COMMENT Many organisations had already significantly advanced their environmental, social and governance strategies before the turn of this year. But then Covid-19 came along and this invisible killer not only turned life as we know it upside down, it also started to redefine the relationships all firms have with their stakeholders.
Coronavirus has shone the spotlight on how companies engage with all stakeholders – including local communities, employees, business partners and the wider society where they work and operate, alongside their environmental credentials. This scrutiny will intensify over time, particularly as younger investors become a larger share of the overall market.
Many impressive projects are under way in the property industry, whether this is in the design of buildings, a commitment to using sustainable materials or looking after vulnerable groups with enhanced services. But Covid-19 has reinforced how ESG must become a fundamental compass for the way we create and manage property, and public spaces for the future.
New world
First, organisations need to base their ESG strategy around the latest experience of stakeholders during Covid-19 on the ground, not the world as we knew it before.
According to a YouGov survey we commissioned over the summer, more than a quarter (27%) of doctors, nurses and other healthcare professionals working in hospitals, GP surgeries and mental health sites said buildings where they work or visit had not been fit for purpose during the pandemic.
Some said the corridors were too narrow to allow for social distancing when passing one another, while others said rooms were too small for wheelchair users or that staff areas were unsatisfactory for those taking a break. We’re using these findings to inform how we serve those using our buildings now and in the future: we know their needs are evolving quickly.
As many have already done, property companies should consider making firm ESG commitments and set stretching targets with the full expectation that shareholders will hold them to account. By 2026, Assura’s goal is that 6m people will have benefited from improvements to and through our buildings – working to maximise our contribution to society while minimising our impact on the environment.
We are ready to be judged on what we achieve over the next six years and it is fundamentally shaping the way everyone in our business wants to work.
All things to all people
ESG strategies must meet the needs of individual stakeholder groups, not just the majority of them. While property companies may struggle to be “all things to all people” with ESG, it will become increasingly important to tailor services for specific stakeholder groups, whether millennials, pensioners or those with cognitive conditions such as autism.
The property sector has a responsibility to meet the needs of our ageing society. In our case, we are working with academics to explore the most effective designs for healthcare buildings to support those living with dementia.
A fit-for-purpose ESG strategy must also embed technology. GP surgeries may not traditionally have been the most digitally advanced buildings, but Covid-19 has driven a step change in usage of technology to triage and diagnose patients. Before the pandemic, just 5% of GPs offered remote consultations.
Organisations can drive some of this themselves, but they must also trust stakeholders to drive real change and shape their ESG strategy. As a business delivering for the NHS, we have seen first-hand the speed at which cultural change can happen when needed.
We all hope the need for social distancing is temporary, but the pandemic has shown that it is close connection with ESG that will lead to a more meaningful, permanent relationship between businesses and the communities they serve.
Jonathan Murphy is chief executive of Assura
