!within!Case!B!are!reviewed! annually! for! any! updates.! Important! updates! and! changes! are!communicated! by! email! to! all! team! managers! who! then! is! responsible! for!communicating! the! information! downwards.! Those! who! are!much! affected! by!the! changes! are! noticed! in! person.! The! system! is! explained! to! work! well! in!general!and!increases!the!awareness!throughout!the!organization.!They!capture!deviations!and!flaws!in!the!internal!audits.!(Case!B)!!!

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To!increase!the!awareness,!it!is!described!in!Case!A!that!they!report!results!from!their!energy!program!two!times!per!year!to!the!management!team.!They!are!also!following!up!with!energy! surveys!each!month!as!well! as! the!biweekly!meeting!where! the! plant! manager,! maintenance! managers,! technicians! and! energy!manager.!To!further!increase!the!awareness,!campaigns,!flyers!on!the!tables!and!a! suggestion! box! for! all! employees! are! or! will! be! used! in! order! to! increase!awareness!throughout!the!organization.!(Case!A)!!Since! several! of! the! interviewees! within! the! Company! are! working! as!environmental!managers! they! explain! how! they! try! to! increase! the! awareness!about! the! environment.! The! Company! has! a! network! working! with!environmental! control! across! the! organization! and! status! and! metrics! are!brought! up! with! the! management! once! a! month.! The! environmental!coordinators!then!lead!the!information!further!and!communicate!it!downwards!in! the! organization! but! it! is! not! controlled! that! the! information! actually! is!communicated!and!spread.! (A2)! Interviewee!A3!explains! that! they,!within!A3’s!division,! has! something! called! the! monthly! view! where! they! present! the!quarterly! outcomes! of! the! environmental!work! and! also! comparing! how!other!divisions! have! worked! to! improve! their! environmental! performance.!Communication! channels! to! increase! awareness! are! email,! the! inside! network!and! campaigns! in! which! employees! can! come! up! with! ideas! and! suggestions.!(A3)! Using! different! communication! channels! is! important! to! reach! all!employees! within! an! organization.! (The! Energy! Research! Institute,! 2014)!Interviewee! A3! has! noticed! a! major! commitment! to! energy! work! in! the!organization.!There!are!possibilities!for!the!employees!at!the!Company!to!come!up! with! suggestions! regarding! energy! efficiency! measures! and! A3! tries! to!reconnect! to! the! suggestions! if! something! is! to! be! carried! out! or! if! something!cannot!be!implemented.!A8!explains!that!they!spread!the!energy!work!across!the!organization! through! a! working! group! with! environmental! manager!representatives! from! all! divisions! who! meet! every! month! and! shares! good!examples!for!energy!management.!Also!the!annual!management!review!and!the!quarterly! briefings! are! supposed! to! be! spread! further! down! the! organization!down!the!managerial!levels.!However,!A8!agrees!with!A2!that!there!is!no!system!in!place!to!ensure!that!the!information!is!actually!spread.!!!To!further!increase!the!awareness!A4!explains!that!they!are!having!information!campaigns! with! everyone,! from! top! management! down! throughout! the!organization.! This! is! one! way! to! avoid! the! information! gaps! according! to! The!Energy!Research!Institute!(2014).! !An!example!is!to!make!everyone!turn!of!the!lights!where!they!also!provide!calculated!examples!showing!how!much!they!can!save.!However,!there!are!no!clear!goals!to!compare!the!measurements!with!(A4),!which! reduce! the! possibilities! to! succeed! with! reducing! energy! use! and!environmental!impact.!(Testa!et!al.,!2013)!The!results!of!everyone!turning!off!the!lights! are! however! small! compared! to! the! potential! energy! savings! in! for!example!production,!which!makes! that!kind!of! action!harder! to!motivate.!Also,!interviewee!A4!feels!that!the!Company!has!little!energy!optimization!interest!in!their!daily!operations.!Interviewee!A4!thinks!it!is!because!the!employees!feel!like!they! are! far! from! being! able! to! influence.! In! Case! B! they! have! identified! a!dilemma! where! many! employees! come! up! energy! saving! examples! such! as!

!

48!

!

installing! solar! cells! but! forget! to! actually! act! upon! smaller! savings! such! as!

extinguish! the! lamp.! This! can!be! a! result! of! inadequate! understanding! of! their!

own!influence!or!a!lack!of!motivation!towards!actual!savings.!!

!

A8!describes!that!they!previously!presented!results!in!places!like!the!coffee!room!

and! bathrooms! by! presenting! the! objectives! and! results! in! colors;! green! for!

reached,! yellow! for! partly! reached! and! red! for! not! reached! objectives.! The!

experience!by!the!interviewee!was!that!his!method!made!people!more!aware!of!

the! objectives! and! the! goals.! However,! it! is! not! used! today,! instead! all!

information! in! presented! on! the! internal! network! where! the! employees! must!

seek! the! information! actively.! (A8)! According! to! interviewee! A7,! many!

employees! do! not! really! know! about! energy! efficiency! and! the!measures,! and!

means!that!the!management!must!inform!on!the!units!about!its!importance.!This!

comment!indicates!that!at! least!some!employees!have!not!seen!the!information!

presented!on!the! internal!network.!On!the!other!hand,! interviewee!A7!believes!

that! it! is! not! that! difficult! to! make! people! understand! and! enforce! energy!

efficiency!work!with!sufficient!resources!if!the!cause!is!promoted!and!presented!

in!a!good!way.!!

!

In!A4’s!department!they!have!people!with!special!responsibilities!within!energy!

but! no! clear! roles,! such! as! an! energy! manager.! A8! suggests! an! energy! group!

where! all! competence! and! responsibilities! are! represented.! Interviewee! A8!

further! describes! the! importance! of! having! a! core! team! that! creates! the!

framework!for!the!energy!work!and!thereafter!ties!this!to!the!local!competence!

dealing!with!equipment!and!real!estate.!This!is!also!mention!by!interviewee!A7,!

who! advocates! creating! an! energy! department,! a! department! that! works!

exclusively! with! energy! efficiency! full! time! in! order! to! ensuring! continuous!

energy!work.!By!having!an!energy!manager!that!works! full! time!and!an!energy!

committee!that!works!part!time!with!energy,!described!by!Capehart!et!al.!(2006),!

it! is! possible! to!work! continuously!with! energy! and! steer! the! organization! by!

guiding!activities!as!well!as!communicate!energy!in!an!efficient!way.!None!of!the!

interviewees!or!participating!companies!in!the!complementary!study!mentioned!

training! as! an! element! to! increase! awareness.! This! is! however! an! important!

factor!according!to!Capehart!et!al.!(2006)!and!Energywise!(2011).!!

!

4.3.3 Goals.Another!important!factor!for! improving!energy!performance!in!an!organization!

is!to!set!clear,!measureable!and!specific!goals!that!are!achievable!but!ambitious.!

(Energywise,! 2011;! Piper,! 1998;! Capehart! et! al.,! 2006)The! environmental!

objectives!within!the!Company!are!set!up!based!on!the!global!targets.!(A2,!A6)!It!

is!however!difficult!to!have!common!goals!in!the!different!divisions!as!they!have!

different!processes!in!their!business.!Each!division!considers!the!Swedish!targets!

and!then!the!separate!divisions!identify!which!ones!affecting!them.!Further,!the!

goals! are! broken! down! into! objectives! that! fit! each! particular! division.! (A2)!

Interviewee! A7! explains! that! they! set! the! energy! reduction! goals! by! demands!

from!upper!management!and!the!goals!are!determined!from!the!previous!years!

savings,! which! corresponds! to! Vikhorev! et! al.! (2013)! procedure! of! setting!

targets.! !A8!states!that!central!directives!prevail,!since!local!goals!require!more!

