As sustainability becomes central to operational strategy, Environmental, Social and Governance (ESG) reporting is no longer optional for many UK businesses – especially those with physical assets like buildings. ESG reporting helps organisations measure and communicate how their buildings impact the environment, support social goals and adhere to governance standards. With Building Management Systems (BMS) at the heart of this process, companies can track energy use, reduce emissions and meet regulatory expectations more efficiently.
Ready to make your ESG reporting work harder for your business? Start with the right building insights – talk to our expert team today.
What Is ESG Reporting?
ESG reporting is a way for businesses to share information on their environmental impact, social responsibility and governance practices. It sits alongside traditional annual financial company reports to give a fuller picture of a company’s health.
Defining ESG Reporting
ESG reporting is the process through which businesses disclose information related to their environmental impact, social responsibility and governance practices.
The concept of ESG reporting has evolved through contributions from various organisations over time, such as the United Nations (UN) with its Sustainable Development Goals (SDGs), the Global Reporting Initiative (GRI), the Organisation for Economic Co-operation and Development (OECD), and the Task Force on Climate-related Financial Disclosures (TCFD). These bodies have helped establish frameworks for businesses to report on their ESG activities transparently.
ESG Reporting for Buildings
When it comes to buildings, ESG reporting focuses on how properties perform in terms of energy consumption, water use, carbon emissions and indoor environmental quality. Using a Building Management System, organisations can track these metrics in real time, identify inefficiencies and ensure that their buildings align with sustainability goals. This approach not only helps reduce operational costs but also improves tenant satisfaction and increases the asset value of properties.
The Role of ESG in Sustainability
Building ESG reporting ties operational data to the UN Sustainable Development Goals like climate action, clean water and ‘decent work’ – a term the United Nations defines as “opportunities for everyone to get work that is productive and delivers a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration.” By linking BMS-driven data to these goals, organisations show how their properties tackle global challenges and identify where further upgrades are needed to create greener, healthier buildings.
ESG Reporting Requirements in the UK
ESG reporting is mandatory for certain companies in the UK, particularly for larger firms and those listed on the stock exchange. These requirements are enforced through various regulations.
UK ESG Reporting Obligations
The Companies (Strategic Report) Regulations 2022
The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (CR22) require certain large UK companies to disclose information related to climate-related risks and opportunities, aligning with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The specific criteria for applicability include:
- Premium-Listed Companies: All companies listed on the premium segment of the London Stock Exchange.
- Public Interest Entities: Certain large private companies and listed companies that are considered to have a significant public interest. This includes entities such as banks, insurance companies, pension funds and building societies.
- Employees & Turnover: A company must meet at least two of the following three criteria: over 500 employees, over £500 million turnover, or a balance sheet total of over £500 million to trigger the climate-related disclosure requirements.
The Sustainability Disclosure Requirements (SDR)
Introduced as part of the UK government’s broader regulatory efforts to improve transparency in ESG reporting, the SDR requires companies to disclose information on climate-related risks and opportunities, aligning with the TCFD. The SDR builds upon existing regulations, such as the Companies (Strategic Report) Regulations 2022, and ensures that businesses provide comprehensive, standardised and comparable ESG data.
Benefits of ESG Reporting
ESG reporting offers a wide range of benefits for companies, helping them align with global sustainability goals while improving business operations.
Driving Sustainability Goals
By reporting on ESG metrics, companies can demonstrate their commitment to sustainable practices, such as reducing carbon emissions, conserving resources and improving social equity. This helps align their business operations with long-term sustainability goals like the UN Sustainable Development Goals.
Enhancing Transparency and Accountability
ESG reporting fosters greater transparency, making it easier for stakeholders, investors and customers to evaluate a company’s sustainability efforts. It strengthens accountability by requiring companies to set clear targets and report on their progress.
Improved Risk Management
By assessing environmental, social and governance risks, ESG reporting helps companies identify and manage potential threats, from climate impacts to shifting social expectations. Applied to buildings, it supports proactive risk management related to energy use, emissions and compliance.
