How ESG Flows Through a Commercial Building or Fit Out Project

Posted by Knight Frank Newcastle on 23rd December 2023 -

ESG impacts every part of a real estate project. We understand that organisational ESG goals must be integrated into building projects, no matter the size. From prioritising local sourcing to considering social and health impacts and carbon reporting, green building practices need to ensure ongoing sustainability.

What are the client’s ESG goals?

More and more clients are placing ESG at the forefront of their projects. Firstly, we need to identify what a company’s specific ESG goals are. For example, what are their net zero targets? Are there certifications that are required for the completed project? Do they want to explore social value for their employees and customers? What initiatives are in place for nurturing a diverse workforce, and insuring an inclusive and accessible office/building?

We explore initiatives our clients may already have in place and develop how we can integrate these into all stages of the project.

What is the ESG strategy?

When briefing a project, it’s essential to establish client-specific carbon targets and evaluate the ESG credentials of consultants involved in the project. Sustainability should be a constant consideration at every stage of the process. In terms of social value, defining the characteristics of a successful project for the client and wider environment is essential. What systems and processes are in place, and how strong are the internal controls relating to governance?

In our considerable experience across all refurbishment, repositioning and fit out projects, we note that the circular economy and climate impact are key drivers within client’s ESG agendas, alongside a real focus on ensuring the wellbeing of individuals, which feed into critical aspects of the project brief. Performance requirements must also be considered as reflected in key performance indicators (KPIs). Finally, a holistic approach to biodiversity really should be adopted, looking beyond immediate project boundaries.

Sustainable design

Throughout the design stages, the embodied carbon of all materials must be assessed, prioritising local sources to minimise environmental impact. Collaboration with like-minded suppliers is key to our approach, fostering a shared commitment to eco-friendly practices. We've noticed an increasing need to thoughtfully evaluate the social consequences of designs, going beyond the usual limits of scrutiny. What can the project ‘give back’ to the community? This extends to evaluating the lifecycle of materials and the overall design, plus we are always exploring the potential reuse of existing spaces, ensuring that every aspect aligns with sustainability goals. Additionally, the health implications of materials, prioritising those that contribute positively to biodiversity, are considered during the design stages, alongside how the physical design can create accessible and inclusive spaces for staff.

Green building considerations  

Throughout the process, reporting embodied carbon against predetermined targets is crucial. To align with ESG considerations, contractors and sub-contractors with a specific focus on ESG principles should be carefully selected. Sustainability should be measured consistently at every stage of the process. The social impact of construction activities needs to be thoroughly reconsidered to ensure positive outcomes. Additionally, documenting all materials used is essential, considering both their lifecycle and health impact. Efforts should also be made to reduce the effects of construction on biodiversity and minimise waste generation. This should be undertaken whether or not the client is considering sustainability/ESG certification for their project.

The occupier perspective

Consistent reporting of operational carbon is imperative to track and manage environmental impact. Contractors with a focus on ESG principles should be carefully chosen. Sustainability should remain a primary consideration in all operational decisions, including intelligent management of the building and ongoing performance measurement. Understanding the lifecycle of materials and their role in the circular economy is essential. Exploration of options to extend the life of materials and equipment through skilled maintenance should be actively pursued. Lastly, ongoing monitoring of staff wellbeing throughout the occupation of the building is critical; accessibility and inclusivity of the workplace are vitally important in creating a diverse workforce. This is becoming more and more prominent for occupiers throughout their fit-out process, as well as their building selection, and is crucial for business practices and governance approach as a whole.

How can we support your ESG goals?

We consider ESG at every stage of an asset’s lifecycle. To find out more about how the Project and Building Consultancy team can help you, please get in touch with James Rogers.

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