How Remote Work Can Build a More Sustainable Future
4 min read
4 min read
The COVID-19 pandemic caused a seismic shift in global work culture and how organizations think about their environmental impact. Remote work, once a new concept, has become a key component in fostering a more sustainable future for our planet. As organizations and individuals rethink the traditional office model, the shift to remote work is not just about convenience and flexibility but about redefining our approach to work in alignment with environmental, social, and governance (ESG) principles.
Reducing emissions is an integral part of every ESG strategy aimed at combating climate change and helping global decarbonization. Emissions are inherent in business across various sectors, including manufacturing, research, sales, office functions, and even employee commuting, and organizations worldwide are actively working to minimize greenhouse gas emissions sustainably without disrupting operations.
Fewer than 26% of US households still have someone working remotely, a decline from early pandemic days, but remote work still has powerful environmental benefits. So, we conducted our study1 based on Mitel’s real estate and employee data, analyzing emissions from employees working in all settings, and the results were eye-opening.
In the United States, an office-bound employee working 49 weeks (about 11 and a half months) a year on a 5-day schedule emits approximately 1,260 kg (about 2777.82 lb) CO2 annually. In contrast, the same employee working from home emits only 477 kg (about 1051.6 lb) of CO2 during the same period. This represents a substantial 62% drop in emissions for a single employee.
While commuting plays a role in emission reduction, it’s a far cry from the real culprit contributing to corporate emissions: office buildings. The energy-intensive heating and cooling systems and energy consumption in office buildings far surpass that of a home workspace. Typically, 150-200 square feet are allocated per employee, including the workspace and common areas. Office buildings have higher energy requirements per employee due to their size and climate control needs, unlike an average-sized home or apartment. Downsizing office space, therefore, becomes critical for corporate sustainability.
Let’s investigate the model calculation2 to understand this better. Our model assumes a North American city with 3-5 winter months. The employee commutes daily to the office in a medium-sized gasoline car. When the employee shifts to remote work, YES, the energy consumption at home increases, but overall energy and carbon emissions remain substantially lower.
Annual Savings | |
Green House Gas Emissions | Reduced by 62% |
Energy Savings |
47% in gas and power consumption Gasoline-815 to 1,200 liters (about 317.01 gal) based on the fuel efficiency |
Office Space | Reduces by 150 Square feet with each employee |
Time Saved | 245 hours in commute |
The savings calculated here may vary from case to case, as resizing office spaces exactly to these calculations may not be realistic. Additionally, commute conditions and hybrid work models impose different consumption patterns. Nevertheless, overall emissions see a considerable reduction.
Beyond the carbon emission reductions, enterprises can observe several immediate benefits, including:
Besides the operational and financial advantages of consolidating office space with the new work model, increasing employee happiness and satisfaction through remote work is a vital aspect to consider. A Tracking Happiness survey of nearly 12,500 employees reported a 20% increase in employee happiness when working from home, underscoring the positive impact of remote work on employee morale. This increased satisfaction promotes a healthier work-life balance and can contribute to greater productivity and overall job satisfaction, which is critical in fostering a motivated and engaged workforce. Overall, incorporating flexible or remote work models benefits the environment and significantly impacts employee satisfaction, ultimately driving the success of an organization.
Like other companies, Mitel embraced remote work during the pandemic and continued to do so in the following years. By the end of 2022, nearly 44% of Mitel’s employees were working remotely, with another 45% adopting a hybrid model. Only about 11% of Mitel's staff work in the traditional office model, with these employees primarily being essential workers whose roles require them to physically be on-premises to complete their responsibilities, such as shipping fulfillment. This shift in models allowed Mitel to reduce its unused facility footprint by 49% across the globe in 2022.
The impact on Mitel’s energy consumption and overall emission reduction was significant. In 2022, Mitel saw a 23% decline in general greenhouse gas (GHG)emission (about 1,200 tons of CO2 equivalent) from its facilities and employee commutes compared to 2021, equivalent to the emissions from driving a gasoline car for 3 million miles or powering 233 homes for one year.2
According to the International Energy Agency (IEA), buildings contribute 26% of total global emissions and 30% of energy consumption. While emission reduction initiatives – such as retrofitting light fixtures with LED and improving HVAC systems to reduce energy consumption – often involve substantial upfront costs, savings of up to 23% in carbon emissions from the reduction of office space proves that meaningful progress can be made without significant upfront cost.
Mitel has set a long-term goal to become a net zero emissions company by 2050, focusing on Scope 2, which includes emissions a company causes indirectly from where the energy it purchases is used and produced, such as electricity and heat consumption. The shift to remote work kickstarted Mitel’s mitigation efforts, laying the groundwork for renewable energy sourcing and lighting retrofits once the office space consolidation is complete.
According to the International Energy Agency (IEA), buildings contribute 26% of total global emissions and 30% of energy consumption. While emission reduction initiatives – such as retrofitting light fixtures with LED and improving HVAC systems to reduce energy consumption – often involve substantial upfront costs, savings of up to 23% in carbon emissions from the reduction of office space proves that meaningful progress can be made without significant upfront cost.
Mitel has set a long-term goal to become a net zero emissions company by 2050, focusing on Scope 2, which includes emissions a company causes indirectly from where the energy it purchases is used and produced, such as electricity and heat consumption. The shift to remote work kickstarted Mitel’s mitigation efforts, laying the groundwork for renewable energy sourcing and lighting retrofits once the office space consolidation is complete.
Footnotes and Sources Used for Model Calculations:
1. 2022 Grid Electricity Emissions Factors v0.1 – February 2023
2. Friendly Power - Large Offices
Office Space Software: Recommended office space per employee: how space needs are changing
Gov.UK: Greenhouse gas reporting: conversion factors 2021
Greenhouse Gas Equivalencies Calculator | US EPA
Categories: Remote & Hybrid Working, Culture