ESG : the acronym that delivers so much more than just TLC
AMS CEO David Leigh explains why ESG is central to the entire business ecosystem and the practical steps AMS is taking to make a change .
Organisations don ’ t – and can ’ t – operate in a bubble . We ’ re inextricably linked with our markets , clients and our people , the communities we serve , the events and cultures that shape who we are , what we do – and why . Good businesses have always understood this , and , more than ever , today ’ s business environment demands that we take stock and make sense of the role we must play to deliver long-term sustainability and assess the societal impact of how we operate and behave .
That ’ s why , at AMS , we take our environmental , social and governance ( ESG ) responsibilities so seriously .
ESG may have started life as an arcane reporting framework for big companies and investors , but it ’ s become much more than that . These days , it ’ s an approach , increasingly valued and sought out by everyone from regulators and investors to those customers and employees . Concerns about the environment and the role business can and should play to promote societal and individual wellbeing are now central to the business ecosystem . Nor is it just about ‘ feel-good ’ factors or issues . ESG has become a key driver of value , whether that ’ s in terms of attracting investment , winning clients or staff engagement and retention .
It ’ s no longer good enough to tick those regulatory boxes or to make grand statements ; we need to embed ESG into every aspect of our strategy and operations .
Taking responsibility
That ’ s what we ’ re doing at AMS . At the most basic level , actively showing a commitment to a variety of ESG factors is just the right thing to do . But ESG engagement also provides a framework – a route map – to help us and our stakeholders focus on that long-term sustainability and to keep us accountable along the way .
We must take responsibility to understand and minimise our impact on the environment . Our people should expect to operate in a safe , secure and flexible environment , one that prioritises wellbeing alongside performance . We have real opportunities to drive diversity , equity , accessibility and inclusion , both within our own business and when supporting clients with their talent strategies . Robust and transparent corporate governance must underpin everything we do .
ESG may have started life as an arcane reporting framework for big companies and investors , but it ’ s become much more than that
Our approach is based on six of the United Nations Sustainable Development Goals : gender equality ; reduced inequalities ; decent work and economic growth ; good health and wellbeing ; affordable and clean energy , and climate action . We ’ ve chosen these because they represent real potential for creating both immediate and ongoing impact .
Consider , for example , how we can influence the balance of decent work and economic growth through the talent management work we do with our clients . Or how we can create policies and procedures , and model and advise on best practice , to boost equality and promote workplace wellbeing . And , as an organisation , we are committed to reducing our UK carbon emissions to net zero by 2025 and are actively working on strategies to reduce our carbon emissions in other territories in which we operate .
Becoming a role model
These are initiatives that resonate with everyone at AMS , from board members to our newest recruit . Our ESG steering committee will drive our programme , accountable to the board for progress and performance . We have worked with ERM , a specialist in this field , to benchmark where we are and help us to define a clear direction for the coming months and years . And I ’ m delighted that , on the ground , so many AMS people are passionate about these issues , acting as mental health ambassadors , volunteering in their communities , championing diversity , equity and inclusion ( DEI ) or working on a tree planting scheme to offset our carbon emissions .
We also want to act as a role model and advisor for our clients , helping them to join us on ESG journeys that are just as important for their businesses too . As with all that we do , partnership with our clients on ESG is at the heart of our operations , supporting them on everything from strategy and reporting through to the specifics of the 2021 Carbon Disclosure Project and DEI .
We continue to live in uncertain times . It ’ s almost impossible to predict how our world will look even five or 10 years down the line as we face the dual challenges of a post-pandemic economy and continuing technological change .
But I know that the companies with the greatest chance of navigating these choppy waters will be the ones that are willing and able to articulate clear organisational purpose and redefine performance to carefully calibrate their relationship with , and their impact on , the environments in which they operate . Being a responsible global citizen really will mean a brighter future for us all .