environment
Businesses fail to enact environmental or social value strategy There is a significant disconnect between UK businesses’ awareness of the www.freepik.com importance of an Environmental, Social and Governance (ESG) approach and how many have these policies in place. That’s the damning verdict of a new study by the British Chambers of Commerce (BCC) and SUEZ ahead of the COP 26 summit.
• 64% of businesses trust their suppliers to adhere to sustainability and social value policies
The survey found that nearly seven out of 10 (69%) responding businesses, of more than 1,000 surveyed in the UK, think ‘environmental sustainability’ is about cutting carbon emissions, while most respondents (82%) think it’s about recycling and reuse of materials. However, only 36% said they had implemented an environmental sustainability policy and 15% had implemented a social value policy, dropping to 9% for microbusinesses.
The study also highlighted several barriers to implementing a social value policy, including:
Other highlights of the research include: • 71% think social value is about having a positive impact on employee welfare or job creation • 46% think it’s about a having a positive economic impact
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• 40% do not consider implementing a social value policy is a priority at present • 23% think there’s a lack of demand from stakeholders – staff, customers and their own boards • 22% think the costs are too high John Scanlon, chief executive officer for SUEZ, recycling and recovery UK, said: “There’s a clear need for top-down support to help unite firms across the supply chain, given the disconnect between business awareness of the value from both environmental and social value policies, and the overwhelming
lack of any such policies being in place. There’s no long-term future for business if short-term profit is chased at the expense of long-term environmental and social value policy planning. “The aims of COP26 will only be achieved if businesses are brought on board and the perceived administrative and financial burdens from incorporating sustainability policies are removed. Uniting businesses is essential if we are collectively to meet the objectives of this November’s global climate conference – to bring parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.” Shevaun Haviland, director general of the BCC, said: “This research shines a light on the mismatch between the clear understanding among UK businesses of what benefits can flow from
environmental and social value policies and the reality of how many actually have these in place. “Given the huge upheavals they’ve endured over the past 18 months, it’s perhaps understandable that these have not been a priority. Yet the consequences firms will face if they fail to adapt for the future cannot be ignored. “That’s why the Chamber network has been supporting its members to find more environmentally sustainable ways of doing business and identifying opportunities to boost their social value impact. “However, government also needs to help businesses help themselves, especially those smaller firms who remain understandably concerned about perceived extra costs and red tape if they want to change. This is not only a matter of a greener future for business, it’s about ensuring a brighter future for everyone.”
