In times of growing concern around environmental damage and the rising cost of energy, business leaders should be considering the impact of Energy, Social and Governance scores (ESG).
Reporting on ESG is a way for governments, investors, consumers and employees to measure corporate responsibility and CO2 emissions. A key benefit of ESG is that it can help drive business growth.
On the flip side, it can ESG scores will have a significant impact on business continuity. Investors already assess the financial implications a low ESG score will have on a business.
Deloitte report that companies with the strongest ESG scores influence decision-making in the financial sector in terms of long-term investments. PwC also reports that 83% of consumers believe companies should be actively addressing ESG scores.
Despite the financial incentives at stake, numerous businesses feel hamstrung. In many cases, they do not have the financial resources to reduce their carbon footprint without compromising productivity that creates existing revenue streams.
Inflation, and the impending recession, also make it difficult for businesses to make realistic financial decisions that will improve ESG ratings. The government’s renewable energy solutions don’t provide a tangible return on investment over the short-term.
Coworking Spaces Help Businesses Cut Costs
Whilst ESG promises financial incentives, business leaders are faced with the prospect of shelling out over £10,000 to install a renewable energy system. Businesses with a high power demand are looking at an initial layout of between £30,000-£40,000.
At the lower end of the scale, the UK’s renewableenergyhub estimates the average annual savings are estimated to be around £1884. That means the minimum return on investment won’t be seen for the biggest part of a decade. And probably more for most companies.
The down payment to switch energy suppliers is a significant slice of your investment pie. Boards that are unable to invest in their business growth remain stagnant.
Renting coworking spaces can help businesses to save on having to invest in a renewable energy system. Not only that, coworking spaces reduce your overall utility payments and improve your ESG score. Especially if your employees take advantage of ad-hoc facilities in satellite towns.
Reduce Environmental Damage
A key measurement of ESG is focused on environmental damage. This takes into account how much accumulative electricity and fossil fuels your business uses. That includes utilities and the amount of fuel your employees use commuting to and from the office.
The more energy-efficient your business is across the board, the higher your ESG score will be. Renting coworking spaces not only helps you to reduce the amount of electricity and water you consume, but also reduces the amount of CO2 your employees emit into the environment.
BluDesks take energy efficiency one step further. We rent office space, private offices and meeting rooms on an ad-hoc basis. This means you are only responsible for the electricity you use when you are using the facilities. This helps you to record a lower rate of energy usage.
Not only that, we provide you with access to multiple coworking spaces and meeting rooms all over the city you live. This gives your employees easy access to affordable coworking space whenever they need it