To mark World FM Day, the Global FM Awards of Excellence 2025 has recognised Legal and General Investment Management Limited (LGIM) and FM Partners with a silver award for exceptional achievement. 

Nominated by IWFM, Hidden Workers focuses on improving the working conditions and benefits of security, maintenance and cleaning staff, developed in response to the challenges faced by the UK’s hidden workforces, particularly during the pandemic. The initiative was highly commended at last year’s IWFM Impact Awards in the Wellbeing category.

The initiative has had a profound impact on wellbeing. Surveys have demonstrated significant improvements across various metrics; baseline discussion data was collected from across the hidden workforce in October and November 2022, then the survey was repeated in October 2023. Of staff surveyed: 

• 100% of felt their jobs fit their lifestyle, compared to 95% previously.
• 100% liked their work-life balance, a dramatic increase from 71% previously.
• 96% liked engagement and communication levels, up from 87%.
• 87% were happy with benefits and incentives, an increase of 11%.

LGIM and FM Partners have detailed the full scope of the Hidden Workers initiative.

Jenny Thomas, Director of External Affairs, Insight and Impact of IWFM, said, ‘It is core to IWFM’s mission to highlight workplace and facilities management’s lynchpin role in the world of work, particularly the dedicated teams that enable organisations to prosper. Initiatives like Hidden Work are hugely important to ensure professionals can do their best work and are well supported as they progress throughout their careers. I’d like to congratulate LGIM and FM Partners and am confident that the initiative will continue to serve as an inspiration to the sector overall.’

“Evolving employer demands, shifting employee preferences and changing work styles mean facilities managers must not only be resilient but also adaptable. Gone are the days of designing standardised workspaces. Now, FMs face the challenge of creating connected workspaces that tackle this fresh set of requirements. Whilst it’s no easy feat, doing so will mean they design offices where people want to work – not just where they’re required to be.

“This poses the question: how can FMs overcome this challenge to unlock the potential? The answer lies in valuable data that can be gathered via smart workplace technology such as access control systems, occupancy sensors and resource booking software. A workplace strategy that combines the essential data from these sources stands to help businesses make more informed decisions that benefit them and their teams before they enter the office, during their time on-site and after they leave. This could look like optimising offices for efficiency, accessibility, productivity and sustainability. With the right insights and supporting technology like machine learning in place, facilities managers can anticipate demand and allocate resources more effectively – making sure they match the desired employee experience and remove potential barriers to entering the office.”

More than four times as many UK businesses (45 per cent) are looking to expand their office space in the next 12 to 18 months rather than to reduce it (10 per cent) according to a new survey commissioned by law firm Irwin Mitchell Office Occupiers Survey 2025 – Office Occupiers Report 2025.

This shift comes as more workers return to the office to work, prompting many companies to reassess their current space allocations. 64 per cent of those surveyed admit they overshot their downsizing efforts during the Covid era.

Of those planning to expand, 49 per cent said they would do this by reconfiguring their existing premises rather than relocating to entirely new sites (23 per cent). And in a vote for flex, 44 per cent of respondents are considering incorporating flexible workspace options in their property portfolios – perhaps creating the “breathing space” needed as they adapt to evolving operational requirements.

Furthermore, organisations are capitalising on a marked shift in working habits. Over the past year, 72 per cent of employers have noted an increase in office attendance, with 74 per cent predicting further growth in the next 12 to 18 months. This trend is particularly pronounced in London, where 81 per cent of businesses expect higher in-office numbers, and in the Northwest, where 71 per cent forecast a similar rise.

The survey also reveals a decisive tilt towards more days expected in the office, reflecting a strong push for traditional office engagement following the pandemic.

Rising costs are the main concern for businesses who seek greater productivity from their office and staff. Other concerns include escalated employment costs and risks, adverse tax policies, and mounting property costs covering energy, rent, business rates, insurance, and service charges. 

To entice employees back into the office, 46 per cent of businesses are integrating workplace environment and design into their broader strategies to attract and retain talent—and a further 35 per cent are considering doing so. A decisive 95 per cent have already involved HR teams in making decisions on working spaces, and 97 per cent are offering employee incentives. 

