Role of facility management companies in meeting ESG goals

In recent years, the role of facility management companies has transformed from the physical management of buildings to being a key support function for a business's core operations. Traditionally, the facility management teams would largely focus on sanitation and technical services. Today, they are playing an important role in making businesses efficient and sustainable while also helping their people thrive and prosper.

Facility management teams are professionally trained in tasks that impact facets beyond the physical workspace. They foray into different dimensions of business operations like energy and waste management, security and surveillance, environmental biodiversity, and employee well-being and retention, among others. As a result, they are becoming critical drivers of Environmental, Social and Governance (ESG) compliance within organisations.

ESG is a framework developed to be intrinsically integrated into an organisation's business model that focuses on creating value for all its stakeholders like the consumers, investors, suppliers, employees and regulating agencies. Facility management companies take informed decisions with a holistic approach that considers these stakeholders’ requirements. For instance, an ESG-conscious facility management company closely evaluates even simple tasks like cleaning a facility to ensure that the labour is sourced locally, eco-friendly products are used, and record-keeping processes are made digital and paperless.

There are other areas where facility management companies can be instrumental for organisations in meeting ESG goals, such as:

Energy and Waste Management

An increasing number of organisations are committing to responsible consumption of energy and management of waste. However, acting on these commitments to ensure sustainable practices in energy and waste management can become inefficient and impractical at a large scale. By utilising sustainable procedures and innovative technology like IoT, facility management experts can help in improving organisational productivity while managing costs and reducing energy consumption. They can do so while gathering real-time data regarding the actions taken. The real-time data helps facility managers to not only monitor sustainability parameters but also keep records for ESG reporting.

A facility management company can help businesses meet ESG requirements by implementing energy-efficient practices and technologies such as renewable energy sources, energy-efficient lighting, and smart building systems. This can help businesses reduce their carbon footprint, reduce energy costs, and increase productivity.

Employee Well-being

In any organisation, the well-being of employees, their most important assets, is vital for growth. A facility management service provider can also ensure that employees have a pleasant and ergonomic workplace, leading to a positive working environment. Moreover, facility management companies ensure that by taking good care of physical infrastructure, the organisation is able to meet the health and safety requirements of employees as well as regulators.

Reduced Emissions

Facility management companies can help business owners achieve net-zero emissions by providing solutions regarding the use of renewable energy. They can help implement Science Based Target (SBT) to ensure zero greenhouse gas emissions from the company's real estate. This is vital because real estate carbon emissions are a significant contributor to global carbon emissions. Also, facility management partners can help assess the business models and provide suggestions on implementing solar energy in the operations. Achieving net zero emissions is one of the critical parameters of ESG compliance.

An experienced facility management service provider can also help businesses to develop, implement, and maintain environmental management systems. These systems can help to reduce pollution and improve overall environmental performance. This can help businesses reduce their environmental impacts, reduce costs associated with pollution control, and even increase their brand reputation.

As businesses continue to grow in scale as well as complexity, ensuring ESG in every aspect of their operations will become increasingly difficult. By partnering with a facility management company that is compliant with ESG practices can help such organisations to focus on expansion and rest assured that ESG goals are also met.