A new movement – environmental, social and governance (ESG) – is starting to dominate the corporate landscape, says Marc Bradbrook.
An archaic and outdated term, CSR resembles a marketing tool for businesses to make symbolic gestures while enabling corporate inaction.
A new movement – environmental, social and governance (ESG) – is starting to dominate the corporate landscape and enables businesses to measure the real sustainable and societal impact of their outputs.
ESG differs from CSR because it is measurable, quantifiable and criteria-led, allowing businesses to integrate better ESG strategies into their set-up.
Take Gatwick Airport, which in 2019 showed how hard it had been working to make a difference such as recycling 71 per cent of its waste and reducing aircraft noise pollution. It also achieved net-zero emissions over the previous year.
“Despite great tragedy, we have learned important lessons”
In principle, investing in ESG as a business isn’t about making money. Its purpose is to consider how ethical your practices are, putting sustainability and moral principles above profit. But, in some cases, it can incite conscious investors to support your organisation.
Millennial investors are choosing to back socially responsible organisations reflecting societal changes. Not only are they investing in a better future, they’re seeing a positive ROI.
The pandemic made many fear that ESG would take a back seat as businesses fought to stay afloat. Despite great tragedy, we have learned important lessons. Not only have we seen the positive impact that less travel and industrial activity has had on our environment, the pandemic has also taught us to check on the people around us and to focus on employee wellbeing.
ESG is not only about showing that ethical principles lie at the heart of your business but about using your power and platform to make constructive change.
Marc Bradbrook is commercial and energy services director at Haven Power