!

49!!

efforts!in!order!to!succeed.!The!interviewee!further!emphasizes!the!importance!of! the! right! amount! of! goals! to! ensure! a! drive! and! provide! ability! for! success.!This! in!order! to!avoid! failure!and! that! the!employees! feel!overwhelmed!by! the!goals.!(A8)!!Within! the!Company,! the!annual!energy!goal! is!usually! reducing!energy!use!by!approximately! 2.5! percent.! (A7,! A8)! It! is! further! described! that! the! top!management!has!decided!that!each!unit!within!the!Company!should!implement!three! saving! projects! in! 2015.! This! is! confirmed! by! interviewee! A2! who!describes!that!the!three!saving!projects!have!the!goal!of!reducing!energy!use!by!3!percent! compared! to! the! volume! produced.! By! comparing! to! the! volume!produced,!which!is!an!example!on!an!energy!performance!indicator,!it!is!possible!to! compare! and! easily! understand! the! results.! (Chiu! et! al.,! 2012)! Also,!interviewee! A1,! A2,! A7! and! A8! describes! that! the! Company! has! set! their! own!energy! targets! before! the! requirements! from! the! EED! and! law.! However,!interviewee!A6!expressed!that!energy!goals! in!relation!to!the!Energy!Efficiency!Directive!and!Swedish!law!are!not!yet!communicated!and!anchored!down!in!the!Company.!(A6)!!!Case!A!and!B!also!had!energy!efficiency!targets!previous!to!the!directive.!In!Case!A!energy!goals!were!set!when!top!management!within!the!company!realized!that!saved!energy!can!be!saved!money!and!improve!competitiveness.!(Thollander!&!Ottosson,! 2010)! It! is! described! in! Case! B! that! they! also! have! set! targets! for!energy! efficiency! previous! to! the! EED! and! they! have! even! higher! goals! set! for!saving!energy!compared!to!the!legislative!requirements.!Companies!with!already!set! goals! for! energy! performance! improvements! have! an! advantage!implementing!the!processes!necessary!to!comply!with!the!directive!(E1).!!

4.3.4 Measurements.Within! the! Company,! the! energy!monitoring! is! currently! done! through! energy!rounds! where! energy! thieves! are! identified! by! looking! at! the! premises! and!processes.!During!the!rounds!it!is!possible!to!identify!devices!and!processes!that!are!functioning!well!and!which!devices!that!can!be!improved!in!aspects!of!energy!efficiency.!After!the!energy!round,!measures!are!proposed!and!prioritized.!(A3)!The!metrics!are!also!used!in!combination!with!other!relevant!information!to!set!division!goals!(A2),!which!shows!that!the!Company!uses!previous!measurements!as! an! important! tool! for! setting! goals! and! create! a! baseline! for! energy! use! to!compare!measurements!with.!(Energywise,!2011;!Testa!et!al.,!2013;!Vikhorev!et!al.,!2013)Currently,!the!environmental!manager!is!responsible!for!gathering!the!metrics.!(A2)!!Interviewee! A7! explains! that! there! is! room! for! improvements! by! measuring!further!down!in!the!business!and! in!more!detail!within!the!processes.!Measure!on!a!component!level!would!enable!the!work!with!replacing!some!processes!or!machines!with!more!energy!efficient!products.!(A7)!A8!agrees!that!they!need!to!develop! the!measurement!system!to!be!able! to!measure!specific!processes!and!machines.! Energywise! (2011)! also! states! the! importance! of! taking!measurements!on!individual!parts!of!an!organization.!However!A8!explains!that!it! is! sometimes!hard! to! say!much!about! the!outcome!and! results! based!on! the!

!

50!!

data!from!the!measurements.!This!indicates!that!the!Company!needs!to!develop!energy! performance! indicators! (EPI’s)! that! correspond! to! the! organization’s!business!and!improve!their!use!of!previous!measurements!to!also!include!these!in! the! comparison!with! results.! (Capehart! et! al.,! 2006;! Chiu! et! al.,! 2012;! Piper,!1998;!Testa!et!al.,!2013)!!Further,!the!reporting!structure!needs!to!be!improved!to!take!advantage!of!measurements!done!in!the!organization.!(A4,!A5!&!A6)!!!Installing! meters! is! one! part! of! managing! energy! (Capehart! et! al.,! 2006)! and!interviewee!A7!request!systems!to!measure!and!monitor!as!well!as!the!skills!and!resources! needed! in! order! to! create! systems! that! can! do! more! in! terms! of!evaluating!the!data.! If!meters!are!not!available!the!most!common!solution! is! to!do!an!engineering!estimate!based!on!data!from!the!machines.!Another!method!to!estimate! the!energy!use! is! to!do!calculations!by!monitoring!and!measuring! the!cooling! water! and! process! heat.! Meters! are! expensive! but! the! work! with!installing! them! is! in! progress.! (A2)! In! Case! A! they! previously! estimated! the!energy! use,! using! a! percentage! between! the! buildings! and! complex! Excelefiles!was!used!to!keep!track!of!the!numbers!which!caused!a!high!risk!of!faults!in!the!logging! system.! Therefore! the! company! is! now! installing! a! new! energy!measurement! system!supplemented!with!more!exact!metering,!which!makes! it!possible! to! clearer! interfaces! in! reports.! It! also! brings! easier! monitoring! of!improvements!and!a!possibility!to!analyze!the!energy!usage!per!house! in!more!detail.! This! increases! the!motivation! to!work!with! energy! efficiency! since! it! is!easy!to!understand!where!the!energy!is!used.!(Case!A)!(Piper,!1998)!

4.3.5 Evaluation.Evaluation!is!a!key!aspect!in!developing!an!energy!management!strategy!and!is!the! base! for! taking! decisions! regarding! investment! in! energy! efficiency! and!setting!new!goals.!(Vikhorev!et!al.,!2013).! !The!evaluation!of!the!environmental!work!within!the!Company!is!done!in!each!quarter!and!aims!to!see!what!has!been!done! in! relation! to! the! targets.! Interviewee!A3! explains! that! they! are!working!according! to! a! process!where! they! first! develop! a!working! strategy! for! energy!management!and!then!measure!and!monitor,!which!give!information!in!order!to!make!decisions!for!further!actions.!Both!evaluating!results!in!relation!to!set!goals!and! make! decisions! based! on! the! evaluation! is! an! important! part! of! a!management!system!and!to!manage!energy.!(Piper,!1998;!Vikhorev!et!al.,!2013)!!!Interviewee! A2! sees! an! initial! measuring! of! energy! performance! as! a! base!scenario!where!future!energy!measurements!will!work!as!a!followeup!where!it!is!possible! to! evaluate! the! activities! that! will! take! place! in! between.! The! same!approach! is! described!by!Piper! (1998)! and!Vikhorev! et! al.! (2013).!However,! if!the!initial!audit! is!a!benchmark!audit! followed!by!a!standard!audit!the!baseline!might! need! to! be! updated! since! the! latter! audit! will! give! more! detailed!information!about!the!energy!use.!As!described!in!the!awareness!chapter,!there!are! continuous! meetings! regarding! environmental! performance! within! the!Company!and!these!meetings!are!used!as!a!forum!to!evaluate!results.!(A2,!A3)!!!An!important!step!in!the!evaluation!is!to!analyze!and!explain!the!results!in!order!to!understand!the!affects! from!the!actions!and! identify! future!measures.!Today!however,!interviewee!A3!feels!that!they!within!the!unit!they!need!to!improve!on!

!

