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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How Wallace Whittle is using Metrikus to improve workplace experience

Air Quality, Technology, Workplace

October 9, 2023

Emily Vernon

When moving to their new offices in Glasgow, Edinburgh and Aberdeen, Wallace Whittle was on a mission to optimize employee experience, comfort and productivity.

So when they came to us, we knew that our indoor air quality monitoring solution would be the perfect fit.

In this blog post, we dive into the work we did together, sharing some of the key aims and outcomes of the project.

What did the project involve?

After we deployed indoor air quality sensors throughout their offices, the team at Wallace Whittle immediately had access to real-time indoor air quality data through our building efficiency platform.

This helped to give them a better understanding of key factors like CO₂, temperature, humidity, PM2.5 and VOCs – all of which can have a big impact on productivity and wellbeing.

Now, historic data and trends are being used by senior management and their engineering teams to make more informed decisions about building performance and management, as well as employee experience.

What were the key outcomes?

1. Better employee communication

Wallace Whittle can now use our Kiosk Mode (shown below) to display real-time indoor air quality data to employees and visitors.

At any given time, employees can see what the air quality is like in meeting rooms and other spaces around the office. If the CO₂ levels are high – a common cause of tiredness in meetings – their employees can see this on the screen, and the appropriate teams are alerted to take appropriate action.

Wallace Whittle

2. More data-driven decisions

With access to real-time indoor air quality data, Wallace Whittle can make data-led decisions about when to naturally ventilate the office by opening windows.

Engineering staff can now see historic data in the Metrikus platform, helping them to identify indoor air quality trends in the offices and make predictive decisions based on this data.

3. Reduction in energy usage

By analyzing trends in environmental data, Wallace Whittle now understands the most efficient times to heat and cool their office.

This is helping them to reduce energy usage and bills, all while optimizing employee experience.

What next?

With our technology in place, the benefits for Wallace Whittle will keep on coming. And we will keep helping more and more companies like them to boost employee experience, comfort and productivity.

Want to find out more? Get all the information about our indoor air quality monitoring solution.