Meeting net zero targets, ensuring worker well-being and improving supply chain ethics - they're all top of corporate agendas right now. Bosses are calling on FM teams to create and track KPIs that show compliance with tough, new standards. But many FM teams just don’t have the tools and resources they need to generate the data for a new age of ESG.
ESG stands for the Environmental, Social, and Governance targets that companies are adopting to become more sustainable and ethical in everything they do.
They are there to meet increased customer, employee and investor expectations about environmental commitments and corporate behaviour.
Governments and companies are signing up to new international standards and agreements designed to tackle:
In the UK, Facilities Management is guided by a myriad of ESG-related legislation and standards. The Environmental Protection Act 1990, Climate Change Act 2008, and new national Net Zero targets are shaping greater sustainability efforts. Social obligations are governed by the Health and Safety at Work Act 1974, Equality Act 2010, and the Modern Slavery Act 2015 that prevents labour exploitation. Building standards like BREEAM, LEED, SKA & WELL demand environmental best practice from those charged with building management. More action and emission regulation is likely to come as the climate crisis worsens.
Just think what is in the FM remit:
So, it’s no wonder that the C-Suite is looking to FM to help them demonstrate to their board, regulators and employees that they are doing what’s required of them when it comes to ESG.
The trouble is FM have, historically, been behind the curve in terms of digital transformation, so meeting these new reporting and accountability standards is a tough ask.
The latest offices built to Grade A standards are bringing smart office tech and integrated IoT into the mainstream but not every company has that luxury.
Uptake of integrated smart building technology is lagging in the UK. In this recent RICS research, only 34% of UK businesses said they had smart tech installed in their buildings to monitor their use of energy and improve efficiency.
A historic lack of digital oversight and governance in most FM teams is also proving a real challenge for businesses who want to measure and optimise ESG success.
What do you need to make these goals a reality?
These goals include:
Facilities Managers are central to delivering on new and ambitious green targets imposed by companies . From implementing new procurement rules on single-use plastics to improving asset efficiency and cutting emissions.
But you don’t need expensive IOT solutions to start tracking and reporting on sustainability goals. You just need tools that can help you implement practical solutions for communication, process control and data gathering.
The right CAFM can bring data and discipline to asset and building management without the need for expensive IoT projects.
Look for configurable workflow and communication software that drives action and gathers data:
These goals include:
Protecting human rights and labour standards throughout the supply chain
Diversity and inclusion goals can be difficult to set, measure and maintain. Supply chains have traditionally been managed through different software applications and in an informal way. Historically, contractors couldn’t be easily held to account on environmental measures.
Accessibility requirements can be documented centrally to implement and prove compliance
Businesses can also use a CAFM to start implementing standards to support neurodiversity in the workplace,
FM software can be put in place to ensure contractual information, work permits and other vital documentation is stored centrally and automatically reviewed at critical moments.
Workflows can be put in place to ensure procedures for selecting supply chain providers to meet environmental requirements, with regular reviews ensuring they are maintaining standards.
These goals include:
Fragmented financial and performance reporting can lead to a lack of transparency in procurement and supply chain management that threatens good governance.
A CAFM can bring much-needed structure and transparency to compliance documentation, with easy to use document storage and control options to ensure process is always followed. It can help you put in place robust workflows for supplier appraisals, performance and financial decision-making.
ESG needs to be more than greenwashing. Regulation is demanding more of us. Employees and consumers expect us to deliver a measurable difference to the planet and our communities. But smart buildings and IoT cost; they take huge amounts of time and resource to design and configure with ERP and other software.
A smart and agile CAFM, on the other hand, can help you drive action, gather data and analyse performance faster. It can give you a strong foundation of process and communication upon which you can build your analytic and compliance capabilities. The right CAFM can help your business grow greener and more accountable at the pace you need and a price you can afford.