Key factors like technology, transparency and data are more important and accessible than ever before, so companies have no excuse when it comes to fulfilling their environmental commitments.
So, what does the future of ESG look like? It remains a complex space, with greenwashing and inconsistent reporting being common issues, but with the right preparation, tools and awareness of what’s to come, organizations can really maximize their ESG outputs with positive impact.
International regulators are introducing new standards around ESG metrics, with Biden recently announcing climate change and environmental justice as priorities, and countries like Canada declaring ESG disclosure will be mandatory for financial companies in 2024.
This is coupled with the rise of many environmental-specific regulations too. Buildings and construction account for a huge portion of carbon emissions produced across the world: 39%, to be precise. So it’s no surprise that many countries are introducing stricter regulations in a bid to reduce their carbon footprint and minimize environmental impact.
Organizations are increasingly expected to operate more sustainably, treat workers ethically, and have frameworks in place to report transparently on this data.
The key to preparing your business for this change is understanding how you currently operate, and implementing the changes necessary to fulfill ESG responsibilities. How do you go about this? It’s simple: proper measurement and reliable data.
Proper measurementAny successful ESG strategy starts with accurately measuring your performance. It’s the only way to accurately assess what you’re using, benchmark how this compares to where you should be, and get started on making any changes.
It’s essential for this data to be collected and collated in a central place, where it can be verified by a third-party expert, as auditing will become mandatory in the near future.
Company boards will be held accountable for ensuring the data in their sustainability reports is accurate and valid, so businesses need to start collecting high-quality data now to get ahead of upcoming legislation.
Implementing a real-time monitoring solution is key to establishing ESG reporting – not to mention helping to reduce the cost of running a building by minimizing energy usage and improving employee wellbeing.
Companies should start by focusing on the metrics which have the largest presence in their day-to-day activities. For example, a clothing company might start by prioritizing labor practices, whereas the priority for a real estate giant should focus more on their impact on the climate.
Gathering accurate dataOnce you’ve started measuring your ESG data, what can you do with all this information? Quite a lot, actually.
What ESG metrics can you measure in your building?
1. Energy monitoringEnergy monitoring does what it says on the tin: monitors your energy usage. But it also has other unexpected benefits, such as detecting inefficiencies in your building systems so action can be taken at the earliest possible opportunity. This is a fundamental aspect of making any building more environmentally friendly and improving ESG performance.
2. Indoor air quality monitoring
Indoor air quality (IAQ) can have a huge impact on the wellbeing of your employees. Poor IAQ can cause sick building syndrome symptoms like dizziness, lack of concentration and headaches – as well as severely impacting productivity.
You can also measure ESG metrics like water monitoring, waste monitoring and noise levels – all of which can impact occupant wellbeing significantly.
Having accurate, real-time (as well as historic) data gives you the information you need to analyze your building estate’s ESG performance. Historic occupancy and energy data can be overlaid to identify reduction opportunities and minimize emissions. Real-time water monitoring can optimize your water usage and detect leaks in real time, decreasing consumption by up to 40% in some cases.
Likewise, IAQ data can be harnessed to establish any harmful pollutants and make necessary changes – such as installing air purification systems.
More importantly, any adjustments can then continue to be monitored, and this data can be collected, analyzed, and compared to establish improvements in ESG performance.
So you want to improve the ESG rating of your building? Luckily, there are many tools to help you do exactly that.
Smart sensorsAs we’ve mentioned, gathering accurate data is a key part of ESG reporting, and sensors are an effective way to measure and record real-time information. IoT sensors can collate data such as:
Sensors can be used to carry out real-time occupancy monitoring, which improves ESG performance by reducing energy consumption by only using energy in occupied spaces, ensuring compliance with legal occupation requirements, and enabling hotdesking and flexible workspaces.
Using IoT sensors to monitor indoor air quality and track the presence of harmful pollutants is a great way to improve occupant health, wellbeing and productivity. With a platform like Metrikus, smart alerts can notify you when key air quality parameters (such as carbon dioxide) deviate from their optimal zone. This way, steps can immediately be taken to maintain a healthy environment and minimize harmful effects of poor IAQ.Having access to a range of real-time data through IoT sensors allows you to better understand your building, and optimize how the space is being used.
