CPA Bulletin

26 CPA Bulletin > August 2022 www.cpa.uk.net But what ultimately is ESG and why should it matter to the plant-hire sector, and the wider construction sector? Last year, the conference explored net zero and digitalisation, how both topics post pandemic, were impacting on our sector and what difference they are going to make to future operations. Throughout discussions and debates on the day, several speakers discussed each of the main elements of ESG and why they mattered - i.e. Environmental, Social and Governance. This year, we have an opportunity to discuss these in greater detail. To compete and grow, the businesses that thrive in the future will be those aligned with the ESG agenda, helping them gain businesses, win contracts, act responsibly and work for the greater good of society. A question lots of businesses are being asked is - shouldn’t ESG already be part of their plans, especially given the push for cleaner, greener machinery and the need to meet climate change targets and obligations? Over the last 30 years, showcasing and developing environmental credentials have been a key part of business operations and strategies for companies from a vast range of sectors and industries. In truth, many companies probably already are doing this, however, to outsiders, it might not be as apparent or obvious. That is why harnessing and showcasing ESG as a key part of how a business is run is gaining traction and becoming part of mainstream business thinking. ESGmeans not just considering the environment but also the durability of a business model, it shows that a company is taking ESG seriously. It also appeals to investors and those companies looking to access different forms of finance. Investors want to see what ethical credentials companies have; they want to invest in sustainable business models that are committed to doing business in a way that promoted best practice for both shareholders but also day to day business operations. But what does this mean in terms of process and steps to take - how can ESG make a difference? Environment - This means being aware of the environmental impact, steps to take like reducing fuel use, water resources, energy saving lights, identifying the practical steps to reduce waste while making cost savings. Social - This means showcasing a business’s social value and credentials, making it an attractive place to work, both in retaining existing staff, but in the fight for talent and diversity, thereby attracting new people to the plant-hire industry. Pay and conditions are clearly important for new staff, but increasingly in the future, what social impact and value a company places on its approach will equally be important. Governance - Good governance has been a cornerstone of good business for decades, but it is still vital. Showing how to identify and mitigate risk, how the business is run and its future direction and strategy is a part of this. Good governance helps attract investors, it shows that the business is taking its obligations and commitments seriously - both in how it develops strategies and business plans, but also its image and the culture it installs amongst staff. Good risk management helps identify and implement cost savings but also can lead to savings on insurance coverage. It can also help reputationally and show that a business is responsible and takes areas like safety seriously. The UK’s plant-hire sector is the most professional in the world - but safety should never be taken for granted. Good governance and oversight is part of this. Adopting a well-developed and thought out ESG strategy helps improve and enhance the reputation and image of construction. Crucially, and of increasing importance as we move forwards, a good reputation for ESG can help plant-hire companies secure contracts and attract new customers, especially in the public sector. Central government and local authorities are taking the lead in developing green infrastructure, they want to be seen to reduce the environmental impact of the projects they are commissioning. Adopting a sustainable ESG strategy that meets these criteria will help companies secure these contracts and attract and retain new customers who will be equally keen to showcase their ESG credentials. This is only a foretaste of what the CPA Conference 2022 will be looking at. We want delegates to get an introduction and idea around why ESG matters, learning from different sectors and what steps companies can take to begin their ESG journey. ESG takes time, it is a continuous process and something that needs continuous attention and improvement. If companies get it right, there are clear benefits. Join us on 20th October 2022 to find out why. POLICY POLICY ESG - What it means for the plant-hire industry At the time of writing, we are less than four months away from this year’s CPA annual conference, with the theme for 2022 being ‘ESG - Driving Change: How Environmental, Social and Governance Benefits Construction Plant Businesses’ .