The business of becoming a sustainable partner

Becoming an ESG (Environmental, Social and Governance) accredited partner, is much more than earning a badge. As a business, we appreciate making a difference takes consistent time, effort and investment. It’s so much more than a short-lived incentive to gain a gold star that can be published on our socials. 

Being a truly ethical, responsible and governance-led business involves education, influence, inspiration, knowledge, vulnerability, integrity and authenticity. The definition of processes and policies is just the start. To truly embrace organisational change our staff, suppliers and clients need to be taken on a journey from complete bewilderment to ethical purpose.

We’ve established a strong vision and set of values that have helped to establish our position as an ethical business but what we’ve come to realise is that our plan will never be fully completed. The roadmap that we, and many other businesses are on, is completely focused on being better for good and it should continually evolve. Agencies like us need to ensure that we’re aligned with the vision and values of our clients. The buck no longer stops with the actions of a single organisation: it cascades down the supply chain, and suppliers will be embraced or sidelined as the process evolves. 

It's also fundamentally wrong to think only about sustainability. Sustainability, although crucial, is only one part of an intricate web of elements that govern how a business behaves. ESG covers all areas that a business should be focused on, and each is equally important in forming a purpose-led business. A business that religiously recycles all of its waste, but pays below living wage to its staff would be denied a valid ESG credential. As would one that runs on renewable energy but purchases products from scrupulous vendors that rely on cheap child labour. 

We’re probably making all of this sound like hard work but it’s genuinely worth it! All businesses are moving towards a more ethical and sustainable supply chain and those that position themselves well early in the process will reap the rewards.

Why should businesses consider an ESG accredited supplier?

1.     Due Diligence

Procurement or vendor management due diligence checks are more easily passed when working with an ESG accredited supplier. Finalising the details of contracts and standards is simplified and the procurement process is much less painful.

2.     Brand Reputation

Customers are increasingly eco-conscious when buying products and services. So, an organisation that can effectively align its full supply chain to the same ESG standards that it holds for itself will satisfy the expectations of even the most ethically savvy customers.

3.     Innovation and Best Practice

Partnering with a ESG validated supplier can support and inspire change and operational efficiencies within your business. Collaboration between buyers and suppliers can lead to innovative solutions, such as reducing waste, utilising renewable resources, and minimising carbon emissions, which can also result in cost savings. Less tangible actions like communications, attitudes, culture and social activities can unify teams, inspire wider change and also be fun and engaging for staff across both businesses.

ESG regulatory changes are happenings so, whatever you do, don’t cross your fingers and hope they disappear. At the moment EU and UK regulations only govern large companies but the same governance will soon cascade down the line to their supply chains. The Corporate Sustainability Reporting Directive (CSRD) requires large organisations to comply with 12 reports, 82 disclosures and 1144 data points by early 2025, covering multiple direct and indirect activities. And, if rumours are to be believed, in the near future HMRC will require all businesses to submit Carbon Accounting alongside standard end-of-year financial accounts.

Suppliers of all shapes and sizes will soon need to tackle complex regulatory challenges so, do your business a favour and start your journey now. Your employees, clients and your bottom line will thank you later!