The Business Exchange Bath & Somerset Issue 24: Summer 2022 | Page 22

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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