Embracing ESG In Facility Management

Environmental, Social, and Governance (ESG) factors are reshaping industries worldwide, and facility management (FM) is no exception. As businesses strive for sustainability, operational efficiency, and becoming socially responsible, ESG in facility management has become a critical focus area for FM players. 

FM businesses are also realising that integrating ESG principles as their primary agenda enhances corporate reputation and drives long-term cost savings and compliance with evolving regulations. Thus, this has accelerated the integration of ESG into the facility management landscape. 

This article discusses the importance of ESG adoption and how FM businesses can seamlessly incorporate it into their daily activities. 

How does ESG impact FM?

ESG in facility management refers to the application of environmental stewardship, social responsibility, and strong governance in the maintenance and operation of buildings and infrastructure. Businesses that fail to address these issues timely and adequately risk negative financial and reputational repercussions. FM companies are well-placed and equipped to determine the inclusions/changes needed to make organisational activities ESG-compliant. 

Facility managers handle a lot of diverse, ESG-related activities, such as safety protocols, waste management, and energy consumption, and here’s how it impacts them - 

ESG in Soft Services

Soft services refer to a series of non-technical but integral FM activities, such as waste management, security, cleaning, pest control, and janitorial services. These day-to-day activities involve a lot of energy and other resource usage and always have a scope for improvement. Implementing best ESG practices in facility management’s soft services can be pivotal in ensuring enhanced employee satisfaction, lower emissions, and an improved overall carbon footprint. 

ESG in Hard Services

Hard Services refer to the more technical and complex aspects of FM activities, including the management of HVAC systems, electrical systems, fire safety, and overall building maintenance. With ESG at the forefront, Facility managers can develop their buildings and their systems optimally, introduce renewable energy in the mix, and track their energy consumption to contribute to a more sustainable ecosystem actively.  

Techniques to Implement ESG in Facilities Management 

Here are some ways the FM companies can implement ESG in facilities holistically - 

Deploying Renewable Resources and Aligning with ESG Goals

Facilities must improve energy efficiency, as this reduces overall costs and enables businesses to reduce their carbon footprint. To this end, they can start with the basics: upgrading their lighting and HVAC systems to newer and more energy-efficient solutions. Upgrading to smart equipment will give Facility managers better control and enable them to cut down on unwanted energy and resource usage. 

A lot of businesses, in their drive to embrace ESG  are shifting to renewable energy sources, such as solar panels and wind turbines. These, even though often costly upfront, are excellent in providing long-term cost savings and are key enablers in showcasing these businesses as forward-looking and environmentally conscious. A lot of these brands have also started reporting on ESG metrics which further enhance their reputation amongst stakeholders and potential investors who prioritise sustainability. 

Focusing on the Three ‘R’s

Focusing on the three Rs—reduce, reuse, and recycle—has become one of the primary mottos of entities seeking to excel in ESG in facility management. Be it from packaging, maintenance, or daily operations, the waste facilities produce impacts the environment significantly. 

Modern-day FMs have also started to transition from paperless to digital systems and are promoting the usage of reusable products to manage waste. In addition, creating detailed and well-thought-out recycling and composting programs ensures that the waste production from these facilities is either repurposed or is easy to decompose. 

Developing Healthier Workspaces and Accessible Facilities

Facilities are incomplete without their people. Facility managers are responsible for creating an all-inclusive and safe environment for their workforce to be ESG compliant. This will need the building designs to be coherent and offer ample ventilation and natural light to enable the employees to be more productive. 

In addition, focusing on regular health check-ups, designing conducive workstations, and prioritising mental health can also propel your workforce to perform optimally. The push towards embracing ESG in facilities management is incomplete without making facilities accessible for all. This means that managers should develop policies that are all-inclusive and promote the creation of a diverse workforce. It also necessitates implementing accessibility measures throughout the facility, such as gender-neutral restrooms and wheelchairs, and promoting bias-free canteens to promote harmony. 

Upholding Governance and Ethical Standards

Adhering to legal regulations, ensuring optimum transparency, and ethical behaviour - are essential to FM governance which is ESG-focused. Good management ensures all of this is taken care of, and the facility complies with applicable local, national, and international regulations while being run ethically. 

Auditors also play a major role in upholding governance, as periodic inspections are vital to identifying areas for improvement. Facility managers must ensure that all relevant results, such as employee satisfaction, waste management, and other reports, are showcased transparently to align with their ESG commitment. 

Decision-making backed by Analytics and Modern Technology

Today, ESG implementation and tracking have become significantly more manageable thanks to the technological advancements in the last decade. The usage of smart building solutions has made it simpler for FM companies to track and overhaul their ESG efforts and gain real-time insights into the facility’s ESG drive. 

The availability of data analytics has also paved for the much-needed boost towards promoting sustainable facilities. From tracking waste output to water consumption, Facility managers can now identify areas of improvement in real-time and install solutions that can enable the facilities to operate optimally and sustainably. 

Conclusion

FM companies are today feeling the pressure to be more socially compliant and adopt sustainable practices in a drive to be ESG-compliant. The fact that ESG compliance also impacts financial performance is another reason why FM companies can not take it lightly. Adopting the ESG best practices and consistent commitment can contribute to a more sustainable and responsibly built environment and pave the way for a better tomorrow. The entire workforce must work towards it to make it a reality.