MRO
ESG & Sustainability Overview
Published - May 2023
Maintenance, Repair and Operations (MRO) - ESG
Environmental, social and governance (ESG) criteria are 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) de-carbonising the supply chain and environmental risk, (S) supplier diversity, and (G) responsible sourcing.
For information on ESG, how to identify ESG risk and ESG templates and guides click here Link
MRO operations can create material ESG risks and opportunities, 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 minimize environmental degradation and excess carbon emissions. Suppliers should consider the following:
- Adoption of digital tools to monitor MRO performance and efficiency
- Adoption of electrical vehicle fleets for technicians
- Most efficient designs, considering environmental impact of manufacturing
- Support the ongoing transition away from harmful chemicals
- Migration of fossil fuel burning systems towards electrically driven systems
Social:
MRO offers opportunities to engage diverse suppliers, social enterprises, and drive local skills development. Supplier partner's should be considering:
- Using diverse suppliers and subcontractors, where possible
- Creating local apprenticeship opportunities
- Using local parts suppliers and manufactures where possible
- Supporting programs to improve health, safety and wellness
Governance:
MRO and its supply chain represent significant governance risks, especially in the area of modern slavery and safety. Supplier partner's should be considering:
- Managing labor and human rights risk in equipment and components manufactured overseas or in high-risk geographies
- Managing labor and human rights risk in subcontractors
- Ensuring Health and Safety procedures are robust and monitored