Energy and Resource Efficiency

Energy and resource efficiency means reducing the energy and other resources required to provide a product, service, or outcome while maintaining the performance the buyer requires. A more efficient product does the same job with less electricity, fuel, water, or material, which lowers operating costs and environmental impact.

The concept is used in sustainability, environmental management, facilities management, defence infrastructure, and public procurement. Related terms include energy efficiency, energy performance, energy management system, green procurement, sustainable procurement, life-cycle cost, and ENERGY STAR. In Canadian public buying it shows up as a specification, an evaluation consideration, or a contract requirement, depending on the solicitation.

How ISO 50001 frames energy performance

ISO 50001 is the international standard for energy management. It provides a framework for organizations to establish, implement, maintain, and improve an energy-management system. ISO states that the purpose of such a system is to improve energy performance, including energy efficiency, energy use, and energy consumption. The current edition is described on the ISO 50001:2018 standard page.

ISO describes energy management as involving policies, targets, the use of energy data, measurement, performance review, and continual improvement. The standard also addresses documentation, reporting, and design and procurement practices for equipment, systems, processes, and personnel that affect energy performance. More detail is on the ISO energy management page and the earlier ISO 50001 standard listing.

Natural Resources Canada and ENERGY STAR procurement

Natural Resources Canada (NRCan) treats high-efficiency products as a procurement tool. Its guidance says that purchasing high-efficiency products is an important element of organizational cost management. It recommends integrating ENERGY STAR equipment into procurement policies and identifies ENERGY STAR-certified products as a way to reduce energy use, utility bills, and environmental impacts.

NRCan also states that ENERGY STAR products are tested against efficiency requirements and certified by an independent third party. This makes certification a practical, verifiable way for a buyer to specify efficiency. See the NRCan ENERGY STAR procurement guidance.

National Defence and the four goals of its energy strategy

The Department of National Defence (DND) addresses the topic in its Defence Energy and Environment Strategy. The strategy groups its activities under four goals: energy efficiency, sustainable operations, green procurement, and sustainable real property.

The strategy states that environmental and energy implications should be considered in purchasing decisions while meeting operational requirements. It also says environmental requirements may be communicated to contractors through green standing-offer agreements. It identifies energy-performance contracts and energy efficiency as part of how Defence manages bases, wings, and real property. The full text is in the Defence Energy and Environment Strategy.

What it means for a supplier bidding on Canadian public contracts

Energy and resource efficiency is treated as a performance or sustainability consideration, not as one consistently defined contract term. No single federal clause carries this title, so the obligation depends on the solicitation. Read the statement of work, technical specifications, evaluation criteria, and contract clauses to learn whether the requirement is mandatory, rated, or informational.

Depending on the bid, a supplier may need to:

• offer products that meet a specified efficiency rating or certification, such as ENERGY STAR;
• provide energy-use, performance, or life-cycle-cost information;
• demonstrate compliance with technical specifications or environmental clauses;
• support the buyer's energy-management or green-procurement objectives; or
• meet requirements built into a standing offer, supply arrangement, service contract, or performance-based contract.

Suppliers who hold current certifications and can document energy performance are better placed to answer these requirements quickly and accurately.