Embedding ESG in facility management practices: a South African corporate real estate perspective

Purpose Despite growing global emphasis on environmental, social and governance (ESG) principles, South African corporate real estate and facility management practices are not aligned with ESG frameworks. This study examined the understanding, prioritization and implementation of ESG principles within the context of South Africa’s facility management (FM) and corporate real estate management (CREM). Design/methodology/approach The study adopted a qualitative research approach, comprising a focus group discussion session with FM/CREM professionals. The emergent data were analyzed thematically using Atlas.ti software for a comprehensive interpretation of the findings. Findings The study’s findings underscore the critical role that FM/CREM professionals play in operationalizing ESG principles, particularly through the adoption of innovative technologies such as building management systems (BMS). However, the findings also reveal that ESG implementation within the FM/CREM context tends to be reactive, driven largely by client expectations. Additionally, the findings identify several barriers to effective ESG implementation, including financial and infrastructural constraints, regulatory complexities and resistance to change, challenges that are especially pronounced among small- and medium-sized enterprises (SMEs). Despite these impediments, the findings highlight opportunities for enhancing ESG outcomes through proactive stakeholder engagement and a sustained commitment to continuous improvement. Practical implications The study’s findings underscore the importance of developing tailored ESG implementation frameworks that emphasize business objectives whilst meeting modern sustainability goals. It also confirmed the pivotal role of FM/CREM professionals in the implementation of ESG principles and ensuring regulatory compliance. Originality/value Besides contributing to a better understanding of ESG principles in the built environment, the study provides practical recommendations for improving ESG implementation performance by FM and CREM professionals.