Additionally, businesses acknowledge the importance of sustainability in their property strategies, but cost and return on investment remain primary drivers for making changes. Only one sixth of businesses said sustainability was not a priority. 

Many businesses showed limited concern about government’s current EPC regulations, with a lot of office occupiers see EPC compliance as a landlord’s responsibility rather than their own. Despite these reservations, corporate engagement with environmental initiatives is growing. 85 per cent of businesses now report on their carbon emissions policies (Scope 1, 2 and 3), with 89 per cent voluntarily doing so. 

Considering the overall results of the survey, Will Scott, Real Estates Disputes Partner at Irwin Mitchell said, “Our survey shows that the office and its place in the world of work continues to evolve, particularly as working patterns change. As rising costs and inflation impact corporate decision making and in line with the need to reduce unnecessary expenditure, businesses appreciate they need to improve the productivity of their current office space so that it can both accommodate increasing numbers of staff coming back in to work, but also one that can satisfy internal stakeholders’ needs and wishes.”

A survey conducted by Baxi of 200 state school estates managers, consultant engineers and M&E contractors has found that while enthusiasm for net zero and support for low carbon heating systems in schools is thriving, persistent barriers remain.

The survey found extremely strong support for net zero within schools, with 90 per cent of estates managers who responded agreeing that net zero is a priority, a sentiment echoed by 78 per cent of consultant engineers and contractors. 99 per cent of the school estates managers surveyed reported having a net zero plan in place. Experience and satisfaction with low carbon heating systems within schools was also high, with 95 per cent of school estates managers having replaced a fossil fuel boiler with a heat pump in their buildings previously. 97 per cent of all school estates managers (87 per cent of all respondents) viewed heat pump performance and operating costs favourably. 

Despite the strong support for low carbon heating and net zero in schools, the study also uncovered significant challenges faced by respondents when opting to install a low carbon heating system. The most prominent was technical difficulty as a barrier to deployment. With 36 per cent and 39 per cent of school estates managers and consultant engineers and contractors respectively identifying the challenge, there may be a skills gap which can stall decarbonisation projects. 

Both groups also agreed that additional electricity capacity needed for low carbon heating solutions was a challenge, with 36 per cent of consultant engineers and contractors outlining this as a barrier to decarbonisation. Further challenges include, the financial and technical feasibility of school heating system changes, infrastructure requirements, and the length of project timelines as any major refurbishment projects are typically restricted to the fixed window of time of the summer holiday period.

The study did identify potential solutions in the form of hybrid heat pump systems and prefabricated packaged solutions. 80 per cent of the consultant engineers and contractors surveyed would be likely to recommend a hybrid system, and support for hybrids among school estates managers increased with school size. However, grant support for hybrid heat pump solutions under the Public Sector Decarbonisation Scheme (PSDS) is limited, despite strong backing for the technology.

Policy recommendations:

Baxi is calling for four clear steps that we believe the Government must take to ramp up the decarbonisation of our state schools and remove barriers preventing the installation of hybrid heating systems within public buildings. 

1. Include heating system upgrades for schools within existing public sector support schemes, utilising GB Energy to support
2. Include hybrid heating systems within existing support schemes
3. Address the imbalance in price between gas and electricity
4. Address the skills gap to help deliver clean energy projects.

According to a recent survey, by SFG20, the industry standard for building maintenance, 34 per cent of facility maintenance professionals do not update their asset registers or do not know how frequently they are updated. Only nine per cent believed their asset registers to be 100 per cent accurate and up to date, with a further 37 per cent stating their register is at most 50 per cent accurate. 

SFG20 surveyed 190 professionals from various sectors to assess challenges and priorities regarding facility management for its State of FM Report 2025. The survey reveals that asset registers were the leading investment priority for respondents over the next three years, spotlighting the industry-wide issue that FM professionals face in keeping their registers complete and updated. 

The report also reveals that almost a third of FM professionals (31 per cent) still keep their asset registers in a spreadsheet. A further five per cent have a mix of software, spreadsheets, and paper-based registers, splitting their assets across different formats. 

