Organisations appear to be placing a great deal of importance on creating environmental value, but how much substance is there behind their policies?
Traditionally, organisations have been judged by their ability to achieve financial objectives, with salary increases/bonuses linked to commercial KPIs. Until a time when organisations place the same importance on sustainability KPIs as they do financial KPIs, there is a risk of the good intentions becoming empty platitudes.
The combination of sustainable and financial KPIs will ensure the longevity of organisations as financial stability is no longer the sole key indicator for potential clients. They want to see how their partners’ environmental, social, and corporate governance (ESG) values align with their own.
Sustainability needs to be ingrained at each level of the organisation, from the onsite teams to the boardrooms; unless every member of staff feels passionate and understands sustainability KPIs, there is very little point in having them.
At Lendlease, we have a target of achieving Net Zero Carbon by 2025 and Absolute Zero Carbon by 2040 by focusing on the following blueprint:
- Setting minimum standards in various categories (such as installing 100 per cent LED lighting throughout, with reduced output (50 per cent) lighting in interior and exterior corridors when unoccupied) to guide ourselves and clients in the right direction;
- Sustainability workshops should be held with all levels of staff to help to identify best practice measures and innovations to be implemented;
- A reference to meeting the minimum standards must be included in the asset/building management guides;
- Performance against minimum standards, best practices and identified innovations should be tracked through a shareable scorecard template, which will form a vital part of the requirements for achieving sustainability KPIs; and
- The minimum sustainability standards are categorised according to the environmental and social focus areas within the sustainability framework mentioned above.
Sustainability KPIs will lead to better financial performance – at its most simple level, this could be monitoring and reducing energy consumption to lower energy costs.
Increasingly FMs are at the forefront, making valuable strategic contributions towards their organisation's sustainable aspirations as ESG becomes an organisational priority.
Now is the best time for FMs to drive the sustainability agenda within their respective business.