This is part 2 of a 3-part series looking at the main Scope 3 emissions challenges in the FM industry. Kristen Mierzejewski, Senior Consultant at Acclero Advisory, talks tackling data challenges in Scope 3 Emissions for FM companies.

Scope 3 Emissions are notoriously complex and difficult to address, presenting significant challenges across all industries, including Facilities Management. With increasing pressure from governments, regulators, shareholders, and clients, FM providers are having to look more closely at their indirect emissions and devise new ways to tackle them. 

The need for high quality data

High-quality, comparable, and reliable data is the foundation of an effective Scope 3 emissions strategy. For FM providers, where indirect emissions account for a large portion of their carbon footprint, accurate data is essential to understand the company’s full environmental impact. 

Reliable data allows companies to set accurate baselines, track progress, and identify key opportunities. High-quality data supports better decision-making, enabling organisations to develop robust sustainability strategies and communicate credible emission reductions to clients. Transparency is a key tenet of disclosure, and allows a company to demonstrate its commitment to decarbonisation. Comparability, meanwhile, allows organisations to benchmark themselves against the industry, as well as track progress towards their sustainability goals.

Navigating data gaps and inconsistencies in complex supply chains

However, achieving this standard of data has proven difficult for FM providers. Obtaining accurate and sufficiently granular Scope 3 emissions data from suppliers is both costly and time-consuming. FM providers frequently lack the knowledge and training to understand what information to request, and what format it needs to be in. A comprehensive understanding of Scope 3 emissions is essential to requesting the correct data from suppliers. Certain services provided will have more of an environmental impact, but without an understanding of what these are, FM providers may not be getting an accurate picture of their overall emissions.

Suppliers often lack the resources, tools, or expertise to provide reliable data. Smaller suppliers, in particular, may lack the tools, resources, and training to respond effectively to emissions data requests. This issue is further complicated by the diverse and complex nature of supply chains of in the FM sector. Suppliers can span across countries and industries, with varying approaches to data collection and reporting. 

In many cases, FM providers rely on spend-based estimations to calculate emissions. While permissible under the GHG Protocol, this approach lacks precision and limits the company’s ability to identify emissions reduction opportunities. Spend-based methods use financial data to estimate emissions based on industry averages but fail to capture the unique characteristics of individual suppliers or activities. This limitation makes it difficult to identify reduction opportunities or report transparently.

Activity-based data, which directly measures emissions from specific activities, is far more reliable but harder to obtain. To achieve this level of granularity, FM providers must work closely with their suppliers to understand operational details and establish streamlined data-sharing processes. For example, instead of relying on overall spend for cleaning services, activity data might include the specific energy consumption of cleaning equipment, or the emissions associated with transportation of cleaning staff. Gathering this type of data allows for an FM provider to find inefficiencies and areas for improvement, and they can work collaboratively with suppliers to reduce emissions.

Increasing Regulatory and Client Pressure

Another challenge in data collection is the lack of consistency in reporting standards among suppliers. Larger suppliers may follow specific frameworks to record their data, while smaller suppliers may not adhere to any standards. This can make it difficult for FM companies to aggregate, compare, and verify data across their supply chain. Variations in reporting standards, differing levels of granularity, and lack of verification adds to the problem. This can not only prevent accurate reporting but also hinders FM companies’ ability to meaningfully engage with their suppliers on sustainability topics.

As explored in our previous article, the demand for high-quality data will only continue to grow. Regulatory requirements like the CSRD in the EU and frameworks like ISSB and the Science-Based Targets Initiative (SBTi) are driving the push for more accurate Scope 3 emissions reporting, increasing the pressure on FM companies to improve their data collection processes. For FM providers to remain competitive, they must align their practices with these frameworks while meeting client expectations for transparent and accurate reporting.

How the SFMI can help with Scope 3 emissions for FM 

Our Scope 3 Emissions Project is specifically designed to combat these challenges. By providing a robust framework for data collection alongside a unique data tool, the project provides FM companies with actionable insights to help overcome these limitations and enhance their engagement and collaboration with their clients. 

