Deferred maintenance refers to the postponement of necessary repairs, updates, and general upkeep of a facility, typically due to budget constraints or other organizational challenges. For healthcare systems, deferred maintenance can cause disruptions to hospital operations, negatively impacting patient safety and their ability to deliver care.

A survey conducted by Healthcare Facilities Management found that 38% of hospital respondents experienced disruptions to patient care due to deferred maintenance issues. And just last year, a western state hospital made headlines when a single boiler was overloaded in a cold snap and failed. Their heat and hot water supply was halted, all hospital services were suspended, surgeries and procedures were rescheduled, and patients were moved to nearby facilities for care. It took days to get back up and running.

Deferred maintenance not only impacts a hospital’s daily operations and quality of patient care but often requires costly repairs when systems fail. The American Society for Healthcare Engineering (ASHE) has reported that deferred maintenance costs for U.S. hospitals can range into the billions of dollars. 

Deferred maintenance costs for U.S. hospitals can range into the billions of dollars.

American Society for Healthcare Engineering

This issue is continuing to rise amongst healthcare systems as it also impacts reputation, staff morale, and compliance standings. Instead, implementing sustainable facility solutions can help tackle deferred maintenance while also staying ahead of industry regulations, allowing you to move from reactive to proactive facility planning. Planned replacements can include broader systemic improvements instead of an emergency replacement, which can cost dramatically more.    

3 Sustainable Solutions for Healthcare Systems

LED Lighting

https://www.livescience.com/how-do-energy-saving-light-bulbs-workRetrofitting a building with LEDs is one of the best investments in energy efficiency a hospital can make. LEDs require up to 80% less energy than traditional incandescent bulbs and 20-30% less than fluorescent lights. By consuming less energy, LEDs also contribute to a reduction in carbon emissions and help lower energy costs up to 80%. In addition, LEDS are more durable and have longer lifespans, lasting up to 50,000 hours, depending on their quality and usage, while fluorescent lights typically last around 8,000 hours.

LED lighting will save a hospital thousands each year in energy costs and will cost even less to replace. LEDs also provide an exceptionally bright light, which helps to illuminate entrances and exits, parking lots, and garages, enhancing staff and patient safety.

Solar Energy

Installing solar panels through a centralized approach is one of the best renewable energy sources – and it’s an emissions-free solution. Generating solar power on-site reduces the amount of electricity used from the grid and helps lower operational costs while also allowing healthcare systems to be energy independent and more reliable. In addition, solar panels typically require minimal maintenance which can help reduce ongoing operational costs and the need for frequent repairs or replacements. 

High-Efficiency HVAC Systems

Heating, ventilation, and air conditioning require substantial energy usage. They are some of the biggest costs associated with commercial energy use, and the healthcare sector is no exception. In such a sensitive environment, it may not always be possible to turn the heat or the AC down to save on costs. Instead, hospitals should consider investing in energy-efficient systems. ENERGY STAR-rated heating and cooling units will run more efficiently, saving money in the long run.

An Industry Move Towards Sustainability

Providing stellar patient care and a comfortable treatment experience requires a significant amount of energy. Hospitals spend thousands of dollars per bed in electricity each year, and the healthcare industry accounts for 9.8 percent of U.S. greenhouse gas generation. Because of this, we’re seeing more and more healthcare professionals looking to reduce their impact on the environment and lower their operational costs to meet sustainability goals.

The healthcare industry accounts for 9.8% of U.S. greenhouse gas generation.

Journal of Hospital Medicine

In addition, The Joint Commission announced that effective January 1, 2024, healthcare organizations can voluntarily choose to join the Sustainable Healthcare Certification Program. This program helps accelerate sustainability practices and reduce greenhouse gas emissions, and grants public recognition for these efforts. It will also help the industry in creating baselines to measure three sources of GHG emissions and developing an action plan to reduce them.

As the industry moves towards implementing more sustainable practices throughout your facility portfolio, healthcare systems can tackle their deferred maintenance issues by updating their system with sustainable ones, moving away from a break-and-fix mentality and adopting a proactive approach to creating a resilient space for their patients and staff.

SitelogIQ’s Process for Tackling Deferred Maintenance with Sustainability

Failing to address deferred maintenance at healthcare facilities puts them at risk of experiencing disruptions to critical patient care and costly repairs. At SitelogIQ, we partner with hospitals and healthcare systems to develop capital plans that allow them to identify and prioritize facility improvements, develop financial strategies for upgrades, execute projects, and continue to build their plan to have sustainable reliability.

