• Monday, June 17, 2024
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Value of environmental, social and governance for FM

Value of environmental, social and governance for FM

For facility teams that no longer want to be seen as glorified maintenance engineers, or responders to emergencies and want to take their facilities programmes to the next level, environmental, social and governance (ESG) provide that opportunity.

Many companies and organizations continue to realize that it is no longer acceptable to operate solely off the idea that the bottom line is all that matters. Instead, they are contributing beneficial investments in ESG programmes.

ESG initiatives include implementing energy savings projects, selecting products that are produced in a sustainable way, or choosing vendors that share the same mindset. Facility teams that embark on such projects can easily showcase to leadership that they have the skills, talents, capabilities, and drive that goal beyond putting out ‘fires’ in reaction to everyday facilities issues. With ESG opportunities, every facility team can make a big impact on leadership and have a seat at the C-suite table.

The idea of ESG is nothing new and can also be termed ‘Corporate Social Responsibility’ (CSR) and sustainability.

By integrating ESG principles into the operations, facility managers can proactively identify risks, adopt sustainable practices, and maintain compliance in different areas that will reduce the likelihood of negative consequences and prevent unnecessary emergency activities. With these good ESG practices, teams can develop a strategy that focuses on value through reduced costs, boosted productivity, solid asset management, and sustainable investing.

ESG practices can include energy efficiency optimization, improving indoor air quality, providing comfortable and ergonomically sound workspaces, implementing renewable energy solutions, minimizing waste generations and incorporating wellness initiatives. These goals can influence the design, construction, and operations of facilities which can lead to long-term environmental and health and wellness benefits for all end users.

The significance of ESG is that facility managers are creating opportunities to engage with stakeholders such as employees, customers, suppliers, and the local communities, to address their concerns and foster positive relationships. These relationships have a serious impact on brand reputation for both the facilities team and organization.

Before facility managers start working on their departments’ contribution to the ESG strategy, it’s a great idea to create a team of qualified individuals to identify and evaluate opportunities where the department can shine.

Having longevity in mind and being intentional about the efforts put into the process is key. The goal is to have all efforts contribute to the same ambition, including using the facilities team to add value to the organization.

Considering ESG in facilities management may seem like an added expense and burden, it makes sense to bear in mind these four key points: communication, advocacy, intentionality, and productivity.

Communicating the ESG strategy to stakeholders while demonstrating alignment to current and future business objectives grabs attention. Correlating the ESG work with the organization’s specific goals and metrics shows FM is working towards the same goal. To achieve this, collaborating with whoever to get the correct message across and utilizing the organization’s resources are necessary.

With ESG, organizations that make efforts to improve labour conditions, promote diversity, remain environmentally compliant, and give back to the community remain sustainable.

In the long term, every organization can benefit from ESG by recording reduced operating costs, improved brand reputation, and access to new markets and investment opportunities. As the organization wins, facility managers win and when they win, facilities teams across the country can continue to create opportunities to showcase their worth.