Quick Read
SPK CSMS1000:2026 Clause 10.7 requires organisations to follow a two-level energy hierarchy: first reducing energy demand through operational and building efficiency, then transitioning remaining energy needs to renewable and low-carbon sources—a sequence that minimises total energy consumption and cost. The standard mandates identification and documented management of Significant Energy Uses (the consumption areas with greatest improvement potential), moving beyond conventional energy management to enforce a credible transition strategy away from fossil fuel dependency, with a prohibition on installing new fossil-fuel systems where commercially viable alternatives exist.
Executive Summary
The energy management clause in SPK CSMS1000:2026 goes significantly further than conventional energy management standards. It is not primarily about managing energy efficiency — though that is a core requirement. It requires a documented strategy for transitioning away from fossil fuel dependency, a renewable energy procurement plan, and a prohibition on installing new fossil-fuel-dependent systems where commercially viable alternatives exist.
This paper explains what the standard requires on energy, why the energy hierarchy is the organising principle, what a credible energy strategy looks like, and how Speeki assessors evaluate whether an organisation's energy management is genuine or aspirational.
The standard requires two distinct things: managing energy more efficiently (the management requirement), and transitioning away from fossil fuels (the strategy requirement). Most organisations are doing the first. Few have genuinely committed to the second.
1. The Energy Hierarchy
The energy hierarchy is the organising principle of Clause 10.7. It has two levels, and both are required.
Level one — demand reduction: reduce energy consumption through efficiency measures before substituting energy sources. Operational efficiency, building improvements, equipment upgrades, process optimisation. This is the foundation. An organisation that switches to renewable electricity without addressing the efficiency of its energy use has achieved decarbonisation without demand management — which is more expensive and less impactful than both together.
Level two — source substitution: transition fossil fuel energy to renewable and low-carbon alternatives. Electricity from renewable sources (through power purchase agreements, renewable energy certificates, green tariffs, or on-site generation). Electrification or other low-carbon alternatives for heating, cooling, and process energy.
The sequence matters. The standard requires demand reduction to be addressed before source substitution — not because efficiency is more important than renewables, but because efficiency reduces the total energy that needs to be sourced from any origin. Investing in renewable energy before optimising demand wastes both money and opportunity.
2. Significant Energy Uses — SEUs
The first step in implementing Clause 10.7 is identifying the organisation's Significant Energy Uses — the energy uses that account for a substantial proportion of total energy consumption, or that have significant potential for improvement. SEUs are the primary focus of energy management attention.
For each SEU, the standard requires documentation of: current consumption; the variables affecting consumption; the relevant personnel and equipment; and the current performance level. This SEU analysis becomes the basis for the energy efficiency improvement programme — resources are directed toward the uses where the greatest improvement potential exists.
SEU identification is not a one-off exercise. SEUs should be reviewed whenever significant changes in operations, facilities, or production levels occur. A new facility, a change in production mix, or a significant change in energy prices may alter which uses are most significant.
3. The Energy Inventory
The standard requires a comprehensive energy consumption inventory covering all energy types across the organisation's material operations. The inventory must distinguish between fossil-fuel energy and renewable or low-carbon energy — not just total consumption.
Energy type | Required inventory elements |
|---|---|
Grid electricity | Total consumption by facility; source (market-based renewable vs grid average); renewable proportion; market-based and location-based Scope 2 emissions (connecting to Clause 10.6) |
Natural gas | Total consumption by facility; Scope 1 GHG emissions; identification as fossil fuel energy requiring transition plan |
Diesel and liquid fuels | Total consumption by fleet and stationary sources; Scope 1 emissions; transition pathway |
District heat and steam | Total consumption; primary energy source (and whether fossil or renewable based) |
On-site renewable generation | Generation by source (solar PV, wind, biomass); avoided grid electricity; Scope 2 impact |
4. The Energy Strategy — The Most Demanding Requirement
The energy strategy is where SPK CSMS1000:2026 goes beyond conventional energy management. The strategy must document four things.
4.1 Commitment to the energy hierarchy
The strategy must explicitly adopt the energy hierarchy — demand reduction before source substitution. It must describe how the organisation will apply the hierarchy in practice: how efficiency opportunities are identified, evaluated, and prioritised; how the hierarchy is reflected in investment decisions; and how the two levels are sequenced in the implementation plan.
4.2 Direction away from fossil fuel dependency
The strategy must set a direction of travel away from fossil fuel dependency across all energy types — not just electricity. This is perhaps the most commercially significant energy requirement in the standard. Most organisations have renewable electricity targets. Few have explicit strategies for decarbonising heating, cooling, and process energy.
The direction of travel must be genuine — a commitment to move away from fossil fuels, with milestones and targets that demonstrate progress. A vague aspiration to 'explore renewable alternatives' when opportunities arise is not a direction of travel. A documented plan to replace gas boilers with heat pumps at the next major refurbishment cycle, with identified facilities and estimated timelines, is a direction of travel.