In addition, our technology platform, mySiteIQ, gives valuable visibility into building assets, access to schedules and budget scenarios, and key performance metrics to keep teams informed and help them meet short- and long-term facility and sustainability goals.

Contact us today to get started.

Today we celebrate Earth Day, but at SitelogIQ, our team is focused on driving impact that extends beyond a singular day. At SitelogIQ, our mission is to make buildings better, by helping our customers lower their carbon footprint, improve energy efficiency, maintain healthier air quality, and save on their utility bill.

Creating green space is not only beneficial for the environment but also for long-term sustainability, employee well-being, and cost savings. In addition, a green workspace can also help with employee recruitment and retention as an IBM survey found that 67% of the respondents reporting that they are more willing to apply for, and 68% more willing to accept positions from environmentally sustainable companies.

67% of IBM survey respondents reported that they are more willing to apply for, and 68% more willing to accept positions from environmentally sustainable companies.

From K-12 schools and hospitals to office buildings and auto dealerships, all spaces can benefit from incorporating green practices. In honor of Earth Day, we’re sharing tips and key benefits and creating a greener space that improves the lives of your team, facility occupants, and the communities you serve.

Tips for Creating a Green Environment

1. Reduce Paper Products

A simple way to begin moving towards a greener space is to reduce your use of paper. By digitalizing your documents and printing mindfully, you can help cut down of unnecessary waste. Consider using digital documents, e-signatures, and online collaboration tools, and when you need to print, utilize double-sided and black and white ink settings to cut down on waste.

2. Implement a Recycling Program

Placing recycling bins throughout your building is a great step to creating a greener space but there’s more you can do to encourage your coworkers to recycle. Educating your employees on what can and can’t be recycled, where recycled products go, and setting up recycling stations with bins for various types of recyclable materials can help foster best practices. Also consider sharing the positive impact of their efforts, such as the tons of waste recycled annually to help inspire participation and boost morale.

In addition, encouraging your workforce to use reusable mugs, water bottles, and utensils can also help cut down on waste. For companies, offering these items to employees as a part of an onboarding package or recognition or holiday gift can help them more easily implement this practice.

3. Improve Energy Efficiency

According to the U.S. Green Building Council (USGBC), green buildings use 25% less energy than traditional buildings. As we’ve shared a few ways to begin creating a green space today, there are multiple solutions you can implement to improve energy efficiency and promote sustainability.

Green buildings use 25% less energy than traditional buildings.

Powering down computers, monitors, and other electronics at the end of the day is a simple to implement best practices. A few additional long-term sustainability solutions to consider might also include HVAC systems, LED lighting and occupancy sensors, efficient water fixtures, smart irrigation systems, and smart thermostats. These solutions not only help lower your operational costs and reduce greenhouse gas, but also allow you to create healthier and comfortable spaces to support employee well-being.

Benefits of Green Spaces

1. Cost Savings

One key benefit for utilizing energy-saving practices into your workplace is operational costs savings. In fact, the USBGC notes that green buildings have been shown to reduce their operating costs by 8% to 9% annually. As mentioned above, installing LED lighting, efficient HVAC systems, water-saving fixtures, and smart thermostats can significantly reduce utility bills. This allows building owners to invest their budget dollars into their mission and occupants/employees.

Green buildings have been shown to reduce their operating costs by 8% to 9% annually.

2. Improved Employee & Occupant Health and Well-being

Indoor air quality can greatly impact your occupants’ health and well-being as proper ventilation can help protect against exposure to airborne illnesses or pathogens. Schools, commercial and industrial buildings, hospitals, higher education institutions, restaurants, local government facilities, housing units, and retail locations need additional care because of their high population and risk of pathogens. By installing efficient HVAC systems, you can help decrease adverse health effects, reducing absenteeism and enhance employee well-being.

3. Environmental and Social Responsibility

Creating a green workplace can help your business or organization demonstrate its commitment to protecting our planet. By implementing the tips shared above, you can lower your carbon footprint and be a steward in your community for sustainability and resiliency. In addition, green workplaces can help create a positive reputation and attract candidates and investors, and are viewed favorably by customers and stakeholders.

