An ESG office upgrade isn’t a one-time event

Future proofing is vital and it requires regular maintenance and resources

Since the onset of the Covid-19 pandemic five years ago, one of the biggest trends in commercial property has been enhancing the environmental, social, and governance (ESG) credentials of offices. Refurbishment has been the name of the game, as landlords prepare to meet requirements for future energy standards.

A rooftop patio is a nice perk, but make sure the furniture is tied down (Picture: Adobe)placeholder image
A rooftop patio is a nice perk, but make sure the furniture is tied down (Picture: Adobe)

However, while much of the focus is on improving the energy efficiency of existing stock, there are other factors at play too. Occupiers are increasingly looking for more from their offices, not only in terms of sustainability, but also amenities, wellbeing facilities for staff, and other features that would fall under the ESG umbrella.

Often, what can be forgotten in the desire to add a wide array of ESG-friendly aspects to a building is how these can be practically incorporated into its management and maintenance regime. There are a number of important points to consider with any changes to a building – even if they are not apparent on the face of it.

Landlords are preparing to meet requirements for future energy standards, says Sarah Riggsplaceholder image
Landlords are preparing to meet requirements for future energy standards, says Sarah Riggs

Starting on the environmental front, biophilic walls and green spaces – both increasingly popular choices – will need to be maintained and regularly cleaned, inevitably, that entails a cost that will need to be reflected in the service charge budget for operating the building. Meanwhile, incorporating technologies like rainwater harvesting will require storage areas and regular upkeep.

Many offices are encouraging environmentally friendly travel and active commuting by offering spa-quality shower and changing facilities. But, doing so comes with potential health, safety, and security risks – particularly if the showers are not used regularly or dozens of bikes are kept on site – that need to be reflected in how the building is managed.

In some instances, we have seen higher end buildings go as far as providing towel services for commuters to further differentiate themselves in the highly competitive markets of Scotland’s cities. Remember, though, that these types of amenities can come with large additional running costs and require a trustworthy supplier.

Rooftop decks are another common addition to refurbishment programmes. It is a nice draw, but think about the practicalities – as Storm Eowyn showed earlier this year, any furniture or other items kept on exposed spaces need to be tied down securely.

We have also seen a lot of landlords invest in apps for mobile devices that allow occupiers to interact with their building. These can work, especially in city centres, and sound good in principle, but it’s important to think about how the tenants will actually benefit. It will need regular updates with new content and, often, on-site staff could be better positioned to deliver certain information or support.

There are a range of other examples, but ultimately the point is that there are a lot of considerations to take into account before pushing ahead with ESG upgrades for an office. Property and facility managers, who will inevitably know the building well, should be involved early in the refurbishment process to feed into any proposals and the practicalities they will entail.

Offices do need to be future proofed – particularly with net zero ambitions on the horizon – and part of achieving that will include incorporating more ESG aspects. But, that is not a one-time event – they will also need careful planning, management, and resources, none of which should be underestimated if they are to be sustained for the long term.

Sarah Riggs, associate at Knight Frank Scotland​

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