Davy Clark, Implementation Consultant at SFG20, said: “One of the most common issues we encounter is the lack of consistency and specificity in asset registers. Too often, assets are recorded with vague descriptions like ‘boiler’ or ‘pump,’ making it incredibly difficult to map them to the correct maintenance tasks. 

“Several factors contribute to this challenge, including the collection of asset data across large estates, which may have been surveyed at different points in time and by different people, causing inconsistencies in data quality and accuracy. 

“This leads to inefficiencies, increased risk, and compliance challenges. Ensuring asset data is consistently structured, complete, and digitally maintained in a single source of truth is essential—not only for effective planned maintenance but also for long-term cost savings and compliance.”

By: Kristen Mierzejewski, Senior Consultant at Acclaro Advisory

Recent months have seen a regression in ESG commitments, from Trump’s election and the rollback of key climate policies in the U.S. to proposed weakening of the CSRD through omnibus regulations. Corporate responses have followed suit, with the six largest U.S. banks withdrawing from the Net-Zero Banking Alliance and several energy companies scaling back low-carbon investment plans. Yet, climate challenges remain urgent: January 2025 was declared the warmest January on record, accompanied by devastating wildfires in California. The World Meteorological Organization has confirmed that 2024 was the hottest year on record, marking the first time global temperatures exceeded 1.5°C above pre-industrial levels.

Despite this, sustainability remains a priority for many companies and investors. In the UK, several key pieces of legislation are set to be introduced this year, reinforcing the need for action. Within the Facilities Management (FM) industry, organisations continue to make progress, with many FM leaders identifying new revenue streams and market differentiation through high-return sustainability initiatives.

The SFMI

At the Sustainable Facilities Management Index (SFMI), we work closely with FM leaders to assess and advance their ESG strategies. Established by Acclaro Advisory in 2013, the Sustainable Facilities Management Index (SFMI) is dedicated to driving ESG leadership within the FM sector. Through a unique partnership programme rooted in research, assessments, strategic solutions, and collaboration, the SFMI provides a forward roadmap and challenges the industry to adopt best practices and embrace innovation.

Each year, the SFMI conducts comprehensive assessments, evaluating how FM providers integrate sustainability across 23 ESG criteria. We help FMs learn how to avoid risks, capitalise on opportunities, and become leaders in their industry. Our 23 Criteria each have numerous subtopics to fully understand the policies, strategies, and activities of FMs in achieving a more sustainable business. These criteria cover essential areas of operations and management, ensuring a holistic view of sustainability performance.

Each year, we update and adjust our assessment criteria in order to reflect changes in legislation, frameworks and societal trends affecting the industry. 

2024 Trends

The FM industry is becoming more complex. Beyond supporting workplace and operational property needs, FM providers must now navigate regulatory shifts, societal pressures, economic uncertainty, staffing challenges, and increasing environmental requirements. Despite these headwinds, SFMI assessments indicate steady ESG progress, with rising performance across Governance, Social, and Environmental categories.

Through expert insights and in-depth evaluations, SFMI has identified four dominant sustainability trends shaping the FM sector in 2024:

• Decarbonisation
• Wellbeing
• Social Value
• Risks & Opportunities

These themes reflect the industry’s growing maturity in commercialising sustainability, turning ESG efforts into tangible business benefits. They also underscore the importance of collaboration, innovation, and strategic integration to maintain competitiveness and resilience in an evolving market.

Decarbonisation: Turning Ambitions into Opportunities

FM leaders are at the forefront of transforming decarbonisation from a compliance-driven goal into a dynamic, revenue-generating opportunity. By bringing new service offerings to market that involve decarbonisation, not just for them but for their clients, they are setting new benchmarks for commercial success in FM. 

With a deeper understanding of the challenges and opportunities in decarbonisation, SFMI Partners have matured their approach. This has enabled the development of service offerings, and, due to increasing demand for these services across industries, is driving their commercialisation.

To meet complex client needs, FM providers are diversifying carbon services, including climate risk mapping, EV infrastructure, and sustainable building solutions. Fleet decarbonisation is a major focus, with companies implementing data-driven approaches to optimise EV adoption and mileage reduction. Leadership plays a crucial role in sustaining these efforts, requiring continuous upskilling and strategic foresight to integrate decarbonisation into business growth. Additionally, engaging supply chains to tackle Scope 3 emissions is becoming essential, as FM firms collaborate with suppliers to reduce indirect carbon impacts. By leveraging high-quality data and enhancing governance, FM providers can capitalise on the commercial potential of sustainability while staying ahead in a competitive market.