The key focus of the next phase of this project is the Scope 3 Emissions Tool, which is designed to help FM companies comprehensively map their emissions. This tool builds on The Scope 3 Framework for Facilities Management, which outlines what data is needed, from whom, and how it should be structured. Through breaking down emissions across various categories, the tool helps FM companies identify the data required to build up their Scope 3 emissions profile. Our data tool analyses this data to identify hotspots and opportunities for reductions. This structured approach ensures no area of the value chain is overlooked, and provides FM companies with critical insights to allow them to engage more effectively with their clients and value chain. 

For example, by identifying high-emission hotspots such as energy-intensive activities or inefficient transportation methods, FM providers can collaborate with suppliers to implement more sustainable practices. This might include switching to renewable energy sources, optimising logistics, or adopting circular economy principles in procurement.

As regulatory requirements come into effect in the EU and the UK, FM companies will increasingly need to have oversight over their value chain and provide clients with data on their emissions. Ensuring data quality is the foundation of effective emissions management. Through our Scope 3 Project, Partners benefit from thorough data validation and an organised approach to data collection. This not only improves data reliability but also enhances reporting accuracy, ensuring FM companies can trust the insights they derive. 

To become involved in the next stage of this project and position your company as a leader of sustainability in the FM industry, please get in touch. 

From SFG20, one of our exhibitors at Facilities & Estates Management Live.

2024 felt the lasting impact that regulatory change has had on the facilities management sector. The introduction of the Fire Safety Act 2021, the Building Safety Act 2022 and the Fire Safety (England) Regulations 2022 fundamentally reshaped responsibilities, focus areas and challenges for facility maintenance professionals, establishing new compliance requirements and standards that will continue to influence the direction of the industry this year. 

Jason Instrell, Industry Lead at SFG20, the industry standard for building maintenance, has shared his insights regarding how the facilities management industry will continue to evolve in 2025.

1.   Sustainability at the forefront in the race to net-zero

The landscape of the UK’s built environment is set for a profound environmental transformation. With the Prime Minister announcing an 81% reduction in carbon by 2035, the race toward carbon neutrality is accelerating, propelled by technological efforts, evolving government policies and heightened public climate awareness.

As we look towards 2025, the need for sustainable building maintenance practices will only grow. As the global urban population continues to expand rapidly, construction and, ultimately, carbon emissions will follow suit. 40% of global carbon emissions are from the built environment, with 30% coming from building construction, operation and demolition. 

To mitigate this, businesses and building owners must consider and implement ways to reduce greenhouse gas emissions. Improving the energy efficiency of existing buildings, through sustainable maintenance, and ensuring that new buildings incorporate this into their initial design is one way to help reduce greenhouse gas emissions. Training and competence remain firmly in the spotlight, with businesses needing to develop the knowledge and experience to help hit their carbon reduction strategies in 2025. 

2.    Building compliance in the spotlight

Regulations and legislation are constantly evolving. These changes, whether small or large, can lead to confusion and can change requirements around the design, installation, verification and maintenance of buildings. 

With the ongoing developments in the RAAC (reinforced autoclaved aerated concrete) scandal across UK schools and Universities, and the final report from the Grenfell Inquiry, 2025 will likely see an even greater spotlight placed on competence and compliance in line with the Building Safety Act 2022. The industry’s barrage of building and structural integrity issues means it comes as no surprise that compliance has risen to the top of many priority lists.

Building owners, property managers and contractors will need to ensure that regular risk assessments are undertaken, statutory works are being scheduled, a principal accountable person (PAP) is appointed, and that all maintenance information is evidenced as part of a golden thread. 

3.    AI integrations 

Recent developments in AI create an opportunity to revolutionise how the industry approaches building maintenance. The biggest challenge for Facility Managers is identifying what tasks must be performed on each asset in a building to preserve life, reduce cost, and stay compliant with current regulations. This can sometimes be costly and time-consuming, and essential maintenance can be missed, leading to an increased risk of equipment failures and faults. 

