We usually associate the term “sustainability” just with the environment. However in the continuing business community, sustainability will be firmly rooted in three axes: environmental, social, and economic. Which means that company sustainability just exists when companies are usually profitable and donate to the sustainable growth of our modern society and our world.
Obviously, all ongoing companies have to make a profit. (Even though you have an idea that may enhance the lives of thousands of people, it really is no good when you have to go bankrupt). Without economic growth, it forward is impossible to go. The essential idea reinforced by business sustainability is that growth cannot come at the trouble of exploiting of individuals and the surroundings.
Over time, disharmony is unsustainable. But that’s not the only advantage of promoting sustainability running a business, as it has shown to have a large number of advantages:
- reduces carbon footprint
- avoids material waste
- optimises costs and service expenditure
- creates a confident company image
- attracts talent
- develops a far more resilient business
Which are the ESG criteria?
“I really believe that the companies which will mark our future are the ones that can understand customer needs and act within an ethical and committed manner, in addition to extract the very best from internal teams with innovation and flexibility. ESG should guide the ethical commitment of companies in every decisions.”
– Irimar Palombo, CEO of the Brazilian Facility Management Association
ESG means “ Environmental, Social, and Governance .”
Nowadays, ESG criteria are decisive to obtain funding for businesses. The goal is to promote responsible investments” “socially, in companies which have a positive effect on the grouped community, fight inequality, and also have a minimal ecological footprint.
These three criteria are directly linked to the three pillars of business sustainability: environmental protection, social equity, and economic viability. So, let’s follow this relative type of thought to learn how to promote business sustainability.
Perhaps that’s where Facility and Maintenance Management might have probably the most positive impact. Begin by assessing:
- how are you currently using energy in buildings?
- how are you currently managing waste?
- what type of products can you use for maintenance?
If you’re doing things the “old-fashioned way”, I’m sure there’s a lot of room to reduce environmentally friendly impact of one’s operations. One method to lessen your company’s environmental footprint would be to develop low-energy or nearly zero energy buildings that produce the power they use.
Buildings consume 40% of energy in europe and are in charge of 36% of carbon emissions . In case a complete building renovation isn’t possible even, it is possible to apply smart technologies to lessen energy waste and promote sustainability.
💡 Find out about how exactly to increase sustainability in retail and how exactly to increase sustainability in hospitality.
Another concern, because Facility Management handles waste management also, would be to achieve “ zero waste ” (not producing waste) and “ zero landfill ” (not sending anything to landfill). Which means that you will need to devise ways of reduce the quantity of waste and to continuously reuse resources.
well as making certain you can find enough recycling bins
As, look at your grocery list at length. Are cleaning products eco-friendly? Are single-use materials biodegradable? Are you currently composting food waste? A good simple coat hanger could be made of plastic and more green.
Finally, don’t forget to take the circular economy under consideration when planning your asset management . If you are taking into consideration the purchase of new comparing and assets suppliers, think about the maintainability of the gear and the way you will get rid of it at the ultimate end of its life.
Favour reusable equipment, machines which are an easy task to repair (instead of needing to be completely replaced), and recycleables that may “recirculated” be reused and. In the EU, the circular economy could donate to a 2-4% decrease in gas emissions and save €600bn by 2030.
⚙️ See here the exemplory case of Sundeala , that includes a 100% circular business design.
Another essential element for sustainability running a business is the effect on the community where you operate:
- are you experiencing a positive effect on the neighborhood economy?
- are you involved with local projects?
- are you currently undermining the neighborhood ecosystem?
Social impact is measured first by the direct impact you have on the entire lives of one’s employees. Are you currently offering good working conditions on a day-to-day basis? Are your repayments equal and fair for everybody in similar jobs? Will be the hours flexible? Are benefits for families there?
In addition, it is practical to ask whether you’re offering opportunities for learning and training. If employees don’t continue up to now, you’re unlikely to truly have a sustainable business that may adjust to new technology and retain employees.
Talking about learning, it might be pertinent to provide internships or scholarships at your organization to students from nearby schools. Most of these initiatives certainly are a win-win: on the main one hand, you provide opportunities to the grouped community; on the other, it is possible to attract new talent.
However, not all initiatives have to be win-win. Many companies sponsor initiatives since they match the company’s values. Lush , for instance, is committed to reforestation in Peru: 40% of the plantation isn’t used for products, and then promote biodiversity.
Finally, be sure you promote transparency . If you’re transparent together with your customers, it is simpler to show your business is positive for the grouped community, if you have a task with a higher environmental impact especially, such as for example paper or farming production.
You should get rid of any doubts about waste discharged into air or rivers pollution. Otherwise, your business may be seen as harmful, reducing the grade of life of those surviving in the certain area.
Whenever we discuss ESG criteria, “Governance” assesses if the company is managed relative to the interests of shareholders, including minority shareholders. Factors such as for example board structure, company conduct, crisis management, risk exposure, tax strategy, and, needless to say, supply chain management are analysed.
As Maintenance and Facility Management are outsourced often, this is actually the only factor where they are able to have a primary impact:
- do suppliers respect ESG criteria?
- how do the ongoing service degree of suppliers be guaranteed?
- is supplier contracting transparent?
An ethical business, worried about sustainability, needs to make sure that these principles connect with the complete supply chain. All suppliers should offer safe working conditions, avoid waste, and be conscious environmentally, for instance. A “fair trade” for services.
Once you outsource services, you wind up outsourcing the position also, commitments, and reputation. Therefore, you should set up a Service Level Agreement (SLA) or contract that covers all of the essential criteria for you personally.
Finally, the decision of suppliers should be transparent absolutely. Not only in order to avoid conflicts of interest, but additionally to allow executives to help make the right choice: one that combines financial performance with the rest of the criteria.
There is absolutely no step-by-step or plan guide we are able to offer you to implement sustainability. Promoting sustainability and investing in ESG criteria is something your organization needs to undertake and embrace as a mission. You earn that commitment once, it becomes an activity of continuous improvement.