ESG noun

abbreviation for environmental, social and governance; a way of judging a company by things other than its financial performance, for example its policies relating to the environment and how happy its employees are.

[Cambridge Dictionary definition]

We know from our members that one of the current hot topics for business is ESG – what does it mean, what impact will it have on my business, where can I find out more? With so many definitions and so much information available it can be hard to know where to start.

As part of our campaign to demystify some of the issues which local businesses are grappling with, we asked members of our ESG Expert Panel what the term means to them and their organisation.

If you would like to join the discussions around ESG and would be interested in joining our Expert Panel please contact policy@liverpoolchamber.org.uk

Paul Gambon, Medicash

“Looking back through our history, Medicash has always been a company with charitable values at its heart. We were established way back in 1871 to finance local hospitals through charitable donations, and it’s this foundation of community and charity that still guides us today. ‘Doing good business’ doesn’t mean just making sales and money – it’s ensuring that our company is a promoter of positive change in our society, and that we are laying the groundwork for future generations.

From our investments, to partnerships with conservation charities in the Amazon, to simply raising awareness of our everyday eco footprint in the office, we try to incorporate ESG principles into each decision we make, whether big or small. When you embed and engrain these principles into the heart of your organisation it becomes a habit, and every process and activity within the business itself can become a positive moment that everyone can feel proud of.”

Dr Tony Bradley, Liverpool Hope University

“Since the Brundtland Commission (“Our Common Future”), in 1987, the world of sustainability has been focused on the so-called ‘triple bottom-line’. This has usually meant businesses looking at their people, planetary and profitability relationships. The language of ESG provides a different lens through which to examine a business’ sustainability, considering the way it accounts for its environmental, social and governance operations. But, this can become a matter of only reporting on past performance, where ‘governance’ becomes code for ‘financial management’.

In recent years, the most forward-looking and sustainable businesses have been considering what their purpose is, in terms of the other 3 P’s. When Purpose is added into the mix businesses have an opportunity to look at the full spectrum of their sustainability activities and operations, in a cycle from People, through Purpose and Planetary to Profitability dimensions. At Liverpool Hope Business School we have developed a consultancy offering, based on our unique Business Sustainability Cycle, which we deliver to local businesses to assist them in developing their overall sustainability. You can contact myself for more information bradley@hope.ac.uk.”

Anthony Nightingale, Resolve Energy

“Resolve Energy recognises that businesses are in a challenging position: securing sustainable energy at an affordable price. For businesses to prosper, the cost of energy and environmental sustainability is a head-on challenge.

It is through the principles of the UN Sustainable Development Goals (SDGs) that Resolve Energy has based its ESG strategy: to be responsible in its operation to clients and staff, as well as supporting sustainability on a local, national and international level.

Sustainability and the ever-increasing pressure on our climate have ensured Resolve Energy are committed to meeting these challenges. Our sustainability objectives and key results are:

1. To become net zero in our own business operations, including supplying only clean energy sources by 2025

2. Support and educate our clients in their journey to becoming net zero by 2050

3. Empower and support our staff and be a responsible employer

4. To advocate global citizenship by supporting our local community organisations and charities, and to support biodiversity projects on a local, regional, national and international level

I am personally proud of the work we have done to develop a full Net Zero service to help any business achieve their ESG and carbon neutral goals.”

Kelly Godfrey, Hive Projects

“Our world faces a number of global challenges: climate change, inequality, balancing economic needs with societal needs. Stakeholders are now increasingly demanding that organisations should be a force of good. As it becomes the norm to consider an organisation’s commitment to ESG for investment and securing contracts, the importance of understanding, and actioning our commitments is paramount.

For Hive-Projects, operating predominantly within the construction industry, our sector is under tremendous pressure to act quickly and adopt sustainable approaches to how the industry operate. Key areas of focus are sustainability, durability, resilience, energy efficiency, waste reduction, and water conservation.

I find it useful to break ESG down into its three pillars: Environmental, Social & Governance. Whilst there are clear overlaps I tend to have all things land, air and water sit within the Environmental pillar. For me, all things related to people; skills, resources, health and wellbeing sit within the Social and finally, Governance which provides a framework for corporate behaviours and monitoring sustainability performance.

We are committed to working with our partners to develop and implement a realistic and measurable ESG policy for the programmes of work we deliver, adapting our approach to the needs of each project. Underpinning it all though, is our desire as an organisation to make a positive impact to our communities via our actions.”