resources and environments for guests and team members, facilities managers have been forced to evolve again, considering the benefits of environmental, social, and governance (ESG) planning in operations. In other words, their roles have risen to the degree of Chief Sustainability Officer, says FacilitiesNet, especially in smaller organizations. In addition, the use of actionable data—a prerequisite to ESG planning—offers significant benefits to an organization, and facilities managers need to understand why.
Improved Investment Decision Making Derives From Actionable Data in ESG Planning
Investment decision making is a crucial area where the benefits of actionable data and ESG planning merge. According to the Harvard Business Review, ESG considerations are critical to all investment decisions. Investors want businesses that focus on ESG metrics. In other words, they want to know their investments do not become a political hotbed for debate and pushback. In addition, ESG considerations eliminate many of the issues inherent in working in older buildings and attempting to maintain operations with higher overhead costs. Ultimately, ESG amounts to cost savings through both cost avoidance and elimination of unnecessary expenses. Making ESG-conscious decisions goes further by empowering teams with more information regarding day-to-day operations, increasing visibility, and compliance with applicable standards along the way.
Reduced Greenhouse Emissions Follow Comprehensive ESG Management
Speaking of standards, any discussion on ESG is incomplete without mention of the potential government penalties and fines associated with increased greenhouse gas emissions. Since the passage of the Frank-Dodd Act, organizations have taken an extra step in considering the environmental implications for business management. This gave rise to the need to consider actionable data in making all decisions that affect the environment, society, and government actions. Specifically, businesses that implement systems that create actionable data and insights can effectively reduce greenhouse gas emissions and continuously improve.
Forecasting Tools Enable Immediate, Realistic ROI Analysis for Companies Considering New Strategies
The use of advanced reporting capabilities and tools for actionable data creation and insights includes advanced forecasting tools. Forecasts allow investors and team members to identify issues affecting the performance of facility assets immediately. For example, increased energy used by a single asset may reveal a potential malfunction that cannot be detected otherwise. Failure to address the issue will result in cascading equipment failure, resulting in disruptions and lost profitability. However, advanced forecasting tools can identify these issues in advance and provide an immediate, realistic ROI analysis for companies considering the strategies. It all goes back to investment decisions, but this specific benefit includes the realm of predictive analytics.
Improved Sustainability Translates to Better Guest Experiences
Improved sustainability within an organization will have a natural implication for better guest experiences. Improved sustainability might include improved indoor air quality and reduced energy loss. As a result, the indoor conditions may be more comfortable to guests. At the same time, improved planning using actionable ESG data will reduce the risk of disruption from asset failure.
Decreased Risk for Levied Fines and Penalties Due to Non-Compliance With Regulations and Emissions Standards
A final benefit associated with ESG planning goes back to the way governments operate and review businesses for compliance with environmental regulations. These regulations affect resource use and waste, including the potential disposal of solid waste. By considering potential ramifications for failure to meet necessary environmental responsibility requirements and regulations, facilities managers can reduce their risk for fines and penalties. As a result, overhead costs decrease, and consumers the benefits in the form of lower product or service price points.
Reap the Benefits of Actionable Data in Your Facilities
The benefits of actionable data in facilities management are far-reaching and help organizations achieve success. Continued sustainability efforts reduce costs and enable cost avoidance, and such resources can be diverted to facilitate scalability and better profitability too. Today’s facilities management needs to tap into more significant ESG planning by implementing systems that track actionable data. Contact ENTOUCH online to get started.