ESG Strategy in office fit-outs: why is it important & how is it achieved?

ESG criteria are often used when discussing investment, but what relevance is there to consider when planning an office fit-out? And what exactly is an ESG strategy?

Put simply, ESG is a set of criteria used to evaluate a company in three areas:

• Environmental – How does the company strive to protect the environment?
  
  
• Social – How does the company manage its relationships with employees, customers, the community and other stakeholders?
  
  
• Governance – How is the company led and what is its ethical stance?

Check out our own industry leading ESG policy for a in-depth look at how DENTON aim to reduce our company’s carbon footprint, promote social responsibility, and champion diversity and inclusion in the workplace.

While these used to be considered voluntary for organisations, ESG criteria have been crucial for investors in identifying growth opportunities and areas of risk, meaning they are now top of corporate agendas. And it isn’t just important to business leaders and investors anymore. Research has shown 83% of consumers would like companies to invest in ESG criteria and 86% of employees want to work for an organisation that supports issues they care about. 

So, how do you successfully show employees and consumers you are investing in ESG? That’s easy – use your office space. Your workplace should be a physical representation of your brand and its goals, and aligning these goals with an ESG strategy demonstrates your mission. It’s where you bring your employees, customers, and stakeholders together and have an impact on the local community.

Here are some key ways you can successfully communicate your ESG strategy through office design.

ESG in the office – measuring the impact of ESG goals in office fit-out

Social

An organisation’s social responsibility encompasses its employees, customers, and local community and how well they consider these people in their strategic goals. Following the pandemic, retaining talented staff has been increasingly difficult as employee expectations have risen. As more and more organisations offer hybrid working, workers are no longer content to accept inflexible working hours or a lengthy commute. In fact, research has shown that 51% of UK employees would quit if there were no option for hybrid working.

Addressing the ‘talent crisis‘ has never been more critical. Creating an office space that encourages staff to collaborate and focus, while still being a comfortable space for clients and customers, is fundamental to retaining staff. Here are 5 areas to focus on when considering social criteria and your office fit-out: 

• Wellbeing – creating a space that offers choice, comfort and inclusivity will improve your employee’s productivity, engagement and overall wellbeing. It can also dramatically reduce absenteeism as your staff want to be in the space you have created for them. Introducing wellbeing initiatives like healthy meals and snacks, cycle to work schemes, cheaper gym memberships, a relaxing breakout space and even outside meetings can support your social goals and ultimately, retain your employees. 
  
  
• Collaboration – offering spaces which allow employees to come together and share ideas is crucial to the success of any business, however since the pandemic, this has been growing in importance. While working from home may cut your commute, we have all seen the struggles when it comes to collaborating. No longer is everyone in the building together at all times, so it’s important to create a space that entices people in, while encouraging them to collaborate when they are there. Provide seamless AV and power support or install high tables and whiteboards or SMART boards to inspire and stimulate creativity.
  
  
• Productivity – dedicated private and confidential spaces within an office are just as important as breakout areas and rooms for quiet meetings.
  
  
•  The volume of online calls has grown since the pandemic, and many people find it hard to focus with the buzz of the office around them. Meeting pods or quiet zones are ways you can provide spaces for these activities and others. Also, ensure they have the right equipment to meet expectations, i.e. multiple screens, comfortable seating to support posture and noise-cancelling options.
  
  
• Security – your office needs to create a sense of security in your staff, both physically and psychologically. Letting them know where to go if they need support is key to making your employees feel at ease in your building and subsequently want to be there.
  
  
• Flexibility – adapting a space to fit the current needs and allowing your employees some ownership over the space makes them feel like they belong. Multi-functional furniture and sit/stand desks are just some examples of how you create an inclusive and flexible environment.
  

Social responsibility also extends to your local community, which includes how your building or space impacts the local community. Being mindful of the community and its needs can help inform decisions and avoid trouble down the line. Something which is certain to put investors off is friction with the public. Equally, local high streets and city centres have suffered during the pandemic and require full community support, including organisations, to bring them back to life.

At DENTON, in order to improve our social criteria, we support several charitable organisations across a wide range of areas, including sport, education, business, and personal development. We promote active involvement in our community by fully supporting our team in their pursuits of charitable fundraising and contributions to associations and societies. Charitable initiatives are also a great way of bringing an organisation together – while supporting common values.

Governance

While a little harder to identify, governance criteria play a key role in an office fit-out during the decision-making stage – specifically, the supply chain and where and how you source your materials. Fair wages, financial transparency, charitable purpose, environmental policies and good working conditions are vital within each of your suppliers. It won’t have avoided your notice that some companies recently have come under fire for using child labour – a big no-no when considering governance criteria. Organisations within your supply chain should be transparent, sustainable, traceable and diverse.

Your team’s diversity and inclusivity are also vital when representing a clear governance strategy. As well as fostering a welcoming office environment, it reduces staff sickness and increases staff retention further, and promotes collaboration and sharing of ideas from different cultures and backgrounds – an invaluable resource for any organisation. Implementing inclusive policies like an open-door policy can create a collaborative atmosphere and foster relationships with employees of all levels.

DENTON: crafting environmental, social and well-governed spaces

So, it’s clear implementing an ESG strategy brings value to developers and organisations and is basically a prerequisite for business growth. As well as buildings being considered more valuable to investors if they are climate-ready and “healthy”, they also help attract and retain employees and help future proof your organisation.

As discussed, these areas are presented clearly in the design, fit-out and running of your office, and companies that ignore or brush over these criteria will find themselves unable to keep employees engaged and customers buying into your brand. Enter DENTON!

For over 25 years, we’ve been helping landlords and tenants to create the very best workspaces out there. 

Our teams, north and south, have an unrivalled blend of technical and creative expertise — and we’re proud to offer a range of services covering every stage of the commercial interior fit-out process, from conception to completion to aftercare. In fact, why not have a gander at some of our recent projects?

Partner with the workspace design experts today and let us help you implement your ESG strategy. Drop us a message.