What should I include in my ESG report?

1. Environmental pillar

This covers an organisation’s climate impact, carbon footprint and emissions, including waste production, pollution and biodiversity impact - and more importantly, their actions taken to achieve a ‘just transition’. For example, SCAPE Scotland’s Carbon Reduction Plan sets out clear targets and delivery measures to reduce emissions across our framework activity in support of Scotland’s journey to net zero.

2. Social pillar

This includes social responsibilities of the organisation - how it treats diversity and inclusion, its workforce, and its community.

3. Governance pillar

This spans the full range of governance processes, including governance operations, risk management, and accountability.

ESG is a key driver for built environment projects delivered in Scotland, by ensuring that they support overarching goals of sustainable development and social impact, and demonstrate accountability. Aligning with Scotland’s commitment to inclusive economic growth, the adoption of ESG reporting also makes the Scottish economy more attractive for investment and funding.

ESG has become more important to projects in Scotland due to its alignment with Scotland’s ambitions for Net Zero carbon by 2045 and Sustainable Development Goals. Scotland has demonstrated a strong commitment to emissions reduction by establishing its target five years ahead of the rest of the UK. The Scottish Government introduced required sustainability reporting in 2015, by an Order under the Climate Change (Scotland) Act 2009:

• Public Sector Climate Change Duties report

Section 44 of the Climate Change Act requires all public bodies to carry out their activities and operations in ways that help contribute to achieving emissions targets, and to act sustainably.

• Civil Estate Energy Efficiency and Sustainability report

Section 76 of the Climate Change Act requires Scottish Ministers to report annually to Parliament on progress towards improving the efficiency and sustainability of public buildings Scotland (including the core estate of Scottish Government and its Executive Agencies).

When preparing an ESG report, it is important to provide meaningful data and context for each pillar. Typically, you should outline your policies, actions taken, and data that evidences progress towards clear targets and include both qualitative and quantitative information.

SCAPE Scotland frameworks enable the public sector to make significant social, environmental and sustainability impact through project delivery, whilst ensuring full compliance with robust governance processes. This is underpinned by SCAPE Scotland’s Environmental Standards, which set clear expectations for sustainability performance, compliance and continuous improvement across all projects.

Through our frameworks, public sector organisations can embed ESG principles at every stage of project delivery, from procurement and design through to construction and long-term asset performance.