Sustainability isn’t Just a Trend, It’s Good Business Sense

It’s getting contentious out there. With environmental, social and governance (ESG) objectives almost as article-producing as return to office (RTO) mandates, you might be considering dialing back how aggressively your firm pursues sustainability goals. Don’t. 

Even with investors pulling millions and major companies avoiding the acronym “ESG,” and trying to pause or avoid sustainability initiatives could be a critical mistake. Why? Because some of the private sector’s biggest movers and shakers won’t even consider awarding work to a contractor without clearly stated sustainability goals and initiatives. This is on top of the fact that regulations are already in the pipeline. To put it simply? If you want to stay competitive, never mind get ahead, put your opinions on sustainability in the back seat.  

You don’t have to take our word for it. Just follow the data.

Sustainability is baked into the values and policies of countless companies all over the globe who are continuing to set ambitious climate-related goals. Here are just a few examples:

• Microsoft intends to be carbon-negative and zero waste by 2030. 
• Formula One is committed to reaching net zero water consumption in Las Vegas.
• Johnson & Johnson has planned to source 100% of their electrical needs from renewable resources by 2025. 
• 80% of Adobe Inc.’s offices globally meet LEED certifications and Edwards Lifesciences Corp is working on LEED Gold certification for its Irvine campus. 

Further, despite any backlash in the headlines, when Just Capital polled the American Public, they found that 73% strongly or somewhat favor federal requirements for environmental data disclosures, and ESG today reported in March of 2024 that 90% of Investors say climate reporting rules will drive better investment decisions. 

Then we look at regulations. Back in 2023 the state legislature in California passed a pair of bills (SB-253 and SB-261) that enforce reporting carbon emissions as well as climate risks and opportunities. The passage of those bills was thought to be just the beginning, with climate reporting seeming inevitable nationwide. Now, the SEC’s climate-related disclosure rule mandates the reporting of Scope 1 and Scope 2 emissions for public companies, with Scope 3 reporting gaining importance across supply chains. So, although not every state imposes strict regulations, companies keen to do business in some of the nation’s largest markets, including California and Washington, D.C., can’t expect to win work without offering low-carbon solutions on both new and existing construction projects. 

What does that mean for us? 

From the perspective of HVAC contractors, it’s worth noting that while HVAC systems aren’t as linked to embodied carbon like other structural materials, they still contribute to both embodied and operational emissions. Necessary replacements of these systems during a building’s lifecycle add to their impact. So, contractors who are familiar with not just tracking and minimization techniques, but also with lifecycle assessments (LCAs) are best positioned to have sustainable, competitive, price-reducing solutions that clients and partners need to meet their decarbonization goals. 

It’s not just about the solutions offered on a single project, either. If you’re a contractor with demonstrated expertise navigating the increasing complexities of carbon and other climate-related reporting metrics, you’re positioned to have an almost certain competitive advantage. These days, it isn’t enough to simply know how to call the numbers out and what technologies or techniques help lower them. Clients need more than reliable service providers. They need trusted advisors and guides. Prove to the industry that you’re the one with the dedicated team translating scientific data into consumable, plain language solutions and customers will leap over the competition just to get on your schedule. 

In a world of too much information and decision paralysis, be the filter your clients need with the recommendations they know they can trust. Will that take extra work and effort? Sure, but the rewards will be worth it. 

While the rest of the world is arguing, go out and get the knowledge and skills necessary to resolve these concerns. The dust will settle. When it does, there will be questions, at which point one thing will become crystal clear: 

The business with better answers will win.