Some design firms have probably heard of ESG risks, which refer to environmental, social, and governance risk factors that can impact a firm’s performance, long-term value, and reputation. There is a common misconception that ESG risk factors are non-financial risks, which is inaccurate. In fact, many ESG risks pose significant financial consequences to businesses and... Continue Reading →
While environmental, social, and governance (ESG) performance is increasingly becoming a focus in the design and construction industry, there remains quite a bit of confusion over the goals behind ESG and their impact on design firms. Some of the questions that seem to be percolating around ESG are: Is it about concern over profits? Is... Continue Reading →
Environmental, social, and governance (ESG) considerations are increasingly important to design firms for a variety of reasons. In this post, we will explore why ESG matters to design firms and how they can integrate these considerations into their projects and business practices. First, it's important to understand what ESG means. Environmental considerations relate to a... Continue Reading →
Earlier this year, the US passed the Inflation Reduction Act of 2022, with $369 billion in funding intended to cut climate pollution in half by 2030 (from 2005 levels). The private sector is also embracing capital-allocation strategies that take environmental, social, and governance (ESG) issues into account with their business practices. Over the next few... Continue Reading →
ESG factors in investment decision-making has become a “hot potato” topic because it’s largely misunderstood, broadly defined, and the guardrails for companies to report on metrics have not yet been standardized. That said, it’s not too early for design firms to engage meaningfully, given their role in all things climate and many things social. To... Continue Reading →
Solar panels are essential in reducing carbon in US energy production, but there is a clear understanding that the global solar panel supply chain relies heavily on forced labor from China. Polysilicon is a key raw material in the solar photovoltaic supply chain and China is its major producer. Now, the US solar industry and... Continue Reading →
The world is changing, especially for design firms. The two-year disruption caused by the unpredictable impacts of the Covid-19 pandemic has forced both design firm management and employees to reassess how they provide services. A resurgent economy—provided an extra stimulus by the historic investment by the federal government in the revitalization and expansion of the nation’s... Continue Reading →
In May, the Biden Administration issued its Executive Order on Climate-Related Financial Risk to establish a policy framework for maintaining the integrity of the US financial system as it relates to climate change. The Order was aimed at prioritizing climate change from an economic standpoint and raising the flag for the continued risks of physical... Continue Reading →
Although most design firms are privately owned, they, too, are dramatically impacted by the demand for businesses to address and disclose environmental, social, and governance (ESG) concerns. Firms face increasing pressure not only from environmentalists and human rights activists, but also from elected officials, regulators, and even their lenders. ESG disclosure is becoming necessary because... Continue Reading →
