This session from NFMT Remix explores the historical roots of sustainability in facility management, providing valuable context for planning future initiatives.
Larry Morgan, Senior Facilities Manager, SAP Global Facilities Management, Americas, identifies key drivers of sustainability efforts, including corporate social responsibility (CSR), cost savings, regulatory compliance, brand reputation, and employee engagement. He highlights how sustainability influences talent attraction, especially in regions where it is culturally ingrained, such as Europe. The financial benefits of sustainable practices are underscored by SAP’s 35-40 percent revenue increase from sustainability-related software sales.
Morgan also addresses practical challenges in implementing sustainability initiatives, such as gaining executive sponsorship, aligning objectives, and securing funding. He advocates for creating business cases for sustainability projects and stresses the importance of clear goals, measurable outcomes, and cross-functional collaboration. Sustainability should not be seen as an add-on but integrated into the organization’s DNA.
Emerging trends in sustainability include increased regulatory compliance, carbon footprinting, and the rise of Environmental, Social, and Governance (ESG) frameworks. Morgan predicts that ESG will become a standard part of facilities management by 2026. He also highlights the role of new technologies, such as AI, in making qualitative decisions about sustainability, though he remains cautious about their current applicability.
The transition to hybrid work models, accelerated by the pandemic, is a significant factor impacting sustainability. With only 33-40 percent of employees returning to offices globally, companies must reassess real estate portfolios and energy consumption baselines.
Sustainability requires strategic foresight, financial justification, and collaborative effort to integrate meaningfully into business operations. Effective communication, tailored to different stakeholders, and precise project management are critical.
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