August 23, 2023
Sustainability is becoming ever more important across all business sectors, particularly in the property management industry.
In the context of Environmental, Social, and Governance (ESG) considerations and the global pursuit of net zero emissions, it’s vital that property managers demonstrate their commitment to these policies.
With ESG being a topic of major importance, property management companies need to evidence exactly how they manage and document their supply chains policies, procedures, and commitments to ESG.
This article will consider the meaning of ESG and net zero, the importance of ESG in property management, how to integrate ESG and net zero into supply chain management, and the role of Prosure360 in supporting these policies. Our full list of topics include:
- What is ESG?
- What is ESG in property management?
- What does net zero mean?
- How are ESG and net zero connected?
- What net zero strategies can be used in property management?
- Integrating ESG and net zero into supply chain management?
- How to choose sustainable contractors and suppliers?
- What is Prosure360?
- How can Prosure360 support ESG and net zero requirements?
- Why is ESG reporting important?
- What are the key ESG reporting practices?
- How can Prosure360 support ESG reporting?
- How will Prosure360 benefit your property management business?
What is ESG?
ESG outlines three key factors that measure the sustainability: environmental, societal impact, and Governance.
Ultimately, ESG practices aim to enhance sustainability, minimise environmental footprints, promote social equity, and improve governance standards.
Now more than ever, property managers and companies need to set clear, measurable goals to ensure ESG compliance and work towards net zero.
What is ESG in property management?
Putting realistic processes and systems in place to assure ESG and net zero requirements is essential for every property management company.
ESG principles in property management include:
- Ensuring energy-efficient buildings.
- Reducing waste.
- Conserving water.
It’s also important to use sustainable construction materials and adopt green building certifications, such as BREEAM or LEED as these can enhance the ESG performance of properties.
With regards to the social aspect of ESG, ensuring socially responsible practices such as diversity and inclusion, community engagement, and fair labour standards is crucial.
What does Net Zero mean?
In simple terms, net zero means achieving a balance between the amount of greenhouse gas produced and the emissions removed from the atmosphere.
In a world where sustainability is becoming more and more relevant, we all need to work towards achieving net zero.
How are ESG and Net Zero connected?
Net zero links in with ESG as it falls under the environmental pillar, focusing on a company’s sustainable practices.
Today, ESG and net zero considerations are an essential aspect of property management for several reasons, namely: attracting investors, improving asset value, and enhancing tenant satisfaction.
What Net Zero Strategies can be used in Property Management?
To reduce their carbon footprint and improve their ESG score, property managers need to put an effective net zero strategy in place.
This strategy should include a wide range of sustainable activities such as generating renewable energy, setting up building management systems and reducing waste at every opportunity.
It would also be prudent to encourage tenants and residents to conserve energy by offering regular incentives.
There are many ways that a company can improve their ESG performance, so an effective and realistic strategy must be put in place to carry actions forward and affect real change.
Integrating ESG and Net Zero into Supply Chain Management
Property management relies heavily on a network of contractors and suppliers for various services and materials.
So, to ensure ESG compliance, the supply chain needs to reflect these principles at every stage of the property lifecycle.
Essentially, it all comes down to choosing the right suppliers and contractors who promote sustainability in their practices.
How to Choose Sustainable Contractors and Suppliers
Making sure the supply chain is integrated with ESG and net zero standards means property managers need to establish criteria for selecting the right suppliers and contactors.
Therefore, property managers need to devise a system to check whether their suppliers and contractors are certified and committed to sustainability.
It may also require property managers to conduct due diligence to evaluate potential partners’ ESG practices.
Unfortunately, this can be a rather long and time-consuming process which can be difficult to balance with other priorities.
That’s why Prosure360 can be a great solution for property managers and companies to improve their ESG score and effectively take control of their supply chain.
What is Prosure360?
Prosure360 is a cloud-based supply chain management platform. It’s designed to give clients full visibility over the contractors and suppliers they work with.
This platform allows clients to have all their core supply chain documentation in one place; this means they can keep track of and report on goals relating to supply chain management, net zero emissions and ESG.
How can Prosure360 Support ESG and Net Zero requirements?
