Strategy

Why will people come into the office?

Teamwork

Sit with their team colleagues, possibly doing same work they do at home.

Network

Connect and intersect, mostly in small groups, with colleagues outside immediate team.

Events

Come into work for a single specific event, that may not even be in office. Events might include meeting a particular person, a group social event, a collaboration activity, or shopping/events near the office.

Large-scale collaboration events will continue to occur intermittently. Spaces created for this function should have multi-purpose uses as work areas and small-group collaboration spaces.

Factors causing people to leave the office include inability to sit with colleagues, lack of acoustic privacy and clumsy technology configuration.

Environmental, Social & Governance

With growing demand for climate action among consumers, occupiers and investors, measuring ESG performance is more important than ever for all businesses to thrive.

Companies can achieve operational efficiencies and sustainability by streamlining, saving energy, reducing waste and recycling materials. Well-managed fit-out projects can contribute to environmental and economic benefits through reductions in energy consumption, implementation of cost-neutral building maintenance methodologies and lower workspace costs.

Practices - Regulatory Pressure

European Union (EU) rules such as the Corporate Sustainability Reporting Directive (CSRD) now require large companies to publish regular reports on their social and environmental impacts.

Sustainability reporting ensures that companies consider their impacts on the environment and enables them to be transparent about their risks and opportunities.

Figure 1: ESG Initiatives

Source: CBRE Insights, 2022.

Energy-efficiency certifications for buildings are becoming more common. Owners and occupiers are demanding sustainable fit-outs and increasingly opting for third-party certifications that verify a building meets certain environmental standards. These standards also may include wellbeing (WELL/Fitwel) and building connectivity (WiredScore/SmartScore).

Planet - Carbon Reduction

More than 30% of global Fortune 500 companies have publicly committed to achieving a climate goal by 2030. Governments globally have enacted new regulations to curb carbon emissions. For example, EU regulation aims to cut carbon emissions by at least 55% by 2030, and the U.K. government commits to reduce carbon emissions by 78% by 2035.

Decarbonization Pathway - CRREM

The Carbon Risk Real Estate Monitor (CRREM) is a tool for measuring current consumption of a property, portfolio or business and evaluating the carbon-emission performance against targets in line with the Paris Agreement.

Energy Performance Contracting (EPC)

More than 28% of carbon emissions is related to building operations, therefore existing building inventory must meet energy-efficiency standards. Buildings must achieve minimum applicable EPCs per the local legislation and challenge continuous improvement.

People - Seek Companies with Purpose

CBRE’s Global Live-Work-Shop Report ound that millennials are highly attuned to the culture and practices of a company—including its environmental credentials—when deciding whether to become or remain employees. Occupants of “greener” buildings are also healthier and more productive at work.

Strategic Sourcing

Sourcing a capital project can take longer than anticipated, with availability and quick manufacture often taken for granted. In the current global economy, the supply chain faces pressure from reduced resources and increased demand.

Without proper consideration at the strategy stage, a project program could be extended by weeks as lead times become unreliable. For example, the global shortage of lumber has led to delays and cost increases in furniture manufacturing and delivery, where order fulfillment can now take up to six months (compared with three months pre-pandemic).

Early engagement can mitigate sourcing challenges, allowing for better planning from the project’s outset and ample time to identify requirements and place orders ahead of a full contract’s execution. Using trusted suppliers, which can align with client expectations and adhere to a service agreement, provides a degree of certainty on supply chain lead times and preferential rates. Failure to prepare at the strategic stages of a project may result in failure to meet key project objectives due to unstable supply chains.

Benefits of Strategic Sourcing

• Reputable market and industry-leading suppliers
• Financially well positioned to ensure continuity of service
• CSR focused
• Globally diversified manufacturing services
• Recognized industry credentials and accreditations
• Focus on product innovation and use of technology:
  • Competitive pricing and tiered discounts
  • Wide product offering to support client requirements
  • Warranties and aftercare support
  • Lead time (days/week)/quick-ship programs
  • Customization available
  • Recycling services available
  • Asset Recovery program

Figure 2: Sourcing Diagram

Source: CBRE Insights, 2022.

Decarbonize the Supply Chain

• Scope 3 GHG emissions in supply chain
• Baseline hotspots identified using supplier spend and emission metrics
• Engage high emission suppliers to improve and measure reduction
• Global performance team and emissions tracking

Supplier Diversity

• Increase use of certified diverse suppliers to meet spending goals
• Leverage partnerships
• Sourcing and supplier training playbooks, toolkits, case studies, etc.
• Global platform team

Responsible Sourcing

• Integrated into supplier onboarding process and leverage supplier risk ecosystem
• Sourcing and supplier training
• Managed within risk and operations

Many companies have set a net-zero carbon target. CBRE recommends working with partners who have net-zero practices in action. Ensure your decarbonization journey includes the indirect emissions from your suppliers to reduce the carbon footprint of your supply chain.