Episode 139 - RIBA Sustainable Business Development Toolkit

This week we will be talking about the RIBA’s Sustainable Business Development Toolkit. This episode content meets PC3 -  Legal Framework & Processes and PC4 - Practice & Management of the Part 3 Criteria.

Resources from today's episode:

Websites:

• https://www.architecture.com/knowledge-and-resources/resources-landing-page/riba-chartered-practice-sustainable-business-development-toolkit
• https://www.architecture.com/knowledge-and-resources/knowledge-landing-page/impact-of-the-sustainable-business-development-toolkit?srsltid=AfmBOop9npCVrqbODMj039VHptgJwpFT0dvuizL2XoNzxf8bbRFDPE0D

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Transcript

Episode 139:

Hello and Welcome to the Part3 with me podcast. 

The show that helps part 3 students jump-start into their careers as qualified architects and also provides refresher episodes for practising architects. I am your host Maria Skoutari and this week we will be talking about the RIBA’s Sustainable Business Development Toolkit. Todays episode meets PC3 & 4 of the Part 3 Criteria.

Make sure to stay until the end for todays scenario. 

With the ongoing extreme changing we have all been noticing with the current climate throughout the world, as a profession, we must lead by example. If we want our clients to adopt sustainable principles, we must first implement them within our own practices and run them in-line with this ambition to demonstrate commitment.

To support this, RIBA has developed a toolkit specifically designed to help Chartered Practices create and refine their in-house sustainability policies. While all businesses are encouraged to develop similar policies, this toolkit offers RIBA members structured guidance tailored to the architectural field.

You may have noticed that many exam questions now require you to draft proposals for sustainability policies. These documents not only demonstrate a practice's commitment to sustainability but also communicate to clients the strategies and goals in place to achieve it. This episode will provide insights to help you tackle these exam questions confidently and consider ways to integrate these principles into your daily work.

The Toolkit, therefore, sets out a methodology that practices can follow which will embed environmental and social responsibility in their inward and outward facing professional activities. It focuses on the process and provides guidance in implementing and managing environmental and social responsibility improvements to business operations. The toolkit aligns with guidance created by the Architects Declare Steering group, the UN Sustainable Development Goals, the RIBA 2030 Climate Challenge and RIBA Sustainable Outcomes which I cover in episode 31.

Where does the toolkit fit alongside other requirements:

The toolkit seeks to further support practices with their ISO 14001 accreditation achievements by offering activities to embed ethical and social considerations, as well as define clear steps for those starting out on their sustainable business management journeys.

The toolkit broadly aligns with guidance created by Architects Declare. 

The toolkit, therefore, follows a 5 step approach utilising the UN Sustainable Development Goals:

• Understand Impact - creating a baseline from which future improvement can be measured and success quantifiably demonstrated. Practices measure their carbon footprint using standard methodologies that comprise direct and indirect emissions. And directly relates to the UN Sustainability Goals 6. Clean Water & Sanitation, 11. Sustainable Cities and Communities, 12. Responsible Consumption & Production, 13. Climate Action, 14. Life Below Water and 15. Life on Land
• Optimise & Improve - identifying opportunities for improvement and optimising efficiency. Practices commit to continuous learning and evaluation of sustainability impacts and publicly commit to continuous improvement. And directly relates to the UN Sustainability Goals 2. Zero Hunger, 3. Good Health & Wellbeing, 6. Clean Water & Sanitation, 7. Affordable & Clean Energy, 11. Sustainable Cities and Communities, 12. Responsible Consumption & Production, 13. Climate Action, 14. Life Below Water and 15. Life on Land
• Finance & Business - considering the effects of financial decisions. This might involve looking at the ethical credentials of the financial service providers you use; using your purchasing power to support fair trade and appropriately certified products; having Equality, Diversity, and Inclusion (EDI) policies in place, and opting to extend commitments by joining the RIBA’s Inclusion Charter, investigating opportunities for local community support and investment. And directly relates to the UN Sustainability Goals 1. No Poverty, 2. Zero Hunger, 3. Good Health & Wellbeing, 4. Quality Education, 5. Gender Equality, 8. Decent Work & Economic Growth, 10. Reduced Inequalities, 2. Responsible Consumption & Production, 13. Climate Action and 16. Peace, Justice & Strong Institutions
• Understand Control vs Influence - determining the practice’s spheres of influence. Beyond the direct control, you will have over your own business operations, your practice will also have some control over the sustainability outcomes of their designs. Practice management can also exert a positive influence on staff, professional peers, clients, and the supply chain. And directly relates to the UN Sustainability Goals 4. Quality Education, 9. Industry, Innovation & Infrastructure, 11. Sustainable Cities and Communities, 12. Responsible Consumption & Production, 13. Climate Action and 16. Peace, Justice & Strong Institutions
• Annual Disclosure - the practice’s environmental policy should be reviewed and updated, ensuring its scope includes social and ethical ambitions, and practices should commit publicly to sharing their progress from the established baseline through annual reports. And directly relates to the UN Sustainability Goals 4. Quality Education, 13. Climate Action, 16. Peace, Justice & Strong Institutions and 17. Partnerships for the Goals

