THE IMPORTANCE OF ESG
Does ESG still matter ?
It ’ s a legitimate question , especially for small businesses across the UK who are usually on the frontline when it comes to economic impacts of global events : Does environmental , social , and corporate governance ( ESG ) really matter ? by Fiona Scott
There have been recent calls from some quarters to scrap net-zero targets due to the uncertainty we are all facing . However , our Prime Minister is standing firm that the green agenda will make us more sustainable and resilient , especially in the event of a fuel crisis .
ESG has been with us for several decades although it has had various names over the years . It emerged back in the 1960s 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 ? Often it is smaller companies which lead the way .
In many areas , Swindon and Wiltshire included , there are real problems around recruitment and retention . In that context , the ethics and behaviour of employers can really impact success when it comes to onboarding new staff and then keeping them .
Research by recruitment specialists Robert Half shows
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
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 , demonstrable ESG plan in place with tangible , measurable actions ."
COMMUNITY & CHARITY
ESG today often focusses on the environment and sustainability , however , it is wider than that .
Many companies are now embracing a more community and charity-minded approach , demonstrating a commitment to being part of , and caring about , the community .
For example , Nationwide with its HQ in the county has its own Responsible Business Committee which looks at its environmental and social impacts . It was only a short time ago that it announced a plan to build a £ 50 million development of eco-homes in the town called Oakfield where 30 per cent of those homes would be affordable .
Many companies are currently stepping up and engaging in activities , such as volunteering in response to the emerging humanitarian crisis Ukrainians are facing . More than 100 British companies ( including
Iceland , Tesco and Aldi ) have already stepped forward offering jobs for refugees who come to the UK .
Smaller companies are trying to do their bit too , from fundraising among staff and contacts through to volunteering .
Don Bryden of KCJ Training & Employment Solutions recently travelled to Poland with a team of volunteers to deliver a lorry of essential supplies for the Ukraine . He was supported by supply chain specialists OPX , based in Dorcan , Swindon .
He said , “ This is very emotional for me and for all of us . The experience is beyond what we can imagine . One of the most powerful moments was meeting children who were taking a handful of lollies ; some of them are now orphans . Their single dads have had to stay behind to fight and they are sending their children across the borders on their own .”
One of the truck drivers was Pawel Pozniak who lives in Royal Wootton Bassett . He ’ s lived in Wiltshire for 12 years .
He added , “ My parents live in Gdansk and this is personal for me . Who knows what could happen next ? Next year it could be Poland - it could be my parents needing help . For me , this affects Poland and it affects my family and I look at the children and my heart breaks . I have three children myself .
“ My grandparents fought with the British Army in World War Two as allies so there ’ s history there . I want to do this .”
Operations Director for OPX , Ryan Gower , said , “ We ’ re proud to help with this humanitarian effort and we ’ re thrilled to support these volunteers and to do what we can .”
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