Are you prepared for the imminent changes in Environmental, Social, and Governance (ESG) compliance in the UK? For commercial and industrial (C&I) businesses, aligning with ESG standards will soon be more than just a best practice; it will be a legal requirement.
The good news is it can also form part of your long-term growth, aligned to an energy transition plan that we covered in our last blog. And if you missed it you can read more about that here.
This post breaks down everything you need to know to ensure you stay ahead of the ESG curve.
The new mandate for ESG compliance
In the evolving landscape of corporate responsibility, ESG compliance is becoming a crucial component for businesses worldwide. The UK is leading this charge, with new rules and regulations set to take effect soon. If you’re a Sustainability Manager, Business Owner, Managing Director, Facilities Operations Manager, or Finance Director, this post is for you. We’ll explore what ESG compliance entails, why it’s essential, and how you can prepare your business effectively.
What ESG compliance means
ESG compliance involves adhering to standards that focus on environmental stewardship, social responsibility, and robust governance practices. For UK businesses, these guidelines are influenced by the Task Force on Climate-related Financial Disclosures (TCFD) and will soon become mandatory.
Key deadlines and requirements
The Financial Conduct Authority (FCA) will enforce these new rules for UK-listed companies, with non-listed companies expected to follow suit by mid-2025. Starting January 1, 2026, companies will need to report on climate-related issues and disclose their plans for a sustainable future.
The benefits of ESG compliance
1: Your business is legally compliant
The FCA will ensure compliance, providing a framework that encourages transparency and accountability. By understanding these requirements now, and deploying the right measures, businesses can avoid penalties, as well as positioning themselves as leaders in sustainability.
2: Enhancing customer and employee loyalty
Modern consumers are more aware of sustainability issues than ever before. A NielsenIQ study found that 3 out of 4 consumers want companies to reduce their environmental footprint, with 61% stating that sustainability is more important to them than it was two years ago. Employees also care about sustainability. According to investment advisors Stepstonegroup, 38% of UK employees would accept lower pay to work for a company that prioritises sustainability.
3: Reduce your energy costs
Businesses can, in most cases, reduce their energy costs by deploying renewable energy solutions. Making a sustainable choice for your business is now cheaper than ever before. Solar energy, for instance, often costs less than traditional fossil fuels, including coal and natural gas. Zestec also provides a fully funded solution which means organisations don’t require a capital outlay to benefit from it.
4: Attracting investors
Investors are increasingly looking for companies with strong ESG credentials. According to an EY survey, 78% of investors believe that companies should invest in ESG improvements, even if it affects short-term profits.
The role of Zestec in ESG compliance – expert support and guidance
Zestec has over a decade of experience helping businesses improve ESG compliance. We provide expert advice and support, ensuring your business meets all regulatory requirements and maximises the benefits of sustainable practices.
Fully funded renewable energy solutions
Zestec helps commercial and industrial businesses benefit from renewable energy with a fully financed solution. Power Purchase Agreements (PPAs) lock in a fixed rate for a specified volume of renewable energy, at a price below the market rate. This helps provide financial stability and reduce exposure to energy price volatility.
Long-term partnership
We build long-term partnerships with our clients, offering continuous support and ensuring your renewable energy systems operate at peak efficiency. With Zestec, you can be confident in your ability to meet current and future ESG requirements.
How we helped Jones Food Company
Jones Food Company, a leader in vertical farming, partnered with Zestec to install a solar PV system at their Lydney site. The project, operating under a PPA model, resulted in a 43% annual reduction in electricity costs and a 152-tonne annual reduction in CO2 emissions. This collaboration not only improved their ESG performance but also provided significant financial savings. See the case study here
Find out how Zestec can power your ESG compliance
ESG compliance is no longer optional for commercial and industrial businesses in the UK. By understanding the requirements and implementing a robust ESG strategy, you can ensure your business stays ahead of the curve. From enhancing your brand reputation to attracting investors and retaining top talent, the benefits of ESG compliance are substantial.
Ready to take the next step? Contact Zestec today to learn how our fully funded renewable energy solutions can help your business achieve ESG compliance and thrive in a sustainable future.
Speak to one of our team on: 01202 018 800
Email us at: info@zestecgroup.co.uk
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