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ESG (Environmental, Social and Governance) and the Role of Facility Managers

Welcome to the exciting world of ESG (Environmental, Social and Governance)! From climate change to social injustice, ESG is a comprehensive approach to understanding and mitigating the impact our actions have on our planet and society.

Environmental: The ‘E’ stands for environmental responsibility, understanding how businesses impact the environment and their efforts to reduce this impact. This includes reducing waste, cutting emissions, conserving resources, and promoting renewable energy sources.

Social: The ‘S’ stands for social responsibility, understanding how businesses treat their employees, suppliers and customers. This includes pay equality, diversity initiatives, protecting human rights and investing in communities where companies are based or have operations.

Governance: The ‘G’ stands for governance, understanding how businesses are managed and the efforts to ensure they are acting ethically and transparently. This includes corporate social responsibility (CSR) policies, board diversity initiatives, stakeholder engagement, and the use of independent auditors to assess practices.

The concept of ESG is not new, but it has gained increased attention in recent years as the world grapples with climate change and social injustice. Many governments, investors, and companies are now taking ESG into account when deciding how to allocate resources and make decisions. It is becoming increasingly important for companies to understand their environmental and social responsibilities in order to protect their reputation and remain competitive.

Facility managers play an important role in helping companies understand their ESG obligations. Facility managers are responsible for the maintenance and upkeep of buildings and other facilities. They can:  

  • Help companies reduce energy and water use, increase recycling efforts, create green spaces, and implement other sustainability initiatives. 
  • Collaborate with stakeholders to ensure compliance with local regulations and industry standards related to ESG issues. 
  • Provide advice on how to report on ESG performance in order to be compliant with applicable regulations. 
  • Help prepare for certification audits by third-party bodies such as BREEAM or LEED.

ESG can help businesses become more efficient and sustainable in the long-term, and is increasingly seen as an important part of a company’s overall strategy.