What is a sustainability index?

A sustainability index is an instrument used to measure the sustainability of a business across environmental and social factors. It provides non-financial data that can tell investors and stakeholders how a company is managed in a day-to-day setting and the importance that they place on environmental stewardship and social responsibility. There are dozens of different indexes that businesses can disclose to, each providing their own parameters and levels of credibility amongst the public. The Dow Jones Sustainability Index and FTSE4Good are the most popular in Europe, whilst the MSCI KLD 400 Social Index has a large representation in the US. Sustainability indexes are becoming increasingly important, not only as a measure of risk for investors, but also as a measure of environmental impact. In the face of aggravating climate change, it is paramount that businesses place sustainability at the forefront of their management. Being able to benchmark your company against others as well as being subject to pressures from the public is also a valuable driver of sustainability in business.

What is a sustainability index used for?

Sustainability indexes are primarily used by investors who are interested in introducing sustainable investments to their portfolios. The rise in this interest is in part due to the fact that a business’ sustainability performance is a strong indicator of future performance. A study by HEC Paris titled “Do Investors Actually Value Sustainability Indices?” analysed the impact on companies that are listed on the Dow Jones Sustainability Index. Their findings showed that the listed businesses had a higher percentage of shares held by long-term investors, as well as higher visibility amongst financial analysts.

How do sustainability indexes work?

Each sustainability index works slightly differently, all having a unique assessment criteria and methodology. The general procedure, however, involves a yearly disclosure cycle. This begins with an invitation for companies to participate in the disclosure process, which is often completed through a questionnaire. Participating businesses will have several weeks to several months to complete the questionnaire – depending on the sustainability index – and their answers will be analysed and scored according to each index’s methodology. Once all companies have been given a score, the results are made public and the cycle will begin again for the following year.

What are the benefits of having a sustainability index?

The benefits of having a sustainable index range from financial to non-financial, and benefit businesses, investors, and the public alike. Businesses: Sustainability indexes are useful tools in benchmarking your businesses’ non-financial performance. Measuring your impact is the first step in improving it, and disclosing to a sustainability index allows your business to track progress and make credible plans for improvement. Investors: Sustainability indexes provide non-financial information on companies that give indications of future financial performance. This data is incredibly useful to investors who are looking for long-term, sustainable portfolios. Public: Sustainability indexes make business sustainability data publicly available. With sustainability being of increasing importance to consumers, this helps members of the public to easily decide where they should spend their money, ultimately driving the market in a more sustainable direction.

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Getting the measure of the modern workplace | Webinar recap

Smart Buildings, Office, Workplace

August 22, 2023

Emily Vernon

In a world where many offices are still half empty, organizations are looking for opportunities to streamline real estate costs and reduce energy consumption.

But without access to accurate workplace data, it’s impossible for them to understand how their space is actually being used.

In our recent webinar, host Michael Grant explored the wide range of technologies that can transform workplaces for the better: reducing costs, increasing productivity, and driving sustainability.

In case you missed it, we thought we’d write a quick blog post recapping the topics he discussed.

What does a smart workplace look like?

09:00-12:45 in the webinar recording

Here at Metrikus, we talk a lot about making buildings ‘smart’. But we’re not talking about installing a load of overly complex systems for the sake of it – ‘bells and whistles’ as Michael likes to describe it.

Instead, our definition of a smart office involves building data being collected, aggregated and used to help companies to make more informed decisions about their space.

The most important thing is that this data is brought together in a single place so that it can be compared and analyzed across an entire portfolio – be that a small office, hundreds of rooms across numerous floors, or various buildings spread around the world.

So, after recapping Metrikus’ take on the ideal smart office, it was time for Michael to dive into three of the key technologies that can make workplaces more efficient, productive and sustainable:

Occupancy monitoring
Indoor air quality monitoring
Energy monitoring

Smart building technology

Getting a seamless data picture with occupancy monitoring

12:45-14:30 in the webinar recording

Occupancy monitoring uses IoT sensors to gather data about how a company’s workplace is being used by employees.

To make data-driven decisions about downsizing or reallocating space, you need accurate data about:

How meeting rooms are being used
How specific desks are being used
Which spaces are most or least popular
Which spaces are booked but not used

Sensors can be placed under desks, on ceilings and in doorways to allow you to see usage – both daily and over time.

Once patterns and trends emerge, you can then take steps to optimize space utilization, right-size your estate, and save on unnecessary operating costs like energy.

If you want to find out more about the huge ROI that occupancy monitoring can deliver, make sure you head to 14:30 in the webinar recording. Michael did some quick maths to show how companies like Goldman Sachs could save a massive £270 million by optimizing the utilization of their office space.

Boosting employee productivity with indoor air quality monitoring

22:00-25:22 in the webinar recording

Indoor air quality (IAQ) monitoring is all about measuring and optimizing the quality of the air we breathe indoors.

Poor IAQ can cause an 11% reduction in productivity, and there’s even research showing that when CO₂ exceeds 1000 ppm, it has the same impact on cognition as two pints of beer!

Smart sensors installed in offices can monitor a wide range of parameters, from CO₂ to PM2.5. And alerts can be set up when these parameters exceed optimal levels, so that you can take steps to keep your air healthy at all times.

In our webinar, Michael not only explained the basics of IAQ monitoring, but also spoke about our solution in action with GSK.

After deploying sensors to monitor and improve indoor air quality, we worked together to create the Kiosk Panel, which displays IAQ data on screens around an office. This has been a game-changer when it comes to communicating the health of the space to employees, while encouraging them to learn more about the common sources of poor IAQ.

To find out more about the details of our work with GSK, make sure you head to 25:22 in the webinar.

Kiosk Wellness view

Creating more sustainable spaces that boost ROI

27:15-31:00 in the webinar recording

For the final section of the webinar, Michael dug a little bit deeper into sustainability and ESG, starting with some key stats:

91% of business leaders say their companies should act on ESG
40% of the world’s energy related carbon emissions come from buildings
30% of energy purchased is currently wasted in commercial buildings

With smart technology, you can actually see how much energy you’re using on a granular level, and take steps to avoid wastage and drive efficiency.

This data can also be fed into ESG reporting platforms, and used for compliance with ever-growing sustainability regulations.

Like with occupancy monitoring, Michael took the example of Goldman Sachs to do some simple calculations on carbon ROI. He found that by repurposing or closing floors, the bank would be able to avoid 1,683 tonnes of carbon emissions each year, equating to a massive 42,000 tonnes over their 25 year lease.