Once your company has a firm grasp on fundamental ESG metrics, it’s time to turn your attention to aspects that may require extra effort to collect and manage effectively.
In our previous ESG blog, we emphasized the importance of taking those initial steps in your ESG (Environmental, Social, and Governance) journey by leveraging existing data.
At this juncture, it becomes crucial to focus on areas where your company, especially as a general contractor (GC), has significant control or influence. While the specific focus areas may vary from one company to another, there are some common areas of interest for many GCs. These include:
1. Tracking Metrics at the Regional or Jobsite Level: Monitoring and analyzing ESG metrics at the regional or individual jobsite level allows you to gain deeper insights into the specific environmental, social, and governance challenges and opportunities in various locations. This tailored approach ensures that your ESG initiatives are aligned with the unique circumstances of each project.
2. Employee Commuting and Business Travel: Calculating the environmental impact of employee commuting and business travel is an essential aspect of ESG. Accurately tracking and managing these emissions is essential for a comprehensive ESG strategy.
3. M/WDBE and Local Trade Partner Participation: Promoting diversity and inclusion within the construction industry is not only an ethical imperative but also an essential component of ESG. Many companies track the participation of Minority-Owned, Women-Owned, Disadvantaged Business Enterprises (M/WDBE), and local trade partners on their projects. However, this data may not be consistently collected across the entire organization.
Let’s take a closer look at M/WDBE and local trade partner participation as an example. Your company may already track this information on certain projects, especially if an owner or local jurisdiction mandates it. Still, it may not be uniformly monitored and analyzed across your entire company. To collect this data comprehensively and efficiently, your company can implement a system that requires all projects to report the percentage of contracts awarded to these diverse businesses.
Implementing such a system can be streamlined and time-efficient, particularly when utilizing tools like Green Badger’s ESG portal. This platform simplifies the process by accounting for various types of diverse businesses and streamlining data collection and reporting. With Green Badger’s ESG portal, you can centralize and manage your ESG data effectively, ensuring that you have a clear picture of your company’s performance in promoting diversity and inclusion in your projects.
Over a period of 12-18 months, by consistently collecting data on M/WDBE and local trade partner participation, your company will be equipped with valuable insights into the extent of work being performed by these businesses. Armed with this information, you can begin to set concrete company-wide goals for improving these metrics.
For example, you might consider implementing a policy that mandates all projects above a certain size threshold (measured in square footage or dollar amount) to actively solicit and award a minimum number of bids to minority-owned businesses. This proactive approach not only strengthens your commitment to diversity and inclusion but also demonstrates your company’s dedication to enhancing its ESG performance.
In conclusion, as you advance in your ESG journey, it’s essential to expand your focus beyond the basics and delve into areas where your company can make a significant impact. By tracking metrics at the regional or jobsite level, addressing employee commuting and business travel emissions, and promoting diversity through M/WDBE and local trade partner participation, you can create a more holistic and meaningful ESG strategy for your organization. For a comprehensive list of ESG metrics and further guidance, please refer to our ESG Implementation Guide linked below.
