Yorkshire firms Henry Boot, ESG and Flotilla on why sustainability is key

To stay ahead, an increasing number are developing an ESG strategy - a set of guidelines that address a company’s environmental, social and governance factors in their operations and decision-making processes.

Sheffield-headquartered Henry Boot is one of the UK’s leading land, property development, home building and construction businesses, employing more than 500 people.

In recent years it has focused on developing sustainability and social value credentials and launched a Responsible Business Strategy. That set out key goals for making a positive impact across four pillars: Our People, Our Places, Our Planet and Our Partners.

Jack Kidder, Henry Boot’s Responsible Business Manager says that it has made significant progress against goals.

"We’ve reduced group-wide gas and electricity usage by 39 and 23 percent respectively compared to a 2019 baseline. We’ve also reduced direct greenhouse gas emissions by 14 percent, contributed over £500,000 of value to our charity and community partners across our communities and supported 50 of our colleagues through training to become mental health first aiders.”

As well as long-term targets such as becoming a net zero carbon business by 2030 and delivering £1 million of charity investment by 2025, it set short and medium-term targets to regularly check progress.

Kidder says: “It was also important to us to keep sight of how our figures stacked up versus wider industry standards, guaranteeing that we’re not complacent when faced with a constantly shifting ESG landscape. It’s important to remember that real sustainable change can start close to home.”

In late 2023 Henry Boot relocated its head office to the Isaacs Building, in Sheffield city centre. Kidder says the office move was an integral step in progressing a decarbonisation strategy. “It also meant we could work more closely with initiatives for education and community development – a huge boost to our social value contribution.”

Bringing staff and stakeholders on the ESG journey is vitally important. According to a survey by accountants PwC this year, three-quarters of employees think a company’s societal impact is an important factor when choosing where to work.

Henry Boot’s chief executive Tim Roberts chairs the Pride of Place Board, which supports the Sheffield ‘See it, Be it’ campaign, a partnership with 25 local schools to improve careers education and social mobility. Kidder says: “Communication is key and so making sure that we’re telling people our goals is paramount. Our people and stakeholders expect adherence because we empower them to ask us for it.”

ESG has been an increasing focus for investors too in recent years. Private equity company LDC has created a proprietary framework where portfolio businesses load data in and the investor can identify opportunities and areas for improvement.

LDC’s ESG director Alex Bexon says there’s no one-size-fits-all approach in starting an ESG strategy. “At a basic level, management teams need to be realistic about what the priorities should be for their business because they can’t do everything. They then need to define a broad ESG ambition and to understand what data is required and where they can get it from.

“For example, a heavy manufacturer is going to need to get its energy management approach right to address its carbon footprint whereas for a software-as-a-service company the focus may need to be on employee matters and wellbeing, which can encompass themes as broad as culture, diversity and flexibility.”

Bexon says ESG is a genuine value driver. “In the end it always comes back to value. The heavy manufacturer looking to cut its energy use can reduce its costs at the same time as reducing its carbon footprint and the business services company that puts strong governance in place to create an inclusive working environment can boost employee satisfaction and productivity while also reducing staff turnover.”

Professional advisers are also helping businesses on strategies. Accountants AAB offers its own Sustainable Business & ESG Services. ESG Partner Alasdair Green says: “In today’s rapidly changing business landscape, ESG factors are becoming increasingly important considerations for investors, regulators, and consumers. It has been

consistently highlighted that companies performing strongly across all three factors of ESG have been shown to be more profitable, with one study finding up to six times more. These businesses not only mitigate risk, but also stand to gain a competitive edge by fostering long-term resilience and value creation.

“At AAB Group, we recognise the critical role that businesses play in addressing pressing global challenges, such as climate change and social inequality. Our ESG proposition is designed to support businesses in embracing sustainability as a core component of their operations, driving positive outcomes for both society and the bottom line.”

AAB also supports companies pursuing B Corp certification. Green added: “Our clients realise that by commencing their sustainability journey, they will not only drive profits, but they will become more resilient, adaptable and avoid the real risk of being left behind.”

Harrogate-based Flotilla offers a platform for businesses to assess their emissions, set achievable goals and make data-led decisions.

Supply chain and logistics consultancy Hatmill approached Flotilla so it could offer net zero services to its clients.

Director Aaron Thomas says: “Initially, I saw a gap in offering sustainability services but we also knew we had to get our own house in order. What we didn't want to do is go and recruit lots of carbon accountants and specialists.

“Flotilla could measure our emission hotspots and 98 percent sit in Scope Three (indirect) . But the beauty of the platform is that we can choose from a whole host of actions to drive down carbon footprint. But it's difficult for us because we haven't got offices where we can put loads of LED lighting in or heat pumps, half of our emissions is business travel.”

So Hatmill invested in carbon compensation schemes in Europe and America and bought carbon credits to cover all of its business travel each year.

Thomas adds: “Flotilla has a fantastic platform and I'm trying to help them tweak it to supply chain and logistics now and a real market differentiator.”

This article originally appeared in The Yorkshire Post’s sister publication Insider Yorkshire