Your Partner in Energy Efficiency

At SitelogIQ, we specialize in bringing comfort, functionality, and sustainability to the spaces where we learn, live, heal, work, play, and shop through facility improvement and energy efficiency solutions. We partner with our customers to gain a thorough understanding of their facility needs and develop and implement programs to help them meet organizational goals and lower their carbon footprint.

We’ve worked hard behind the scenes to develop a tool to make this process easier and more conducive for our customers to truly understand their facilities and develop a process for making them better. With our technology-enabled solutions platform, mySiteIQ, we can develop a personalized and interactive dashboard that allows you to easily track your energy consumption and achieve your energy, operational, or sustainability goals. If you would like help assessing ways to reduce energy and utility costs, contact us today!

Funding facility infrastructure and energy efficiency improvements, especially within the healthcare market, takes a tailored and unique approach to meet your goals. There are many options when comparing and contrasting what might work best for your energy project and how to best suit the needs of your organization. This is where SitelogIQ can help – we partner with our customers to drive savings, efficiency, sustainability, and create better healthcare facilities to promote exceptional patient care.

Types of Healthcare Project Funding

1. Commercial Property Assessed Clean Energy (C-PACE)

An innovative form of energy financing that exists in many states throughout the U.S. is Commercial Property Assessed Clean Energy, or C-PACE. For healthcare facilities, securing C-PACE financing solves the upfront cost barrier by providing 100% financing for your healthcare project. This financing option helps overcome procurement hurdles, enabling large-scale energy savings initiatives, and implementation of turnkey projects to meet high priority facility needs. It also helps you create a long-range facility roadmap to benefit your patients and staff through a process made simple for healthcare administrators.

C-PACE is not credit sensitive, because the lien is against the property and not the organization managing it, the lending community views this as investment grade. This can be a very powerful tool in accessing competitive capital for organizations that in of themselves would not be considered investment grade credit.

2. Loans and Leases

For investment grade (IG) bond/credit rated organizations, a loan or lease-like product may be another financing option to consider. These organizations will typically have a Better Business Bureau rating of BBB- or higher, yielding borrowing or lease terms of 10-20 years depending on the project specifics. These financing vehicles also may be eligible for tax exempt funding depending on the nature of their IRS classification. Organizations such as 501(c)(3)’s may be eligible for this form of tax exempt financing, which can further reduce the interest rate.. There are multiple lenders in this segment ranging from commercial banks, private equity, and/or infrastructure funds. As a result, it is a highly competitive lending environment that can lead to competitive project finance rates.

3. Energy-as-a-Service

A more recent financing option for energy improvements is Energy-as-a-Service or EaaS. EaaS is an option in which a third-party owns and maintains energy infrastructure improvements for a period of time, usually 10-15 years. Under this model, the customers pay the system owner a fee based on the benefit received. For example, think buying the lumens from a light bulb, not buying the fixture itself. This structure also does not require any money down, just a commitment to purchase the utility/benefit from equipment.

4. Traditional Bonds

Lastly, bonds are a common way of financing major infrastructure improvements, and potentially even acquisitions. While most of the debt for healthcare organizations comes in the form of bond obligations, the amount financed is usually significantly more than an energy project would cost on a per-site basis. Should this be of interest, SIQ has the knowledge and network to explore your bond syndication options.

It doesn’t stop there. Creative funding approaches can also support near-term budget constraints with multiple products deferring initial payments for up to 2 years while the operations benefit from the performance of the new equipment. Clients have a multitude of options in how to best benefit from the flexibility in timing that capital providers offer.

Our Process for Identifying Funding Options

To begin, the SitelogIQ team will identify opportunities to save energy, money, and other attributes in maintaining top tier healthcare facilities. Because the condition of the facilities, age(s), technology, equipment, and capital maintenance budgets vary so vastly, it is paramount to consider what funding mechanisms can provide the greatest overall value for your project. Considerations that would drive our recommendations and financial models:

Condition and efficiency of existing facility infrastructure
Goals/targets for sustainability
Plan for funding upcoming projects
Energy use intensity of facility versus benchmarks
Credit rating, ability to access cost effective capital

As your project takes shape, our capital markets team will meet and work closely with your finance or treasury group to make the most of the project’s impact to your operations while always focusing on the bottom line, so your organization can continue advancing the highest quality patient care.

Contact us today to learn what funding solution may work best to help you create a safer, healthier, and more sustainable healthcare facility for your patients and staff.