IoT (internet of things) technology relies on sensor technology mounted on assets to monitor statuses such as energy consumption, pressure, vibration and flow rates. Its adoption can allow businesses to accurately plan maintenance tasks in an efficient and cost-effective way. Digital twin technology provides a virtual model of an asset that can mimic the installed equipment, allowing for real-time data and facilitating efficient, data-driven decisions for Facility Managers. 

Businesses are still under pressure to develop the necessary skills and teams to successfully work alongside AI technology, such as IoT and Digital twin technology, for predictive maintenance, data analysis and a cost-effective allocation of FM budgets. The construction industry is reported to have one of the lowest adoptions of AI technologies, with only 12% of businesses currently using some form of artificial intelligence. 

2025 will see a continued push to overcome these challenges and take full advantage of AI assistance within the FM space- this will likely continue through training and development opportunities.

4.   Adoption of digital-led maintenance strategies 

With 43% of FM companies naming systems integrations as the most significant problem in their business in 2024, 2025 will not see this changing. Digital integration of mechanical, electrical and building services systems remains a top priority.

The reluctance to adopt digital-led maintenance was initially due to the effort and high costs of hardware and software. However, the landscape is changing as more options become available. Yet challenges remain, as businesses work to develop the necessary skills to install sensors, monitors, and interpret the generated data effectively. Overcoming these hurdles will be essential over the next year to unlocking the full potential of digital maintenance.

5.    Enhanced connectivity 

Property managers must collaborate with multiple stakeholders, from building owners to facility management consultants and engineers, who all play a crucial role in the safe and legal maintenance of a facility. 

Managing extensive workforces, with a mix of internal and external resources, tends to make streamlined collaboration much trickier. Ensuring the right people receive the necessary information at the right time becomes a challenge. 

In a recent poll conducted by the experts at SFG20, 66% of asset owners and property managers revealed that maintaining the ‘golden thread’ and ensuring all the information is captured and accurate, remains a concern for their business. This shows that many current FM systems are not aligning in a way that helps facilitate efficient, collaborative working. 

Developing and providing software solutions that enable teams to share data and work efficiently will continue to characterise industry changes throughout this year. 

Record volume demonstrates the ongoing flight to quality in the capital.

LONDON, 19 December 2024: Leading commercial real estate developer and operator, Brookfield Properties, has announced a series of new lettings across its London office portfolio, surpassing 800,000 sq ft of leasing transactions in 2024. 

This record volume of activity, together with strong rental growth for prime office space, has seen new benchmark rents achieved at 100 Bishopsgate, One Leadenhall, 30 Fenchurch Street and Citypoint and office occupancy across Brookfield Properties’ 5M sq ft portfolio nearing 98%.

New lettings in the quarter included global recruitment specialists Phaidon International at Citypoint (42,000 sq ft), British gas distribution company SGN at Nexus (15,000 sq ft) and the Association of British Insurers at 30 Fenchurch Street (14,000 sq ft).

Alongside this, Brookfield Properties have had great success retaining and accommodating additional term and growth opportunities for its existing occupiers. Almost 185,000 sq ft of expansion has been accommodated for existing occupiers in 2024, including Fried Frank, Royal Bank of Canada, and Pilsbury Winthrop Shaw Pittman LLP at 100 Bishopsgate, Latham & Watkins at One Leadenhall, Simpson Thacher & Bartlett and Squarepoint at Citypoint, and Uber at Aldgate Tower.

These deals illustrate Brookfield Properties’ track record of retaining long-term tenants, reflecting the high quality of its properties, it’s leading engagement programmes – Activatedand Accelerate ESG – and the strength of its relationships with occupiers across its London office portfolio. 

Martin Wallace, Head of Leasing at Brookfield Properties UK, said: “From these deals it’s clear that there remains strong appetite for high quality buildings in the right locations. We’re especially pleased to be continuing our relationship with established, long-term tenants. Repeat business is something that the team at Brookfield Properties takes a lot of pride in as we continually work to deliver the best possible experience to our tenants.”

