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ESG Strategies for Environmental management
ESG Strategies for Environmental management

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Even though we have come a long way, it is believed that we are still not tapping into the full potential that construction sector has to offer

Sustainability has now become more of a necessity than a mere business requirement, and hence, every organisation is mandated to have an eco-friendly business plan of action that will contribute to preserving the planet.

With increased Sustainability and ESG global guidelines falling in place, all organisations will be held equally responsible to pre-disclose and operate their business in a responsible manner, where the supply chain partners and crucial vendors have to mandatorily adhere to the evolving ESG parameters & guidelines. Further, the directives under the ESG framework that advocate sustainable practices besides underwriting the social and governance accountabilities have accelerated the monitoring and reporting of companies’ ESG contributions & parameters, in addition to the financial and social norms set by regulatory bodies of several countries to run sustainable businesses.

With top 1000 listed companies already coming under the scanner to operate, manage and report their business performance from the ESG perspective, under the scheme of BRSR (Business Reporting and Sustainability Reporting), it will not be surprising to note that other related businesses/segments would also soon be brought under these guidelines. It will be considerate for all organisations to adopt these measures soon voluntarily and enable India to fulfil its ambitious journey towards becoming net zero by 2070.

ESG and sustainability measures that need to be followed will come with a certain cost, and that will be crucial to understand from an organisation’s profitability point of view. While meeting net zero commitments, businesses can adopt a CAPEX or OPEX model. In addition to this, ascertaining the ROI on these sustainability/ESG investments are also essential. 

Sustainable business practices lead to higher costs, and businesses will have to make the crucial decision of either bearing that cost or including it in the product/service. The latter might cause the business to lose customers. 

Below are some of the key guidelines of BRSR governance under ESG relating to only “Environment”:

 

 

Listed below are some of the key strategies and ESG governance aspects related to facilities management operations:

OPEX Budget Options:

 

 

To ensures that organisation’s efforts are aligned with the sustainability goals, mentioned below are various certification platforms which will assist one with regards to ESG reporting.

 

 

While achieving net zero and sustainability targets are critical and may burden the organisation, it is imperative to note that the returns through net zero investments can be expected in 3 to 5 years of project investment.

Sustainability is often seen as creating an extra layer of costs, given the many investments it entails including equipment, raw materials, training, etc. In reality, it is possible to reduce business costs once the sustainability investments begin to reap returns.

About the Author:

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

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


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