We also play our part by procuring sustainable materials and striving for green building and well-being certifications where possible for our leased space. We aim to provide our employees with office space that supports their health, safety and productivity by employing aspects such as flexible working, better access to daylight and enhanced technology solutions – all with a minimal environmental impact.
Health and safety
Our people are the strongest asset we have. As such, constant attention to health and safety is of central importance in all that we do, core to our values and fundamental to how we achieve our shared ambitions of safety for each other, our clients and to our supplier partners.
Our vision is to provide a safe and healthy workplace and to promote an effective and continuously improving health and safety culture. We strive to prevent injury and ill-health and to ensure that all persons we work and interact with, including those who work in the buildings we manage, return home to their families safely.
We have invested and continue to invest, in the health and safety of our employees, clients and suppliers. The application of technology to safety has allowed us to increase the scope of information we previously received from our discrete businesses and geographies. Accordingly, this year, in addition to providing data on our U.S. activities and global Integrated Facilities Management business we are also able to provide performance data for all of our U.K. and Australia activities as well as for the Projects and Development Services business in Asia Pacific, the Property and Asset Management business in Asia Pacific, the Tetris business globally and the Integral business in the U.K. This increased scope covers the majority of our organization but we will continue to work on further expanding our visibility and the quality of the information we receive.
In addition to the above performance, we were informed by our insurance carrier that our Experience Modification Rate (EMR) had improved to a rating of 0.50. An EMR is a performance measure used by the insurance industry to gauge an organization’s safety and claims management program. Although a positive EMR is not conclusive evidence of a robust safety program, it is a valuable indicator of the number and severity of workers’ compensation claims an organization experiences. We have improved our EMR year on year for the last three years and we will continue to work at improving our underlying safety performance.
Despite our injury rates improving, in March 2016 on a project being managed by a client’s vendor, one of our colleagues lost his life while trying to save the lives of third-party workers. Following this tragic incident, we acted by further educating our employees at that site and reviewed our process for responding to emergency incidents involving JLL as well as non-JLL scope of services.
In addition, we regret to report that three vendor employees were fatally wounded while performing services during 2016. We have worked and continue to work, hard to ensure that our vendors share the same safety goals as ourselves and as such we are continuously aiming to improve our dialogue, re-enforce rules and standards and apply appropriate vendor management techniques.
We are committed to ensuring the health and safety of our people and stakeholders and will shortly publish our second dedicated Health and Safety Report. The Report will expand on the themes raised in this document and candidly talk about our health and safety journey. When published, the Health and Safety pages Report will be available on the Health and Safety pages of our website.
Driving down energy and resource use
Greenhouse gas (GHG) emissions arising as a result of operating our offices and business travel activities make up JLL’s most substantial environmental impacts. We are committed to minimizing these impacts wherever we possibly can. In order to do so, we have set targets to reduce energy consumption, GHG emissions and rented area per employee from our own offices. Using 2012 as our baseline, we have committed to achieve the following by the end of 2017:
In 2016, JLL’s absolute GHG emissions were 69,900 metric tons of CO2e, compared to 64,800 metric tons in 2015, an increase of 8%. While our emissions increased, our business also grew with our global revenue increasing by 13% over the same period. Furthermore, the floor area of our global portfolio increased by 7% compared with 2015. This increase was largely due to JLL occupying new offices in the U.S. following acquisitions we made in 2016. Our performance against our targets in 2016 was as follows:
JLL seeks to occupy more efficient and flexible offices around the world. We play our part by driving down energy and resource use and subsequent carbon emissions from both JLL offices and business travel activities.
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As a contributing factor in our target performance, we also take advantage of green energy; by the end of 2016, 7% of our offices procured energy from renewable sources.
Obtaining accurate, actual data relating to JLL’s office energy consumption continues to be a challenge. All of our offices are leased and in many cases actual information on energy consumption is not available. As a result, 64% of our office emissions data is partially or fully estimated. We are working to meet the requirements of the updated GHG Protocol for dual reporting of Scope 2 emissions. We are not currently able to obtain data in order to calculate market-based Scope 2 emissions for the full reporting year. We will be addressing data quality as a priority as we roll out Building a Better Tomorrow across our global business.
