Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Highest ever score achieved in the Ecology criteria, demonstrating continued innovation and success of industry leaders.

Social Achievements

• Improvements in stakeholder engagement due to increased commitment to including stakeholders of all kinds and public reporting of outcomes.

Governance Achievements

• Overall improvement in Governance category, demonstrating the beginning of a long-term commitment to improved strategic approaches to sustainability.

Climate Goals & Targets

Environmental Challenges

• Weakening in overall sustainability performance of the FM industry.
• Emergence of a two-tiered market, with some companies prioritizing sustainability and others engaging in a 'race to the bottom'.
• Collapse of Carillion highlighting wafer-thin margins and short-term approaches to sustainability.
• Lack of substantial response to recent events by the majority of the industry.
• Decline in Social performance, particularly in Wellbeing.
• Challenges in measuring social value due to lack of standardized approach.

Mitigation Strategies

• Promoting the business case for developing a sustainability culture.
• Highlighting best-practice examples to encourage learning from leaders.
• Increased focus on data quality in reporting.
• Adoption of ISO standards (e.g., ISO 14001, ISO 27001) to improve performance.
• Increased stakeholder engagement and transparency.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Environmental Challenges

• Rapid upskilling programme needed
• Access to data for collection
• Resourcing the process of data collection
• Historically low margins for services have impeded investment in development
• Lack of systems in procurement that can deliver data on products to contracts
• Lack of historical focus on carbon in contracts, resulting in low responsibility levels
• Difficulty categorizing contracts to identify ownership, responsibility, or influence
• Short-term nature of contracts making meaningful data collection cost-ineffective

Mitigation Strategies

• Collaboration between FM providers and clients to bridge the gap for understanding Scope 3 emissions and improve sustainability
• Incorporating data collection into the role of the FM provider on-site
• Upskilling teams using a carbon lens across operations

Supply Chain Management

Responsible Procurement

• Engaging with suppliers to request decarbonization as an important factor in purchasing products

Climate-Related Risks & Opportunities

Opportunities

• Increased responsibility and influence within clients

Reporting Standards

Frameworks Used: GHG Protocol

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Circular Economy
• Health and Safety
• Employment
• Stakeholder Engagement
• Wellbeing
• Risk Management
• Board Commitment
• Compliance
• Diversity and Inclusion
• Collaboration

Environmental Achievements

• 33% of companies among SFMI network have started Scope 3 measurements
• Development of a standardized FM industry approach to calculate carbon emissions
• Launch of a technical emissions report

Social Achievements

• Inclusion of mental health and wellbeing considerations into criteria
• Emphasis on FM data importance in employment metrics
• Focus on stakeholder engagement with internal, customers, supply chain, community and public sector

Governance Achievements

• Integration of TCFD reporting requirements into risk management criteria
• Emphasis on Board/senior management team competencies in sustainability
• Addition of criteria for public disclosure of D&I strategic objectives

Climate Goals & Targets

Environmental Challenges

• Poor governance issues generally across the FM sector
• TCFD disclosures not integrated into Impact and Viability Statement and Financial Statement
• Lack of robust data and disclosure to verified standards
• Increasing scrutiny from FRC and Government reviews
• 70% of FM’s carbon emissions are classed as Scope 3

Mitigation Strategies

• SFMI provides a demonstration of the behaviours underpinning ESRS and ISSB criteria
• Development of a carbon tool to improve industry understanding of impacts
• Upskilling of senior management team
• Improved accuracy of data
• Alignment of SFMI criteria with new Standards (ISSB, ESRS, TCFD)

Supply Chain Management

Responsible Procurement

• Circular economy approach to procurement

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Extreme drought
• Flooding
• Storms

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Improved operational building performance
• Reducing direct and indirect emissions

Reporting Standards

Frameworks Used: ISSB, ESRS, TCFD, GRI

Certifications: BS11000