Building retrofit programmes to improve energy efficiency must also have appropriate ventilation to provide healthier, safer indoor environments, according to a new report published today by the National Engineering Policy Centre (NEPC).

The UK has set ambitious legal targets for reducing greenhouse gas emissions and achieving net zero by 2050. With the heating and cooling of buildings contributing 17% to national emissions, retrofit schemes are an essential step towards the UK achieving net-zero by 2050, to mitigate the threats of climate change. As 80% of our existing buildings will still be in use by 2050, making them energy efficient is a key part of any net zero plan.

The government’s Warm Homes Plan presents an ideal opportunity to future-proof buildings and embed health outcomes in retrofit schemes, as well as improving energy efficiency, through insulation and airtightness, ventilation and air cleaning, and low-carbon heating.

Led by CIBSE, the Royal Academy of Engineering and the Institution of Mechanical Engineers, this is the final report in a major programme of work by the NEPC on infection resilient environments. It makes five key recommendations to help embed health outcomes in building retrofit programmes; enable specialist training for retrofit professionals and trial digital records for building performance and maintenance. 

Recommendations:

1. Health-Based Outcomes: Embed health outcomes in retrofit programmes, supported by public information campaigns.
2. Public Buildings Assessment: Large-scale assessment of health risks in public buildings to inform retrofit delivery.
3. Digital Passports for Buildings: Trial digital records for building performance and maintenance to support long-term management.
4. Training and Skills Development: Incorporate health into training for retrofit professionals.
5. Research and Development: Address knowledge gaps on long-term health impacts of indoor environments and integrate findings into policy and practice.

An opportunity ‘to improve the nation’s health’

Retrofit schemes deliver many benefits, through the process of upgrading buildings. This includes:

·       Structural change: installing insulation, upgrading windows, improving airtightness to reduce heat loss and energy demand, and provision of appropriate ventilation

·       Changes to building services: such as switching to low-carbon heating

·       Monitoring and control tools: installation of monitoring and control tools for energy use to empower users to adapt user-behaviour

Professor Peter Guthrie OBE FREng, Chair of the Royal Academy of Engineering’s Infection Resilient Environments Working Group, says:

“There are many ways to improve the nation’s health and improving homes is a key one. Setting out clear definitions and targets of what healthy homes and buildings look and feel like, sets out a roadmap to get us to that destination. Finally, training in the art and science of healthy homes, by building professionals who do this work, will be fundamental to the long-term success of retrofit schemes.”

Kristen Mierzejewski, Senior Consultant at Acclaro Advisory.

The first in a series of articles from the Sustainable Facilities Management Index (SFMI) around Scope 3 in FM. 

Scope 3 Emissions are notoriously complex and difficult to address, presenting significant challenges across all industries, including Facilities Management. With increasing pressure from governments, regulators, shareholders, and clients, FM providers are having to look more closely at their indirect emissions and devise new ways to tackle them. 

The emergence of CSRD and ISSB 

The evolving regulatory landscape adds another layer of complexity. Recent regulations, like the EU’s Corporate Sustainability Reporting Directive (CSRD), and global frameworks, like the International Sustainability Standards Board (ISSB), are setting new expectations for companies to report on their Scope 3 emissions. In the UK, the government is currently determining how to incorporate ISSB standards into the upcoming UK Sustainability Reporting Standards (SRS), with plans to consult on the proposed legislation early next year. Last year, the government launched a Call for Evidence to gather feedback on Scope 3 emissions reporting, signalling its intent to standardise and strengthen sustainability disclosures.

In the EU, 2024 is a pivotal year for companies that fall within the scope of CSRD, as it marks the first reporting period for material sustainability impacts, including Scope 3 emissions. For most companies, this will mean adopting a full value chain approach, requiring them to identify and address indirect emissions. The demand for detailed and transparent reporting is no longer optional, and this represents a significant shift towards more comprehensive disclosures to ensure regulatory compliance.

