FM leaders reaching the point where sustainability pays

The Sustainable Facilities Management Index (SFMI) has released its 2024 audit findings in its latest report ‘FM Leaders Reach the Point Where Sustainability Really Pays’. The results reveal a critical shift in the sector: sustainability initiatives are now delivering tangible internal value and driving significant external revenue opportunities.

As ESG priorities take centre stage, FM providers are witnessing the rewards of their commitments. However, challenges remain, including a shortage of sustainability skills and expertise at senior levels. The SFMI report emphasises the importance of overcoming these hurdles to ensure continued growth and innovation in the sector.

Decarbonisation: From Ambition to Opportunity

FM leaders are spearheading a transformation, turning decarbonisation into a dynamic opportunity rather than a compliance-driven task. The report highlights that SFMI Partners are commercialising new service offerings to meet growing industry demands, particularly in fleet decarbonisation. Transitioning to EV fleets has become a pivotal step forward.

Despite this progress, Scope 3 emissions remain a pressing concern, with FM providers needing to deepen their understanding and data quality to achieve their net zero goals.

Wellbeing: Doing What’s Right Pays Off

Wellbeing initiatives are driving measurable results in staff retention, diversity, and customer satisfaction. Senior leadership involvement has increased significantly, underscoring the commercial and cultural imperatives of prioritising wellbeing.

Social Value: Turning Purpose into Profit

Social value initiatives are at the forefront of FM providers’ strategies, with SFMI Partners scoring 14 per cent higher than last year in this area. By integrating social value into profit structures, providers are proving the commercial benefits of these efforts. Partnerships with non-traditional stakeholders and enhanced data integration are further amplifying their impact.

Risk and Opportunities: Turning Risks into Rewards

Strong governance remains a linchpin for progress, with skilled boards driving better ESRS preparation, focused materiality assessments, and enhanced risk management. These actions translate into improved commercial outcomes and a more resilient sector.

Next Steps for FM Providers

The report provides a roadmap for FM providers aiming to capitalise on these trends:

• Upskilling & Strategic Assessments: Conduct comprehensive materiality assessments and climate risk evaluations.
• Investing in Innovation: Allocate resources to emerging sustainability initiatives to gain a competitive edge.
• Turning Risks into Opportunities: Develop internal solutions that can evolve into marketable services.

The SFMI 2024 report showcases how forward-thinking FM providers can achieve sustainability goals while unlocking substantial commercial value.

To download the full report click here.