ESG, or Environmental, Social and Governance, has become something we can no longer ignore. All modern businesses have had to change the way they work to ensure they are meeting sustainability goals and improving their ESG score. But what does ESG have to do with facilities management?
In short—everything.
The way that a building is maintained determines its performance, efficiency, and lifespan. So, of course, facilities managers (FMs) must optimise their properties for energy efficiency, or else they risk their professional reputation. It’s time to buck up, assume responsibility, and take action. This guide will give you the necessary insights to help you ensure sustainable facilities management across your business using CAFM. What are you waiting for?
- Why is ESG important in facilities management?
- What are the key ESG considerations for facilities management companies?
- What are the top 5 benefits of practicing sustainable facilities management?
- How can Elogs CAFM help you reach ESG targets?
Why is ESG important in facilities management?
Facilities management is a competitive field, and it’s growing even more saturated every day. The market size in the UK is estimated at 69.28 billion USD in 2024, and it’s predicted to grow to 75.19 billion by 2029. So ask yourself: What makes your FM business stand out? Are you any different from your competitors? If not, why not?
Not only should you implement sustainable practices from an ethical standpoint, but also to stay ahead of the curve. 60% of investors in the UK are keen to see more businesses be transparent about their environmental impact. That’s why ESG-conscious facilities management companies are much more likely to draw in investors due to the decreased risk and enhanced financial viability, especially concerning asset value.
Focusing on ESG objectives is also a cost-effective approach for FMs. Sustainable buildings are often higher in market value because tenants and investors prefer buildings with a good ESG score. For those working in commercial property management, ESG initiatives cannot be overlooked. Given that 40% of global energy consumption and a third of all greenhouse gas emissions is caused by buildings, sustainable facilities management has never been more crucial.
What are the key ESG considerations for facilities management companies?
Optimising supply chains for efficiency and ensuring contractor compliance.
Making sure the supply chain is integrated with sustainability goals and net-zero standards means facilities managers need to establish criteria for selecting the right suppliers and contactors. Generally, this requires a system to check whether suppliers and contractors are certified and committed to sustainability. It also means you should conduct due diligence to evaluate the ESG practices of your potential partners.
However, navigating this intricate process can often be a time-consuming process, which may prove difficult to juggle alongside other pressing priorities. The Elogs CAFM system is integrated with Prosure360, a state-of-the-art supply chain management software. This supply chain management system gives you full visibility over your supply chain, allowing you to effectively measure your ESG and net zero goals.
Minimising energy waste and managing energy usage across your property portfolio.
Reducing waste and improving energy efficiency across your buildings is intrinsically linked with preventative maintenance. To optimise properties for ESG, you need to define a regular maintenance plan for your equipment and assets. If appliances and equipment aren’t checked regularly, then they often wear out and use up more energy. Inefficient equipment leads to higher energy bills and costly repairs, so a reactive maintenance approach is certainly a bad idea.
In contrast, planned preventative maintenance optimises the performance of assets and equipment, leading to increased energy efficiency. This, in turn, enhances the likelihood of achieving sustainability goals.
Enhancing occupant satisfaction and wellbeing.
Although most of us think of environmental considerations when we look at ESG, we must remember that social and governance play a huge role too. Tenant satisfaction and safety should be at the heart of every facilities management business.
But how does tenant satisfaction link to ESG? Many tenants now search for sustainable properties because they value environmentally conscious businesses and socially responsible facilities management.
So, ensuring the functionality and safety of a building is vital to tenant wellbeing. Whether you have residential tenants or commercial tenants, both need to feel safe and considered as occupants of your properties. Given that 85% of commercial leased properties are being pushed to enhance energy efficiency by 2030, it is vital that facilities managers take action, or else they won’t be able to rent out their commercial buildings.
This means that facilities managers need to make their properties accessible and implement necessary safety measures to protect their occupants.
Extending asset life cycle and end-of-life disposal.
Effectively navigating ESG risks involves overseeing the entire lifecycle of assets, encompassing equipment, fixtures, and appliances. FMs need to ensure the responsible disposal and recycling of assets at the right time and in a sustainable way. By tracking asset disposal practices, companies can adhere to ESG goals and minimise the negative environmental impact.