Wellbeing: The Value of Doing What’s Right

Wellbeing has become a key differentiator for FM providers, with SFMI Partners seeing commercial benefits through improved employee retention, customer satisfaction, and organisational diversity. Last year, wellbeing scores rose, but significant potential remains untapped. The FM sector is expanding beyond traditional health and safety measures, incorporating aspects like sleep, neurodivergence, and menopause into wellbeing initiatives. These efforts reduce absenteeism, enhance employee engagement, and strengthen business performance.

FM leaders are also integrating wellbeing into broader sustainability strategies, linking it with net zero and biodiversity initiatives. Forward-thinking companies are embedding wellbeing into leadership priorities, with executives championing programmes that enhance workplace culture and attract talent. 

However, there remains significant room for growth in integrating wellbeing with nature, decarbonisation and net zero strategies. While wellbeing and nature are beginning to find their place in strategies, they are not yet at the core. The next phase involves refining metrics, deepening integration into contracts, and leveraging nature-based solutions to maximise the commercial and social benefits of wellbeing-focused sustainability strategies.

Social Value: Turning Purpose into Profit

Last year, SFMI partners made significant strides in social value, with scores rising about 14% across the relevant criteria. This reflects a growing recognition that the partners have been giving to this area. As companies expand their social value activities, driven by government mandates or client requirements, measuring the benefits is increasingly proving commercial value of these new approaches. 

Beyond fulfilling regulatory requirements, social value initiatives enhance company reputation, employee satisfaction, and recruitment efforts. FM firms are now demonstrating structured approaches to social impact, ensuring initiatives translate into tangible business benefits.

Innovative programmes, such as one company’s ex-offender employment scheme, highlight how FM providers can drive measurable social outcomes while improving operational efficiency. The industry is also advancing social value tracking, with some companies integrating real-time ESG dashboards to measure impact. Successful FM firms are embedding social value into contracts and linking initiatives to financial performance, strengthening their market position. To sustain this momentum, FM leaders must continue fostering collaboration, refining data measurement, and upskilling teams to turn social value commitments into long-term commercial success.

Risks and Opportunities: Turning Risks into Rewards

As the FM industry faces more risks, SFMI leaders are turning challenges into opportunities. Encouragingly, the majority of SFMI partners are demonstrating a deeper understanding of monetising sustainability, with some already leveraging their expertise to deliver services that enhance both their own sustainability goals and those of their clients. The SFMI’s latest findings reveal that companies with a strong grasp of monetising sustainability are successfully integrating climate risk assessments, decarbonisation strategies, and supply chain improvements into their business models. 

However, challenges such as data reliability, Scope 3 emissions, and ecological risks remain key barriers that require innovative solutions. Yet, these same risks can serve as springboards for innovation. FM leaders that turn these hurdles into opportunities – such as through enhanced decarbonisation services, decarbonising fleets, assessing climate risks, contracts improvements, and upskilling decision makers – are positioning themselves as market leaders in the industry.   

The sector’s governance practices are also evolving, with board-level upskilling enabling companies to better manage risks and improve ESG performance. FM providers that proactively embed sustainability into governance, contracts, and service offerings are positioned to lead the industry, securing long-term financial and environmental resilience. Looking ahead, it’s reasonable to expect that commercialised opportunities will continue to grow, while less monetisable risks may lag. Factors such as regulatory deadlines and potential commercial impact will likely drive prioritisation, with supply chain and climate risks taking precedence. 

Insights & Next Steps

The 2024 SFMI Assessments show significant ESG progress, with Governance leading due to improvements in Diversity and Collaboration. Social aspects, particularly Wellbeing and Sustainable Communities, have strengthened, while Environmental gains are notable in Energy but remain weak in Ecology, Biodiversity, and Water.

Key Takeaways:

• Governance is driving sustainability progress, with further potential in integrating ESG into financial decisions.
• Social Value & Wellbeing are becoming embedded across operations, but Supply Chain Management remains a challenge.
• Environmental Progress is growing, yet critical gaps in Ecology, Biodiversity, and Water demand urgent attention.