This data can then be analyzed and changes can be implemented to improve both the sustainability of your space, and the wellbeing of its occupants. For instance, some environmental sensors provide heat maps so that you can easily identify areas that fall outside the desired range.Alerts can also be set up to notify the relevant personnel when environmental parameters deviate from the optimal zone, and the necessary action can even be automated using your BMS. This means minimal energy wasted, reduced carbon emissions, and a better working environment – sounds good to us!
Smart building platformsOnce you’ve got all this information, what can you do with it? Use a smart building platform like Metrikus to track all your ESG data in one place, and trace it with complete accuracy. With all your building data stored and analyzed in one centralized system, it’s far easier to see whether a company is hitting its targets and identify areas of improvement.
Reduction strategiesYou’ve collected your building data and are tracking it in a smart building platform (good for you!), but now what?
What does net zero mean, and why should you care?It’s time to look into reduction strategies and actually minimize the environmental impact of your building. There are different sustainability aims worldwide, the most common one being for companies to hit net zero emissions. Over 70 countries, including massive polluters such as China, the United States and many countries in the European Union, have pledged to halve global emissions by 2030.
This is a vital step in the fight against climate change, but what does it actually involve? To be net zero, a company has to reduce its emissions by 90% to 95% from its base year – regardless of any growth during that time. The final 5% to 10% of emissions must be removed using the most impactful types of offsetting (like direct air capture), which actually remove carbon from the atmosphere for good.
Calculating emissionsThe first move is to calculate your emissions – which is the total CO2 emissions a company has released over the past year. Having energy monitoring sensors in place will aid with this, and tools such as Future Learn’s carbon calculator are a great way to establish your Scope 1, 2 and 3 emissions.
From here, you can identify the biggest areas for improvement and validate these goals using third parties, such as the Science Based Targets initiative (SBTi).
Offsetting and removalThere are many different types of offsetting, and not all are created equal. It’s important to do your research, opt for initiatives that meet key project standards, and be wary of greenwashing.
Examples of offsetting projects:
Renewable energy initiativesThis type of offsetting aims to build or maintain renewable energy sources, such as wind solar, or hydro sites. As well as reducing the use of fossil fuels, these projects also create employment opportunities.
Conservation and rewildingThese types of schemes focus on the conservation of natural habitats, such as forests and oceans. Over time, this will remove carbon from the environment, but has added benefits of boosting ecosystems and protecting wildlife. However, there are issues with measuring how much carbon is actually being reduced through these projects, but advances in technology will hopefully make these improvements easier to track over the coming years.
Artificial carbon removalThese kinds of offsets use technology to actually extract carbon from the atmosphere, rather than reduce it. This includes projects such as direct air capture, which removes and stores carbon from the air. This is more difficult to do than other types of offsetting and is still far more expensive.
Metrikus is a market-leading software that combines multiple data sources and sensors to provide revolutionary insights, make spaces smarter and help you reach your ESG targets.We make data accessible and understandable, with real-time data, bespoke charts, graphs and analytics – all in one pane of glass.
Our platform gives companies the tools and information they need to get started with ESG and overcome any challenges. Our distinctive approach to integration future-proofs your building; our platform integrates with any system or hardware, so it’s truly a system that can grow with your business.
EnvironmentalOur real-time energy monitoring solution helps companies to reduce their carbon footprint by monitoring performance, detecting inefficiencies, and allowing you to make automatic adjustments via a Building Management System. You can also overlay energy data occupancy data to identify further opportunities to reduce consumption.
SocialGood indoor air quality (IAQ) is essential for productivity and employee wellbeing. Through installing sensors and tracking key factors (such as temperature, humidity, carbon dioxide and particulate matter) in real time, you can ensure IAQ never drops below optimal levels and understand how this could impact employees.
GovernanceWith our platform, accurate, secure and up-to-date data is available at your fingertips. We measure and report on key ESG metrics, and display them in a single place that can easily be shared with all stakeholders.
Our platform allows you to understand your building, safety, people and maintenance, efficiently track ESG performance and take steps to improve ESG ratings.
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