CPA Bulletin

www.cpa.uk.net CPA Bulletin > November 2022 13 CPA CONFERENCE: 2 Laura Capper said that the political and economic background could hardly bemore turbulent and unpredictable, with inflation at its highest level for more than 30 years and interest base rates rising sharply after being close to zero for 15 years. The Government needed to give clarity on issues like spending cuts and their possible impact on construction, as well as tackling interest rates. It also had to give more information to businesses about ESG obligations as certain European countries are already doing with greater clarity and encouragement, outlining a ‘road map’ to where firms should be heading. However, she said that banks remained committed to corporate lending. Laura said that construction firms had shown themselves to be flexible and forward-looking in their response to new ways of working throughout the pandemic and that they would doubtless adopt a similarly positive attitude to ESG responsibilities. Interestingly, she said that NatWest has seen significantly increased demand for finance towards solar panel installations and that plant-hirers and other organisations could benefit financially from such measures given the steep rise in energy costs. She added that, while interest in ESG has grown in recent years, firms needed to explore the solutions in more depth - and to appreciate the risks of not doing so. For example, companies involved in diesel engines or supplying parts for themwill eventually find themselves without a market when carbon net-zero is reached as planned by 2050, so they had to realise the transition process required. Incidentally, NatWest offers a free tool for businesses to measure their carbon footprint, and the results can then be used as a benchmark for making future reductions. Check it out at https://www.natwest.com/ business/green-banking/carbon-planner. html CPA’s Chris Cassley agreed that more Government action was needed to create the right investment climate in which firms could identify and implement ESG measures. Incentives like the Annual Investment Allowance and the super-deduction tax allowance on qualifying plant and machinery could encourage companies to invest in new electric, battery and solar products as well as other technologies. Clarity about possible future spending cuts in another round of austerity measures would be required, and these will hopefully not limit Government support for research and development or product innovation. There has also been much talk of reforms to planning regulations to encourage house building and other construction projects, and this still needs to be confirmed and the implications for the industry discussed. Chris highlighted some of the benefits arising from adopting ESG measures including the positive impact they could have on a company’s image. People throughout an organisation and the wider community would appreciate the improvements being made. Moreover, job seekers increasingly want to work for companies that adopt green practices, so by not doing so an organisation might lose out on attracting the best talent. “Above all,” said Chris, “ESG shows business as a force for good. And it will make a difference for our children and future generations in the coming decades.” The second panel discussion entitled ‘ESG in Context and What it Means’ ventured more deeply into the reasons why it was important for companies to start embedding ESG into their core business operations. The four participants comprised Lara Young , Climate Change Director with Costain; Dani Saveker , global CEO and founder of the GLAS (Global Life Alignment System) for helping businesses adapt to significant challenges and entrepreneurial transitions; TomHadley , an independent consultant