Debunking ESG Myths

ESG frameworks are essential to long-term business success. For coworking brands, these efforts can go beyond simply reducing carbon footprints, creating inclusive communities, and ensuring ethical business practices. In fact, establishing solid ESG frameworks in coworking spaces can create sustainable, socially responsible, and financially resilient workspaces, communities, and local ecosystems. However, some common misconceptions surrounding ESG can deter businesses from embracing its principles – in this article, we’ve debunked some of those myths. 

Myth #1: ESG is all about sustainability

With pressing net-zero targets influencing the commercial real estate sector, it’s no surprise that sustainability initiatives and climate change dominate public discourse. While environmental impact is an important component of the ESG framework, the social side shouldn’t be overlooked – in 2021, McKinsey found that companies with socially related shareholder proposals rose by 37% compared to 2020. 

Social responsibility covers relationship management with employees, customers, and communities, across labour practices, workers’ rights, and DEI (diversity, equity, and inclusion) initiatives. As companies depend on people and communities, social impact matters as much as environmentally friendly practices.

In the coworking world, socially impact-driven initiatives could encompass the following:

• Committing to more equitable access to opportunities for underrepresented communities by facilitating programmes, initiatives, and accelerators. 
• Partnering with local charities and volunteering the team’s time to help out.
• Discounting event space hire for initiatives that bring social impact and value, such as local communities who run sessions for underrepresented groups. 
• Committing to an equitable recruitment process and hiring locally towards revitalising towns and neighbourhoods. 

Myth #2: ESG efforts are too expensive

There is a common misconception that improving sustainability credentials in coworking spaces requires costly retrofits, such as installing expensive solar panels and heating, ventilation, and air-conditioning (HVAC) systems. 

While these upgrades can help reduce carbon emissions, there are other impactful ESG initiatives to start with that don’t come with a hefty price tag:

• Replace lighting solutions in your workspace with less energy-intensive options, such as LEDs.  
• Apply a circularity lens to your furniture supply chain – procure second-hand furniture or purchase vintage pieces, and donate used furniture and office equipment to charity partners or schools. 
• Replace harmful cleaning products with more natural solutions, keeping community well-being and health in mind.
• Introduce plants into your coworking space to improve air quality.
• Partner with a neighbourhood gym or yoga studio – introduce fitness and wellbeing programmes to your community and event schedule. 
• Reuse existing IT hardware where possible – at technologywithin, we support our clients’ environmental goals by offering device-agnostic services, enabling new clients to retain and reuse their existing network and WiFi hardware, significantly reducing unnecessary waste and their carbon footprint.

While smaller, incremental changes to your workspace may require a slight investment, you’ll be surprised how some solutions can work to reduce your outgoings. For instance, replacing energy-intensive lighting with LEDs can reduce your lighting costs by up to 80%. Equally, focussing on social-impact initiatives for your community will attract more customers to join your workspace. 

Myth #3: ESG is just for big companies

Although more than 90% of S&P 500 companies report on ESG efforts, this framework isn’t exclusive to large corporations. Whether you operate a neighbourhood coworking space or a growing flexible workspace brand, businesses of all sizes can make a meaningful difference. 

In 2022, flexible workspaces created 158% fewer emissions per occupier than leased or traditional offices. Coworking spaces are typically designed with communal kitchen facilities, shared appliances, and more efficient space utilisation which, by its nature, values community and collaboration.  

Beyond environmental benefits, smaller businesses can have a strong social impact at a grassroots level. For example, Oru Space in Dulwich sponsors a foodbank, hosting community cook-up events. Despite only managing two workspaces in South London, Oru creates a huge community impact, leading to greater profit. 

Myth #4: ESG is only for my ESG Manager to deal with

Since the ESG framework was coined in 2005, many companies have taken action by creating a dedicated role to oversee their ESG efforts. A report published by KPMG explains that the role of an ESG manager can help centralise accountability, however, they must work closely with C-suite executives and business heads across different departments to carry out the company’s ESG agenda and gather input.  After all, real change is a collective effort. 

Exemplifying how ESG isn’t just a one-person job, flexible workspace operator FORA established a sustainability committee to steer the long-term direction of its ESG strategy. The entire organisation contributes to impact – initiatives include volunteering to coach pupils from disadvantaged backgrounds and running wellbeing events with a dedicated fitness partner. However, ultimate responsibility for ESG goals lies with the CEO and senior management team, as stated in its latest annual impact report, published in November 2024. 

Myth #5: ESG requires complex technology

With ESG being a collective effort, it’s not just your team that can make a difference – technology plays a fundamental role too, gathering data to report and measure ESG impact. But with so many advanced tech solutions available for the coworking industry, the misconception here is that ESG reporting and management require complex technology. The truth is it doesn’t.

Coworking technology exists to make your operations run seamlessly. Implementing tools, such as our twiindata Nomad tool, contributes to the following ESG efforts:

• Track space usage to understand customer behaviour patterns. Switch off energy-intensive resources, like lighting and air conditioning, during quiet times, saving costs on utility bills and reducing impact on emissions.
• Collect data on movement to optimise staffing, cleaning services, and maintenance schedules at your locations during peak hours, reducing overheads. 
• This data can also be used to curate your event programme for members, host events on days when most people are in the office, and contribute to social initiatives. 

According to McKinsey, companies that carefully consider their processes to measure ESG efforts are better positioned to adapt and change. This all comes down to partnering with the right software provider to support your business goals, whether around ESG or other KPIs.

Ultimately, integrating ESG into your coworking operations places sustainability, social impact, and governance at the heart of your future-proofed workspace. 

Sustainable spaces: ESG strategies for coworking success

We recently brought together leading voices from across the European coworking sector for a dynamic conversation on ESG—covering strategies, challenges, and practical advice. Now available on-demand, the session features insights and real-world case studies from experts at Clockwise, New Work, Design Offices, Avila Spaces, and Vertical Coworking. Plus, don’t miss the exclusive unveiling of results from the first-ever ESG in Flex Report—packed with takeaways to help you embed sustainability and resilience into your workspace strategy.