ESG (Environmental, Social and Governance) has been a buzzword for a few years, changing how we work and how we are perceived by both internal groups and external stakeholders. But what does it mean for services forged in tradition, like building surveying?
The term “ESG” is an umbrella term for the topics that, when measured, should illustrate a business’s impact on the society in which it operates. The building surveying sector focuses much more on environmental matters, aiming to make our practices sustainable and affordable for all.
Sustainability
Dilapidations, as a rule, is a service that is inextricable from the “rip it up and start again” mindset. Tenants have been encouraged – even required at times – to remove all alterations and return properties to their original state. This obviously leads to considerable waste, which is then recreated at every lease end.
As a reaction to this, there is a growing emphasis on repairing and maintaining what has come before one’s own tenancy. Using an existing fit-out will not only minimise waste and landfill refuse, but it will also save the new tenant money by ‘making do and mending’. This approach, not only saving money and resources, will also align with your landlord’s corporate ESG goals – making everyone’s lives easier in the short-term.
EPCs and MEES regulations
Looking at the long-term benefits, dilapidations services will integrate ESG objectives that prioritise and encourage the improvement of EPC (Energy Performance Certificate) ratings.
EPCs assess a building’s energy efficiency, and minimum energy efficiency standards (MEES) dictate the objectives those properties need to reach in order to meet those EPCs. Involving ESG within these processes ensures that landlords will understand the importance of these standards from a social perspective. When prioritising the ESG within their property portfolio, EPC ratings will improve, and property value will also increase, all the while making their buildings a safe and pleasant place to occupy.
Collaboration
To make sure that tenants and landlords are all on one page, it is so important to approach ESG as a collaborative effort. Working together and communicating both consistently and fairly will help to shape the lease and the property as a venture that works for everyone. From the tenants’ perspective, understanding the limitations and restrictions of alterations can ensure they will not be in breach of their lease. For landlords, embracing their tenants’ requirements will ensure that the social value of the building will remain and improve.
In summary
As climate change continues to play a large part in all our corporate and personal lives, we must encourage sustainable practices where we can. As little as keeping fit-outs or implementing “fabric first” initiatives can improve EPCs and ultimately improve sustainability metrics within the dilapidations sector.
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