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ESG and FM Strategies for Social Norms
ESG and FM Strategies for Social Norms

April 2, 2024

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The social aspect of ESG involves effective employee management, responsible supply chain practices, community engagement, and customer relations.



The last article covered environmental management, and in this piece, we will take a closer look at ESG governance series for facilities management businesses. The article will focus on the social aspects of business and operations management.

It is critical to note that ESG governance and compliances place high emphasis on the social aspects of a business, and the measures mentioned below are some of the crucial ones a business must implement to comply with ESG management. 

While the environmental needs are met when achieving Net Zero targets by 2070, the society needs to be shaped with well-defined social norms to ensure diversity, equality and integrity principles whilst achieving peace and harmony amongst the workforce.

The social aspect of ESG involves effective employee management, responsible supply chain practices, community engagement, and customer relations. These elements address any organisation’s social responsibility and impact on stakeholders. 

Facilities management is a people intensive business, and ensuring the social compliances will bring in a more focused & balanced approach towards people management, especially since the social aspects play a dominant role in enabling more inclusiveness amongst all stakeholders.

In 2021, SEBI released the circular on Business Responsibility and Sustainability Report (BRSR) wherein, it has mandated top1000 listed companies by market capitalisation to disclose their ESG metrics.

Below are some of the key guidelines of BRSR governance under ESG relating only to “Social’ aspects:

To ensures that the organisation’s efforts are aligned with ESG goals, here are a few certification platforms that aid in ESG reporting. To comprehensively cover ESG reporting structure, the following mentioned governing bodies may also aid in ensuring the audit and compliance under ESG compliance.


From the above-mentioned governance platforms of the ESG management, the “GRI” platform covers the standards of social aspects through the following aspects of governance:

 

 

Further, the ISO standard also covers the social aspects management through its ISO 26000 standards, as mentioned below, to govern the social responsibility aspect of the organisation.

 

ISO 26000:

For businesses and organisations that are moving towards achieving their social responsibility goals, ISO 26000 standard is also available for further guidance and adherence to the sustainable actions in a responsible way. 

This standard businesses and organizations translate principles into effective actions and shares best practices relating to social responsibility, globally. The standard revolves around seven core subjects of Organisational governance, human rights, labour practices, environment, fair operating practices, consumer issues and community involvement and development. The standard would help to further set up the policy, process and actions about social responsibility of the organisation for further implementation and monitoring.

Social audit processes involve monitoring how our behaviors and economic practices impact others and contribute to the development of various forms of social capital. These include:

 

In essence, social audits help us assess and enhance the social effects of our actions and economic choices. The success of any organisation is people dependant, and adhering to the social aspect plays crucial role in the overall well-being. Hence, while meeting ESG goals, living up to social norms at the workplace will help shape with culture, employee growth, safety at work, diversity and inclusion and also uplifting local communities, that will, in turn, drive growth for the firm.

About the Author:

Rajesh Shetty | Managing Director | Real Estate Management Services | Colliers

Rajesh Shetty has been in the Facilities Management (FM) industry for over 20 years, instrumental in setting up the FM business for Johnson Controls in India in 1999. He is with Colliers since December 2007 and actively involved in expanding the FM business across India both organically and inorganically.

Imran Khan | Sr. Associate Director | Real Estate Management Services | Colliers

Imran Khan is a Facilities management professional with over 18+ years of experience, under various industry segments of Hotels, shopping malls and commercial properties. Carrying extensive and hands on experience in maintenance and operations, utility systems, energy management and sustainability initiatives.


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Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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