Ver 1.0 (May 23)
Confidential & Proprietary | 2023 CBRE Inc.
Environmental, socal and governance (ESG) criteria aare three categories of non-financial performance indicators that can be used to better understand material risks and opportunities within an organisation across each of these categories. CBRE Procurement defines ESG as: (E) decarbonisting the supply chain and environmental risk, (S) supplier diversity, and (G) responsible sourcing, as detailed below when unpacking Environmental, Social and Governance considerations.
HVAC - BIDS
RFPs are a crucial part of the procurement process that enable CBRE to assess the ESG capabilities and credentials of our potential suppliers. ESG sections must be used in all procurements and should be weighted between 5% and 20% depending on the procurement and its relative sustainability risk.
For more information on embedding ESG into RFP's, including CBRE's standard ESG RFP templates, click HERE. (need link)
HVAC services can create material ESG risks and opportunites, so it is important that this category is proactively managed from this perspective.
Environment
There are several initiatives that can be undertaken by CBRE suppliers to minimise environmental degradation and excess carbon emissions.
Suppliers should be considering:
- Support the ongoing transition away from harmful refrigerants
- Adoption of digital tools to monitor HVAC performance and efficiency
- Adoption of electrical vehicle fleets for technicians
- Removal of fossil fuel burning systems towards electric systems
Socials
HVAC offers opportunities to engage diverse suppliers, social enterprises, and drive local skills development.
Suppliers should be considering:
- Using diverse suppliers
- Creating local apprenticeship opportunities
- Using local suppliers and manufactures where possible
- Supporting programs to improve ventilation and air safety
Governance
HVAC and its supply chain represent significant governance risks, especially in the area of modern slavery and safety.
Suppliers should be considering:
- Managing modern slavery risk in equipment and components manufactured overseas or in high risk geopraphies
- Health and Safety procedures