Navigating the Path to Net Zero in Flexible Workspaces: Insights from The Instant Group’s Sustainability Director

• Achieving net zero in office spaces involves creating efficient, fully electrified spaces and addressing embodied carbon from materials used within the space.
• Tools like the Sustainability Index are crucial for emissions reporting and compliance, while well-being elements are essential for occupant productivity and satisfaction, influencing workspace choices.
• Partnerships with organizations like the IWBI help elevate the entire flexible workspace sector by providing certifications that assure quality and health standards, driving market demand.

With employees increasingly seeking workspaces closer to home and sustainability becoming a key differentiator, how crucial is it for flexible workspace operators to integrate sustainable practices to remain competitive?

Very, actually. 

Sam Pickering, Executive Director of Sustainability at The Instant Group, recently joined the Allwork.Space Future of Work podcast and offered his insights into steering the flexible workspace industry toward net zero goals. With his wealth of experience, Pickering provides a pragmatic look at the operational side of net zero for coworking spaces, the challenges posed by embodied carbon, and the broader implications for the real estate sector.

Understanding Net Zero in Office Spaces

From an office perspective, achieving net zero essentially boils down to creating very efficient spaces that do not rely on natural gas and are fully electrified. The key operational component involves ensuring a renewable energy supply. 

However, moving beyond the basics, the conversation extends to embodied carbon — the emissions associated with the materials and furnishings used within the space, such as bricks and furniture, explains Pickering. 

For occupiers of traditional or flexible spaces alike, one approach involves urging landlords to procure renewable energy supplies. When this isn’t feasible, the focus should shift to reducing energy consumption via more efficient equipment and improved controls.

On a macro level, the makeup of the electricity grid, which varies globally, also plays a crucial role. Few grids rely entirely on fossil fuels, and as renewable energy sources become more cost-effective, their share in the grid’s makeup increases incrementally, providing a boost toward net zero.

The Role of Coworking Spaces

Flexible workspaces, including coworking environments, typically exhibit better utilization compared to traditional office spaces, especially in a post-pandemic world that has rapidly embraced hybrid working models. 

This higher occupancy rate directly impacts carbon intensity. 

A fully occupied, less efficient building could, per occupant, be less carbon-intensive than a highly efficient but sparsely occupied one. This utilization metric is often overlooked in real estate, which traditionally assesses efficiency per square foot or meter.

Another factor is the trend toward shorter lease lengths, offering businesses the flexibility to move out when needed. This creates a cycle wherein new occupiers might strip out existing fit-outs and implement their own, potentially similar setups, thereby contributing to additional embodied carbon.

Moving Toward a Sustainable Index

In 2022, Pickering’s team launched the Sustainability Index — a tool designed to validate and report on emissions data in alignment with global greenhouse gas protocols. Reporting is becoming increasingly crucial, as evidenced by the fact that 60% of public companies globally report their emissions related to electricity and gas consumption.

Compliance requirements are intensifying, and as flexible spaces grow in portfolio significance, they become increasingly material to overall sustainability goals. This drives the need for reliable data to meet internal and external reporting standards.

Compliance requirements are intensifying, and as flexible spaces grow in portfolio significance, they become increasingly material to overall sustainability goals.

“We are seeing demand for those that have the sustainability index tick going up as it’s beginning to take hold. That is beginning to drive purely from compliance requirements — the need to get this data. And it’s the first rung in the ladder,” Pickering said on the podcast. “Is it fully and just about sustainability? Absolutely not. But if you’re an operator looking to differentiate space in a way that isn’t just cost isn’t just the fit out, it’s the other cherry on the top that helps people make informed decisions.” 

Addressing Landlord and Operator Needs

Pickering underscores the importance of landlords in the realm of new construction and major refurbishments, citing the considerable investments — often tens of millions of dollars — required to ensure the right design and resources for optimal air quality, lighting, and other essential elements. 

These fundamentals are crucial as they directly impact the productivity and well-being of the occupants.

The traditional focus has been on large-scale projects, where consultants help landlords integrate these essential elements. However, there remains a significant gap in ensuring these standards trickle down to smaller spaces controlled by individual operators. 

The challenge lies in adapting the protocols derived from sustainability frameworks to more granular levels — like specific floors or partial spaces within a building managed by different operators.

The Primacy of Well-being

Pickering made the point that well-being is an aspect that has garnered more significant traction compared to sustainability, primarily due to its direct impact on employee productivity and tangible benefits. 

People are really buying into well-being because it’s something they can see and feel immediate results from, unlike sustainability which often feels like an insurmountable challenge.

This observation is vital for both business-to-business and business-to-consumer contexts. For instance, corporations outsourcing spaces to flexible operators want to ensure that their remote offices mirror the standards set at their headquarters. 

Similarly, individual sole traders seek assurances regarding the air quality, lighting, and general environment of the spaces they choose to work in.

Promoting Sector-wide Elevation

Pickering emphasizes that the partnership with International World Building Institute (IWBI) is not just about creating differentiated spaces, but also about elevating the entire sector. He believes that providing a recognized research-backed certification will offer operators and occupants clarity regarding the quality and health standards of their working spaces.

He believes that providing a recognized research-backed certification will offer operators and occupants clarity regarding the quality and health standards of their working spaces.

This certification offers a paramount advantage, allowing large corporates and solo entrepreneurs alike to select spaces with confidence, knowing that crucial well-being elements have been implemented. 

This assurance significantly enhances the attractiveness of flexible workspaces, given that the health, well-being, and productivity of employees are integral to business success.

“The health and well-being and productivity of employees is a big, big opportunity for operators, and a really key part of demand,” Pickering said. 

Sustainability is the Future

The landscape of office space utilization is evolving, with flexible and hybrid models becoming more prevalent. Demand for sustainability credentials, such as those provided by the Sustainability Index, is rising, driven by both compliance needs and a desire to stand out in the market. 

Employees are beginning to dictate these changes, favoring workspaces closer to their homes, even outside central business districts. This shift is reshaping how companies approach space utilization, with sustainability acting as a pivotal driver in making flexible workspaces scalable and viable.

Whether stakeholders are fully convinced of sustainability’s importance or not, the trajectory toward net zero is becoming a significant component of the flexible workspace dialogue. This trend is poised to uplift the sector and integrate sustainable practices as part of the solution to broader environmental challenges. 

As such, embracing sustainability in office spaces not only addresses compliance and efficiency, but also aligns with broader macroeconomic and environmental goals, making it an exciting and necessary evolution.