Smart thinking for a more sustainable future

Nearly 10 years on from COP21, which saw the founding of the Paris Climate Agreement as countries committed to action on climate change, environmental, social and governance (ESG) has continued to move up the agenda. Businesses know that factoring ESG thinking into their decision-making can bring a whole range of benefits.

For law firms, clients may be looking for guidance on ESG issues. With investors increasingly also looking at ESG criteria, knowledge and readiness to take the lead in sustainability issues could bring real competitive advantage.

Sustainable steps and the bottom line

According to recent research by independent international research agency Perspectus Global, nearly two thirds of small business owners and senior decision-makers believe it’s important to embrace environmental issues. Almost half said the changes they have made are saving their business money.

One in three businesses said that one of the changes they have made is keeping a closer eye on their energy bills.

Taking control of energy use could do more than just save money though. Energy consumption is often a factor in evaluating a company’s ESG performance along with its environmental impact, as it directly relates to carbon emissions, resource efficiency and sustainability practices.

What’s more, 2024 research by Censuswide for Smart Energy GB, surveying 500 British microbusiness owners and decision-makers, found that 71% agreed being sustainable benefits their business when it comes to acquiring new business and clients.

Managing your energy use

A smart meter is a simple and effective way to manage your energy consumption and run your business in a more sustainable way, supporting your ESG credentials. It tracks how much energy you’re using and you’ll be able to monitor your energy consumption in real time if your supplier provides you with a smart meter display.

With a smart meter, your supplier should provide information about your energy use through an app or online platform. This could help you work out where to take steps to save money.

Smart meters can also make a broader contribution to sustainability. They provide energy suppliers with more accurate information about their customers’ energy use, enabling them to develop tariffs that encourage less energy use at peak times.

This reduces the maximum amount of energy needed in the system, decreasing demand on fossil fuels and driving the transition to renewable energy sources such as solar, wind and hydroelectric power.

Investing in a more sustainable future

Of course, there are other ways to improve your business’s sustainability. Taking steps to foster an ESG-focused culture could also mean boosting investment in training, including targeted support on measuring environmental impact and setting meaningful targets.

Along with saving energy, supporting sustainable practices – such as reducing waste and promoting eco-friendly behaviours – will also help boost employee wellbeing by providing a sense of purpose and a feeling of engagement with the business and its goals.

You could also consider supporting any team members who wish to explore ways in which they can use their pension schemes to support ESG funds, as a tangible way of investing in a more sustainable future.

Staying ahead of the curve

With regulatory and legislative requirements around ESG set to change, now is a great time to take action. Setting a clear ESG strategy, driving innovation and taking everyday steps such as being aware of your energy use will help your business reap the benefits of operating in a more sustainable way.