ESG Initiatives in Spokane, WA: An Overview

This report provides an in-depth analysis of Environmental, Social, and Governance (ESG) efforts in Spokane, Washington, with a particular focus on the commercial real estate (CRE) sector. While the western part of Washington State, including Seattle and the Puget Sound area, is known for its strong ESG leadership, Spokane, located in the eastern part of the state, presents a different landscape. This report aims to identify ESG fundamentals being implemented or planned in the Spokane area, including those by CRE companies, government agencies, and community organizations.

ESG Initiatives and Projects in Spokane, WA

Spokane exhibits a growing commitment to ESG principles, particularly in areas of community resilience and social equity. This is reflected in the initiatives undertaken by various stakeholders:

CRE Companies

• DeVries Inc.: This company has shown a strong commitment to environmental sustainability through its comprehensive recycling program. In 2022 alone, they recycled 4.5 million pounds of paper, saving significant landfill space, conserving oil, and reducing greenhouse gas emissions¹.
• ENGIE: This global energy company has a presence in Spokane and has partnered with Green Standards to implement sustainable decommissioning practices for its offices. They have achieved a 97.4% landfill diversion rate and reduced CO2e emissions by 1,594 tonnes across multiple projects². Their efforts demonstrate a commitment to minimizing environmental impact while supporting local communities through furniture donations³.

Government Agencies

• City of Spokane: The city actively promotes sustainability through its Sustainability Action Subcommittee (SAS). The SAS focuses on climate change and its effects on Spokane, researching solutions for mitigation and community resilience⁴. The city's environmental programs also play a crucial role in promoting a sustainable environment and improving the quality of life for residents⁵. In 2023, the city made significant strides in conserving materials and resources, generating power, and saving citizens money through various initiatives⁶.
• Spokane City Council: The council adopted the 2021 Sustainability Action Plan (SAP), an update to the 2009 plan, outlining strategies for sustainable development across various sectors⁴.
• Spokane County: The county administers the Emergency Solutions Grant (ESG) Program, which provides funding for initiatives related to homelessness, including emergency shelters and related services⁵.

Neighborhoods, Towns, and Cities

Spokane has a diverse range of neighborhoods, each with its own character and potential for ESG integration. Some notable neighborhoods include:

• Kendall Yards: This mixed-use development prioritizes sustainable design and community living⁷. It offers a variety of housing options, green spaces, and promotes walkability and alternative transportation.
• Browne's Addition: As Spokane's oldest neighborhood, it is known for its historic architecture and walkability⁷. The neighborhood's historic preservation efforts contribute to environmental sustainability by reducing the need for new construction and preserving embodied carbon.
• South Perry District: This vibrant neighborhood has a strong emphasis on local businesses and community engagement⁷. Supporting local businesses promotes economic sustainability and reduces the environmental impact associated with transportation and supply chains.

A comprehensive list of Spokane's neighborhoods is provided below: ⁸

Nearby towns and cities also contribute to the regional ESG landscape:

• Spokane Valley: The largest suburb of Spokane, with a growing focus on sustainable development and community initiatives⁹.
• Liberty Lake: A city known for its family-friendly environment and commitment to preserving natural resources¹⁰. This commitment aligns with ESG principles by promoting environmental stewardship and sustainable community development.
• Cheney: Home to Eastern Washington University, with a focus on sustainability in education and community development¹¹.

Top Leadership Voices

• Kristen Pool: As the Community Outreach Coordinator at Goodale & Barbieri Company, Kristen Pool plays a vital role in connecting the company with local non-profit organizations and supporting community initiatives¹². Her work exemplifies the social responsibility aspect of ESG and highlights the importance of community engagement in driving positive change.

Colleges and Universities

• Gonzaga University: Offers programs and conducts research related to sustainability and social responsibility¹³.
• Community Colleges of Spokane: Provides educational opportunities related to sustainability and environmental responsibility¹⁴.
• Washington State University Spokane: Focuses on health sciences and offers programs with potential connections to ESG, such as public health and environmental studies¹⁵.

Organizations

Community organizations play a crucial role in driving ESG adoption in Spokane, often leading the charge in promoting sustainability and social responsibility³. Some of the key organizations include:

• Spokane Climate Project: A collaborative effort to identify climate impacts and resilience actions for the community³. This project brings together diverse stakeholders to address climate change challenges and promote community-wide sustainability.
• The Lands Council: Works to protect and restore the natural resources of the Inland Northwest, with a focus on environmental education and community engagement¹⁷.
• Spokane Riverkeeper: Dedicated to protecting and improving the health of the Spokane River and its watershed¹⁷.
• Spokane Alliance: Focuses on social and economic justice, with initiatives related to affordable housing, good jobs, and community development¹⁶.
• Innovia Foundation: Supports community development and social responsibility through grants and initiatives¹⁸.