Optimising equipment for energy efficiency minimises the need for frequent replacements as well as extending its operational lifespan—this means you can reduce overall labour and equipment costs. Planned preventative maintenance (PPM) can also help you preserve and extend the lifecycle of your assets by carrying out routine equipment checks. This will also improve the resale value of your properties, giving you a significant return on investment.
What are the top 5 benefits of practicing sustainable facilities management?
Showcases ethical responsibility.
Sustainable facilities management demonstrates a company’s commitment to ESG practices as well as promoting their environmental values and ethos.
Improves industry reputation and standing.
Brand image matters. As ESG becomes more and more prominent, companies who aren’t taking sustainability seriously will be negatively affected. By adopting sustainable practices, facilities management companies can enhance their overall reputation and standing in the industry.
Attracts tenants and investors.
Demonstrating a commitment to environmental stewardship can attract environmentally conscious customers and partners. Many tenants and investors prefer to support businesses that prioritise environmental sustainability, making it a key factor when choosing who to work with.
Reduces carbon footprint.
ESG-driven facilities management aims to minimise any negative effects on the environment by boosting energy efficiency and promoting ethical practices. By maintaining equipment regularly, optimising water usage, and reducing waste generation, facilities managers can seriously minimise their carbon footprint.
Maximises cost savings.
Green facilities management means you can retain and attract tenants, bolstering revenue streams. By developing a PPM plan, you can keep equipment running at peak performance, reducing the risk of costly breakdowns and replacements. Energy-efficient lighting, HVAC systems, and other smart building technologies can also lower energy bills, contributing to substantial cost savings.
How can Elogs CAFM help you reach ESG targets?
To start tracking and reporting on ESG goals, you just need a platform that can help enhance visibility and provide data, allowing you to monitor energy efficiency across your buildings. Computer Aided Facilities Management, or CAFM, is the perfect solution for helping FM companies reach their sustainability targets.
Elogs CAFM+ Service Desk allows businesses to efficiently monitor, manage, and optimise their operations from an ESG perspective. By implementing energy-efficient maintenance strategies, you can reduce energy waste and cut costs. Elogs CAFM enables facilities management companies to:
Implement Planned Preventative Maintenance
CAFM gives property managers the ability to enhance asset longevity, decrease energy usage, and minimise waste through the adoption of preventive maintenance schedules. Implementing planned preventive maintenance (PPM) schedules can enhance equipment efficiency and performance. Elogs new PPM tool gives users total control over their PPM planners, allowing for the scheduling of routine maintenance activities across the property portfolio.
Better Data Collection and Analysis
Elogs CAFM helps facilities management companies hit ESG targets more easily as it provides comprehensive tools for data collection, analysis, and reporting. Our CAFM software gives you a better understanding of which facilities and pieces of equipment are becoming inefficient. This means that FMs can strategise in a more effective way and position their buildings and equipment to reach ESG goals.
Improve Supply Chain Management
Given the Elogs integration with supply chain management software, Prosure360, facilities managers can check that all suppliers are qualified, reliable, and compliant. This improves the rate of first-time fixes and reduces the need for constant replacements and repairs across your properties. Ultimately, this is a cost-effective solution, as you are less likely to pay out on emergency repairs and refits.
With Prosure360, all your supplier and contractor certifications, verifications, and other vital documentation is in one easy-to-access place. This means that your business only works with ethical service providers who meet your specific standards, ensuring good corporate governance.
Prosure360 also offers the capability to conduct pre-qualified assessments. These assessments cover subject matters that are critical for ESG alignment, encompassing the requirements outlined in PAS91, including:
- Modern Slavery.
- Equality and Inclusion.
- Quality.
- Sustainability.
By evaluating suppliers through these assessments, companies can verify that their partners are dedicated to upholding the same ethical standards.
Enhance Visibility: Controlling the Asset Lifecycle
Better visibility with Elogs CAFM means that FMs have increased control of the asset lifecycle. With a 360-degree view of your property portfolio, you can ensure waste products are disposed of in an environmentally friendly way and assets are optimised for efficiency. Not only does this improve the overall value of your assets, but it also saves costs, and attracts more tenants.
Remain Compliant: Improve Health and Safety
As well as being integrated with Prosure360, Elogs CAFM is also fully integrated with Meridian, a risk management software. This makes it easier for FM companies to meet health and safety standards through conducting risk assessments and managing compliance across all buildings. With Elogs CAFM+ Service Desk on your side, sustainable facilities management has never been more achievable.