51!!

following! up! actions! and! explain! decisions.! Also,! the! monitoring! of! the!improvements!is!sometimes!done!in!too!short!of!a!period!to!see!the!change!and!reach!the!goals,!which!might!lead!to!a!missed!chance!for!improvement.!(A3)!The!management! consultant! expert,! E3,! explains! that! companies! in! general! do! too!little!followeup!and!are!too!impatient!to!anchorage!the!work!for!future!success.!!The!management!systems!are!controlled!by!internal!and!external!audits!as!a!way!to!monitor!and!evaluate! the!process!and! the! continual! improvement.! (A7)!The!certificated!management! system! last! three! years! but! external! followeup! audits!are! done! every! 6th! to! 12th! months.! At! the! Company,! which! is! a! multiesized!company! with! multiple! divisions,! it! is! done! every! 6th! month.! The! certification!authority! makes! a! threeeyear! plan! in! collaboration! with! the! customer! and!decides!a!selection!of!sites!where!they!visit!each!site!at!least!once!every!period.!(E2)!!!Also,!the!results!need!to!be!shown!in!real!time!(Vikhorev!et!al.,!2013)!to!increase!the!understanding!on!all!levels!in!the!organization!and!in!relation!to!for!example!production!volume!or!time,!which!should!be!described!by!a!company’s!decided!EPIs’.!(Comoglio!&!Botta,!2012;!Potoski!&!Prakash,!2005)!Visualizing!the!results!can!be!done!by!displays!clearly!showing!current!energy!use!and!how!it!changes!because!of!different!actions!as!well!as!how!the!energy!use!has!changed!over!time!affecting!a!company’s!energy!performance.!This!is!suggested!by!interviewee!A2!who! describes! an! online!website!where! all! employees! can! see! all! information!regarding!energy!and!energy!use!in!real!time.!This!would!increase!transparency!and!make! it! easier! to! see!how! the!measures! impacted!energy!use.! (A2)!Case!B!presents! their! energy! usage! and! their! improvements! and! calculated!improvements!by!showing!their!energy!efficiency!measures!on!a!graph!together!with! the!energy!usage!where! the!various!measures!are! indicated!on! the!curve.!(Case!B)!!

4.4 Energy.auditing..As!described!earlier,!expert!E1!believes!that!energy!intensive!industries!already!work! with! improving! their! energy! performance.! It! is! explained! both! by! the!interviewees!at! the!Company!and! in!Case!A!and!Case!B! that! they!are!currently!working!with!energy!and!have!conducted!energy!audits.!This!indicates!a!similar!development! as! for! companies’! environmental! work! according! to! Anton! et! al.!(2003),!that!companies!work!proactively!with!rather!than!regulatory!driven!with!energy.! Interviewee! A3! describes! that! they! have! implemented! energy! rounds!where! they! identify! energy! thieves! by! looking! at! the! processes! and! premises,!much!like!a!walk!through!audit.!(IEA,!1987;!Thumann,!2002)!Then!they!propose!measures!and!these!are!prioritized!according!to!which!one!saves!most!energy!for!least!money.! (A2,! A3!&!A6)! In! Case!B! they! have! an! ambitious! approach! about!investment! decisions! in! energy! efficient! measures.! The! top! management! has!decided! that!measures! that!have! longer!payback! time!but!are!good! in! terms!of!energy! efficiency! can! be! prioritized,! although! there! are! other! less! expensive!measures! available.! Each! action! is! evaluated! individually! and! with! higher!measure! costs! there!will! be!more!preparatory!work,!which!makes! the!process!more!time!consuming.!(Case!B)!!!

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52!!

Interviewee! A2! describes! that! the! audits! are! often! divided! between! different!groups! investigating! processes,! properties! and! transport! where! the! last! area!mentioned! is!not!as!developed!when! it!comes! to!how!to!conduct! the!audit!and!what! to! include.!They! try! to!use!power!meters!as!much!as!possible! in!order! to!measure! specific! processes! and! machines.! If! that! is! not! possible! they! do! an!engineering!estimate!or!calculate!the!heat!losses!through!the!cooling!water!and!process! heat.! (A2)! The! energy! audit! that! interviewee! A2! describes! can! be!categorized!as! a! Standard!audit! or!Minieaudit.! (IEA,!1987;!Thumann,!2002)!A8!describes!a!system!where!every!unit!within!the!Company!is!audited!every!three!years! viewing! environmental! issues! and! checking! to! see! if! the! instructions! are!followed.!The!first!audit!was!conducted!in!2010!and!resulted!in!a!comprehensive!review!of!the!processes.!Following!audits!were!more!detailed!and!measured!the!processes! as! well! as! proposed! measures.! This! can! be! explained! as! a! initial!benchmark! audit! followed! by! a! Walkethrough! Audit! or! Standard! Audit.! (IEA,!1987;!Thumann,!2002)!A8!explains!that!this!work!will!be!resumed!continuously.!!In!Case!A!it!is!described!that!they!have!conducted!energy!audits!and!established!an!energy!auditing!program.!The!energy!audits!have!been!conducted!according!to! estimations! of! the! energy! use! between! the! buildings! and! processes! but! to!increase! the! accuracy! they! are! currently! installing! a! metering! system.! This!means! that! they! previously! did! benchmark! audits! and! depending! on! the!metering! system!and!how! they! specify! improvement!measures!more!extensive!audits!will! be! conducted.! (Case! A)! (IEA,! 1987;! Thumann,! 2002)! In! Case! B! the!energy!use!is!measured!per!building,!which!makes!it!hard!to!allocate!energy!use!for!individual!parts.!!!According!to!the!empirical!material!in!this!study!it!varies!if!a!company!chose!to!conduct!the!energy!audit!with!internal!resources!under!the!conditions!of!having!a!certified!management!system!according!to!the!Swedish!law,!or!with!an!external!energy! auditor.!Within! the! Company! internal! resources!will! be! used,! and! they!therefore!need!to!have!a!certified!environmental!or!energy!management!system!that! includes! requirements! on! conducting! energy! audits! as! well! as! fulfill! the!competency! requirements.! (Swedish! Energy! Agency,! 2014)! Interviewee! A3!argues!that!internal!resources!have!a!better!understanding!of!the!business!and!it!also!becomes!easier!to!communicate.!Also,!an!internal!resource!is!in!most!cases!not!as!expensive!as!using!an!external!consultant.!This!is!confirmed!by!A2,!A4,!A5,!A6!and!A7!and!Eskilson!et!al.!(2009).!Interviewee!A8!describes!that!a!third!party!was! engaged! previously! to! the! internal! energy! efficiency! group! within! the!Company!to!do!the!energy!audit.!A8!continues!explaining!that!the!advantages!of!having!an! internal!auditor!are! that! they!often!know!the!business!better,!which!shortens!the!training!time.!In!Case!A,!external!consultants!are!used.!It! is! in!this!case! explained! that! the! advantage! of! using! a! third! party! is! that! they! enter! the!organization!with! fresh!eyes,!which! is! also!described!by!Eskilson!et! al.! (2009).!However,! Case!A!has! chosen! to!hire! the! same! consultants! each! time! to! ensure!continuity! in! the! work! and! avoid! introduction! time.! For! Case! B! an! affiliated!company! is! used,! which! has! conducted! energy! audits! within! their! company!before!the!requirements!from!the!EED!and!Swedish!law!were!initiated.!!!

