Can Lease Audit Support Your ESG Efforts?
Guest Post by Sara Stanley, MCR, Managing Director, Commercial Tenant Services, Inc.
A dedicated lease audit program can play a significant role in ESG (Environmental, Social, and Governance) initiatives by promoting transparency, efficiency, and responsible management of leased assets. Here’s how a lease audit can help with ESG initiatives:
Reducing Environmental Impact
Energy Efficiency: A lease audit can help identify opportunities to reduce energy consumption in leased spaces, promoting sustainability and reducing greenhouse gas emissions.
Waste Reduction: It can also identify opportunities to reduce waste generation and promote recycling and waste reduction practices.
Enhancing Social Responsibility
Occupant Health and Safety: By ensuring that leased spaces comply with health and safety standards, a lease audit can help protect the well-being of employees and visitors, contributing to social responsibility.
Accessibility: Audits can verify that leased spaces are accessible to all individuals, including those with disabilities, which aligns with social inclusion and responsibility.
Governance and Compliance
Regulatory Compliance: Lease audits can help ensure that leased properties adhere to all relevant local and international regulations, thus supporting good governance.
Risk Mitigation: Identifying and addressing potential risks and liabilities in leases contributes to effective governance and risk management.
Cost Savings and Efficiency
Cost Reduction: Lease audits can uncover cost-saving opportunities, reducing operational expenses and contributing to economic sustainability.
Resource Efficiency: By optimizing the use of leased assets, a lease audit can contribute to efficient resource utilization.
Data Transparency and Reporting
Lease audits provide data and documentation that can be used in ESG reporting. Transparency in lease terms and conditions can help stakeholders evaluate the company’s commitment to ESG goals.
Renewable Energy and Sustainability Measures
Lease audits can identify opportunities for incorporating renewable energy sources, energy- efficient technologies, and sustainable building practices in leased properties.
Monitoring and Compliance with ESG Targets
Lease audits can help track and ensure compliance with specific ESG targets related to leased assets, such as energy reduction goals or sustainability initiatives.
Demonstrating a commitment to ESG through lease audits can positively influence relationships with stakeholders, including customers, investors, and communities.
Long-term ESG Planning
The insights gained from lease audits can inform long-term ESG planning, helping organizations set and achieve ESG objectives related to their leased assets.
A lease audit program can be a valuable tool to integrate ESG principles into your real estate and facility management practices. Lease Audit not only helps companies’ cost savings and compliance but also supports broader ESG goals related to environmental sustainability, social responsibility, and good governance.
Sara Stanley, MCR, is Managing Director at Commercial Tenant Services, Inc.