Coming out of the pandemic, retailers experienced massive upheaval. Consumer preferences and shopping patterns quickly shifted and are unlikely to revert back to pre-pandemic behaviors. Investor interest in retail properties remains strong, but expectations have changed. In order to thrive and remain competitive, shopping center owners must adapt to the rapidly changing market. Many shopping center owners are considering sustainability and ESG (environmental, social, and governance) initiatives as a key part of their strategy to meet changing conditions. In this article, we’ll explore the following topics to understand the retail market and how sustainability affects adaptation:

Retail market trends and implications
Why ESG is a part of an effective strategy to adapt to market trends
How to implement an effective ESG program

Retail market trends and implications

The shift to online shopping isn’t likely to go away. A McKinsey article¹ about how U.S. shopping behavior is changing says, “Consumer intent to shop online continues to increase, especially in essentials and home-entertainment categories. More interestingly, these habits seem like they’re going to stick as U.S. consumers report an intent to shop online even after the COVID-19 crisis.”

With the increase of buying online, shoppers are more inclined to pick up orders in stores. Retailers must be able to meet this demand by tailoring their environments to these shopper expectations. According to research from Colliers (reported by Globe St.)², “One-third of all digital retail sales will be fulfilled by stores… In 2020, just under 22% of digital sales were fulfilled by omnichannel methods. This continuity has compelled retailers to adapt their store operations to manage the influx.”

The shift to online shopping has made it critical for retailers to respond proactively to shopper expectations. The need to get ahead of the competition and better compete is pushing retailers to create desired shopping environments that will drive traffic to their brick-and-mortar stores.

Shopping center owners are focusing on providing an experience-driven environment to help attract shoppers.

According to Fortune³, “Experts also say that post-pandemic shoppers will be even more demanding: After being forced to stay close to home, they’re looking for better and convenient services and experiences.”

Industry leaders such as Simon Property Group have already prioritized the importance of meeting shopper preferences. “Simon is committed to providing convenient amenities [such as EV chargers] for our customers,” said Mona Benisi, Simon’s Vice President of Corporate Sustianability⁴.

Clean and safe environments are also increasingly important to shoppers. According to McKinsey research⁵, “US consumers have already started to change their behavior in response to hygiene concerns… 79 percent of consumers intend to continue or increase their usage of self-checkout in retail after COVID-19. Millennials and Gen Z are the widest adopters of contactless activities.”

Along with extra services such as EV charging stations, curbside pickup, and contactless payment, lighting quality, and healthier indoor air quality can help meet consumer preferences and attract shoppers. Brixmor Property Group continues to focus on transforming their shopping centers⁶ with enhancements including improved lighting, new pylon signage, parking lot upgrades, and more. In the company’s 2020 Corporate Responsibility Report⁷, Jim Taylor, CEO and President of Brixmor Property Group said, “We invest in our properties to make them more engaging and relevant to the communities we serve.”

Professional lighting design provides a comfortable, safe, attractive environment desired by shoppers and can also contribute to energy savings. Investing in shopping center environments can be a strategic advantage for shopping center and retail owners.

Investors are still interested in retail, but their expectations have changed.

The CBRE 2021 Real Estate Market Outlook for retail⁸ says, “private equity and venture capital funds are actively seeking to finance new retail ventures provided they offer justifiable risk-return rewards.”

Interest is still high in the market for retail ventures, making it essential for shopping center owners to meet changing investor expectations.

Well-executed ESG programs make good financial sense, so it’s not surprising that investors are looking at ESG initiatives when they evaluate retail opportunities. A ShoppingCenters.com (DMM) article⁹ says, “As consumers set the environmental and social agenda, the retail industry is responding in order to win their business. ESG criteria are increasingly used by investors and REITs to judge which companies to back.”

Corporate social responsibility is also an important factor that investors are focusing on. The McKinsey article¹ concludes that “As retailers contemplate the changes in consumer behavior, they will need to adjust their strategies and execution to adapt to the new norms, including… Managing corporate social-responsibility efforts to build brand strength authentically.”

The changing market provides opportunities for proactive retailers to adapt and thrive. The below table summarizes the implications of market trends:

Why ESG is a part of an effective strategy to adapt to market trends

One commonality that can be found from these market trends and implications is sustainability. Aside from showcasing sustainability efforts to meet investor demands, energy efficiency and sustainability initiatives aid shopping center owners in adapting to consumer preferences and better competing in the market. According to WWD¹⁰, “Environmental Social and Corporate Governance is dictating a new management approach for fashion, beauty and retail industries.”

