ESG in the workplace: How to create a sustainable office

The “E” in ESG refers to the environmental pillar – namely, how an organisation affects and interacts with the natural world across its operations, supply chain and products/services.

With the visibility and physical footprint associated with maintaining offices, warehouses and other facilities, organisations are increasingly being held accountable for the resource consumption and emissions stemming from their real estate.

In the UK, the commercial real estate sector accounts for 18% of all carbon emissions, underlining the massive collective impact that organisational workplaces have in fighting climate change.

Some of the major areas that sustainability leads should focus on to shrink the environmental impact of maintaining workspaces include:

Energy use and efficiency

The energy required to power office equipment, lighting, heating and cooling accounts for the lion’s share of emissions stemming from workspace operations.

• Conduct audits of current energy use and identify opportunities to switch to renewable sources where possible
• Adjust HVAC and thermostat setpoints to balance comfort and efficiency
• Install energy-efficient LED lighting and motion-based sensors
• Enable energy-saving modes and automated shut-down of electronics/appliances
• Improve insulation and heating/cooling systems to reduce HVAC loads

The “S” in ESG encompasses the social impacts of an organisation’s presence. This closely links to employee experience and wellbeing.

Operate, design and build offices centred on health, inclusion and support for diverse needs fosters engaged, productive workers while embodying values likely shared by customers and investors.

Some best practices to bake social responsibility into the foundations of workplace strategy include:

Health and wellbeing

Recent events have spotlighted the irrefutable impacts that workspace design has on physical health and mental well-being – for better or worse.

• Provide sit-stand desks and ergonomic equipment
• Incorporate biophilic design elements like plants, natural light and views
• Enable access to fitness facilities, walking trails, bike storage
• Create quiet spaces for relaxation, reflection and rejuvenation

While governance accountability sits more at the executive leadership level, workplaces still play an important role here too.

Namely, the spaces, amenities and technologies provisioned for workers serve as tangible proof points on whether company leaders actually walk the talk on issues like ethics, transparency, diversity and sustainability.

Some ways organisational workplaces provide hints into the governance focus 'behind the curtain' include:

Ethics and conduct

Symbols and cues throughout the work environment signal priorities and acceptable behaviours from leadership.

• Signage reflecting values and codes of conduct
• Décor choices and branding
• Areas for workshops and training

Developing a clearly defined ESG strategy in the workplace creates a multitude of advantages for both the organisation and its employees.

Attracting talent

Young workers especially favour employers demonstrating social responsibility and ethics. ESG-aligned workplaces signal your values.

Engaging employees

Spaces supporting health, sustainability and purpose increase satisfaction by meeting broader generational expectations.

Reducing costs

Energy efficiency, prudent resource management and waste minimisation drop utility bills and supply costs.

Enhancing branding

Workspace design, local partnerships and hospitality touches bring values and purpose to life visually.

Boosting resilience

Distributed energy sources, organisational culture efforts and policies benefiting surrounding community pay dividends during disruptions.

A rigorous way to benchmark workplace ESG performance is using building certification schemes like BREEAM that provide third-party validation of sustainable, ethical real estate management.

BREEAM (Building Research Establishment Environmental Assessment Method) examines criteria across nine categories, most centering on ESG priorities:

• Energy
• Transport
• Water
• Materials
• Waste
• Land Use & Ecology
• Pollution
• Innovation
• Health & Wellbeing

Environment

• Energy efficiency measures
• Metering and monitoring of usage
• Low emission HVAC equipment
• Renewable energy procurement
• Responsible lumber sourcing