Challenges for FM providers in aligning with Scope 3 reporting demands

For FM providers, these changes will bring significant challenges. Many companies currently lack the internal capacity or expertise to measure and report on Scope 3 emissions effectively. A lack of accurate and granular data from suppliers is a significant hurdle, and gathering data requires significant resource and time. Unlike emissions directly controlled by the organisation, Scope 3 emissions entail extensive engagement across the supply chain. Companies that have not regularly tracked their Scope 3 emissions before may be unaware of the data they need to collect or lack the tools to analyse it. 

Many FM companies are often driven by compliance needs, focusing on minimising costs rather than integrating sustainability into their core strategies. The patchwork of various regulations, each with different reporting requirements, can make it difficult to establish a consistent approach. Meanwhile, as FM clients adopt their own sustainability goals, and begin reporting on their emissions in line with regulations such as CSRD or frameworks such as ISSB, FM providers are likely to face growing demands to provide robust Scope 3 data as part of their services.

How the SFMI can help with Scope 3 emissions for FM 

The SFMI (Sustainable Facilities Management Index)’s Scope 3 Framework for Facilities Managementprovides the industry’s first standardised approach to emissions measurement. This is an important step toward standardising emissions reporting across the FM sector, helping providers align with regulatory requirements and build a foundation for meaningful action.

Building on the success of the framework, the SFMI will launch the next phase of their Scope 3 Research Project in February 2025. This phase will focus on developing a Scope 3 emissions tool with input from FM providers and representatives from professional institutes such as IWFM, RICS, and IEMA. Project Partners will gain the ability to report emissions transparently, engage effectively with value chains and clients, and respond to growing demands for data. This competitive edge will not only help FM providers stand out amongst their peers, but also prepare them for regulatory changes.

As the regulatory landscape continues to evolve, FM providers have an opportunity to position themselves as decarbonisation leaders, and to get ahead of evolving regulation. By addressing Scope 3 proactively, they can not only ensure compliance but also position themselves as trusted partners for clients and stakeholders. With the right tools and strategies, the FM industry can transform these challenges into opportunities, driving impactful change across their operations and supply chains.

Please get in touch with the SFMI to find out more about becoming a partner. 

Madeleine Ford, Editorial & Events Assistant

WORKTECH Panel: James Kendall, Director of Enterprise Engineering at SwiftConnect, and John Psyllos, Global Security Technology Lead at IBM discuss the future of mobile access control in the workplace. 

Providing seamless access for employees, customers and visitors while still maintaining robust security is a key priority in sustaining top employee experience according to both Kendall and Psyllos. Speaking on a panel at WORKTECH London about the partnership between SwiftConnect and IBM, they both reiterated the basic fact that, at the very least, workplaces must be buildings where people want to come and work. Creating ‘smart offices’ enables great cultures to be built within these spaces.

SwiftConnect, “a unified, software-first approach to permissions and credentials”, is an access network, centred around ‘smart office’ solutions offering employee experience enhancements, office space management and building operations. Services focus on improving the efficiency, flexibility and general experience of the workplace.

Kendall stated that the top reason that clients deploy the technology is for user experience. The aim is to allow people to have a similar experience of travelling through the tube in London, with a simple tap and go into the building using Apple or Google wallet credentials. This allows access in the same way a plastic card would, but with more security and less plastic. This point was reiterated by Psyllos who confirmed that the user experience was the main driving factor in the decision to deploy the technology at IBM’s New York office this past September, where they now have just under 2000 users.

This goes much further than just building access. SwiftConnect’s booking system means reserving desks, meeting rooms, and shared workspaces on demand through an app. This delivers a seamless experience and the insights show organisations which areas are overcrowded or underutilised. Data-driven insights which show how an office space is being used means companies can better configure workspaces to fit the needs of their employees. This leads to increased cost efficiency and resource optimisation. 

Practicality is at the core of SwiftConnect’s workplace solutions. In cities such as London and New York where it is common practise to tap throughout your day for the tube, to buy lunch, and to add your train ticket to your Apple wallet – life revolves around this convenience. John Psyllos is definitely accurate in stating that this practise is not only becoming familiar, but it is becoming increasingly expected and the best thing companies can do for employee experience is lean into it.