To shoppers, sustainable environments are attractive environments. Sustainable solutions help shopping center owners meet the demand for clean and healthy environments that shoppers prefer amid market changes. Additionally, investing in sustainable solutions positions shopping center owners to better compete in the market and increase foot traffic by creating differentiated and desired experience-driven environments.

Realty groups are committing to ESG programs. A press release from Kite Realty Group¹¹ stated that the company has established a formal ESG task force and policy. Another press release from Phillips Edison & Company¹² shared corporate social responsibility accomplishments, including installing electric vehicle charging solutions, upgrading HVAC, and upgrading exterior lighting to achieve significant energy reduction.

Noted in IBM Research Insights¹³, “Nearly six in 10 consumers surveyed are willing to change their shopping habits to reduce environmental impact.” Top brands that include sustainability in their values will prefer retail spaces that support their ESG initiatives.

To withstand the pressure from shoppers, investors, and the competition, shopping center owners need ESG programs to be implemented and show results as quickly and efficiently as possible.

How to implement an effective ESG program

Simply making a statement about going green isn’t enough. ESG programs need to be properly implemented to deliver the results that stakeholders demand. Common obstacles to implementing an effective ESG program include using locally-focused initiatives instead of a national strategy, not having a defined structure of responsibility, and lack of bandwidth. Working with an experienced ESG partner is a proven, effective method to overcome these obstacles and see faster, better results from ESG programs. A professional ESG partner with shopping center expertise can implement a centralized program for best results to save time and money, and meet investor expectations.

Learn more about How a Centralized Approach to ESG is Setting the Standard for Shopping Center Owners.

Leading retailers have entrusted multiple retail/shopping center projects to the SitelogIQ team, and have experienced increased revenues and higher foot traffic. With over 14 years of experience developing national lighting programs, the SitelogIQ team is dedicated to helping shopping center owners accelerate sustainability programs that help increase revenue, attract tenants, meet shopper expectations, deploy capital efficiently and effectively, and meet rising investor demand for sustainability.

For more information about how an accelerated energy management and ESG plan can add value to your shopping center and retail properties call us at 855.581.6464 or email CI_Shoppingcenter@sitelogiq.com.

Sources

1 https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing#

2 https://www.globest.com/2021/09/22/one-third-of-all-digital-retail-sales-will-be-fulfilled-by-stores/?slreturn=20210823125859

3 https://fortune.com/2021/05/27/shoppers-retailers-stores-online-spending-covid/

4 https://www.prnewswire.com/news-releases/simon-to-install-ultra-fast-electric-vehicle-chargers-at-more-than-30-shopping-centers-300652194.html

5 https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Marketing%20and%20Sales/Our%20Insights/The%20great%20consumer%20shift/ten-charts-show-how-us-shopping-behavior-is-changing.pdf

6 https://www.brixmor.com/re-development/current-projects

7 https://www.brixmor.com/-/media/brixmor/pdfs/corporate-responsibility-report-2020.pdf

8 https://www.cbre.us/research-and-reports/2021-US-Real-Estate-Market-Outlook-Retail

9 https://shoppingcenters.com/article/sustainability-esg-era-responsible-retail/

10 https://wwd.com/business-news/financial/esg-fashion-beauty-retail-management-finance-disclosures-1234582913/

11 https://www.globenewswire.com/en/news-release/2020/07/29/2069799/0/en/Kite-Realty-Group-Trust-Conducts-Inaugural-GRESB-Assessment-Enacts-ESG-Policy-and-Releases-2019-2020-ESG-Highlights.html

12 https://www.businesswire.com/news/home/20201207005112/en/Phillips-Edison-Company-Issues-Annual-Corporate-Social-Responsibility-Report

13 https://www.ibm.com/downloads/cas/EXK4XKX8

Cybersecurity threats continue to be in a constant state of change and evolution as attackers discover new ways to compromise information and data, both at corporate and personal levels. In fact, the FBI’s Internet Crime Report from 2022 revealed that there are approximately 3.4 billion spam and phishing emails sent daily and that phishing is responsible for 90% of data breaches. The global average data breach cost was $4.35 million in 2022.