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5. Discussion.and.conclusion.In% this% chapter% it% is% discussed% how% large% companies% can% work% to% improve% their%energy% performance% within% the% framework% of% the% EED% and% the% corresponding%Swedish% law.% A% model% including% key% factors% for% succeeding% with% energy%management% and% improving% energy% performance% is% presented% and% discussed% in%order% to% indicate% how% large% companies% can% fulfill% and% move% beyond% the% legal%requirements.%Together%with%the%model,%concrete%measures%for%how%to%manage%the%increasing% pressure% on% improving% energy% performance% are% given.% Further,% the%conclusions% based% in% the% research% questions% is% presented% as% well% as% a% reflection%about%advantages%and%disadvantages%of%adopting%an% ISO%50001% to% fulfill% the%EED%and%recommendations% for% future%studies.%This%provides%the%reader%with%an%energy%management% model% that% describes% how% to% fulfill% the% EED% and% Swedish% law,% and%successfully%improve%a%company’s%energy%performance.%%%!The! directive! and! the! corresponding! Swedish! law! require! energy! audits! and!proposed! costeeffective! measures.! Though,! in! order! to! succeed! with! the!European! target! of! improved! energy! efficiency! and! also! to! further! adapt! to! a!growing!pressure!on!companies! to!become!more!energy!efficient!and!aware!of!their!environmental! impact,!more!must!be!done.!The!presented!model! includes!key! factors!and!proposed!measures! that! target! to!position!energy!performance!as!a!main!factor!within!the!companies!energy!work,!and!also!move!beyond!the!EED!and!the!Swedish!law.!!!Two! factors! described! as! the! most! important! for! managing! energy! are! top!management!commitment!and!awareness!in!an!organization.!However,!there!are!disagreements!within!the!Company!whether!the!top!management!is!committed!enough! to! the! energy!work,!which! affects! the! rest! of! the! organizations! energy!performance! and! motivation! to! work! with! energy.! Also,! without! commitment!from! top! management! it! is! hard! to! create! awareness! throughout! the!organization.!Further,!goals,!measurements!and!evaluation!have!been!identified!as! important! key! factors! considering! empirical! results! in! combination! with!theory.! Goals! for! each! division! within! the! Company! are! formulated! based! on!global! targets.! However,! the! goals! for! energy! are! not! yet! communicated! and!implemented! in! the! organization.! Currently! the! Company! is! installing! meters,!which! increase! the! understanding! of! the! energy! use.! Though,! no! one! of! the!interviewees! could! explain! if! there! were! any! plans! for! how! to! visualize! the!results.! Also,! the! interviewees! describe! that! they! are! evaluating! activities! and!have! regular! meetings! but! that! the! evaluation! needs! to! be! improved! and! the!results!needs!to!be!verified.!!The! pressure! upon! large! companies,! from! both! the! EED! and! other! external!sources,! to! improve! their! energy! performance! can! be! managed! through!systematically!working!with!energy!efficiency!by!using!a!management!system.!A!system!to!manage!energy!needs!a!number!of!key!factors!in!order!to!succeed!and!not! just! be! seen! as! additional! work.! Figure! 12! describes! the! importance! of!commitment! and! awareness! within! energy! management! in! order! to! work!effectively!with! energy!performance! in! a! company.! The! energy!performance! is!

!

54!!

then! improved! by! setting! measureable! goals,! measure! the! energy! usage,! and!evaluating!and!verifying!the!results.!!!

! !!!!

Figure'12:'A'model'showing'identified'key'factors'to'improve'energy'performance'and'succeed'with'energy'management'based'on'the'

requirements'in'the'EED'and'corresponding'Swedish'law.''

The! model! shown! in! Figure! 12! is! developed! based! on! the! results! from! the!empirical! investigation! and! the! theoretical! study.! The! overlying! rectangle!represents! the! EED! and! the! Swedish! law,! which! initiate! the! pressure! on!companies!to!conduct!energy!audits!and!purpose!energy!efficiency!measures.!In!order! to! comply! with! this! it! is! necessary! for! companies! to! manage! energy!efficiently!and!by!that!increasing!the!energy!performance.!The!two!main!factors!to! succeed! in!managing! energy! are! found! to! be! top!management! commitment!and!awareness.!Without! top!management!commitment! it! is!hard!to!get!enough!resources! for!energy!work!and!committed!employees! increases!motivation!and!is! a! prerequisite! for! implementing! the! new! working! procedures.! To! further!increase! the!motivation! the! employees! need! to! be! aware! of! how! their! actions!affect! the! company’s! energy! performance! as! well! as! the! whole! organization!

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55!!

needs!to!be!aware!of!their!energy!work.!There!is!also!need!of!technical!measures!to! manage! energy! and! improve! a! company’s! energy! performance! within! the!management! system.! The! identified! key! factors! are;! goals,! measurements! and!evaluation.!The!goals!are!needed!to!create!a!direction!and!an!objective!to!work!towards.!Further,!measurements!are!needed! in!order! to!understand!where! the!energy!is!used!and!where!the!largest!savings!can!be!cone.!The!measurements!are!used! to! set! the! baseline! for! a! company! and! to! increase! the! knowledge! of! how!different! actions! affect! the! energy! use.! In! the! evaluation,! results! are! analyzed!compared! to! set! goals,! which! need! to! be! visualized! in! the! organization.! The!evaluation! of! the! results! is! used! as! a! foundation! for! decisionemaking! and!investment!support.!!!!The!results!clearly!shows!that!it!is!important!that!top!management!commitment!and! awareness! permeates! the! entire! organization! as! well! as! play! a! key! role!throughout! all! steps! of! managing! energy! efficiently! and! increasing! energy!performance.!The!independent!parts!of!the!five!areas!thereby!have!connections!between! them!and!perform!best! in! an! interaction,! as! shown! in! Figure!12.! Top!management! commitment! and! awareness! overlap! goals,! measurements! and!evaluation,! representing! the! importance! of! creating! joints! in! order! to! succeed!with!improving!energy!performance!through!energy!management!systems!in!an!organization.! The! organization! needs! to! be! aware! of! their! goals! and! also!committed!to!them!in!order!to!be!able!to!work!towards!them!and!aim!to!reach!them.! To! create! processes! for!measurements! top!management! commitment! is!needed! since! there! will! be! changes! in! working! routines,! also! the! results! and!communication!of! the!measurements!can!create!commitment! in! return!since! it!can! show! the! steps! toward! the! goals.! In! order! to!make! a! thorough! evaluation!awareness! of! the! measurements! and! the! goals! is! needed! as! well! as! top!management!commitment!towards!the!energy!work.!The!communicated!results!of!the!evaluation!can!create!awareness!of!the!energy!efficiency!work!throughout!the!organization!to!make!the!employees!aware!of!what!is!measured!and!why,!as!well!as!the!goals!and!the!progress!toward!them.!!In!Figure!12!the!important!factors!of!managing!energy!to!improve!a!company’s!performance! as! well! as! how! a! company! is! affected! by! the! EED! is! shown.! To!manage! the!pressure!and! requirements!on!auditing! five!key! factors! to! succeed!with! energy! management! is! identified.! How! to! manage! these! factors! are!described!below,!beginning!with!top!management!commitment.!!!!!!!!!!!!!!

!

56!

!

! !

Establish!an!energy!policy!to!set!the!direction!

!

Appoint! energy! manager! and! set! structure! in! the!

divisions!

!

Provide!resources!to!increase!motivation!

!

Review!internal!energy!audits!to!avoid!information!gaps!

!

Designate!energy!champions!to!reward!employees!

!

Figure'13:'Measures'to'increase'top'management'commitment'to'energy'work.''