Managing Suppliers and Contractors with Prosure360
Having the right suppliers and contractors in place is half the battle when it comes to adhering to ESG and net zero requirements.
Prosure360 allows you to define the criteria for your suppliers and contractors through the onboarding process.
By communicating your exact requirements to Prosure360, you have the power to set the criteria relating to ESG and net zero; this can then be relayed to the supply chain.
Having this data in one place creates a single source of truth. This allows you to make faster decisions and spend your time on the things that matter.
This information will be available to all key stakeholders, giving them the power to make informed decisions when selecting suppliers and contractors.
Areas that Prosure360 will actively manage in real time include:
- Financial health.
- Contracts / schedules of rates.
- Professional memberships, certificates, and accreditations.
- Geographical areas covered by the supplier and or contractors.
- Services provided by the supplier and or contractors.
With all this data in real time, you can easily access suppliers and contractors that are aligned with your business values, goals, ESG and net zero requirements.
Pre-Qualified Assessments in Prosure360
Prosure360 can provide a pre-qualified assessment, referring to pre-qualification questions.
These are a set of questions that have been developed to reduce the need for suppliers and contractors to answer lots of different questionnaires for each client they work with. They represent a common minimum standard that is recommended by the British Standards Institute (BSI).
These questions are designed to help suppliers understand key information they need and help buyers find suppliers they can trust. Topic areas covered include:
- Finance.
- Business & Professional Standing.
- Equality, Diversity & People.
- Environmental Management.
- Quality Management.
- Business Continuity & Data Protection.
- Building Information Modelling (BIM).
- References.
The assessment is reviewed and processed via a Prosure360 Auditor to review the questions answered and the supporting information submitted.
Bespoke Questions in Prosure360
The overall aim of Prosure360 is to give you total control of your supply chain, leading to better business outcomes and making your life easier.
That’s why Prosure360 offers flexibility, allowing you to create bespoke questions related to your business. This is particularly useful for meeting ESG and net zero requirements.
These questions will be set with our pre-qualified assessment, giving you the background knowledge to make an informed decision about who you work with.
The Pre-Qualified assessment will demonstrate suppliers and contractors’ commitment to your policies and procedures, relating to ESG and Net -Zero this creates a collaborative approach, assuring that everyone is always on the same page.
Why is ESG Reporting Important?
Managing and reporting on net zero and ESG performance is becoming particularly prominent in property management.
Although ESG reporting is something businesses know they need to do, it’s crucial to understand why it’s needed.
Reporting on ESG performance allows you to be transparent and foster accountability. This is especially important for your stakeholders and investors as they can assess your ESG goals and view progress.
This is a major part of building trust, attracting investment, and encouraging continuous improvement as a socially responsible company.
Keep in mind that an ESG report should be driven by a real commitment to sustainability; it becomes meaningless if it’s just done as a tick-box activity to satisfy external interest.
What are the Key ESG Reporting Practices?
Now you understand why ESG reporting is so vital, you can begin to put some key practices in place.
For property managers and companies, a few of the main ESG reporting practices include:
- Establishing clear ESG and net zero performance indicators within the supply chain.
- Monitoring and evaluating contractors and suppliers’ adherence to sustainability targets.
- Disclosing information on supplier diversity, carbon emissions, waste management, and energy consumption.
- Engaging in third-party verification and certifications to enhance the credibility of reported data.
How can Prosure360 support ESG reporting?
Using the pre-qualified assessment and bespoke questions, Prosure360 enables you confidently make choices about who you work with.
Through Prosure360, and the standards and requirements your business has set, you can actively demonstrate which of your suppliers and contractors meet these requirements in addition to how they manage their processes, policies, and procedures.
How will Prosure360 Benefit your Property Management Business?
Prosure360 enables you to build on professional relationships with your suppliers and contractors. It also ensures that your supply chain is aligned with your overarching business goals and values.
By taking control of your supply chain, you’ll be able to effectively measure your ESG and net zero goals.
Embracing sustainable practices and fostering strong supply chain relationships will help you contribute to a greener future as well as boosting the performance of your property management business.
Take control of your supply chain and improve your ESG performance with Prosure360— get in touch with us today!
