We are delighted to publish our framework for measuring Scope 3 emissions for facilities management, alongside our Summary & Business Case which offers an introduction to the Scope 3 measurement approaches used in the Framework and guidance on how best to utilise them. You can download both below:
This quarter, we will also be releasing insights into the data analysis exercise that took place as part of Phase 2.
Our Scope 3 research programme
Our work on Scope 3 stems from the belief that existing whole building carbon assessments ignore FM-based emissions and should therefore be considered incomplete. Not only does this underplay the full impacts of the building sector, but also limits the ability to deliver more efficient operations led from the design stage. We saw an opportunity to solve this issue and position FM as a key player in driving decarbonisation.
We realised that there is a genuine need to correctly calculate the carbon emissions for the built environment, due to the significant part they play in the UK’s total emissions. That is why we set up the Scope 3 FM research project, working with committed FM providers in Skanska, Bouygues, Optima and founding partner BAM, together with professional institutes RICS, IWFM and IEMA.
The importance for simplifying complex Scope 3 emissions reporting is important and IEMA has been working on this SFMI initiative in collaboration with several organisations to develop a Scope 3 FM Framework that will be useful across the built environment industry.Martin Baxter, Deputy CEO, Institute of Environmental Management and Assessment (IEMA)
The purpose of this project is to develop a global decarbonisation roadmap for the FM sector based upon a robust consistent approach that allows for confidence in the numbers and initiatives for reducing carbon emissions. This in turn will enable valuable conversations with customers, investors and supply chain.
According to the Global Integrated Facilities Management Market Report and Forecast 2023-2028, global FM revenue is predicted to hit $1.8 trillion USD by 2028, which will further increase both the position and impact of the industry. If the scope is incomplete, then subsequent net-zero transition plans, and claims will be incomplete or incorrect.
Net-zero carbon has become a business requirement driven not only by the global warming impacts and new regulations, but also because customers and employees want action. Only a minority in the FM industry has seen net-zero as an opportunity to deliver greater value to clients – many see it as a marketing tool.
To truly provide solutions to reach net zero, the industry must understand all the opportunities that it can impact, measure those impacts and then engage with their clients to demonstrate how they can reduce the impacts and agree contracts that encourage these reductions. The typical FM contract is one of the key barriers to making reductions, so the SFMI, in collaboration with its partners, is building the tools to help the industry overcome the challenge.
“As a leading company in our sector, we know we need to be more efficient and get our own operations to net zero. We can also make an even bigger impact by helping clients remove carbon from their existing estates and future buildings, both in terms of how they operate, and the materials used to build and maintain them.”James Wimpenny, Executive Director, Construction, BAM UK & Ireland
Our 4 stage approach
We first set out a series of objectives to be achieved through a 4-stage process:
|Launch of a technical emissions report and push the use of the standard for FM.
|Use the approach to build and test a methodology for the industry and drive uptake.
Sept 2022 to December 2023
|Develop the tool to deliver to the wider industry and outside UK.
|Build a globally recognised decarbonisation pathway for the FM industry.
Join us for Stage 3
Stage 3 is set to kick off in January 2024, and we’re on the lookout for 10 forward-thhinking partners to get involved. The preceding stages have already made a significant impact on the FM industry, generating increased visibility and awareness. Stage 3 takes the Scope 3 project further as it looks to collect and analyse significant data sets to understand the current emissions gap in the built environment’s carbon footprint.
Benefits for partners:
- Partners will receive support and training to collect Scope 3 emission data in line with RICS Whole Life Carbon Assessment
- Our partners will have their relevant Scope 3 categories identified for them and will be involved in the data analysis of the meta data. This will enable them to take this information to the wider business to be used in decision making processes.
- Partners will gain a significant edge through exclusive webinars, events and articles written through RICS, IEMA and IWFM. These platforms will showcase their credentials as sustainable FM providers and leaders in decarbonisation.
Developing the Scope 3 Framework
We first developed a framework to provide a consistent method for capturing greenhouse data from the facilities services. This collaboration on a standardised approach is crucial in giving FM clients confidence in the carbon data provided as they continue their journey towards Net Zero. We released the framework in partnership with BAM FM1 in June 2022.
We then used the framework as a method for capturing the real-life data to allow us to demonstrate the significance of measuring Scope 3 emissions and test the validity of the methodology.
We then had a consultation period where we gathered feedback on the framework from various in
Scope 3 Emissions reporting has been included for operational buildings as part of our Whole Life Carbon Assessment. The SFMI are striving to clarify the complexity around Scope 3 reporting and help organisations understand what they need to be compliant. To be a part of the working group of this much needed initiative, pulling together the Scope 3 FM Framework is important to RICS and will be helpful for our members.Paul Bagust Head of Property Practice, RICS (The Royal Institution of Chartered Surveyors)
- Working with Partners to design a framework which defines the boundaries for collecting Scope 3 data for Facilities Management services.
- Collect Scope 3 data using the framework, and in doing so, upskill FM teams.
- Update the framework with learnings from real-world stress testing
- Use the data to analyse the significance of the current gap in the frameworks used to calculate the emissions footprints of buildings.
- Develop a carbon tool used to aggregate the carbon emission data.
- Design and build a globally recognised decarbonisation pathway for the FM industry
We’ve set up a Project Board to ensure effective management of the project with our partners. The Board members meet regularly and are responsible for:
- Ensuring the project programme and objectives are being met
- Providing sufficient resources overall to meet the objectives
- Communicating the approach and achieved outcomes in a meaningful way to the FM sector and the wider built environment sector
- Engagement as required with partners to capture knowledge and learnings.
Positioning FM as a sustainable solution provider
This project is part of a wider vision where FM will position itself as a key partner in delivering zero-carbon solutions in the built environment. To do this, the FM industry needs to build a data set to understand what the true impacts of its emissions are for its customers. This can then be used to promote greenhouse gas (GHG) management in the operational stage of the building lifecycle, thereby promoting FM as a solution toward zero-carbon buildings in the future.
The vision aims to create a measurement tool for the sector, develop FM service level emission factors based on real-life data for more accurate reporting, and build a sectoral decarbonisation pathway.
Benefits of FM becoming key leaders in zero-carbon buildings
- If FM drives the conversation on carbon impacts and how to deliver the decarbonisation journey it will increase the value of FM services.
- By measuring the carbon impacts of specific services in contracts, we can innovate and deliver a decarbonisation journey.
- Relationships will improve across the supply chain as the FM aligns with customer zero-carbon values that are now becoming business imperatives for Clients, Stakeholders, Investors and Colleagues.
This programme supports the SFMI’s purpose to drive ESG leadership within the FM industry by delivering sustainable services that provide a positive benefit across the value chain.
“An FM’s carbon impact is larger than many will report. This is exacerbated by the explosion of net-zero targets that have been announced by providers. So, many FMs are actively or inadvertently ‘scoping out’ emissions from their inventories to make hitting an arbitrary net-zero target easier. By doing this the industry is not positioning itself as a solution to the problem we have of reducing GHG emissions.”Sunil Shah SFMI Director
Find out how you can become part of the Scope 3 journey