Safety, comfort and convenience have become three key factors in successful employee experience and are all something that mobile access and ‘smart offices’ can provide on a daily basis. Simplifying the way offices are managed and accessed allows for a seamless, touchless and practical experience day-to-day in the workplace, and enhanced employee satisfaction. 

Commercial design and build specialist, Design Tonic, has been appointed as the communal interiors fit-out partner for No.1 St. Michael’s, one of Manchester’s most prestigious new office developments.

Established in Yorkshire in 2018, Design Tonic specialises in creative interior design and project management for the hospitality, office, retail, and leisure sectors. The company is known for its straightforward approach to delivering design excellence.

The building is part of the £400m St. Michael’s mixed-use scheme, which is being delivered by Gary Neville’s Relentless Developments, and comprises offices, apartments, hotels, shops, a public square, and rooftop restaurant in the heart of Manchester.

Design Tonic will be responsible for creating multiple common spaces throughout the £150m, 200,000 sq ft office building, which is spread across nine-floors and aims to achieve world-leading standards in sustainability. Once compete, it is expected to be the first fully Net Zero Carbon commercial development in the city.

Office space at No.1 St. Michael’s has already been pre-let to several high-profile tenants including US financial firm, S&P Global; international law firms, Pinsent Masons and Hill Dickinson; media company, Channel 4; and global computing firm, Arm.

Anthony Kilbride, director of Relentless Developments, said: “No.1 St. Michael’s is attracting an extremely high calibre tenant, and we’re committed to providing the highest standards throughout all areas of the building. This extends to the design and fit out of all shared spaces to offer our occupiers an unrivalled experience in functionality and comfort.

“The team at Design Tonic impressed us with their extensive experience delivering outstanding office interiors. We’re thrilled to be partnering with them as we bring to life our vision for the communal areas of No.1 St. Michael’s.”

Design Tonic co-founder Amanda Cook said: “No.1 St Michael’s is a truly impressive project, and we are delighted to have been appointed on such a high-profile scheme. The team will be creating spaces that balance contemporary elegance with practicality and accessibility, to provide an environment for employees and visitors that is focused on productivity, wellbeing and the creation of a world class workplace.”

Madeleine Ford, events coordinator of Facilities and Estates Management Live on the growing importance of Biophilic Design.

As humans, we need a connection to nature, from time immemorial we have been connected to the earth, land, wind, rain, sun and sea but in our more recent history we have evolved to spending most of our lives inside. As a species, our current distance from our inherent connection to the world is miles away from where it once was and where it needs to be.

Oliver Heath, keynote speaker of the Biophilic Design Conference, encapsulated the topic with his opening question- “what is a healthy proportion of nature and how do we deliver it and create it in the spaces that matter most to us?”

The purpose of biophilic design is to think about how people connect with nature in the built environment, particularly where we see intense amounts of stress and anxiety. In interior design Biophilia is often represented directly, for example by bringing plants in, encouraging natural light and fresh air, or by the mimicking of nature such as printed views, using colours from nature, sound scaping or improving acoustics. 

Each speaker at the conference upheld the same ethos regarding biophilic design, emphasising that it is so much more than just aesthetics, it is about creating meaningful and supportive environments for users – or more specifically – designing for community. Shared moments in nature can create deeper connections for spaces, places and the people within them, enhancing social and ecological communities. Forging a sense of community in a workspace is crucial to increase the value of social interactions and overall satisfaction levels.

Organisations with a stronger sense of community have lower employee turnover rates, higher economic returns and revenue, more passion and a sense of purpose among employees and increased collaboration. 

Furthermore, studies have found that the addition of natural features in the workspace can increase wellbeing by 15 per cent, productivity by 6 per cent, creativity by 15 per cent and improved performance in mental function and memory recall by 10 to 25 per cent. 

When it comes to biophilic design in an office space, simple measures such as the office layout can have a significant impact. For example, more organically planned desks instead of rows and ensuring all employees have a view of a window to ensure access to natural light which is imperative for hormone regulation and maintaining sleep patterns. 