Next Steps for FM Leaders:

• Upskill & Assess Risks: Conduct materiality assessments and climate risk evaluations.
• Invest in Sustainability: Allocate resources to pioneering ESG initiatives.
• Turn Risks into Opportunities: Innovate solutions that create both sustainability and commercial value.

By prioritising collaboration, data-driven insights, and strategic investments, FM providers can lead in sustainability while driving business growth.

Join the SFMI 2025 Programme Launch webinar: 

The SFMI is hosting its 2025 Programme Launch webinar on 15^th May at 10am. This is a fantastic opportunity to learn more about the SFMI and discover the plans for this year’s programme. Register now. 

CIBSE are supporters of Facilities & Estates Management Live

This ambitious initiative is set to create a lasting legacy for the building services engineering profession and support future generations of engineers in their journey towards net-zero and sustainable building performance.

A key element of this campaign is the recent opening of CIBSE’s new head office in London, which will serve as a central hub for innovation, knowledge-sharing and lifelong learning. This new space will empower engineers to lead the way in shaping a sustainable built environment.

A home for innovation, learning, and progress

CIBSE’s vision for its new head office is to create a world-class Skills Hub that will serve as a central focal point for both CIBSE members and the wider built environment community. The facilities will feature a modern theatre for lectures, events, and knowledge-sharing, outstanding training facilities to support professional development and collaborative workspaces designed to foster networking, learning and industry engagement.

CIBSE’s CEO, Ruth Carter, commented: “At CIBSE, we are committed to fostering innovation, collaboration and sustainability in the built environment. Our new head office is more than just a new space; it’s a symbol of our commitment to shaping the future of the profession globally and ensuring that the next generation of engineers is equipped to meet the challenges of tomorrow. With the support of our members and partners, we can make this vision a reality and continue driving progress for the building services sector worldwide.”

According to a recent survey, improving compliance and safety continues to be the number one priority for facilities management professionals. However, 14% of respondents expressed uncertainty about meeting building maintenance compliance standards, while only 23% plan to increase their investment in compliance and safety measures.

SFG20, the industry standard for building maintenance, surveyed 190 professionals from various roles in the built environment sector to assess challenges and priorities regarding facility management. The survey reveals that while the industry faces significant pressure, professionals are focused on innovation and improvement, with clear priorities and strategies for 2025.

Compliance and safety as top priority

The survey reveals that improving compliance and safety remains the top priority for facilities management professionals. A significant 77% of respondents reported compliance to be at least a moderate challenge, reflecting the ongoing issue of meeting complex regulatory requirements. 

Budget constraints and cost reduction

Budget constraints are currently the biggest challenge in the industry, as reported by 75% of respondents. At the same time, reducing operational costs is the second biggest priority for FM professionals. Rising energy costs, inflation, and supply chain disruptions all make it increasingly difficult to deliver quality and cost-efficient services within tight budgets.

As organisations strive to meet compliance demands and implement essential safety measures, 40% report a budget decrease over the past year, with 13% citing a significant reduction. 69% of facilities management professionals have the same or less budget than the previous year.

Meanwhile, staffing shortages are widening the talent gap in facilities management, with 80% of professionals reporting their facility management teams are understaffed, and 24% stating they are significantly understaffed.

Technology adoption 

Digital transformation has become a core focus within the FM industry, as organisations seek to lever technology to improve efficiency, reduce operational costs, and enhance compliance. 53% of respondents rated digital transformation as a ‘highly important’ strategic priority for their organisation. 

However, high costs remain a major obstacle to technology adoption in facilities management, with 33% stating it as their main barrier. Many facility management teams work under tight budget constraints, making large-scale investment in digital advancements a struggle. Other challenges revealed were: integration with existing systems (19%), a lack of internal expertise (16%), and a resistance to change within the organisation (17%).

Kirsty Cogan, Managing Director at SFG20, says:

“As the facilities management industry evolves, improving the quality of asset data, achieving compliance, and controlling costs will be the key priorities in 2025. The survey findings highlight the significant pressures faced by professionals in the sector but also show how they are driving change and innovation to address these challenges.

