AV powers ESG goals

• Features

• 24/01/2025

Environmental, social, and governance (ESG) factors have become crucial benchmarks of corporate success, including within the world of AV. Companies are starting to recognise that sustainable practices are not just beneficial for the planet, but also essential for long-term business viability and competitiveness.

As a tech-heavy, product-centric industry, manufacturers have rightfully shouldered much of the responsibility for sustainable production practices. Their actions have primarily been guided by regulations governing the markets within which they operate. But, there might be a new factor driving the move of manufacturers towards greener solutions in the form of integrators.

Steven Medeiros, chief executive officer at Vega Global, begins: “To be honest, integrators don’t have a choice anymore. The more clients we work with, the more demand we are seeing for sustainable solutions. Big organisations have the social responsibility and capital to drive this demand, and this influences the entire AV ecosystem. We’re seeing this across our multinational clients, and it’s starting to pick up with many of our local clients as well.”

This perspective is echoed by Kelly Bousman, senior vice president, marketing and ESG at AVI-SPL, who adds: “For many of our customers, ESG is a strategic driver. To be a valuable partner to our customers, we must understand, align with, and support our customers’ ESG goals. This is why AVI-SPL established its global ESG Practice almost two years ago.”

In addition to knowing that the solutions they are deploying are sustainable, end users are also looking at whether their appointed service providers adhere to ESG principles. This points to the fact that ESG is not just a fad, but a requirement for businesses of any calibre. Medeiros observes: “As AV integrators, we must demonstrate some level of commitment to sustainability whether it’s on the supply chain side, from an end user perspective, or within your own organisation. If ESG isn’t part of your overall strategy, you risk becoming obsolete.”

No longer an afterthought, ESG principles now underpin strategic decision-making on the side of integrators. Medeiros details: “When we look at our go-to-market and engagement lifecycle, the first discussion is always around ESG. Clients want to know what to do with their old products, especially during a refresh cycle. We typically discuss how to dispose of these products sustainably or consider if they are still usable. What may be old to one client could be new to an NGO or a charitable organisation. If it’s a net new engagement, we usually discuss how we can reduce packaging and adopt lower power consumption solutions.”

With integrators having such an important role in ensuring sustainable outcomes, and ESG strategies becoming influential to their business, delving into the world of ESG becomes prudent.

Breaking down the term ‘ESG’

It is no doubt that there is a paradigm shift in the corporate world for businesses to be more conscious and intentional with their ESG strategies. But like any other relatively ‘new’ phenomenon, there is a risk of ESG turning into yet another buzzword for the AV industry to pay lip service to.

Sujith Sivaram, managing director at ESCO, says: “People have been talking about ESG for quite some time now, and there is also greater push from governments around the world to support ESG goals. However, what is important for the AV industry is to first understand what exactly ‘ESG’ means.”

ESG is a broad term that encompasses a spectrum of ideas – from reducing carbon footprint, minimising waste, ensuring diversity and inclusion, and more. Admittedly, this wide scope can be overwhelming for companies that are unsure of where to begin when setting ESG goals.

Sujith shares how ESCO breaks down ESG to develop a clear roadmap: “For ESCO, we draw on the United Nations Development Programme (UNDP) Sustainable Development Goals (SDGs) and find the areas of importance to us. From there, we adopt those goals and intertwine them with our own organisational goals. You cannot have ESG goals in insolation — your company’s vision and mission must be aligned to support these goals. Once aligned, it becomes easier to identify the real value and impact of the work that you do as an organisation.”

He illustrates: “For example, your ESG goal could relate to the UNDP Goal 7 which is about ensuring access to clean and affordable energy. Another example could be related to Goal 12 which is about ensuring sustainable consumption and production patterns. Once you identify these goals, that are very specific actions and initiatives, you can pursue to achieve them.”

Bousman complements this viewpoint: “Well-defined ESG goals provide structure, focus, and accountability for driving positive change. Without goals, we’re simply reacting or filling gaps with short-term fixes. With goals, we’re setting a strategic course for sustainable growth that enables our people, our customers, and communities to thrive and grow. At AVI-SPL, our ESG goals come to life in an operational ESG blueprint that’s implemented by a global task force representing every area of our business.”

Having well-defined goals that are clearly outlined allow integrators to better articulate their sustainability strategies to the end user, which drives demand for sustainable products and services within the industry. Sujith notes: “If you have a successful sustainability practice, others will follow suit which helps to encourage the adoption of such practices industry-wide.”

Why should integrators go green?

When it comes to AV, there is no escaping the fact that hardware will always be part of the equation. Sound and visuals need to be conveyed, and hardware will always be required to do that effectively. Building speakers, switchers, LEDs, projectors, and more will consume resources. It follows that manufacturers have the greatest chance to impact sustainable outcomes with their actions.

However, as attitudes towards ESG change, integrators are seeing a rise in the influence they can exert. And the communal nature of environmental responsibility means that active participation from all industry players is much needed. Medeiros expounds on this: “Because we’re on the front line with our clients day in and day out, integrators are kind of like the first responders. When we spot trends, it’s our responsibility to communicate them to manufacturers. Similarly, when we see waste, we need to communicate it.”