Fitting out our offices for the future
Our clients recognize the benefits of occupying and refurbishing green buildings and so do we. We seek to apply green building practices whenever we can and fit-outs provide a great opportunity for us to do so. By the end of 2016 16% of our offices had green building or fit-out certifications such as LEED, BREEAM or RICS SKA, covering 32% of our total office area. In addition, green building principles (without a certification) were applied in 57% of JLL’s offices.
JLL has also adopted innovative policies in the area of workplace strategies. In total, 77% of our offices have alternative workplace strategies including approaches such as hot-desking, evolved open plan environments, flexi time and making use of communications technologies to support remote working. Making best use of these strategies can reduce costs, improve productivity and drive efficient use of space. Furthermore, these practices are also beneficial to the individual by promoting a healthy work-life balance and supporting well-being.
Reducing the impact of our business travel
JLL’s 2016 business travel activities generated 21,200 metric tons of CO2e, making up 30% of our total carbon footprint. At present, we collect travel data from 48% of the countries we operate in, but that data covers a large majority of our corporate office employees. This information covers the impacts from air and rail travel as well as rental cars. Due to our geographical spread and decentralized business model, business travel is procured from a multitude of sources and through many channels. Our largest in-country operations usually have a contract with a corporate travel agent, but travel is currently also booked online by employees and reimbursed through our expenses system, making it difficult to track and measure its impact.
Partially in support of our business travel aims, 72% of our offices have video conferencing facilities and employees are routinely provided personal IT equipment with video conferencing functionality. We also encourage our employees to minimize the use of business travel by seeking to provide alternatives wherever possible.
Environmental impact of procurement
We are continuously seeking to improve the sustainability practices of our suppliers to encourage and influence sustainable practices on a large scale. We expect all of our suppliers, whether they provide goods or services directly to JLL or indirectly to our clients, to follow our Vendor Code of Conduct, which includes environmental considerations. We ensure compliance with the Code via our Vendor Due Diligence program. We also aim to apply sustainability criteria to our procurement practices for JLL’s offices. We focus our efforts on the top items by spend, which include office, kitchen and printing supplies. We have also specified the selection of energy efficient IT equipment wherever possible.
Additionally, we have embarked on a journey to enhance our ability to assess our most high-risk suppliers for compliance and other matters. To that end, we have subscribed to EcoVadis and Avetta in order to enhance our ability to conduct due diligence on our supply chain for ourselves and the spend we manage on behalf of clients.
The buildings in which we spend so much of our time can have a huge impact on our health and well-being. At JLL, we want to provide our employees with office environments that are not only safe and secure but also foster and promote mental and physical well-being. We seek to do this by incorporating best-in-class green buildings standards for our offices wherever possible. Green buildings not only have a reduced impact on the environment, they provide workplaces which support health, well-being and productivity.
Our commitment to provide healthy and productive workplaces was evidenced when JLL achieved WELL Certification at the Silver level for our office at 28 Liberty Street, New York. The WELL Certification is awarded by the International WELL Building Institute (IWBI) and is the premier building standard to focus on enhancing people’s health and well-being through the built environment. WELL is grounded in a body of evidence-based research that explores the connection between the buildings where we spend approximately 90% of our time and the health and wellness impacts on us as occupants of these buildings. To be awarded WELL Certification by IWBI, JLL’s office at 28 Liberty Street underwent rigorous testing and a final evaluation carried out by a third party.
We also know that how you work is as important for well-being as where you work. That’s why we have adopted flexible working practices across our firm, giving our employees the freedom to work in a way that suits them and enables them to achieve a healthy work-life balance. Not only does this support our staff in achieving their ambitions inside and outside of work, it also serves to support JLL’s aims of being an employer of choice that attracts and retains the best talent.