“It’s encouraging to see the industry increasingly prioritising technology as a vital tool for achieving compliance and reducing operating costs. To overcome the significant challenges facing the sector, technology must play a central role. Recognising this, SFG20 are incorporating technologies such as AI search and asset mapping into our software and developing API integrations to assist industry with FM systems connectivity. A great way to start is to build a technology roadmap that is aligned to your organisation’s objectives”

RED Construction Group has announced the completion of 21-25 Bruton Place, with the specialist main contractor’s Special Projects division delivering the project on behalf of Berkeley Estate Asset Management (BEAM). 

The Special Projects team delivered a considered conversion of three existing mews properties covering 15,000 sq ft, into a unified building designed for commercial and office use, linked to Mayfair’s renowned Berkeley Square. The refurbishment involved the removal of existing structural roof and floor slabs, the retention of the front and rear façades, the construction of an external terrace, and the internal installation of a new steel frame alongside an additional Glulam / CLT single storey extension at roof level. A sustainable and innovative approach to the works focused on retaining the architectural character of the area while introducing modern design elements and performance.  

The project completion follows BEAM’s appointment of RED Construction Group on another of its schemes in the capital, to carry out a comprehensive refurbishment of 8 Lancelot Place in Knightsbridge while the building remains occupied. The 35,000 sq ft prominent office development is located at the corner of 8 Lancelot Place and 70 Brompton Road in Knightsbridge, opposite the Grade II listed department store, Harrods. 

Nathan Farrar, Managing Director of RED Special Projects, commented: “Our work on Bruton Place is a great example of Special Projects’ bread and butter. The more complex developments that require specific expertise like this are where our specialism sits, with Bruton Place proving that great outcomes can be delivered for logistically challenging sites. Not only have we completed the works to a high specification, but we have also been appointed by BEAM on the refurbishment of Knightsbridge’s 8 Lancelot Place as a result of the client’s satisfaction in what we deliver.”

Alex Rich at BEAM, added: “Bruton Place’s unique requirements meant that we needed a construction team that understood and could deliver the quality expected of such a distinct historic location. We are so proud of what has been achieved here together and have been particularly impressed by the RED Special Projects team’s ability to overcome the challenges of such a structurally complex refurbishment.”

The completion of Bruton Place follows the news that RED Construction Group’s South West division has completed works of the 4-star Zeal Hotel at Exeter Science Park, finalising the construction of the UK’s first Net Zero hotel for operational carbon without offsetting. 

The facilities management industry will continue to thrive in 2025 by embracing big data, human-centric design, and digital transformation, according to the Trends in Facilities Management for 2025 report from CBRE.

The report which can be downloaded here, delves into the high-level drivers reshaping the FM industry, with an analysis of nine trends:

1) AI-optimised facilities management

2) Connected FM technologies

3) The data and insight economy

4) Human-centred workplace strategy

5) Simplification of ESG

6) Cost savings

7) The next generation workforce

8) Rethinking workplace metrics

9) Supply chain designed for strategic impact

Seventy-seven per cent of industry experts who were canvased for their views on key factors that will influence FM purchasing decisions in 2025, listed cost and value for money as the top driver, and 27 per cent thought ESG and sustainability would remain a driving factor. Service quality, innovation, partnership, workplace experience, technology, flexibility and data/insight were also cited as important drivers.

The report concludes that the outlook for 2025 is extremely positive for the facilities management industry. The economy is improving, facilities managers are empowered through more usable data than ever before, and the industry is flooded with innovation.

It also adds: “Organisations are becoming more insistent on working with facilities management providers who deeply understand the idiosyncrasies of their business, industry and facilities. FMs will become more effective at articulating their industry-specific experience and products to meet this demand. This will go hand-in-hand with partnership as the most important driver of facilities management success. People are the heart of facilities management, and this will remain even more pertinent in 2025 as organisations demand more value from their facilities budgets.

Staying ahead in 2025 will ultimately rely on an ongoing and passionate commitment to delivering exceptional value to organisations.”

CBRE Global Workplace Solutions (GWS) is a headline sponsor for Facilities & Estates Management Live.