Social washing is a sign ESG is starting from the wrong place.
Edge Group
Intelligent Equipment Hire For Healthier Buildings and support services to the UK Damage Restoration Industry.
Every industry loves an acronym. In just a few letters, they boil down complicated or wordy concepts to help us speed up conversations with people on the same wavelength. But sometimes we can also be guilty in wrapping up pretty simple, fundamental concepts in BS, and perhaps ESG is one area where this is most prevalent.
Anyone working in DM/DR, for example, will get the importance of approaching M&CL with a view to getting back to BAU ASAP and minimising BI. Know what I mean?
Across all industries today there is one acronym that is universally understood and accepted as a key priority and that’s ESG, or to spell it out in full – Environmental, Social and Governance.
Definitions vary slightly, but ESG generally refers to the policies and approaches that a company has in place to deliver improved performance in these areas. It builds on the platform established by corporate social responsibility (CSR) to provide businesses with a framework for supporting wider issues around environmental protection and social cohesion.
To date, the ‘E’ of ESG has arguably dominated the conversation. Shocking climate crisis headlines continue to serve as a global wake-up call, encouraging all of us to play our part in tackling carbon reduction and protecting our planet – as individuals and as businesses.
At Edge, sustainability has always been embedded deep into our thinking, and we contribute to this effort in various ways. It includes paying a monthly surcharge towards the planting of new tree saplings, which helps to offset the unavoidable emissions that are part of our day-to-day operations, while a focus on vehicle efficiency has helped towards a double-digit drop in Edge’s carbon footprint.
We are also keen to help our customers secure their own environmental gains, which is why we provide clear information on the energy consumption of our hire equipment. This allows people to make informed decisions to support their own ESG agendas during their everyday business activities.
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But while a commitment to the environment can be measured out in terms of kilowatts of energy saved or tonnes of carbon reduced, delivering on social commitments is perhaps a little more difficult to measure. And treading the right line on potentially sensitive social issues can also present companies with difficult decisions that might not always be popular with all groups.
For those companies whose promising words and policies on ESG are not matched by appropriate actions, criticism awaits. And for those who are judged to be cynically adopting ESG for their own gain, this extends to naming and shaming.
We are all familiar with ‘greenwashing’ as a term used to expose hollow promises relating to sustainability, but the term ‘social washing’ is now also gaining currency. This label applies to anyone claiming to adhere to the highest standards of ethics and integrity but falling far short or, alternatively, being shown only to do the bare minimum in return for reputational or commercial benefit.
Terms like this often highlight how companies can get tangled up in potential outcomes rather than staying focused on what motivates them. Here at Edge, we certainly don’t claim to have all the answers when it comes to ESG, but underpinning any strategies, campaigns or tactics is a simple belief in being a good corporate citizen and knowing that this can result in better outcomes for those associated with our business.
An example is the defibrillators that we have had installed across our depot network. This was done primarily as part of a commitment to the well-being of our workers, but we are now part of the National Defibrillator Network - The Circuit – meaning our equipment can be accessed by anyone locally in need.
We also provide our staff with access to a mental health support service as well as a medical benefits plan, they get a day off on their birthday, and we have implemented a 2.5-hour reduction in the length of their working week (with no drop in pay). These measures will, to some extent, result in positive outcomes for our business and our customers, but they come from a straightforward ambition to do right by our people.
Over time, our approach to ESG – in all its many facets – will no doubt mature and evolve. In the meantime, we remain aware that what we do as a business and how we conduct ourselves has consequences for the people around us as well as the planet. There might be mistakes along the way, but as long as we care about doing our best by both of those things, our ESG conscience is clean.