Top! management! commitment! is! an! important! factor! to! succeed! in! energy!

management!and!there!are!several!recommendations!to!the!Company!of!how!to!

increase!the!top!management!commitment!within!the!organization!as!described!

in! Figure! 13.! The! top! management! needs! to! establish! an! energy! policy! that!

communicates!what! is! important! and! set! the!directions!of! a! company’s! energy!

work.!Further,!the!top!management!should!set!a!structure!for!how!to!work!with!

energy! performance,! and! this! includes! appointing! an! energy!manager! in! each!

division.!To! increase! the!motivation! for!working!with!energy! in!a!company!the!

top!management!needs! to!provide! their! employees!with! resources! in! staff! and!

money! to! do! so.! Reviewing! internal! energy! audits! is! important! for! top!

management!to!do!to!avoid!information!gaps.!To!promote!working!with!energy!

and! for! the! top! management! to! show! their! interest! employees! working! to!

increase!a!company’s!energy!performance!should!be!rewarded.!This! is!done!by!

designating!energy!champions!that!are!rewarded!for!their!energy!work.!

!

! !

Assign! an! energy! committee! with! representatives! in! all!

levels!of!the!organization!

!

Training!to!increase!knowledge!and!understanding!

!

Communicate!in!several!channels!

!

Clearly!show!results!and!provide!realetime!feedback!

!

Figure'14:'Measures'to'increase'awareness'of'energy'performance'within'a'company.

To!manage! to! increase! the! awareness! in! the! organization,!measures! shown! in!

Figure! 14! are! needed.! The! energy! committee! is! an! important! part! of! this! and!

should!be!chosen!by!the!energy!manager!and!involve!employees!in!all! levels!of!

the! organization.! Main! responsibilities! of! the! energy! committee! are! to! spread!

information!about!energy!work!in!the!organization,!and!by!doing!that!reducing!

information! gaps.! Awareness! in! terms! of! understanding! and! knowledge! is!

created! by! training,! and! should! be! integrated! in! already! established! processes!

Awareness!

Top!

management!

commitment!

!

57!!

for!training!to!avoid!being!time!consuming.!The!training!should!be!enjoyable!and!informative! and! at! the! same! time! encourage! own! suggestions! from! the!employees! and! create! a! culture! of! encouraging! energy! reduction! suggestions.!Further,!already!established!ways!of!communicating!can!be!used!as!well!as!new!ones!since!several!communication!channels!increase!the!possibilities!that!many!employees!are!aware!of!the!information.!To!show!progress!of!the!energy!work,!power!profiles!showing!the!energy!use!over!a!period!can!be!used!and,!to!increase!understanding!of!different!actions!effects!on!the!energy!use,!realetime!feedback!can! be! provided! to! the! employees.! This! motivates! conducting! Computer!Simulation!energy!audits.!!!!!! !

Based!on!previous!results!!Tough!but!achievable!!Comparable!!Clear,!measurable!and!specific!!Set!energy!performance!indicators!!

Figure'15:'How'to'set'goals'for'efficient'energy'management.'

To!improve!the!energy!performance!within!the!Company!there! is!a!need!to!set!goals! and! these! should! be! based! on! previous! results,! according! to! Figure! 15.!Setting! goals! compared! to! a! baseline! from! previous! measurements! makes! it!possible! to! set! realistic! goals! and! compare! the! results.! Comparable! goals! are!important! to! be! able! to! show! and! increase! the! understanding! of! the! results,!which!in!turn!increase!the!awareness!of!the!energy!work.!Further,!the!goals!must!be! clear,!measurable! and! specific.! Clear! goals!make! it! possible! for! everyone! to!understand! and! work! towards! them,! and! measurable! and! specific! goals! are!needed!to!compare!results!to!set!targets.!Further,!energy!performance!indicators!need! to! be! developed! and! these! need! to! be! quantitative! and! represent! a!company’s! operations! in! order! to! be! comparable! and! easy! to! understand! for!everyone! in!an!organization.!The!EPIs!should!be!connected! to! the!strategy!and!preferably!be!shown!as!a!result!in!the!annual!report.!By!for!example!creating!an!index! that! shows! the!measures! implemented! in! proportion! to! how!many! that!was! suggested! as! a! result! of! the! energy! audit,! or! the! energy! saved! owing! to!energy! saving! measures! compared! to! total! energy! use! these! EPIs! could! add!weight! to! the! energy! related! targets.! They! would! also! make! it! easier! for! a!company!to!compare!results!between!divisions!and!countries.!!!!!!!!!

Goals!

!

58!!

!! !

Measure!individual!parts!to!increase!understanding!!Create!a!baseline,!process!for!control!and!evaluation!!Accurate!and!costeeffective!meters!!Develop!system!to!gather!and!analyze!data!!Provide!realetime!measurements!!

Figure'16:'Important'factors'for'taking'measurements'in'energy'management.'

Taking!measurements!on!energy!use!is!the!main!part!in!energy!auditing!and!to!advantage!the!most! from!taking!measurements! it!should!be!done!on! individual!parts! and! gathered! in! a! system,! as! shown! in! Figure! 16.! Measuring! individual!components! or! processes! in! an! organization! increases! the! understanding! of!where!the!energy!is!used!and!potential!energy!reducing!possibilities.!To!be!able!to! take! individual!measurements!meters! needs! to! be! installed! and! the!meters!need!to!be!accurate!to!provide!reliable!results.!The!collected!measurements!are!used!to!create!a!baseline!for!the!organization’s!energy!use.!Though,!to!succeed!in!measuring!energy,!a!data!system!needs!to!be!used.!The!system!includes!how!to!collect! data,! energy! performance! indicators! and! how! to! evaluate! the! data.!Further,!the!system!should!be!visualized!with!a!display!that!provide!data!in!realetime,! for! the! employees! to! see! the! direct! effect! of! different! actions,! as!well! as!power!profiles!of!how!the!energy!performance!changes!over!time.!!! !

Compare!results!to!goals!!Visualize!the!results!!Verify!results!!Decision!support!!Key!in!developing!an!energy!management!strategy!!

Figure'17:'Important'parts'for'evaluating'energy'performance.'

In!Figure!17!important!parts!for!evaluating!the!energy!performance!and!energy!management! within! an! organization! are! shown.! When! the! measurements! are!gathered!they!need!to!be!analyzed!and!compared!to!the!goals!in!order!to!provide!results!that!are!easy!to!understand.!To!ensure!an!actual!change!the!results!needs!to! be! verified! within! the! evaluation.! In! order! to! motivate! continuous!improvements,! the!results!need!to!be!visualized!and!preferably!using!a!display!showing!current!energy!use!compared!to!baseline!and!a!power!profile! for!how!the!organization’s! energy!performance!has! changed!over! a!period!of! time.!The!

Evaluation!

Measurements!

!

59!!

