The Business Exchange Bath & Somerset Issue 24: Summer 2022 | Page 12

FOCUS ON ESG

What is ESG ? And why does it matter ?

ESG stands for Environmental , Social and Corporate Governance . It has been around for several decades although it has had various names over the years . It emerged back in the 60s when it was largely associated with those brands which supported ( or did not support ) economic contact or business dealings with the former apartheid regime in South Africa . Bigger brands and now large corporations already claim that they take their ESG rating very seriously . But what is the reality of that ?
In many areas , Bath and surrounds included , there are real problems around recruitment and retention . In that context , the ethics and behaviours of employers can really impact success when it comes to onboarding new staff and keeping them .
Research by recruitment specialists Robert Half shows that a significant number of young people do consider ESG factors when taking on a new role .
In their survey , 38 per cent of employees said they would look for a new role if they thought their organisation was not doing
enough on issues such as reducing carbon emissions or operating ethically . That rises to 47 per cent of 18 to 34-year-olds .
When it comes to attracting new talent , offering the most competitive financial package is not always enough . More than half ( 53 %) of employees said they would never work for an employer they thought was unethical ( regardless of the salary ), increasing to 59 per cent among younger candidates .
Matt Weston , Senior District Director at Robert Half , said , “ ESG has become a critical
part of the recruitment process , both for attraction and retention , particularly among younger employees who are perhaps more alert to ethical and sustainable practices . They want to see authentic efforts that truly make a difference .
“ Our advice to businesses is simple : if you want to keep your best talent and attract new talent into the business , don ’ t rely on rhetoric . Ensure you have a clear , demonstratable ESG plan in place with tangible , measurable actions .”
“ 38 per cent of employees said they would look for a new role if they thought their organisation was not doing enough on issues such as reducing carbon emissions or operating ethically . That rises to 47 per cent of 18 to 34-year-olds .”

But how do you measure ESG ?

We spoke to Jo Wren of Maia Growth Partnership which helps businesses large and small achieve their ESG targets . Jo said local organisations should consider the following immediately :
• There is a ‘ good intentions ’ gap between what we say and what we do and helping to close that gap is a vital step on the journey to do more good . So , choose one sustainability theme where you want to make an impact .
• Consider the business adage ‘ you can ’ t manage what you can ’ t measure . Whatever your theme , set an objective and measure progress as you go , taking action to achieve your target .
• Stakeholders are like citizens in a mutual relationship with your business , and they are there to consult with , so engage with them . Understand their perspective and priorities and share with them the progress on your journey because becoming more sustainable is in all our interests .
If you want to measure your carbon footprint , the team at Maia Growth Partners is working with local business Spherics , a simple carbon monitoring solution that can measure and monitor your emissions in minutes . They are offering TBE readers a free three-month trial . To find out more visit : http :// ow . ly / Hktx50ImwPw
For more info : www . maiagrowth . co . uk
We were keen to learn from local organisations who have invested in ESG for some time , measure their impact and provide inspiration for others . We chatted to Bath-based Buro Happold and Wessex Water ...
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