The ESG challenge: Investec’s top tips for making sustainability an achievable goal

A recent survey of business leaders by Investec highlighted the simple steps that entrepreneurs can take to make their work more sustainable.

In a recent survey of 500 mid-market companies by Investec, more than half of leaders polled (55%) said that having a sustainability strategy was critical. In the report, they shared some simple ways that entrepreneurs could embed ethical working practices into their businesses. Here are the highlights:

Create a collaborative environment

Dr Marc Kahn, Chief Strategy and Sustainability Officer at Investec, emphasised that business leaders should share experiences by joining a likeminded community. As part of its corporate and private banking services, the bank provides networking opportunities for entrepreneurs and business leaders.

“At this time, joining forces with likeminded partners can help provide valuable support,” said Marc. “This is important for entrepreneurs who are already navigating the highs and lows of running a business and want to ensure they have a sustainable relationship with the communities in which they operate,” he explained.

Define your mission

Competing strategic priorities could make it difficult to identify where sustainability can make a difference to your business and its stakeholders. Therefore, 44% of business leaders suggested defining your company purpose ahead of implementing environmental, social or governance improvements.

Once you’ve identified your company’s mission, internal training and education was recommended to focus efforts.

Make everyone accountable

While a third of leaders felt that a company CEO must be ultimately responsible for its sustainability efforts, making all employees accountable for the strategy’s success is also beneficial. Thirty-nine per cent of business leaders told Investec that the most effective step they took was to embed sustainability targets into personal performance reviews.

This focus can have a positive impact on hiring too. Up to 70% of current jobseekers are said to be looking for environmentally friendly employers, according to separate research from Future Business.

Embrace measurement

Thirty-five per cent of leaders said a lack of data was a barrier to advancing their sustainability strategies. One way to overcome this is to go back to basics when defining your sustainability goals.

Alicia Forry, Head of ESG for Alternative Investments at Investec, said entrepreneurs should identify the most relevant metric for their business. “It’s rare that companies struggle to identify what is material for them,” she said. “For example, it makes sense for a very energy-intensive manufacturer to focus on reducing emissions, because it will lower their costs over time and make their processes more efficient.”

Identify what resources are available

If you want to understand more about sustainability, useful tools are available from several organisations. The Government has recently launched the UK Business Climate Hub, which includes various how-to guides for businesses looking to improve their own operations. The Federation of Small Businesses also provides case studies and practical information for self-employed individuals who are aiming to achieve net-zero emissions. Meanwhile, the Cambridge Institute for Sustainable Leadership offers courses on improving sustainability which are sector-specific.

If you’d like to discuss how Investec could help you support the growth of your business or provide banking and networking opportunities for entrepreneurs, please do get in touch with Investec Private Banker Eileen Redmond-Macken at Eileen.Redmond-Macken@investec.co.uk.

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