How important is your ESG? Specifically, how well do you document and perform against your climate-related Transition Plan?
By Ben Goudy, CFM
I recently wrote a blog discussing the importance of ESG plans for facility managers. After posting it on LinkedIn, I received a few reads and comments, making me wonder how many companies still need an ESG plan. Moreover, I became curious about how many companies need better-written plans. Is there a standard against which climate-related transition plans will be measured? Can companies bluff their way through it?
This is where the Transition Plan Taskforce and the Disclosure Framework and Implementation Guidance come into play. This guidance was released this month (October 2023) and is based on the UK's ambitions of being a global leader in net zero. The government aims to make the publication of all climate-related transition plans mandatory, which drives the need for a standard in public reporting.
As mentioned in my previous blog, compliance in this area is rapidly evolving. Standards are being written and released to support reporting requirements, and soon, we will be held accountable to these standards. The leading edge of formulating a transition plan in this space is the TPT Disclosure Framework and Implementation Guide.
The Framework is based on standard international guidance like that of ISO or other quality programs, such as ESG. It measures "Ambition," "Action," and "Accountability". It aligns with the Glasgow Financial Alliance for Net Zero (GFANZ) by breaking those three areas into the following categories: Foundation, Implementation Strategy, Engagement Strategy, Metrics and Targets, and Governance. Figure 1 is a diagram that can help visualize this.
The plan's success depends heavily on its ability to contribute to a comprehensive shift across the entire economy. This plan aspect can be deemed "The WHY," as it explains the rationale behind implementing this strategy. It addresses the fundamental question of why we are pursuing this approach. However, the actual implementation of the plan is equally essential, and that is where the real action lies. It involves identifying simple steps or actions organizations must commit to and execute to make the Ambition strategy take hold.
The Ambition strategy can be made successful by identifying simple steps or actions that organizations must commit to and execute. These actions should be mapped out with designated owners, SMART deliverables, and milestones. Accountability is the final step, which involves incorporating the results directly into regular strategies and objectives. Doing so creates a culture where ESG becomes a normal part of day-to-day business rather than just a "flavor of the month" or "pet project."
The TPT Guide outlines 19 well-defined Disclosure Sub-Elements that can guide us in this process. As Facility Managers, we are called upon for input into our company's plans, particularly concerning energy reduction and our carbon footprint. Let us embrace this challenge and feel empowered to engage in this process with an enlightened perspective. Together, we can significantly impact and create a better future for the world.
When you are called upon, I hope you reflect on this blog and feel better prepared to engage in a more enlightened position actively.
Please let us know if you need any further assistance.