He continues: “For example, if there’s a higher failure rate of particular products after a period of time, it’s up to us to send those signals to the manufacturers. In another instance, we one had a manufacturer who shipped 20,000 monitors in 20,000 individual boxes. We then questioned why couldn’t they have placed 10 monitors in a custom box made of recyclable cardboard, along with 10 power supplies, instead of individually wrapped styrofoam boxes?”

Moreover, Bousman expands on the broader implications of ESG on integrators: “ESG is more than green product selection. The E stands for environmental concerns, spanning the entire product lifecycle – from manufacturing to end-of-life management. As an integrator, we contribute to the Scope 3 carbon/GHG emissions of our customers. Scope 3 is the largest category of emissions and therefore the biggest focus. At AVI-SPL, we partner with our customers on their Scope 3 goals and develop plans to address them across the entire lifecycle of the technologies we deploy with them.”

Scope 3 emissions encompass all indirect greenhouse gas emissions occurring throughout a company’s value chain, including those from suppliers, transportation, waste management, and the use of sold products. Unlike Scope 1 and Scope 2 emissions, which are directly controlled by the company, Scope 3 represents a broader, more challenging set of emissions to manage and reduce.

Bousman elaborates: “AVI-SPL understands its responsibility to support our customers’ goals of reducing carbon emissions across the entire lifecycle of the products we integrate – from the technologies that we help customers deploy to how they operate them, how we extend their life, and when end-oflife comes, how we support a circular economy.”

Indeed, systems integration goes beyond the products deployed and installed; it’s primarily centred around the value-adding services provided to end users. Sujith says: “We are most concerned about providing returns on investments to our clients, and these returns are definitely enhanced if the products and solutions we offer promote sustainability practices and savings. However, we should be able to demonstrate, measure, and report the cost of utilisation of the solutions we are offering to customers rather than just dumping products on them. Hence, AV integrators should be concerned about sustainability too.”

Regulatory factors also drive the push towards sustainability, Sujith notes: “Listed companies have substantial sustainability reporting requirements. As service providers to such organisations, deploying ESG goals is thus essential.” This anticipatory stance is crucial as regions like Asia are on the brink of implementing stringent sustainability regulations, and integrators need to embrace these practices not just for compliance but as a strategic advantage.

Collaboration with manufacturers

The journey towards sustainability in the AV sector is a collective effort. Manufacturers, integrators, and industry bodies must work hand-inhand to establish and follow robust ESG practices. Sujith discusses what more can be done: “I believe it would be helpful if a credible organisation could come up with specific requirements or guidelines on sustainability. Just like how SOPs for occupational health and safety have become a norm, it would be beneficial if an industry leader or standards body could come up with specific ESG guidelines for the AV industry to follow suit.”

On the other hand, Medeiros calls for greater transparency and open communication within the AV industry: “I think it’s important for companies to be more transparent and report exactly what they’re doing in terms of ESG strategies. You have to hold yourself accountable. When the data is there, people will eventually start to realise the importance of ESG. That’s where the AV industry needs to shift. We need to be a bit more aggressive and consultative when it comes to ESG. It can’t be all talk and no action; you have to do what you say. As integrators, we also have to continue to work and pressure manufacturers because they’re honestly not all up to standard.”

Similarly, Sujith shares: “Knowledge-sharing is an important aspect as transparency is key. Although the industry has competitors and collaborators, it is our collective responsibility to uplift the industry, to meet the requirements of ESG goals, and through our sustainability practices as a group, reduce our carbon footprints.”

He continues: “We are dependent on the manufacturers in the sense that the products we use should be able to provide us with the relevant data to support our clients’ ESG goals. I believe manufacturers should have open APIs that allow us to easily retrieve that data and provide it to our customers. Open communication in understanding each other — regardless of where we are on that sustainability journey — is crucial.”

In this vein, Bousman expounds on AVI-SPL’s establishment of the Supplier Sustainability Matrix — a resource that documents the ESG practices of the integrator’s partners. She remarks: “From energy-efficient designs to circular programs, diversity and inclusion, and disclosure practices, we share this document to our customers as well as our design and sales team who are supporting customers’ sustainability goals. Because we have deep partnerships with our vendor partners around the world, we can work closely with them to meet the sustainability targets of a customer’s project. This can be as simple as removing the remotes and batteries from a large shipment of displays for a digital signage installation. A seemingly ‘simple’ move can dramatically reduce waste.”

As we’ve observed at numerous booths across trade shows such as Integrated Systems Europe 2024 and InfoComm 2024, many manufacturers are making significant strides towards sustainability. Growth in this area certainly takes time, and more efforts are also being made to adopt greener, more sustainable packaging solutions. Concurrently, manufacturers are extending the warranties on their products, which has resulted in better longevity of products. According to Medeiros, clients are also adjusting their refresh rates to prolong the life cycle of their systems — demonstrating a clear commitment to sustainability and long-term efficiency.

He points out an interesting observation: “The younger professionals, in my opinion, are also driving the positive change when it comes to ESG. The attractiveness of companies that have an ESG policy brings in an inflow of young talent, which will lead to a multiplier effect. Not everyone’s on the train, but we’ll get them there soon enough.”

Bousman concludes: “As an industry, we can lead by example. We can continue to innovate and bring replicable models for sustainability to our customers, our partners, and our own companies. ESG is not a sprint – it’s a marathon with no finish line."