Comparison with Seattle and Tacoma

While Seattle and Tacoma have established themselves as leaders in ESG adoption, Spokane is taking its own path. Spokane's ESG efforts are emerging, with a distinct emphasis on community resilience and social equity. In contrast, Seattle and Tacoma have more established ESG frameworks with comprehensive programs and policies¹⁹.

Specific ESG Projects and Initiatives in Spokane

• Emergency Solutions Grant Program: This program provides funding for essential services related to emergency shelters and street outreach for the homeless, as well as homelessness prevention and rapid re-housing assistance⁵. It plays a crucial role in addressing social equity and community resilience in Spokane.
• Spokane Climate Project: This project conducts vulnerability and resilience assessments to address climate change impacts³. It exemplifies Spokane's commitment to environmental sustainability and community resilience.
• CarbonQuest: This company focuses on carbon capture and utilization solutions, with a presence in Spokane²². Their innovative technology contributes to environmental sustainability by reducing carbon emissions.
• Consolidated Planning Process: Spokane utilizes a consolidated planning process for housing and community development, which aligns with ESG principles by promoting a holistic approach to community development and addressing social and economic needs²³.

Community Investment and Funding

• HOME - American Rescue Plan: This program allocates funding for supportive services and affordable housing in Spokane²⁴. The funding breakdown is as follows:

This program demonstrates a significant financial commitment to addressing social needs and promoting housing equity in Spokane.

Challenges and Barriers to ESG Adoption in Spokane

Spokane faces several challenges in its pursuit of widespread ESG adoption:

• Political Climate and Community Awareness: The predominantly conservative political landscape in Spokane, coupled with varying levels of community awareness regarding ESG principles, can create challenges for implementing and promoting ESG initiatives²⁵. Increasing community outreach and education efforts are crucial to foster a deeper understanding of ESG and its benefits⁴.
• Environmental Challenges: Spokane faces environmental challenges such as wildfire smoke and heatwaves, which underscore the importance of ESG adoption for community resilience and environmental sustainability²⁶.
• Housing Challenges: Uncertainties and complexities in the housing development process, including zoning regulations and community resistance to change, can hinder ESG-focused projects²⁷.
• Lack of Standardized Metrics: The absence of common ESG reporting standards can make it difficult to track progress and compare performance, potentially hindering investment and collaboration²⁸.

Potential Benefits and Opportunities

• Enhanced Community Resilience: ESG initiatives can help Spokane address climate change impacts, improve environmental quality, and build a more sustainable future⁵.
• Economic Growth: Investing in ESG can attract businesses, create jobs, and enhance economic prosperity by promoting innovation and attracting investors who prioritize sustainability²⁹.
• Improved Social Equity: ESG principles can promote social justice, address disparities in underserved communities, and create a more inclusive society³⁰.
• Attracting and Retaining Talent: Companies with strong ESG policies can attract and retain employees who value sustainability and social responsibility, contributing to a more engaged and motivated workforce³¹.
• Performance Standards: Spokane has established performance standards for evaluating ESG project outcomes, ensuring accountability and effectiveness in its ESG initiatives³².
• Diverse Perspectives on ESG Investing: Recognizing the different perspectives on ESG investing, including potential benefits and challenges, can help Spokane develop a balanced and effective ESG strategy³³.

Spokane has the opportunity to leverage its natural resources and outdoor recreation opportunities to attract ESG-conscious businesses and residents¹⁰. By promoting its natural assets and commitment to environmental stewardship, Spokane can position itself as an attractive destination for those who prioritize sustainability and quality of life.

Political Climate and ESG Adoption

While the political climate in Spokane may present challenges, there is evidence of bipartisan support for certain aspects of ESG, such as community resilience and economic development. The City Council's adoption of the SAP and the involvement of government agencies in ESG initiatives suggest a willingness to address sustainability concerns⁴.

Community Outreach and Education Efforts

• Goodale & Barbieri Company: A real estate company with a strong community outreach program, supporting local non-profit organizations¹².
• Our Place Community Outreach: Provides emergency resources and services to the West Central neighborhood³⁶.
• Gonzaga University: Promotes sustainable investing and offers educational resources on ESG³⁷.
• Spokane River Forum: Offers environmental education programs for refugees and immigrants³⁸.
• Spokane Center for Sustainability: Provides education and training opportunities in the green economy³⁹.
• The Lands Council: Offers environmental education programs for students, focusing on stormwater management and water quality³⁴.

Conclusion

Spokane is at a critical juncture in its ESG journey. While the city faces challenges related to political climate, community awareness, and resource availability, there are significant opportunities to integrate ESG principles into economic development, community planning, and social initiatives. By leveraging the commitment of government agencies, community organizations, and businesses, Spokane can build a more sustainable, equitable, and resilient future.

Spokane's focus on community resilience and social equity can differentiate its ESG approach from that of other cities⁵. By prioritizing these aspects, Spokane can create a more inclusive and sustainable community that benefits all residents. The city's commitment to addressing homelessness, promoting environmental justice, and investing in community development initiatives demonstrates a unique approach to ESG that aligns with its values and priorities.

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