For the modern business, Environmental, Social, and Governance (ESG) considerations have become essential for staying ahead of the curve.
More and more, companies are starting to recognise the importance of integrating ESG principles into their operations, and Computer-Aided Facilities Management (CAFM) software is emerging as a useful tool in supporting these efforts.
In this article, we’ll explore why ESG matters and how CAFM can help businesses achieve their sustainability goals and how together with Vinciworks, Elogs clients are able to access a free training course.
The Role of ESG in Modern Business
ESG has become a cornerstone of responsible business practices for several compelling reasons, including:
Reaching Net Zero: Companies are under pressure to reduce their carbon footprint and contribute to global efforts to combat climate change. ESG initiatives help organisations set and achieve ambitious emissions reduction targets.
Ethical Practices: Consumers and employees alike are demanding greater transparency and ethical behaviour from businesses. ESG provides a framework for companies to demonstrate their commitment to responsible practices.
Attracting Ethical Investors: Investors are increasingly considering ESG factors when making investment decisions with 60% of investors in the UK keen to see more businesses be transparent about their environmental impact. Businesses with a strong ESG score are more likely to attract capital and maintain key investors.
Eco-Conscious Tenants: In the property sector, environmentally friendly buildings are in high demand and implementing ESG practices can help attract and retain tenants who prioritise sustainability. Given that 85% of commercial leased properties are being pushed to enhance energy efficiency by 2030, it is vital that businesses implement ESG measures, or else they won’t be able to rent out their commercial buildings.
Reputation Building: A strong ESG profile enhances a company’s reputation, fostering trust among stakeholders and potentially leading to increased brand loyalty. By adopting sustainable practices, modern businesses can enhance their overall reputation and standing in the industry.
Regulatory Compliance: As governments worldwide implement stricter environmental and social regulations, ESG practices help businesses stay ahead of compliance requirements and avoid potential penalties.
The Impact of Neglecting ESG
Failing to implement ESG practices can have severe consequences such as:
Financial Loss: Companies that ignore ESG risks may face unexpected costs, such as fines for non-compliance or increased expenses due to inefficient resource use.
Reputational Damage: In an age of heightened social awareness, companies perceived as irresponsible or unethical can suffer significant reputational harm, leading to loss of clients and market share.
Struggling to Find Investors: As ESG becomes a top priority for investors, companies lagging in this area may find it increasingly difficult to attract and retain investment.
Competitive Disadvantage: Businesses that fail to adopt ESG practices risk falling behind competitors who are leveraging sustainability as a competitive advantage.
ESG in Facilities Management
Focusing on ESG objectives is also cost-effective for Facilities Managers because eco-friendly buildings are often higher in market value given that tenants and investors prefer buildings with a good ESG score.
For those working in commercial property management, ESG initiatives cannot be overlooked. In facilities management, optimising building systems and equipment for energy efficiency is crucial for reducing carbon emissions.
Effective waste management strategies are also important in facilities management as it helps to extend the lifecycle of buildings and assets.
ESG in facilities management also encompasses creating healthy, comfortable environments for building occupants, which can improve productivity and satisfaction.
ESG considerations in the Supply Chain
Extending ESG principles to the supply chain is crucial for comprehensive sustainability:
Working with suppliers who share ESG values ensures that sustainability efforts extend beyond the company’s immediate operations. That’s why implementing clear ESG criteria in contractor selection and management helps maintain consistent standards throughout the supply chain.
By encouraging transparency in the supply chain, companies can better understand and address potential ESG risks and opportunities.
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.
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.
CAFM Software: A Tool for ESG Success
CAFM software is the perfect solution for helping businesses reach their ESG goals. Using this software, companies can easily implement energy-efficient maintenance strategies which reduces energy waste and cuts costs.
So, how can CAFM support ESG goals?
Preventive Maintenance: Implementing planned preventive maintenance (PPM) schedules can enhance equipment efficiency and performance.
Elogs PPM tool gives users total control over their PPM planners, allowing for the scheduling of routine maintenance activities across the property portfolio. By facilitating regular preventive maintenance, CAFM software helps ensure that equipment operates at peak efficiency, reducing energy consumption and emissions.
Energy Monitoring: To help track and report on sustainability targets, CAFM systems can help enhance visibility and provide data. This allows businesses to monitor energy efficiency across their buildings. Ultimately, this makes it easier to identify opportunities for equipment optimisation as well as supporting data-driven decision-making.
Building Performance: The tools available in CAFM enable businesses to continuously monitor building performance, making it much simpler to identify and address inefficiencies quickly.
Reporting and Analytics: Robust reporting capabilities in CAFM systems support transparent ESG reporting and help businesses demonstrate progress towards sustainability goals.
As ESG continues to shape the business landscape, CAFM software emerges as an invaluable asset for companies striving to meet their sustainability objectives.
By providing comprehensive tools for monitoring, managing, and optimising facilities, CAFM enables businesses to track their ESG performance across their building portfolio. This not only supports compliance and cost-saving efforts but also supports businesses to thrive in an increasingly sustainability-focused world.
Embracing CAFM as part of a broader ESG strategy can help businesses navigate the challenges and opportunities of the future, ensuring long-term success.
How can Elogs CAFM support ESG goals?
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 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 Facilities Managers can strategise in a more effective way and position their buildings and equipment to reach ESG goals.
Under the SRC and GRC umbrella, we have a sister company called Vinciworks, an eLearning platform that provides a wealth of training, tools and resources to help any organisation navigate compliance. By producing engaging content via training, free guides and blogs, they ensure your staff are always up to date.
When it comes to ESG, Vinciworks provides a course that introduces what ESG is and how it works. Not to mention, it also delves into how to measure a company’s level of social responsibility.
To learn more about ESG, reach out to the Account Management Team at Elogs to gain access to a free trial with Vinciworks – Open to all Elogs Clients
