How ESG is reshaping offices

With sustainability, wellbeing and other social factors in the spotlight, many employers are looking at ways they can better demonstrate their commitment to people and the planet. In this blog post, we discuss ESG and the impact it is having on businesses and their buildings. 

What is ESG?

ESG stand for environmental, social, and governance. It is a system used to measure how sustainable a business is by looking at how it performs in these three categories. ESG is also used to determine the sustainability of a building or office so, if you’re a property owner or landlord, it’s a term you should start to get familiar with.

When reviewing the ESG credentials of an office, the following factors will be considered:

Environmental

How the building minimises its impact on the environment, such as: 

• The material and methods used to construct the building
• The building’s current carbon footprint (i.e. energy usage, waste management etc.)
• Whether the building can handle climate-related risks like extreme weather

Social

How the building impacts workplace culture and the wider community, such as:

• The accessibility of the building, particularly for those that have mobility, vision and hearing impairments
• Whether the building is health and safety compliant and supports the wellbeing of those that use it
• The building’s impact on the local area (i.e. has it positively or negatively impacted its surroundings in any way?) 

Governance

How the building is managed and looked after, such as:  

• How the building’s day-to-day operations are managed (i.e. is it clear who is responsible?)
• Whether decision-making relating to the building is transparent
• If the building is rented out, what structures are in place to make sure this is done ethically

What are the benefits of ESG buildings?

Adopting an ESG framework for your office (or your business as a whole!) has many benefits, including:  

• Improving company reputation – a commitment to ESG shows the world that you are a conscious business that considers your impact on people and the environment
• Attracting customers – more than ever before, customers are choosing to buy from or work with businesses based on their values. An ESG policy puts your business ethics front and centre
• Supporting employee recruitment – an ESG-friendly building will help to attract staff that want to work for a values-aligned business. This is particularly important as many companies are struggling to recruit due to the Great Resignation. 
• Attracting tenants – demand for ESG-friendly buildings is growing. If you’re a landlord, ESG could give you a competitive advantage. It can also raise property value.

How to make your building ESG-friendly

There are lots of different ways you can improve your building’s ESG rating. Here are some ideas to get you started:

Sustainable offices

Research shows buildings account for a 39% of global energy related carbon emissions.  Make your office more sustainable by:

• Introducing energy efficient appliances, smart lighting systems and features such as rainwater harvesting 
• Introducing robust recycling facilities – or go paper and plastic-free where you can

Inclusive office spaces

Inclusive office design creates a welcoming environment by ensuring accessibility for all. Create inclusive spaces by:  

• Introducing a variety of different areas so staff can choose environments based on their personal and work requirements
• Bringing in step-free access, automatic doors and desks suitable for wheelchair users
• Installing large-print instructions and braille on safety equipment and signage

Offices for wellbeing

Research from a recent global survey has shown that employee wellbeing has become even more important to workers than it was during the pandemic. Create an office that supports employee health and wellbeing by:

• Installing personalised temperature and lighting control to give staff more control over their workspace
• Introducing biophilic design which is proven to provide a wellbeing boost

Of course, the measures listed above are only the tip of the iceberg. If you’d like advice and support on creating your ESG office of the future, get in touch. or take a look at our Office Fit Out Cost Calculator to get an indication of the costs involved.