What do LEED checklists, energy and daylight models, commissioning, and ESG reports have in common? They all support green building certification, strong building performance, and ESG goals simultaneously! Green building certifications like LEED, WELL, Fitwel, and BREEAM, along with building performance strategies such as modeling and commissioning, play a crucial role in supporting ESG goals by providing opportunities to achieve ESG goals such as greenhouse gas emissions (GHG) emissions reductions, resource efficiency, and even support strategies like employee satisfaction and risk mitigation. These strategies provide a framework for sustainable building practices that align with ESG criteria.

Environmental Goals

As evidenced by the name, Leadership in Energy and Environmental Design (LEED) plays a crucial role in promoting sustainable practices and achieving environmental goals. LEED focuses on various aspects such as reducing GHG emissions, improving energy efficiency, and enhancing water management within buildings. For instance, LEED credits include renewable energy, optimized energy performance, and construction waste management. Buildings certified under green standards are designed to minimize their ecological footprint, thereby aligning with the environmental pillar, or “E”, of ESG. Well-known synergies with LEED in this focus area include the Water Efficiency and Energy & Atmosphere categories. Green buildings often incorporate features like low-flow fixtures, reduced irrigation systems, and energy-efficient mechanical systems, as well as onsite renewable to achieve EA Optimize Energy Performance, Renewable Energy, and Water Efficiency credits. There are also less obvious ESG benefits in other areas of LEED. For example, selecting a well-connected site near public transit options or providing bicycle storage facilities to reduce single-passenger fossil fuel trips. By achieving these certifications and showcasing strong building performance, buildings demonstrate a tangible commitment to reducing their environmental impact, which is a core objective of ESG strategies.

Social Goals

Certifications also address social aspects within buildings by improving occupant comfort, promoting health and wellness, and ensuring accessibility and inclusivity. For instance, WELL credits cover areas such as indoor air quality, thermal comfort, and natural lighting. Green buildings prioritize the well-being of their occupants by ensuring high standards of indoor environmental quality. This includes optimizing natural light, ensuring good air quality, and maintaining comfortable thermal conditions, all of which contribute to creating the optimal work environment that enhances employee health, satisfaction, and productivity. A focus on creating a healthy workspace also mitigates the risk of phenomena such as sick building syndrome, which according to the EPA describes “situations in which building occupants experience acute health and comfort effects that appear to be linked to time spent in a building, but no specific illness or cause can be identified.” By focusing on these social elements and promoting health and wellness, green building certifications support the social pillar, or “S”, of ESG, ensuring that buildings are not only environmentally friendly but also conducive to the health and well-being of their users.

Governance Goals

According to Investopedia, the governance component, or “G”, in ESG, measures a company’s leadership, business practices, and internal controls. This includes areas such as risk mitigation, security, and compliance. Within the context of green buildings, effective governance involves establishing clear policies and procedures for sustainability, ensuring compliance with relevant codes and standards, and incorporating risk mitigation and resiliency measures. LEED credits such as the SS Site Assessment credit and the pilot credit IPpc98 Assessment and Planning for Resilience require project teams to examine the geological and environmental features of the site in relation to human activity. Similarly, stormwater management within a project design helps safeguard against catastrophic storm events, and WELL and Fitwel both incorporate credits that require emergency resources such as risk protocols for emergency response plans for a variety of hazards, notification systems, CPR training, AEDs, and medical supplies. Effective governance also involves conducting audits of sustainability data, reporting on sustainability performance, engaging stakeholders in decision-making processes, and designing with the future in mind. By adopting these governance practices, organizations can demonstrate their commitment to ethical and responsible management, which is a key element of ESG. Green building certifications often require documentation and verification of these practices, ensuring that they are not just theoretical but implemented effectively.

Strategic Advantage for Architects, Engineers, and Project Teams

Architects, engineers, and project teams who are familiar with their client’s ESG initiatives gain a significant strategic advantage by aligning their services with the client’s organizational goals and business strategy.

By understanding ESG principles and the specific sustainability goals of their clients, design and construction professionals can tailor their approach to not only meet but exceed these expectations, providing added value to their clients. It could also prevent costly upgrades or changes that could have been avoided. For example, being aware of a client’s Scope 1, 2, and 3 GHG emissions reduction goals in their annual ESG report provides insight to inform sustainable design decisions such as providing EV fleet charging, onsite renewables, or even transit options. This deep understanding allows project teams to propose solutions that not only meet scorecard or regulatory requirements but also advance the client’s broader ESG objectives, creating buildings that are both high-performing and aligned with the client’s values.

Demonstrating a focus on sustainability both in the project process and as a firm can strengthen relationships with clients who prioritize sustainability. Clients are more likely to value and trust partners who share their commitment to environmental stewardship, social responsibility, and strong governance. This can lead to long-term partnerships and repeat business, as clients seek out teams that can help them achieve their sustainability goals.

The Big Picture

By supporting a client’s ESG goals far beyond the scope of (or better yet, in conjunction with) a green building certification scorecard, design and construction professionals help clients achieve broader business objectives. Sustainable buildings often result in cost savings, improved tenant satisfaction, and higher property values. These benefits directly contribute to the client’s bottom line, making the project team an invaluable partner in their success.

The synergy between ESG strategies, green building certifications, and strong building performance creates a powerful framework for sustainable development. By adopting these practices, firms not only contribute to environmental stewardship but also enhance their social responsibility and governance standards, leading to overall business success and resilience. The integration of ESG and green building practices is not just beneficial for the environment and society but also makes sound business sense, offering tangible benefits in terms of performance, marketability, regulatory compliance, and long-term sustainability. Furthermore, architects, engineers, and project teams who embrace and understand ESG initiatives gain a strategic advantage, positioning themselves as essential partners in their clients’ journey towards sustainability.