Data from Building Management Systems can highlight inefficiencies and guide improvements, helping organisations reduce operational costs, avoid regulatory penalties and improve occupant satisfaction. While the process may require new systems, staff training or external expertise, the long-term operational and reputational gains make it a worthwhile investment.
Finding Opportunities in ESG
ESG reporting not only helps companies manage risks but also uncovers significant opportunities for growth.
Identifying ESG Opportunities for Growth
As companies integrate ESG principles into their operations, they unlock a variety of growth opportunities that can drive long-term success.
- Access to Capital: Companies that prioritise ESG practices often enjoy better access to capital, as investors and financial institutions increasingly seek businesses with strong sustainability credentials. These companies may benefit from lower borrowing costs, as they are viewed as less risky and more future-focused.
- Competitive Differentiation and Reputation: A strong commitment to ESG can significantly enhance a company’s reputation, positioning it as a leader in sustainability. This reputation can attract customers, partners and employees who value ethical and environmentally responsible business practices, ultimately setting the company apart from competitors.
Leveraging BMS for ESG Sustainability Reporting
Using Building Management Systems helps organisations become more sustainable by improving energy use, reducing waste and using resources more efficiently. BMS tracks real-time data on energy and waste, helping identify problems and find ways to save money by using less energy, creating less waste and better managing resources. This system gives companies a clearer view of their environmental impact, allowing them to take specific actions that support their ESG goals and improve overall performance. This enables the business to be more efficient and cost-effective in the long run.
Cube Controls Strategic Insights
Integration of Control Systems and ESG Data
At Cube Controls, we understand the growing importance of integrating control systems with ESG data. Our IoT-enabled platforms centralise environmental and social metrics, giving you a real-time overview of your sustainability performance. This integrated approach ensures you’re not only tracking energy and resource use but are also able to make data-driven decisions that support your long-term ESG objectives.
Real-Time Monitoring for Rapid Response
With our systems, you can monitor energy consumption and waste streams in real time, allowing you to identify inefficiencies as they occur. This means you can act swiftly, whether it’s adjusting operations to improve energy efficiency or addressing waste management concerns.
Customisable Dashboards for Stakeholder Oversight
We provide customisable, interactive dashboards that can be tailored to the needs of your board, investors and regulators. These dashboards offer clear, accessible data, helping you meet transparency and reporting requirements while keeping all stakeholders informed.
Having worked with leading UK infrastructure clients, we know the challenges and opportunities that come with ESG reporting. Our services and experience enables us to provide practical solutions that align with both regulatory standards and your sustainability goals.
How to Start ESG Reporting
To begin ESG reporting effectively, it’s important to take a strategic, structured approach that ensures comprehensive and accurate data collection. Here are the key steps to get started:
- Establish Cross-Functional ESG Working Groups: Involve key departments like finance, operations and sustainability to ensure comprehensive reporting.
- Adopt Purpose-Built ESG Software: Use ESG-specific software that integrates with your existing Enterprise Resource Planning (ERP) systems – SAP, Oracle, Microsoft Dynamics etc. – for accurate, real-time data tracking.
- Conduct Internal Audits and Consider Third-Party Assurance: Regular audits and third-party assurance ensure data integrity and compliance.
- Communicate Findings Clearly: Use visual aids like graphs and charts to present ESG data concisely to stakeholders.
ESG as a Competitive Advantage
Aligning ESG strategies with expert-driven Building Management System solutions gives organisations a real competitive edge. It enables smarter, data-led decisions that reduce costs, improve building performance and meet evolving regulatory demands. As ESG reporting becomes a key marker of trust and transparency, companies that invest in integrated systems and clear disclosures are better placed to attract investors, meet sustainability targets and stand out in a crowded market. Proactive ESG action is now smart business.
Cube Controls is an established and experienced supplier of Building Management Systems, specialising in the design and set up of bespoke environmental and energy control programmes for commercial buildings and property.
To find out how Cube Controls can support you at all stages of design and consultancy, installation and modification and maintenance of your building management systems contact our expert and friendly team on 01903 694279 or sales@cubecontrols.co.uk.