4.3 Renewable energy targets
The strategy must set targets for increasing the proportion of energy from renewable or low-carbon sources, with a trajectory consistent with (or more ambitious than) the organisation's GHG reduction objectives and any applicable science-based targets. The targets must be SMART (Clause 8.2): specific metric, documented baseline, time-bound milestones, defined measurement methodology.
4.4 Transition milestones for fossil-fuel systems
The strategy must identify specific milestones for replacing fossil-fuel-dependent systems with renewable or low-carbon alternatives. For each major fossil-fuel system — gas boiler plant, diesel fleet, fossil-fuel process heating — the strategy should identify: the planned replacement cycle, the replacement technology (where determined), and the timeline.
This requirement has a direct connection to the CapEx evaluation controls (Clause 10.4): the prohibition on installing new fossil-fuel-dependent systems where commercially viable alternatives exist must be reflected in the CapEx approval process. An organisation that continues to specify gas boilers for new facilities while its energy strategy commits to decarbonising heat has an inconsistency between its strategy and its controls.
5. Renewable Energy Procurement
The renewable energy procurement plan must address how the organisation will source electricity from renewable origins. This involves choices among several procurement instruments: direct power purchase agreements (PPAs) with renewable generators, which typically offer price certainty and direct renewable attribute certification; renewable energy certificates (RECs) or guarantees of origin (GOs), which provide renewable attribution for electricity from the grid; utility green tariffs, which provide renewable electricity from the grid with additional renewable investment; and on-site renewable generation.
The standard requires a plan — not just a current position. The plan should identify the organisation's current renewable electricity percentage, the target percentage and timeline, and the procurement instruments that will be used to achieve it. For organisations with significant process energy from fossil fuels, the plan should extend to heating and process energy decarbonisation.
6. Energy Performance Indicators
The standard requires documented Energy Performance Indicators (EnPIs) covering at minimum: total energy consumption by type and source (distinguishing fossil from renewable); proportion of energy from renewable or low-carbon sources; and energy intensity per significant energy use. EnPIs must be expressed as SMART goals, tracked at intervals not exceeding 12 months, and reported in the sustainability report.
The renewable energy proportion is a particularly important EnPI — it tracks progress against the energy strategy's most fundamental objective. It should be calculated consistently using a documented methodology (market-based electricity and equivalent for other energy types) and should be reported annually with prior-year comparison.
Speeki Meridian™ — Auditor Expectations
Energy strategy is assessed at both Stage 1 (documentation review) and Stage 2 (on-site assessment). At Stage 1, assessors will review: the energy inventory and SEU analysis; the energy strategy document; renewable energy targets and the procurement plan; and EnPIs with baseline and tracking data. At Stage 2, assessors will test whether the strategy is genuine. They will ask: How was the transition timeline for fossil-fuel systems determined? What is the plan for the gas heating in this facility? They will check CapEx records for recent building or equipment investments to test whether the fossil-fuel prohibition was applied. They will request the renewable energy procurement agreements or certificate records to confirm that renewable electricity claims are substantiated. The most common findings: energy strategy covers electricity decarbonisation but has no plan for heating and process energy; renewable energy targets are aspirational rather than SMART; fossil-fuel-dependent systems installed in the past two years in new or refurbished facilities without documented assessment of alternatives; EnPIs tracked annually rather than at intervals that allow in-year management intervention.
Implementation Guidance
Begin with the energy inventory. Compile total energy consumption by type and source across all material facilities. The inventory reveals where the energy footprint actually is — which facilities, which energy types, and which uses — and directs the SEU analysis. For the SEU analysis, focus on the 20% of energy uses that account for 80% of consumption. Document consumption, variables, responsible personnel, and current performance for each. This documentation is both the analytical foundation for the efficiency programme and the evidence required for Clause 10.7. For the energy strategy, start with the hardest question: what is the plan for fossil-fuel heating and process energy? Electricity decarbonisation is relatively straightforward — renewable electricity is available through a range of procurement mechanisms. Heating decarbonisation is harder and more capital-intensive. Engage facilities and engineering teams early — the energy strategy requires their input on transition timelines and technology choices. For renewable energy procurement, evaluate the options against the organisation's risk appetite and financial model. PPAs offer price certainty and direct attribute certification but require longer-term commitments. RECs offer flexibility but less direct renewable impact. A combination is often appropriate for large, geographically diverse portfolios.
About Speeki
Speeki is an accredited certification body operating across more than 100 countries. Speeki certifies organisations against SPK CSMS1000:2026 through the Speeki Meridian™ certification programme. Speeki is a certification body — it does not provide sustainability consulting or advisory services of any kind.
For current details of Speeki's accreditations, scope of certification, and service offerings, visit speeki.com. You can also ask Nicole AI on the Speeki website to find the information you need.
speeki.com | © Speeki Pte Ltd 2026