evaluation!of!the!results!also!works!as!decision!support,!since!it!provides!useful!information! of! where! most! energy! is! used! and! how! possible! investments! can!affect!the!energy!use!or!energy!efficiency.!Furthermore,!the!evaluation!is!key!in!developing! an! energy!management! strategy,! since! information! of! a! company’s!energy!use!creates!a!foundation!for!the!company’s!direction.!!!The!suggested!solution!for!how!to!manage!the!increasing!pressure!on!becoming!more!energy!efficient!and!the!increasing!requirements!from!the!EED,!which!are!on! an! industrial! level,! can! affect! the! organization! on! both! a! functional! and!individual! level.! In! this! study! it! is! emphasized! that! the! Company! and! other!organizations!need!to!make!changes!in!their!way!or!working!to!manage!energy!more! efficiently.! More! time! and! resources! needs! to! be! spent! on! improving! a!company’s! energy! performance! as! well! as! a! structure! for! how! to! work! with!energy!needs!to!be!set,!which!focus!on!a!company’s!development!on!a!functional!level.!Though,!the!solution!requires!commitment!from!top!management!as!well!as! an! increased! awareness! in! the! organization,!which! affects! the! employees! in!the!Company!and!other!organizations.!These!are!on!an!individual!level,!but!with!an! increasing! commitment! from! top! management! as! well! as! awareness!throughout! the! organization! the! possibilities! to! succeed! in! managing! energy!increases.!The!solutions!also!affect!the!Company!on!an!industrial! level.!With!an!increasing! focus! on! energy! the! demand! for! energy! efficient! products! will!increase! and! the! Company! can! advantage! from! this! since! they! deliver! energy!efficient! products! and! by! that! also! enter! new! markets.! Further,! the! solution!makes! it! easier! for! the! Company! to! meet! the! future! demands! and! fulfill! the!current!demands!from!the!EED!and!the!Swedish!law!based!on!the!EED,!since!the!focus!on!energy!is!considered!to!increase.!!!!5.1 Conclusion'This!study!focus!on!how!large!companies!can!improve!their!energy!performance!within!the!Energy!Efficiency!Directive!and!the!corresponding!Swedish!law.!There!is! an! increasing! transformation! pressure! on! companies! to! work! continuously!with!energy!and!to!succeed,!companies!need!to!manage!this!pressure!efficiently.!It!is!therefore!necessary!to!understand!what!measures!large!companies!need!to!implement!in!order!to!fulfill!the!EED!and!Swedish!law.!!!!!The!common!attitude!within!the!Company!as!well!as!within!the!complementary!study! with! companies! covered! by! the! EED! are! positive! towards! the! Energy!Efficiency!Directive,!which!gives!them!an!initial!prerequisite!for!succeeding!with!their! energy! work.! Together! with! clearer! directions! about! the! requirements!within!the!Swedish!law!and!a!developed!structure!for!the!energy!work!based!on!energy! management! frameworks,! will! facilitate! improving! their! energy!performance.!This! since!energy!management!systems!puts!energy!work!on! the!agenda! and! sets! a! plan! for! how! to! work! with! improving! energy! performance!continuously.! Though,! to! further! increase! the! possibilities! to! improve! a!company’s! energy! performance,! an! energy!management! system! is! not! enough,!the! importance! of! considering! energy! within! an! organization! needs! to! be!included!in!the!overall!strategy!providing!a!common!direction.!!!

!

60!!

Further,!companies!can,!within!their!energy!management!system,!improve!their!energy!performance!even!more!by!considering!the!key!factors!identified!in!this!study;! top! management! commitment,! awareness,! goals,! measurements! and!evaluation.!These!factors!are!beyond!the!requirements!in!the!EED!and!Swedish!law! of! conducting! energy! audits,! propose! energy! efficiency! measures! and,! if!chosen,! implement! a! certified! energye! or! environmental! management! system.!The!key!factors! increase!the!possibilities!to!succeed!with!managing!energy!and!can!therefore!also!help!to!fulfill!the!EED!and!Swedish!law.!These!key!factors!are!considered!as!a!joint!solution!with!depending!parts!for!maximized!performance,!although! they! are!discussed! separately.! To! structure! the! key! factors! and! show!how! they! relate! to! energy!management! and! energy! performance! the!model! in!Figure!12!was!developed.!!!Top! management! commitment! and! awareness! is! needed! in! order! to! work!effectively!with!energy!performance!within!a!company!and! it! is! important! that!they!permeates!the!entire!organization!as!well!as!play!a!key!role!throughout!all!steps!of!managing!energy!efficiently! and! increasing!energy!performance.!Goals!are!used!to!create!a!direction!to!work!towards!and!they!need!to!be!specific!and!clear.!Measurements! create! an!understanding!of!where! the!energy! is!used!and!where!the!largest!savings!can!be!done.!Evaluating!the!results!and!analyzing!these!compared! to! set! goals! creates! a! base! for! decisionemaking! and! future!improvements!within!the!energy!work.!!!!From! the! interviews!within! the!Company! it! is! concluded! that! they!need! to!put!energy!performance!higher! on! the! agenda! to! increase!motivation! in! the! entire!organization.!This!is!initially!done!by!a!committed!top!management!and!enough!resources! within! the! Company.! In! order! to! spread! awareness! throughout! the!organization!the!communication!paths!need!to!be!more!developed!together!with!a! system! to! ensure! that! information! gets! through! and! is! understood.! It! is!proposed!that!energy!managers!shall!be!appointed!as!well!as!an!energy!group,!which!should!represents!all!competences!and!responsibilities!in!order!to!make!it!easier!to!coordinate!the!work.!More!in!detailed!measurements!is!also!suggested!together!with!a!system!that!can!sort!out!all!valuable!data.!Additionally!clear!goals!are! needed! in! order! to! compare! the! measurements! and! evaluate! the! results!together!with!welledeveloped!energy!performance!indicators!that!correspond!to!the!organization’s!business.!Also,!EPIs!should!be!more!connected!to!the!strategy!and!preferably!be! shown!as!a! result! in! the!annual! report.!This! in!order! to!add!weight! to! the! energy! related! targets! and! make! it! easier! for! the! Company! to!compare!results!between!divisions!and!countries.!!!With! this! said,! structured! energy! management! systems! are! used! to! set! a!framework! and! established! processes! for! managing! energy,! which! used!efficiently! provides! a! company! with! energy! performance! improvement.!However,!clear!goals!need!to!be!set,!measurements!needs!to!be!gathered!in!realetime,! interpreted!and!stored,!and!both!the!management!system!and!the!results!needs! to! be! evaluated! in! order! for! a! company! to! advantage! the! most! out! of!conducting!energy!audits!and!propose!costeeffective!measures!according!to!the!EED!and!Swedish!law.!Lastly,!companies!will!have!to!make!changes!in!their!work!to!improve!energy!performance!and!to!succeed,!top!management!needs!to!show!

!

61!!

their!commitment!to!make!the!organization!aware!of!how!their!actions!affect!the!company’s!energy!performance.!!!

5.2 Reflection.on.generalizability,.validity.and.reliability.The!solution! for!how!companies!can!manage! the! increasing!pressure!and!what!measures!to!implement!in!order!to!fulfill!the!EED!is!mainly!based!on!interviews!within!the!Company!and!a!complementary!study!with!two!companies!covered!by!the!EED.!This!makes!the!results!somewhat!specific!for!the!Company!but!since!the!interviewees! and! the! complementary! study!often!provided! similar! results,! and!the!identified!measures!are!common!in!several!models!for!energy!management!it!is! argued! that! the! provided! results! are! generalizable! to! some! extent.! The!identified! key! factors! and! corresponding! measures! may! differ! between!organizations! depending! on! the! organizational! structure! and! their! business.!Also,! the! identified! measures! are! more! generalizable! for! energy! management!systems!compared!to!other!management!systems.!This!since!the!empirical!data!is!analyzed!using!models!for!energy!management!systems!and!not!management!systems!overall.!!!Since! the! solution! presented! in! Figure! 12! is! based! on! anonymous! empirical!material,!which!increases!the!possibilities!of!truthful!information,!the!validity!of!the! solution! is! considered! high.! However,! the! reliability! is! low! since! the!recommendations!have!not!been!tested!and!the!empirical!material!used!is!only!qualitative.! Though,! the! findings! is! concluded! based! on! a! deep! analysis! of! the!empirical! material! and! theory,! where! it! is! expressed! by! the! majority! of! the!interviewees! and! concluded! in! this! study,! that! it! is! room! for! improvement! in!energy! work! within! the! Company.! Further,! since! the! complementary! study!provided!similar!information!as!the!interviewees,!the!gathered!information!from!the!interviews!was!confirmed!which!increases!the!validity.!Also,!some!measures!are!considered!important!for!Case!A!and!Case!B!as!well,!which!is!the!reason!for!the!partly!generalizable!results.!!

