Driving Change Together: Clients and FM Providers Tackling Scope 3
This is part 3 of a 3-part series looking at the main Scope 3 emissions challenges in the FM industry from Kristen Mierzejewski, Senior Consultant at Acclero Advisory.
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. For clients, understanding and addressing Scope 3 emissions from FM services is critical to ensuring accurate carbon reporting, building robust sustainability strategies, and achieving net-zero commitments. The collaboration between FM providers and their clients is central to overcoming these challenges and driving meaningful change.
Understanding Client Priorities for FM Scope 3 Emissions
With the rise of regulatory frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the International Sustainability Standards Board (ISSB), companies must now provide detailed reports on their emissions, including Scope 3 (you can read more about the regulatory landscape for Scope 3 emissions in our previous article). These regulations require clients to obtain granular data on emissions related to the operational use of their buildings. A lack of high-quality, transparent data from FM providers can result in gaps in carbon reporting, making it harder for clients to validate net-zero plans or sustainability claims when required for audits. This data gap also means that clients can struggle to identify emissions reduction opportunities, and leaves them with an incomplete understanding of their overall carbon footprint.
Many clients of FM providers have implemented, or are in the process of implementing, comprehensive sustainability strategies across their business. In order to do so, clients must account for their FM-related emissions and understand how they impact broader decarbonisation plans, such as science-based targets and transition plan roadmaps. Furthermore, excluding FM emissions from these net-zero strategies could result in reputational damage for the client companies, particularly as greater transparency around these initiatives becomes increasingly important. More granular data is essential in order to identify areas where FM operations be optimised for decarbonisation. Without this, clients cannot set meaningful targets or make informed decisions around the operational use of their buildings. Such an incomplete integration of FM data into their sustainability strategies poses a challenge to clients, and hinders productive collaboration on aligning FM sustainability strategies with those of the client.
Strong collaboration between clients and FM providers is essential to aligning sustainability objectives. By working closely together, clients can unlock innovative low-carbon solutions from FM providers that integrate into their overall sustainability agenda. This partnership not only boosts sustainability performance but also positions FM providers as key allies in achieving net-zero ambitions. FM services often come with the added complexity of subcontractors and extended supply chains, which complicate emissions tracking. To address these challenges, it is vital for clients and FM providers to work together, ensuring data accuracy and transparency across the entire value chain.
The Role of FM in Decarbonisation
FM providers play a vital role in the operational phase of buildings, which is a significant contributor to emissions. To successfully decarbonise, clients must recognise the potential of FM providers to drive change. FM services significantly influence energy use, waste management, and other operational activities within buildings, which can significantly impact carbon emissions. By providing high-quality, transparent data, FM providers can help clients track, reduce, and manage emissions. Strong partnerships between clients and FM providers can allow them to work together to identify emissions hotspots and opportunities for reductions. Furthermore, decarbonisation strategies and goals can be written into contracts to ensure accountability and alignment.
How we can help:
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 Scope 3 Emissions Tool is central to the next phase of this initiative. It enables FM providers to comprehensively map their emissions in relation to client contracts, providing both clients and providers with critical insights to foster more effective collaboration.
For clients, the benefits are substantial. The tool offers greater oversight of emissions tied to the operational use of their buildings. In some cases, clients may even be able to reduce their Scope 2 emissions by improving the energy efficiency of building operations through FM interventions. For instance, FM providers can optimise energy use within buildings, leading to reduced electricity consumption and lower indirect emissions for clients.
Clients play an important role in decarbonising the entire lifecycle of a building. By reducing operational emissions, they contribute directly to the sustainability of the built environment. The Scope 3 Emissions Project is an initiative that empowers clients to better understand their carbon footprint for regulatory reporting, while also driving their sustainability strategies and fostering stronger alignment with FM providers.
Please get in touch with the SFMI to find out more about becoming a partner.
