ESG - Build a better business for the modern world

ESG was high up on the agenda of boardrooms across the UK in 2022 and it looks set to stay that way in 2023 in response to the continued demand for a collective corporate response.

Here Hannah Clipston, Director of Strategic Growth at law firm Irwin Mitchell, discusses the benefits of a well-thought through ESG strategy and highlights how her firm is providing practical help in this area.

Although constantly evolving, an ESG strategy is a set of commitments from a business that it will do the right thing for all of its stakeholders (and not just its shareholders). It is a framework to evaluate and manage risk around a core purpose of long-term responsibility. This creates the best environment for businesses to build sustainable growth that fulfils current needs without compromising the future needs of its people, its customers, and the planet.

The environmental component of ESG focuses on how businesses use natural resources and how their operations including their supply chains can minimise their impact on the environment. Areas that should be looked at include energy sources, efficiency and use; decreasing waste, pollution, carbon emissions; conserving water; the sourcing of materials; reduction of packaging; and green investments to implement more sustainable practices.

The social element of ESG is all about a business’ relationships with its workforce and the communities in which it is based. A responsible business has trusted, ethical and fair relationships with these stakeholders across areas such as human rights, diversity and inclusion, data security, robust working and safety conditions and wage equality.

Finally, the governance component is about providing a resilient long-term plan to manage your business. It covers getting the right corporate structure and ownership in place as well as policies around decision making, compliance, tax, reporting and disclosures; all of which are enablers for raising capital and obtaining investment.

A strong approach to ESG can deliver better business performance and top line growth and value for the long term. Complying with regulations can, for example, bring significant benefits in terms of operational efficiency, enhancing trust in your brand with your customers and helping with the engagement and retention of your people.

Socially responsible businesses will attract and retain valuable talent which in turn can boost motivation and productivity.

Delivering a strong ESG strategy can also lead to all kinds of savings - from energy and water usage to waste and raw materials. Another thing to consider is that by positioning your business in the right way from the outset, you’ll attract clients and investors looking to work with green and ethically sound businesses.

When building ESG into the fabric of your organisation, it’s vital you equip your team with the knowledge and confidence required to deliver on your ambitions.

At Irwin Mitchell, we’re here to help you deliver your ESG strategy so you can empower your colleagues and build a sustainable workplace that adapts to the changing landscape around it.

Our ESG legal advisory suite offers expertise on a range of ESG-related areas including corporate structure, governance and ethics; regulatory compliance; environmental sustainability; and trading, supply chain and procurement.

We can also support with building business protection and resilience. This can range from board advisory support and dispute resolution to intellectual property and reputation management as well as digital, cyber and data protection issues. Our focus is on making sure your business is protected and helping you to formulate a plan to deal with any adverse circumstances.

When it comes to people and social matters – people and communities are a key element of being a responsible business. Our specialists will work with you across policy creation, managing diversity and inclusion, and wellness and reporting so you can attract and retain valuable talent.

There’s a global aspect to our ESG advisory offering too. Our international experts, for example, can assist you with any ESG-related matters you may have outside the UK. We also advise and manage cross-border issues and compliance of non-UK businesses encountering UK laws and requirements for the first time.

Meeting your ESG responsibilities to protect your people and planet without compromising your purpose as a business can be a challenge. We’re here to look after your business like it’s our own and guide you through delivering your purpose-led ESG strategy step-by-step.