5.3 The.contribution.Both! the! Energy! Efficiency! Directive! and! corresponding! Swedish! law! were!initiated! recently,! in!2012!respectively! in!2014.!Therefore! there! is!no! research!relating!to!these!requirements.!However,!the!areas!of!management!systems!and!energy!audits!have!been!researched!before!in!different!settings,!such!as!relating!management! systems! to!market! value! of! a! company,! the! degree! of! success! of!using! certified!management! systems!according! to! ISO!or!developing! successful!management!systems!with!different!focus.!Tough,!the!area!of!aligning!legislative!requirements!with!energy!management!was!unexplored.!!!Since!the!EED!and!Swedish!law!cover!many!companies!and!there!is!an!increasing!focus!on!energy!there! is!a!need!to!understand!how!to!manage!these! increasing!requirements! efficiently.! This! study! contributes! to! the! research! of! efficient!energy!management!within!the!framework!of!legislative!requirements!by!clearly!aligning! the! new! requirements! in! the! EED! and! Swedish! law! with! energy!management.! Further,! it! combines! research! on! how! a! company! can! manage!increasing! legislative!requirements!by!moving!beyond!them!and!work!broader,!

!

62!!

in! this! case! by! using! a! management! system! to! ensure! a! continuous! work! for!improvements!in!energy!performance.!

5.4 Implications.There! are! several! implications! of! the! EED,! Swedish! law! and! theory! about!management!systems!regarding!policy,!management!and!academia!that!need!to!be! considered.! These! are! presented! and! discussed! within! the! following! subeheadings.!

5.4.1 Policy.The! definition! of! a! large! company! within! the! EED! is! based! on! number! of!employees!and!the!turnover.!This!definition!could!be!problematic!since!the!aim!of! the! directive! is! to! improve! energy! efficiency.! To! give! an! example;! some!companies!might!have!a!high!energy!use!but!few!employees,!which!makes!them!not!affected!by!the!directive!even!though!the!energy!use!is!substantial.!This!can!in!some!cases!undermine!the!purpose!of!the!directive.!!!The! directive! and! the! corresponding! Swedish! law! and! regulations! are! quite!vague!which!have!made!companies!confused!about!what!is!applicable.!This!could!not! only! lead! to! decreased!motivation! among! companies! to!work!with! energy!improvements!within! the! framework,! but! also! that! the! requirements! from! the!EED!and!the!corresponding!Swedish!law!are!implemented!incorrectly.!Also,!since!the! requirements! are! imprecise! and! there!are!no! concrete!demands!on!energy!performance! improvements,! the!motivation! to!work!with! this!must! come! from!other!sources!then!the!requirements.!!!An!external!auditor!is!needed!within!the!framework!of!the!EED,!either!to!do!the!entire!energy!audit!or! to!audit! the!energye!or!environmental!system.!However,!the!companies!performing!these!audits!aims!to!make!money!just!like!any!other!business.! As! a! result,! there! is! a! risk! that! the! auditing! company! set! lower!requirements! on! the! companies! they! audit,! since! they! want! to! keep! them! as!customers.!

5.4.2 Managerial.The!main!managerial! implication!considers!whether!a!company!should!adopt!a!certified! energy! management! system! according! to! ISO! 50001! or! extend! their!work! in! energy! within! an! already! established! environmental! management!system! according! to! ISO! 14001.! If! an! ISO! 14001! is! already! in! place! within! a!company! as!well! as! some! energy! performance!work! there!might! not! be!much!work! left! to! comply!with! the! EED! and! the! corresponding! Swedish! law.! If! not,!time!and!resources!need!to!be!spent!on!building!a!certified!management!system!according! to! ISO!14001! and! include! the! energy!work,! or! implement! ISO!5001.!The!work!to!include!energy!in!the!environmental!management!system!might!be!almost! as! extensive! as! implementing! a! new!management! system! according! to!ISO!50001.!Also,! if!already!certified!according!to!ISO!14001,! the!framework!for!implementing! an! ISO! 50001! is! already! set! and! similarities! in! the!management!systems!can!be!used.!However,!the!companies!that!participated!in!this!study!all!have! ISO! 14001.!! Yet,! there! are! advantages! with! an! ISO! 50001! such! as! an!acknowledgment!that!the!company!is!certified,!which!can!increase!a!company’s!competitive!advantage.!Further,! it!has!been!concluded!in!this!study!that!having!

!

63!

!

an!ISO!14001!can!be!a!customer!requirement!in!many!cases,!and!in!the!future!the!

same!may!apply!for!ISO!50001.!Therefore,!by!implementing!it!now,!a!company!is!

ahead! of! their! competitors! showing! that! they! are!working! systematically!with!

energy!performance.!

!!

Whether! if! a! company!has!an!environmental!management! system!according! to!

ISO!14001!or!an!energy!management!system!according!to!ISO!50001!they!have!

to! do! an! energy! audit.!! Instead! of! ensuring! the! competence! within! the!

organization!they!can!choose!to!consult!an!external!energy!auditor.!It!is!argued!

that! internal! competence! usually! has! more! knowledge! of! the! business,! which!

often!results!in!less!time!spent!on!the!audit.!It!is!however!also!said!that!the!same!

external! auditors! can! be! hired! every! time,!which! gives! them! same! advantages!

and! additionally! competence! from! conducting! energy! audits! in! other!

organizations.! It! is!however!often! less!expensive! to!use! internal! resources.! If! a!

company!choses!to!use!a!third!party!instead!of!using!a!management!system!it!is!

argued! that! the! energy! work! will! be! less! integrated! in! the! organization! and!

probably!not!part!of!the!everyday!work.!

!!

For! the! investigated!Company,!who!has!an!environmental!management!system!

according!to!ISO!14001!and!already!works!with!energy!in!the!organization,!it!is!

not! that! hard! to! comply! with! the! requirements! in! the! EED! and! Swedish! law.!

Though,!implementing!a!new!management!system!requires!resources!but!if!the!

top!management!allocates!resources!to!implement!an!ISO!50001!they!can!show!

their!commitment!to!energy!work,!besides!the!increasing!costs!for!that.!

!

Energy!efficiency! is! integrated! in!many!parts!of!company!operations.!However,!

company! policies! are! often! covering! specific! areas! even! though! they! are!

interconnected;! energy! efficiency! can! lead! to! improvements! considering! all!

aspects! of! sustainability.! For! example,! improving! energy! efficiency! can! lead! to!

reduced!costs!and/or!decreased!negative!environmental!impacts.!The!follow!up!

on! the! policies’! outcome! considering! economical! or! environmental! aspects!

should! therefore! include! the! saving! or! improvement! obtained! thanks! to!

increased!energy!efficiency.!It!is!therefore!necessary!for!a!company!to!integrate!

energy! efficiency! in! all! relevant! aspects! of! the! business.! In! every! policy! and!

possible! reporting!where!energy!efficiency! can! take!part! it! should.!This!means!

that!energy!efficiency!permeates!an!entire!organization!and!ensures!continuous!

longeterm!work.!!!

5.4.3 Academic.The!literature!concerning!management!systems!and!specifically!the!theory!about!

energy!management!systems!presented!in!this!study!covers!both!managerial!and!

technical! aspects.! Considering! the! managerial! aspects! there! is! a! focus! on!

commitment,! and! creating! awareness! and! motivation! among! the! employees.!

However,!in!order!to!succeed!with!energy!management!the!attitudes!towards!the!

increasing! requirements! on! improving! energy! performance! as! well! as! to!

incorporating!energy!in!the!strategy!are!important.!

!!

In! this! study! the! empirical! material! described! that! management! systems!

according!to!ISO!standards!are!to!be!considered!as!frameworks!and!a!company!

!