Practices are encouraged to commence their Sustainable Business Development. Approach by starting at Step 1 and working through to Step 5. It is important that Practices understand that committing the appropriate time and resource to undertake the tasks outlined in the Toolkit is critical. It encourages practices to tailor the process to their needs and focus on progressive and continual improvement from a quantified baseline. The toolkit is designed to be an iterative, non-linear process that can be adapted as practices gain experience.

Key points for implementation include:

• Seeking internal feedback and using it to improve business operations
• Committing appropriate time and resources
• Building up information sources and sharing learning with others

Lets look at each step in more detail, starting with Step 1 - Understand Impact:

This step involves creating a baseline to measure future improvements. Practices should understand and measure their operational impacts and carbon footprint arising from:

• Scope 1 (direct greenhouse gas emissions)
• Scope 2 (energy indirect emissions)
• Scope 3 (other indirect emissions), where possible

The measurement should be based on a 12-month period of data, ideally aligning with the practice's financial reporting year. Data to be collected will involve:

• Company-owned fuel usage
• Company purchased energy
• Business travel in company-owned vehicles and emissions 
• Refrigeration or air-conditioning leaks

Ideally data should also be collated in relation to:

• Non-company-owned business travel 
• Staff commuting 
• Waste generation and disposal 
• Emissions for Purchased materials and services 

Practices should report both annual energy consumption and carbon dioxide equivalent (CO2e) emissions of their consumption. Results should be reported in tonnes of CO2e (tCO2e) per annum, using the latest conversion factors accessible from the Government's website. Annual intensity figures should also be reported, including energy consumption and CO2e emissions per occupant and per square meter per annum. Practices should also measure annual water consumption (from either metre readings or bills) and should report annual litres of water per occupant as well as per sqm for the same reason.

The document also addresses the impact of working from home on a practice's carbon footprint, suggesting that practices may want to estimate the additional domestic carbon emissions associated with home working for a truly representative carbon footprint. Energy, carbon and water are not the only impacts to a practices emissions. Practices may also wish to measure other impacts, such as air quality within their office, as well as biodiversity and impacts of any non-biodegradable waste generated. 

The findings of the Practice’s carbon footprint should be actively shared with all members of the Practice so that all members gain an insight into the relative sources of the impacts. And this data should be regularly reviewed and updated.

Next, lets look at Step 2 - Optimise and Improve:

This step focuses on identifying and implementing improvement measures based on the baseline established in Step 1. Key activities include:

• Assessing and recording improvement opportunities
• Aligning and committing to measurable improvements through continuous learning and evaluation of the Practice’s sustainability impacts by establishing measurable goals and setting improvement targets 
• Considering offsetting by setting targets for year-on-year reductions on reliance on offsetting credits where possible and adjust and update carbon credits purchasing accordingly. 
• Disseminating knowledge and up skilling staff by determining which processes, management procedures or behaviours across the organisation need to adapt so that the Practice’s improvement targets can be realised. Commit to filling any knowledge and skills gaps that are required to meet improvement targets and develop a sustainability learning and training culture within the Practice. 
• Reviewing and incentivising progress by embedding continual review of the progress against the targets in Practice Management meetings, and openly share this information with all members of the organisation. 

Practices should prioritise actions that reduce energy consumption and associated carbon emissions, by:

• Upgrading to energy-efficient equipment and lighting
• Improving building fabric performance
• Implementing smart controls and monitoring systems
• Encouraging sustainable transport options
• Reducing waste and improving recycling

Practices are encouraged to set science-based targets aligned with the Paris Agreement and commit to specific, measurable improvements. The toolkit also expands on the role of offsetting as a last resort after all possible reduction measures have been implemented.

Next, lets look at Step 3 - Finance & Business:

This step focuses on integrating sustainability into the practice's financial and business operations.  Practices are encouraged to look at the ethical credentials, policies and investment decisions of the financial service providers it uses.