Expanding on this, environmental psychologist Dr Nigel Oseland emphasised the preference for natural temperature and ventilation variations and the calming effects of natural sounds and social interactions. 

The mimicking of nature in different aspects of office life is key to encouraging these behaviours and improve stress, cognitive production, emotion and mood. As stated by speaker Paige Hodsman, Concept Development and Workplace Acoustic Specialist, “biophilia is taking the external environmental factors that aid our survival and reinterpreting them in the interior environments to optimise the functioning of the body and mind”. It entails going back to where we evolved, how we process the world around us and the importance of nature. When we prioritise our heath, both physically and mentally, it makes us more resilient, and we can create this balance between human health and the environment.

As further emphasised by Lori Pinkerton-Rolet, Director of Park Grove Design, “we can make the journey of life so much more meaningful by not separating ourselves as a species from the world at large just because we can.” 

The conference, organised by the Journal of Biophilic Design, made the importance of biophilia inherently clear, emphasising that if we embrace what is natural to us as humans, the benefits, whether mental or physical, are unmatched for individuals and organisations. 

Adil Sheikh, Managing Director at modular workspace provider, MuteBox.

London has some of the best corporate buildings in the world. The Shard, The Gherkin, The Cheesegrater and so on, all pierce London’s skyline to create an image that’s iconic and inspiring in equal measure.  

But how about London’s offices? Are they as well received as some of the buildings they’re found in? Well, apparently not. Some 50% of UK workers are positively uninspired by their working environments – which is problematic for several reasons.  

We will spend approximately 90,000 hours of our lives working, and supposing you come into the office 3 days a week on average, you could be in for 60,000 hours of working in an environment you don’t really like. Drab offices stifle creativity and happiness, which as you might expect does little to help with productivity. 

What’s more, for companies encouraging workers to return to the office, a working environment less inviting than one’s home office can make this a rather tough sell. Add to this picture Labour’s 2024 Employment Rights Bill, which grants employees greater flex with respect to WFH, and you can see why more needs to be done to incentivise higher footfall into company offices.  

In addition, landlords are also finding it hard to entice companies into renting their commercial buildings for office use. Post-pandemic, close to 10% of office space in London is unoccupied, a figure that sat at only 4% before the virus accelerated a shift towards hybrid working patterns and fully remote roles. The trouble here is that some companies are not that convinced that a dedicated office space is worth the investment with so many workers now choosing to WFH or come in once a week at most. Also, many may remain unconvinced following the uprated employer NI contributions outlined in the Autumn Statement, which has forced companies to think carefully about every penny spent, including those on office real estate.  

That being said, facilities managers and landlords can make commercial buildings more attractive to both employees and companies seeking office spaces and bolster the health and happiness of workers by embracing the Danish concept of Hygge (pronounced hoo-gah). For example, recent research has indicated a 33% increase in employee happiness following improvements to office design.  

At its core, Hygge is a cozy, contented vibe associated with warmth, wellbeing and happiness. Think sinking into an armchair, candlelit reading and a hot cup of cocoa. While sipping cocoa in an armchair probably isn’t part of your JD, there is much that can be done to bring that same cozy feel to the workplace – and boost office attendance as well as happiness and productivity as a result.  

Traditional office lighting can be harsh, clinical and less than relaxing. Opting for softer, warmer lighting can go a long way in bringing a calming atmosphere to desks and meeting rooms and help create a sense of homeliness in the workplace. Another simple way to encourage contentment within the workplace is to incorporate more biophilic elements, including plants and natural materials like wooden desks and woollen throws.  

Open plan offices, which have become increasingly popular, can sometimes come with challenges in concentration, especially as a cacophony of calls can very easily descend upon workers post-pandemic. Indeed, Zoom reported asubstantial increase in business customers following the imposition of Covid restrictions, rising from about 80,000 in 2019 to 470,00 in 2020 – and since then numerous, sometimes simultaneous, Zoom, Teams, and Slack calls punctuate (and occasionally interfere with) our working day. As such, introducing quiet areas or quiet meeting pods for focused work and calls can mute distracting noises, reduce stress and is another sure-fire way to add a dash of Hygge into your office.  

