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ENGIE named overall winner of Sustainable FM Index Awards 2018

The results of the sixth Sustainable Facilities Management Index (SFMI) were announced yesterday at the RICS headquarters at Parliament Square, Westminster. The event highlights the winner and top performing sustainable FM businesses.

Each year, the SFMI, which is compiled by Acclaro Advisory, provides a summary of how the FM sector has progressed against a baseline of sustainability activities, and how it is keeping up-to-date with annual changes in the marketplace and in the regulation landscape.

A total of 26 UK FM providers are assessed in this year’s SFMI, with ENGIE being crowned the overall winner for 2018.

ENGIE is the first company to win this award twice. Chris Havers, Programme Director of the SFMI, said: “Engie are deserved winners of the SFMI. They have shown commitment to embedding a culture of sustainability across their FM business, and their approach to doing this has come through hard work in implementing a transformational programme which are led by Board level sponsors and targeted projects that drive sustainability throughout the business.”

The SFMI also recognised the ‘rising stars’ of the sector. These are companies which demonstrate either the largest increase in score in the SFMI from the previous year and/or displaying continued behavioural change and incremental effort to become a sustainability leader of the future.

The Rising Stars of 2018 are Galliford Try, which has demonstrated for the past three years a consistently high performance across the ESG criteria, despite the industry in general seeing decline, demonstrating commitment to sustainability and Bouygues Energies & Services for improving its sustainability in 2018 through the maturation of multiple internal programs, embedded with long-term thinking.

Classifications of assessed organisations are published with a view to recognising leadership and progress being made, and providing greater transparency in the sector. Platinum companies are industry-leading with sustainability as a core business consideration and coherent and effective strategy throughout the business. The classifications for 2018 are (less two organisations not named):

Platinum

  • ENGIE
  • Skanska Building Services
  • VINCI Facilities

Gold

  • BAM FM Ltd.
  • Bouygues Energies & Services

Silver

  • Galliford Try
  • Sodexo

Bronze

  • Atalian Servest
  • Compass Group
  • Elior Group
  • EMCOR
  • G4S
  • Interserve
  • ISS
  • JLL
  • Kier
  • Mears Group
  • MITIE
  • OCS
  • Serco
  • Spie

Assessed

  • ABM
  • Amey UK
  • Noonan Services Group

SFMI 2018 Summary Report Findings:

Two-Tiered Market Risks – From 2017 to 2018 there was a significant shift in industry wide sustainability performance. Where companies used to be spread relatively evenly across the middle ground with a handful of leading and lagging companies, this year the distinction is pronounced, as the majority of companies now achieve 50 per cent sustainability or less, thus being classified as “Bronze” or “Assessed”.

Changes in the balance of sustainability performance across FM have highlighted the risk the industry faces of becoming a two-tiered market. The top tier, as with the SFMI’s Winner and Rising Stars, will embody long term thinking, understanding that sustainability holds value and providing this added value to its clients. The bottom tier faces a ‘race to the bottom’ mentality, where sustainability is stripped out of their businesses to facilitate this type of competition.

Two-Tiered Market Risks Red Flags for FM – Carillion’s SFMI progress over the past six years as non-partners has been tracked, and with its collapse in January 2018, SFMI can now publicly release its year-on-year performance. We identified worrying trends towards over-promoting and not fulfilling. Despite Carillion’s historically high scores, a legacy of its ‘first mover’ status in the 1990’s, it suffered significant losses in all areas of sustainability from 2013 to 2017 to greater margins than the FM industry on average. There are companies currently active in the sector displaying similarly worrying signs to those of Carillion, which must be recognised as red flags for the industry to acknowledge and query.

The executive summary and summary report are available to download https://www.acclaro-advisory.com/sfmi-reports-and-research/ or from the SFMI webpage https://www.acclaro-advisory.com/sfmi/

The SFMI compiles its benchmarking data every year and is initiating the next criteria review process in March 2019.

About Sarah OBeirne

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