Key activities under this step include:

• Reflecting on current practices and checking for alignment with sustainability goals
• Paying fairly and advocating for equity by paying all staff the Living Wage as a minimum
• Embedding policies relating to Anti-bribery, Anti-corruption, Modern Slavery and Equality, Diversity and Inclusion within the management of the organisation. 
• Revamping internal support and benefits by considering the inclusion of formal, certified sustainable training opportunities including those relevant to business operations. 
• Supporting the community through investment and other ways to support the Practice’s immediate local economy through business or financial transactions. Education and engagement work with the local community may also be termed Social Value work, such as assisting with raising awareness of energy efficiency measures to local business or schools 

The toolkit emphasises the importance of ethical financial practices, such as:

• Ensuring fair pay and addressing any gender or ethnicity pay gaps
• Reviewing banking and pension arrangements for alignment with sustainability goals
• Implementing sustainable procurement policies
• Providing employee benefits that support sustainability (e.g., cycle to work schemes)

As mentioned, practices are also encouraged to support their local communities through pro bono work, volunteering, and engagement with schools and universities.

Next, lets look at Step 4 - Understand Control vs Influence:

This step focuses on recognising the practice's sphere of influence beyond its direct control. 

Key activities under this step include:

• Acknowledging and acting on opportunities to influence meaning, a Practice will have direct control over its business operations, its premises and how these are managed. It will also have some control over the sustainability outcomes of its designs. Project outcomes are not wholly in the Architects’ control as building performance is influenced by end-user behaviour. However, the design of the building can influence and facilitate better building performance. In addition, how the Practice has engaged throughout the project process can positively promote and support better sustainability outcomes. In the same way, Architectural Practices should recognise the positive influence that an organisation’s management can have on practice staff, professional peers, clients, the supply chain. Practices should therefore consider using business activities to normalise and support low carbon behaviours. 
• Disseminating knowledge by promoting collaborative discussions across the Practice internally but also with others within the profession and within the community to share knowledge and expertise. 

Practices are encouraged to use their influence to promote sustainability in areas such as:

• Client relationships and project briefs
• Supply chain and contractor selection
• Industry collaborations and partnerships
• Public advocacy and policy engagement

And lastly, under Step 5 - Annual Disclosure:

The final step involves publicly committing to annual reporting on sustainability progress. 

Key activities under this step include:

• Publicly committing to annual reporting sharing the practices operational impacts, providing details of year of the baseline and the Practice’s ambitions for improvement targets. Public reporting provides greater transparency for potential clients, staff and future employees, as well as industry collaborators and, where relevant, investors and other business stakeholders. 
• Considering offsetting through purchasing carbon credits to balance out carbon emissions. It is often used as a mechanism in carbon neutral or net zero carbon claims. However, carbon pledges that rely heavily on offsetting cannot be used in place of emissions reductions strategies since there are real-world limitations to the availability of offsets (for example, land area required for trees) and long-term applicability (for example, paying to improve others’ energy efficiency measures only works until everyone is efficient). The use of offsets must therefore be judicious, whilst recognising that in the immediate short-term they provide benefits whilst industry decarbonises. Practices should, therefore, annually review and minimise reliance on offsetting and if used it should meet the UK Government’s Good Quality Criteria. 

Practices should disclose their carbon footprint, progress against targets, and key sustainability initiatives. The toolkit suggests various reporting frameworks and platforms, such as:

• The RIBA Sustainable Outcomes Guide
• The UN Global Compact Communication on Progress
• The Global Reporting Initiative (GRI) Standards

To sum up what I discussed today:

• The RIBA has developed the Sustainable Business Development Toolkit, a comprehensive resource for Chartered Practices to develop in-house sustainability policies, aligned with UN Sustainable Development Goals and RIBA's Climate Challenge.
• The toolkit seeks to demystify the process of measuring office carbon footprints and provides an overview of the most common management standards, certification systems, and pledges that could be relevant to architectural businesses.
• Structured by a 5 Step Approach which includes: Understand Impact: Establish a baseline by measuring carbon footprints and environmental impacts. Optimise & Improve: Implement efficiency measures, set improvement targets, and foster a sustainability-focused culture. Finance & Business: Integrate ethical financial practices and community support into business operations. Understand Control vs Influence: Recognise the practice's influence on clients, projects, and the wider industry to promote sustainable outcomes. Annual Disclosure: Commit to transparent, annual reporting on sustainability progress and impact.
• The focus of the toolkit is self-directed improvement. It sets out a process, but it is up to practices to determine the level of detail to which the activities within each step are undertaken. The emphasis is on progressive and continual improvement from a quantified baseline.