Finally, welcoming personal touches such as artwork, books, handcrafted stationary and even minimalist clocks can transform a sterile working environment into something that feels more curated, mindful and productive. The inclusion of these small but intentional additions helps foster a sense of ownership and personality in the workplace, contributing to a more engaging and enjoyable daily working environment.  

Our ways of working have changed dramatically in the last few years.  Although more employees are heading back into the office, more still needs to be done to create workspaces that compete with the luxuries afforded to them when working from home. But by injecting a large dose of Hygge into their offices and commercial buildings, facilities managers and landlords can respectively go a long way in making this happen. 

As Chief Technology Officer (CTO) of Moneypenny, the leading outsourced communications company, Pete Hanlon believes we are reaching a pivotal milestone, especially with Artificial Intelligence (AI). Here’s his take on the next year, highlighting the obvious shifts and deeper changes that could redefine how we work in every sector- from facilities management to professional services.

Open Source Is Coming for the Crown

The most exciting battle in AI isn’t unfolding in corporate labs; it’s happening in the open-source community. By mid-2025, we’ll see open-source models going head-to-head with industry leaders such as GPT-4o and Claud-Sonnet-3.5. This isn’t just about matching performance metrics. It’s about making AI accessible to sectors that have been held back by data privacy concerns, opening doors for industries that have struggled to leverage this technology. The result? A new era where AI is democratised, accessible to all, and no longer controlled by closed-source businesses.

Forget AI Replacing Workers – Think AI as Your Digital Colleague

Remember when everyone thought AI would replace us all overnight? That’s not how it’s playing out. Instead, we’re witnessing the emergence of hybrid teams where AI takes on the repetitive tasks, leaving people free to handle more complex challenges. It’s less about replacing jobs and more about using AI to superpower people and using data to enable smarter decision-making. Moneypenny, for example, delivers outsourced communication solutions that blend the efficiency of AI with the personal touch of real people.

Integration: The Real Challenge Nobody’s Talking About

The next phase isn’t about building brand new AI systems, it’s about weaving them seamlessly into existing business processes and infrastructure. Picture Customer Relation Management (CRM) systems that can predict what customers need, knowledge bases that update themselves, conversations that flow naturally between voice and text, and customer support that breaks language barriers. Our clients can effortlessly embed our customer service systems powered by AI directly into their back office with minimal effort and maximum impact.

Industry-Specific Models: Tailored AI for Specialized Needs
We’re entering an era of industry-specific Large Language Models (LLMs) tailored for fields like finance, healthcare, and law. These models will come pre-loaded with domain-specific knowledge, enabling businesses to deploy AI that understands their unique requirements, language, and regulatory needs. In finance, LLMs could support compliance and offer investment insights. In healthcare, they could assist clinicians with patient histories and treatment guidelines. In law, they could streamline contract review and case law analysis. These specialised models will allow companies to quickly implement AI that’s relevant, compliant, and impactful in their field.

The Reality Check Is Coming

Some companies may soon realise they’ve taken on more than they can handle with AI adoption, facing a range of unexpected challenges. Many will struggle with complex integration issues as they attempt to launch AI initiatives within existing systems. Additionally, there may be difficulties in managing the high expectations around AI’s capabilities, as reality often falls short of the hype surrounding its potential.

Regulation: The Elephant in the Room

Companies should prepare for the growing impact of AI regulations, particularly in customer-facing applications. Forward-thinking organisations are already taking steps to build transparency into their AI systems, overhauling data governance practices to ensure accountability. They are creating detailed audit trails to track AI decision-making and making sure that their systems are both fair and accessible. These proactive measures not only help them stay compliant but also foster trust with their customers.

What This Means for You

The next year won’t just be about AI getting better – it’ll be about AI getting smarter about how it fits into our existing world. Success won’t come from blindly adopting every new AI tool. It’ll come from carefully choosing where AI can genuinely improve how we work.