At SitelogIQ, we’re committed to educating our employees and customers on cybersecurity best practices as well as raising awareness about potential cyber threats to keep on their radar. Cybersecurity Awareness Month is a great time to review those tips and continue to educate ourselves to ensure we safeguard our sensitive information.

Cybersecurity Threats to Keep on Your Radar

Cybersecurity incidents continue to increase in frequency and severity and often require additional countermeasures or damage control to protect data and personal information. Of those incidents, the most common are phishing emails and social engineering. Phishing emails use deceptive emails, messages, ads, or sites that look similar to those you already regularly use and interact with in an attempt to steal your sensitive information. Social engineering attacks involve an attacker using human interaction and social skills to obtain or compromise an organization’s data or its computer systems. The most common social engineering threats come in the form of digital, in-person, and mobile/phone attacks.

The good news is there are a few key indicators that can help you identify and avoid these common cybersecurity threats. Be on the lookout for these red flags:

“Urgent, do this now!” The bad guys typically create a sense of urgency to get you to click a link or open an attachment.
Email addresses that closely resemble one from a reputable company by altering or omitting a few characters, for example, JDoe@gooogle.com or John.Smith@apple-support.in. The branding of the email can look legitimate but the email address identifies it as a scam.
Spoofed hyperlinks and Websites are made to look legitimate, but the URL may vary by spelling or site domain.
Poor grammar and sentence structure, misspellings, and inconsistent formatting throughout the message.

Our Top Cybersecurity Tips

In addition to the red flags listed above, there are a few cybersecurity best practices you can implement every day to help protect yourself online.

Multi-factor authentication (MFA) is a multi-step login process that requires users to enter more information than just their password. This provides an extra barrier and layer of security for your accounts. Since implementing an MFA solution our account breaches have significantly reduced.

Multi-factor authentication (MFA) is a multi-step login process that requires users to enter more information than just their password. This provides an extra barrier and layer of security for your accounts. Since implementing an MFA solution our account breaches have significantly reduced.

Create strong passwords for all of your accounts – the Center for Internet Security recommends using a passphrase, a longer password that is usually at least 14 characters in length, has spaces between words, contains symbols, and can be grammatically incorrect. These are often best if the words are completely random, which can be easy to remember but makes it harder for hackers to crack. You can use a random combination of words to form a passphrase or a keyboard pattern passphrase like “Quick Warm Earth Random Toboggan”. You can also use the first or last letter of words in a sentence to create your strong password. For example, “My first automobile was a black Ford pickup truck made in Detroit Michigan!” would translate to “MfawabFptm@DM!”.

There’s nothing “free” about free WiFi, software downloads, drivers, charging stations, etc. Selecting these free options may be a threat and a way for a hacker to access your data. Validate the source and only connect or download when you know with confidence that you are safe. Consider using a cellar hotspot instead when you’re not in the office or your home.

Before signing up for online services on your work device, check with your Information Technology team to ensure its security.

While Cybersecurity Awareness Month is a great time to refresh yourself with best practices, it’s critical to incorporate these best practices into your every day habits when receiving, engaging, and responding to any message – both professionally and personally. Keeping these tips and tricks in mind will help you protect your personal information and that of your organization.

Climate change, environmental stewardship, and sustainability are at the forefront of mainstream consciousness. 

Many of today’s customers want to support companies that are working towards reducing their environmental footprint. Similarly, investors and stakeholders want to put their investment dollars into organizations that share the same environmental values and have the transparency results to back their claims. This is all happening as government bodies impose more regulations and restrictions on businesses to ensure more responsible environmental impact. 

It can be challenging for businesses and organizations to demonstrate their environmental responsibility and other forms of sustainability. This has given rise to a framework called Environmental, Social, and Governance (ESG) to help define these concepts and values. 

Environmental, Social, and Governance (ESG) Explained

Here is a brief rundown of the three main parts of ESG:

Environmental: This is the measurement of an organization or business’s environmental impact and sustainability.
Social: The “social” part of ESG measures a business or organization’s interactions with its employees, suppliers, customers, and community. 
Governance: “Governance” refers to how the top level of a company governs it, including topics like executive salaries, transparency, and conflicts of interest. 

Organizations must create a strategy for each part of ESG. In this article, we will take a closer look at the “E” in ESG — the environmental side. 

