Know Your Role

ESG stands for environmental, social and governance. It has become the language of the financial world, a reporting framework for evaluating and communicating a company’s performance on efforts, commitments and progress related to these areas, particularly among investors and shareholders.

By embracing their role in ESG reporting and demonstrating progress toward sustainability commitments, FMs can secure a more prominent position within their organizations.

The challenge is, some FMs may not know the areas where they can make an impact and how to do it.

Know the lanes

For the FM, it can be primarily about the “E” (environmental) that leads to impacting a company’s “S” (social) and “G” (governance). When companies focus on sustainable initiatives and improvements, a by-product of those commitments may be healthier, cleaner work environments impacting well-being and productivity.

Energy use may be one area for which an FM may contribute to a company’s ESG targets and reporting, considering it is the biggest contributor to a facility’s carbon footprint. This work may include energy use data collection, interpretation and recommending energy conservation measures (ECMs) that lead to immediate reduction in energy use and cost savings.

Companies that include owned or occupied real estate in their ESG reporting will look to the FM to source the information needed to establish a baseline and capture the impact of sustainability initiatives implemented.

FMs may need to provide data on various ESG metrics, including energy use, water consumption and waste reduction. This data comes from a variety of sources, such as utility bills, sensor data, listening to the BAS (building automation system)/BMS (building management system), and/or outside vendors.

Once a baseline is established, the FM can recommend actionable ECMs, zero waste initiatives and water-saving strategies that align with the priorities of their leadership and/or client. In addition, the FM can contribute to the narrative of how sustainability initiatives were implemented across the facility and their impact.

Energy optimization: Start with a solid baseline

To know what peak performance looks like across building systems, a solid understanding of the facility and its equipment within is required.

Every site is different, which requires evaluating each building separately to determine its impact toward an organization’s carbon footprint.

For energy consumption, historical utility usage and a comprehensive asset list will be needed to set site-specific goals. It is not unlike a professional athlete training to improve performance. They start with a baseline — how fast they are running, how strong they are now — and use it as a reference point for comparison as they train.

The energy efficiency baseline is a reference point to set goals and show progress.

It starts with listening to the systems — if an FM cannot monitor, they cannot measure; and if they cannot measure, they cannot act upon the data.

Capture data to understand:

• What is the system/equipment doing?
• Why is it doing it?
• When is it running?
• When should it be running equipment?
• What are the BAS and occupancy set points?
• Are there any issues, such as air, steam or water leaks?

A key measure to look at is the EUI (Energy Use Intensity), which will show the efficiency of utility use.

All this data can inform an ENERGY STAR® rating, which provides an energy performance score, compared to like-for-like buildings.

Look at the PM (preventive maintenance) schedules and determine if the maintenance strategy is adequate. There is no need to over-maintain equipment, but preventive maintenance ensures energy efficiency. This information supports the baseline that can be measured against as ECMs and/or new PM schedules are implemented.

Retrocommission

Everything has a life expectancy. If something has an energy draw on it — if it is producing carbon dioxide or wastewater — the equipment efficiency will diminish over time. Properly maintaining equipment is acting upon what is being monitored and measured, respectively; this is a huge undertaking for the FM. Organization (client, corporate) support is required for these activities and may not be budgeted at the time a baseline is established or opportunities are identified.

Give the data teeth

Credibility is vital, especially when trying to achieve understanding and buy-in from decision makers for capital investments needed across a facility.

This is why the ENERGY STAR is a great tool — it is a renowned, highly respected tool for data crunching, reporting and standards.

A third-party energy optimization audit can provide a baseline with validated data captured at one point in time. Bringing in outside evaluators not only gives credence to the data, but also provides a fresh set of eyes and a new layer of expertise. It is about seeing the forest through the trees and understanding the big picture.

While consultants are available, a third party is not the only way to leverage a fresh perspective.

Build alignment

A solid baseline of energy use data, with the projected carbon emissions equivalent resulting from ECMs, can then be evaluated by an organization against all other areas the company may be considering improving their environmental and social impact.

The carbon footprint of an organization’s real estate is just one piece of a company’s comprehensive ESG strategy. The FM may not know the social or bureaucratic pressures an organization is facing. Alignment with an organization’s overall strategy is critical for the FM to provide the relevant data that informs what measures are taken to achieve stakeholder priorities.

With a solid baseline in place, backed by reputable data, the FM can help their organization or client determine next best steps, outlining where the gaps may be, showing them what is attainable, and outlining the recommended projects to take on based on their timeline, investment and ROI in carbon footprint.

Honesty & self-improvement

FMs should arm themselves with proper credentials, experience and data. This is true of any profession.

FMs can leverage professional credentialing and education programs to expand their team’s understanding of the built environment’s contribution toward an organization’s ESG strategy. IFMA's Sustainability Facility Professional® (SFP®) credential, for example, was updated last year to include training on ESG evaluating, reporting and assessment. Networking with members of IFMA and other built environment organizations also provides an opportunity to create and benefit from a cross-functional community of practice for discussions surrounding ESG.

When it comes to ESG reporting, the stakes are high. Companies are going to be exposed, politically and socially, and could face hefty fines if they are not meeting energy use requirements. FMs must understand the risks to the organization, ensure they are providing accurate data and actionable plans.

It is a lot of pressure and a lot to keep up with as priorities shift. By taking ownership of their role in ESG reporting and delivering on commitments, the FM can proactively elevate their organizational role: one with a bigger seat at the table.