Is your business ready for ESG? Here’s why it matters

You’ve probably heard of ESG – short for environmental, social and governance. It’s a way for businesses to measure their impact on the world around them.

ESG is no longer just a ‘nice to have’, it’s now part of UK law. And businesses that ignore ESG risk more than penalties – they risk falling behind.

But complying with ESG regulations shouldn’t just be a tick box exercise, it’s actually smart business, as having a strong ESG strategy can unlock long-term value. It can help your business cut costs, build trust, and stay ahead of the curve, and it shows your clients, partners and community that you care.

At the moment, ESG reporting isn’t required for every business, but for some, it absolutely is. If your business:

• Has more than 500 employees

• Has an annual turnover of more than £500 million

• Is listed on the stock exchange

then the answer is yes, you’re expected to report.

There are consequences for falling short, but the bigger picture is about staying future ready. Plenty of businesses that don’t need to report are opting to do it anyway. Why? It’s a clear way to shows people they are serious about sustainability and can help build trust with the people who matter.

So, while ESG isn’t a legal requirement for every business just yet, it’s certainly a smart move for anyone looking to lead the way.

Relocating is rarely practical, but you can take steps to limit damage and speed up recovery:

ESG rules are evolving quickly, and businesses need to be on the front foot to stay compliant.

Many businesses appoint a dedicated ESG lead, or even a team, to keep on top of the legal updates and help shape the right response. But it’s not just their responsibility. ESG is a shared effort across the business and works best when everyone gets involved – from the frontline teams all the way up to leadership.

As we touched on earlier, ESG isn’t just about ticking boxes, it’s about building a better business.

When you take ESG seriously, you’re not just staying on the right side of the law. You’re lowering your expenses, boosting your reputation and, perhaps most importantly, you’re creating a safer, healthier workplace.

Here’s just a few of the benefits of having a strong ESG strategy:

• Reduces costs by using less energy and fewer raw materials

• Creates a reputation people can trust built on transparency and action

• Promotes safer working environments, meaning a healthier workforce

• Builds a stronger team thanks to values that attract and retain talent.

In short, ESG is good for the planet, and good for business.

If you’re new to ESG reporting, we’ve pulled together seven key areas to help you get going. They cover the core ESG challenges that most businesses face – and they’re all opportunities to do things better.


1. Sustainability

With sustainability the key is to think long-term. It’s about building a business that lasts - one that’s good for people and the planet.

It works in tandem with corporate social responsibility (CSR), which is all about the ethics behind how your business operates and doing the right thing. From how you source materials to how you distribute your products, sustainability should be woven into every decision you make.

Although quick fixes can be tempting, focusing on long-term goals is what sets stronger businesses apart.

2. Waste management

We’ve all heard the saying prevention is better than cure, and waste management is no different. Factoring waste management into your process from the get-go will save you time and money.

A few ways to do this includes:

• Opting for products that need less raw materials, energy or water to produce

• Changing processes to produce less pollution and waste

• Making products that are longer-lasting and recyclable

• Sorting out waste on-site to reduce cost

• Hiring registered waste carriers to help you.

Having good waste management processes in place isn’t just practical – it’s profitable. More and more customers are choosing to shop at businesses who share their values. Think of it this way: if you use less waste, you win more customers – and the planet wins too.

3. Managing airborne emissions

Smoke, dust, vapour, mist, droplets, fibres are all atmosphere emissions that can be released through everyday business activity.

To keep an eye on things, your emissions are measured using a continuous emission monitoring (CEM) system.  The results are then checked against the emission limit values (ELVs) to make sure your business stays compliant. If you’d like to reduce your emissions, you don’t need to change your whole operation. You can modernise your existing machinery to become more emission friendly. 

4. Managing emissions to water bodies

When we talk about business emissions and water bodies, we’re speaking about how pollutants from your operations gets into oceans, rivers, lakes, or groundwater. Even if your business isn’t next to a body of water, emissions can still find their way in from runoff, drains or underground flow. 

The good news is that there are lots of ways you can reduce your impact and protect ecosystems and the public’s general health.

Here’s a few simple and effective steps you can take:

• Label all drains clearly to avoid accidental discharge

• Provide easy access to spill kits and containment tools

• Be careful of how you handle liquids and gases

• Create a robust fire-fighting strategy that includes pollution control

• Install a fire-fighting lagoon to capture pollutants

• Using penstock valves where appropriate.
  

5. Noise control

Close your eyes and picture yourself in your business’ premises – what does it sound like? Would you consider it loud? It’s easy to overlook noise, but it isn’t just an annoyance, it’s also a health and safety issue.

Unwanted sound – also called environmental noise – can have a serious impact on people’s wellbeing. We’re talking disturbed sleep, lower productivity, poor academic achievement, and even long-term health problems.

Any sound over 65 decibels is considered harmful to human health.[1] To put it in perspective, a vacuum cleaner is roughly 75 decibels (depending on the model).[2] So if your business is buzzing, banging or blaring – it might be time to look at ways to turn the volume down.  Being mindful of noise is about protecting people, wildlife and your reputation. Keep it down, and you’ll stand out for all the right reasons.

6. Hazardous substances

From minor skin irritations to long-term environment damage, hazardous substances can have a huge impact on the planet. We are still seeing the effects of industrial disasters like Chernobyl (1986) and the Deepwater Horizon oil spill (2010) on the world today.

That’s why managing hazardous substances is one of the most critical parts of your ESG strategy. This means having clear processes in place and making sure that your people are fully trained.

Your business should have robust controls in place, with clear accountability and regular checks to protect the people and the planet.

7. Energy use

Of all the areas we’ve covered, energy use is often one of the easiest to adapt. You don’t need to make major investments to make meaningful changes – just accurate data and smart decisions.

Start by putting clear controls in place to track usage. From there, you’ll be better equipped to reduce waste, cut costs and move towards more sustainable operations.

Having a strong ESG strategy can reduce operational risks, but some risks can't be eliminated and need expert support. That’s where Everywhen Risk Advisory Services steps in. We offer a full risk advisory service to help you see the bigger picture and stay prepared for what’s next. Discover how we can help at https://www.everywhen.co.uk/risk-management

Consistent with our policy when giving comments and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.

Sources

[1] How Can Businesses Reduce Their Noise Pollution?

[2] Microsoft Word - E1ECEEFE.doc