As a manager, you may be wondering what role environmental, social, and governance (ESG) efforts play in buildings and if your team should be incorporating them into your initiatives. Let's take a look at what ESG efforts are and why it is important that you start incorporating actions and programs into your building management strategies.
What are ESG efforts?
Environment, Social and Governance (ESG) refer to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. So... why is this important?
# 1 Get more investment
Investors are increasingly interested in putting their money into companies or organizations that consider and incorporate ESG factors into their operations. They want to know that their money is being used in a way that will not harm the environment or society.
A study by Morgan Stanley found that sustainable investments outperformed traditional investments by 11.6% from 2015 to 2019.
69 % of investors said the would divest from a company if it did not align with their values, while nearly half said they would pay more for products and services from companies that aligned with their values.
This growing trend is only likely to continue as millennial and Generation Z investors enter the market and seek to make socially responsible investments.
#2 Be more profitable
Sustainable businesses tend to be more profitable in the long run. This is because they often have lower energy costs and are less likely to be sued.
#3 Attract and retain talent
Younger workers in particular are often interested in working for companies that are taking steps to be more sustainable.
#4 Improve your image
Implementing ESG initiatives can help improve your company's public image. This is important because consumers are becoming more concerned about the environmental and social impact of the businesses they support.
ESG efforts play an important role in building management and should be integrated into your team's initiatives. Start taking steps today to educate yourself and your team about the meaning of ESG, its importance, and by implementing policies that incorporate eco-friendly practices.