64!!

needs! to! work! actively! to! achieve! success.!! When! evaluating! these! kinds! of!standards! it! is! therefore! important! to! understand! how! a! company!works!with!the! standard! to! draw! valid! conclusions.! This! can! be! difficult! since! companies!work!differently!with!the!standards,!therefore!an!individual!more!in!depth!study!at!every!company!is!needed!to!evaluate!the!performance!of!the!standards.!!!

5.5 Future.studies.The!Energy!Efficiency!Directive!that!this!study!is!based!on!sets!the!goals!for!the!energy!work!within!European!Union!and!all!member!states!formulate!their!own!legislation!based!on! these!goals.!Even! though! there!are!different! legislations! in!different!countries!the!collected!results!are!measured!compared!to!set!targets!in!the!EED.!It!is!therefore!interesting!to!analyze!the!relation!between!the!countries!of!how!to!work!with!the!EED!and!commonly!fulfill!the!goals!in!the!directive.!!!To! further! deepen! this! study! for! a! specific! company,! the! investigation! can! be!done! on! a! more! individual! level.! For! example,! more! operational! staff! that!actually! works! where! the! energy! is! used! can! be! interviewed! for! a! deeper!understanding!of!how!to!create!awareness!and!encourage!them!to!work!energy!efficient.! On! the! opposite,! further! investigation! on! top! management! level! and!how!they!should!steer!an!organization!to!enlarge!their!focus!on!improving!their!business’!energy!performance!can!be!done.!!!!An! important!part! in!managing!energy! is! clear! interfaces!and!using!systems! to!collect,! analyze! and! store! energy! data.! Therefore,! further! studies! considering!information! technology! systems! and! how! the! information! can! be! shown! on!displays!is! interesting.!Also,! if!a!company!chooses!to!invest! in!such!solutions,! it!shows!that!they!are!willing!to!focus!more!on!energy!performance!and!integrate!it!in!the!business!even!more.!!!For!future!studies,!a!larger!number!of!companies!can!be!analyzed.!That!increases!the!validity!and!generalizability!of!the!study,!since!gathered!information!can!be!compared!and!confirmed! from!several!more!resources!and! the!solution!can!be!used! to! a! larger! extent.! Also,! a! larger! number! of!management! systems!models!can! be! analyzed! to! further! validate! the! important! factors! to! consider! when!working!with!energy!management.!!!An!important!part!in!the!EED!and!Swedish!law!is!conducting!energy!audits.!This!is! an! area! to! investigate! further! in! future! research,! since! energy! audits! can! be!done! with! different! level! of! detail! and! to! manage! energy! efficiently,! energy!auditing! is! important.! With! a! deeper! investigation! in! energy! audits,! also! the!technical!aspects!of!energy!management!can!be!analyzed!more!in!depth,!which!is!important! for! effective! energy!management.!Within! this,! future! studies! can! be!done!to!define!EPIs!useful!in!order!to!relate!the!issue!to!the!strategy!to!give!more!weight!to!the!energy!efficiency!targets!within!a!company.!!!Another!area!for!future!studies!is!to!analyze!the!market!potential!of!companies!providing! energy! efficient! products! and! solutions,!when! directives! such! as! the!EED!are!established.!!!

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Appendix.1.–.Interview.template..Below! the! interview! guideline! used! during! interviews! within! the! Company! is!shown.! Though,! since! the! interviews!were! semiestructured! there!was! room! to!explore! areas! brought! up! by! the! interviewees! not! included! in! the! interview!guideline,! but! that! was! considered! interesting! for! this! study.! Also,! interesting!areas! that! were! brought! up! during! one! interview! were! in! some! cases! also!discussed!during!other! interviews! to!validate! the! findings.!This! is!however!not!reflected!by!the!interview!guideline.!'Intervju'Company'!Allmänt!!!

• Beskriv!din!roll!på!företaget!inom!miljö,!hälsa,!säkerhet!och!kvalitet.!!• Hur! ser! ni! på! de! ökade! kraven! på! ökad! energieffektivitet! och! minskad!

energianvändning?!• Hur! involverad! är! du! i! företagets! ledningssystem! och! utvecklingen! av!

dessa?!!Ledningssystem!!

• I!vilken!utsträckning!jobbar!du!med!det!centrala!ledningssystemet?!• Hur!arbetar!ni!för!att!ledningssystemen!aktivt!följs?!!• Hur!tror!du!att!engagemang!i!organisationen!påverkar!ledningssystemets!

genomslagskraft?!!• Har! du! någon! uppfattning! om!hur! ISOecertifiering! påverkar! ett! företags!

resultat!inom!miljö,!hälsa,!säkerhet!och!kvalitet?!!• Vid!införande!av!ett!nytt! ledningssystem,!vilka!delar!ser!du!som!kritiska!

för!att!lyckas?!!!Energieffektivisering!!

• Arbetar!ni!inom!enheten!för!att!minska!er!energiförbrukning!idag?!Hur?!• Hur!mäter!ni!er!nuvarande!energianvändning?!!• Upplever! du! att! högsta! ledningen! är! engagerad! i! arbetet! med!

energieffektivisering?!• Hur!viktigt!är!det!för!företag!som!levererar!energieffektiva!produkter!att!

även!arbeta!med!energieffektivitet!internt?!!!EED!!

• Vad!vet!du!om!EUedirektivet!om!energieffektivisering?!• Vad! tror! du! att! det! innebär! för! er! enhet! och! hur! tror! du! att! ert! arbete!

kommer!att!påverkas?!• Hur!tror!du!att!EUedirektivet!kan!implementeras!på!bästa!sätt?!• Vilken! kompetens! anser! du! är! viktig! för! att! kunna! genomföra!

förändringen?!

!

ii!!

!Kartläggning!!

• Hur!ser!processen!för!kartläggning!av!miljö,!kvalitet!och!säkerhet!ut?!• Vilka!delar!ser!du!som!extra!viktiga!att!mäta!inom!miljö,!kvalitet,!säkerhet!

och!även!energi?!!!!

!

iii!!

Interview'Company'!General!!

• Describe! your! role! at! the!Company!within! environmental,! health,! safety!and!quality.!

• What! is! your! view! on! the! growing! demands! for! increased! energy!efficiency!and!reduced!energy!use?!

• How! involved! are! you! in! the! company's! management! systems! and! the!development!of!these?!

!Management!systems!!

• To!what!extent!do!you!work!with!the!central!management!system?!• How! do! you! work! to! ensure! that! management! systems! are! actively!

followed?!• How!do!you!think!the!involvement!of!the!organization!affect!the!success!

of!the!management!system?!• How! do! you! think! an! ISO! certification! affect! a! company's! performance!

within!environmental,!health,!safety!and!quality?!• When!introducing!a!new!management!system,!which!parts!do!you!see!as!

critical!to!success?!!Energy!efficiency!!

• Do!you!work!within!the!unit!to!reduce!your!energy!use!today?!How?!• How!do!you!measure!your!current!energy!use?!• Do! you! feel! that! top! management! is! committed! to! work! with! energy!

efficiency?!• How!important!do!you!think!it!is!for!companies!providing!energyeefficient!

products!to!also!work!with!energy!efficiency!internally?!!EED!!

• What! do! you! know! about! the! European! directive! regarding! energy!efficiency?!

• What!do!you!think!it!means!for!your!division,!and!how!do!you!think!your!work!will!be!affected?!

• How!do!you!think!the!EU!directive!can!be!implemented!in!a!good!way?!• What!skills!do!you!think!are!important!in!order!to!implement!the!change?!

!Auditing!!

• What!is!the!process!for!auditing!environment,!quality!and!safety!today?!• What! elements! do! you! see! as! particularly! important! to!measure!within!

environmental,!quality,!safety!and!even!energy?!!