What Is the “E” in ESG?

The Environmental part of ESG is the first part of the acronym for a reason. It’s highly important and often one of the first things customers and stakeholders look for in the businesses they choose to buy from and invest in. 

Here are some ESG environmental factors to be aware of for your business or organization:

Carbon emissions
Pollution
Resource management
Material disposal
Sustainability practices
Energy & operating efficiency
Future environmental goals

As you’ll see below, your environmental ESG approach can come from your own values, but they often stem from outside preferences, laws, and values you’ll have to appease if you want to stay profitable and compliant as a business. 

5 Reasons Why the “E” in ESG Matters

Neglecting the “E” in ESG comes with many environmental risks in business that you want to avoid. Here are five of the biggest reasons why caring about ESG environmental topics matters:

1. Customer, Investor, and Community Scrutiny

Businesses experience some pressure from their investors, customers, and the surrounding community to reveal their environmental impact. These parties want to know if your business demonstrates sustainable, responsible practices across facilities and processes. Here’s a closer look:

Customers: Today’s customers have more awareness than ever about the importance of sustainability and environmentalism. They want to lessen their negative impact on the environment, and they can do so by buying from companies whose environmental values align with their own. 
Investors: Investors may see a positive relationship between a company’s financial performance and its environmental practices. 
Communities: Global and local communities are directly experiencing major negative effects from environmentally careless companies and now tolerate environmentally responsible businesses.

2. Brand Reputation

Your environmental strategies can directly impact your brand reputation positively or negatively. Today, news of environmental problems or disasters travels across the internet and news outlets almost immediately, demolishing implicit brands in the process. Customers may respond to such events by boycotting, and investors often back out of deals to find a more environmentally stable company in which to invest their capital. 

Conversely, businesses that improve their environmental stewardship can improve and solidify their reputations. Even a company that experienced a loss in brand reputation can regain it by holding themselves accountable and shedding light on actions taken that give them more positive environmental publicity. 

3. Rules and Regulations

Many of today’s political agendas involve preventing and offsetting environmental harm. You can reduce risks and increase advantages as laws change by anticipating environmental problems and seeking solutions before problems occur. You’ll gain better autonomy as lawmakers see your business as one that is already positioned within regulations. 

You want to avoid government intervention in your business and operate with healthy autonomy. When you focus on the “E” in ESG for your business, you ease regulatory pressure and can foster healthier relationships with the governing bodies that set environmental rules within your industry. 

4. Efficiency and Investment — Profitability in Sustainability

Your company can reduce spending by practicing resource management and energy efficiency. By making changes to reduce environmental impact, you can avoid destructive or expensive environmental incidents. You can also save money by minimizing waste and implementing creative recycling initiatives. 

Investors will see these actions and results as signs their capital investments will be safer and go farther if they invest in your company. Investors want to reduce their financial risk and get the biggest return on their investments, and you’ll check both those boxes when you save money and increase efficiency with good environmental practices. 

5. Employee Engagement

A sustainability culture within your business can inspire employees by letting them participate in something that positively impacts their world. If you adopt environmental sustainability as one of your core business goals, you can align your company culture with many of your employees’ values. 

This is even more true if you let employees report sustainability issues and suggest changes, as they are often the ones most often engaged with workplace processes and supplies. This also lets employees make a true difference while increasing their value to the entire company. 

How SitelogIQ Helps Level Up the “E” in an Organization

At SitelogIQ, we help organizations achieve greater sustainability and environmental stewardship to support your commitment to the “E” in ESG. Your facilities and practices can reduce any negative environmental impact while attracting more investors, keeping employees satisfied, and safeguarding the community’s wellbeing. 

Here’s what we cover with our solutions:

Portfolio analysis and capital planning
Program management
LED lighting and controls
Efficient water fixtures
Electric vehicle charging
Energy Generation and storage
Solar photovoltaic solutions
Smart irrigation
Smart thermostats
Project financing
Use of technology to track consumption data

Learn More About What We Have to Offer

The team at SitelogIQ has one main purpose — to make buildings better by reducing environmental risks in organizations in public and private sectors. We help make sustainability and company improvement processes easier by ensuring buildings are efficient, saving you money and reducing your impact on the environment. With our solutions and energy expertise, you can make a difference in the lives of your employees and your community. 

Contact us today to learn more about what we can offer your business to help you prioritize the “E” in ESG.