Tech businesses are placing an increasing amount of attention on Environmental, Social and Governance (ESG) initiatives. The term, which draws inspiration and expands upon ‘Corporate Social Responsibility’, refers to a company’s implemented frameworks that:
• Tackle climate change by reducing negative environmental impact
• Provide equal opportunities for all at every level
• Maximise value for shareholders
As the focus on corporate responsibility intensifies through events like United Nations Climate Change Conference (COP), businesses not only have to apply ESG initiatives, they have to be seen applying them. Investors’ primary concern is always longevity of investment and, because a strong ESG proposition goes hand in hand with long-term sustainability, they are more likely to allocate funding to these businesses.
One of the most popular ways for companies to demonstrate their ESG commitment is through carbon offsetting programmes.
Firstly, a company must evaluate its yearly carbon usage. There are 3 scopes by which it can do this:
Scope 1: Direct emissions controlled by the company - heating, manufacturing, vehicles
Scope 2: Indirect emissions consumed by the company – lighting, water heaters
Scope 3: Emissions influenced, but not controlled, by the company – business travel, commutes to work in vehicles not owned by the company. Scope 3 is the most difficult to quantify.
It’s important to note that software companies are likely to have a much lower carbon footprint than the average company in other industries. The prevalence of remote working in tech eliminates commuting emissions, while manufacturing emissions are rarely a consideration for SaaS companies.
The company then consults a carbon offsetting company that neutralises their carbon usage via various methods… and for an extortionate fee. Now, here is where a huge issue with legitimacy arises.
In short, yes. If it’s done authentically through trusted channels with proper certification and documentation. However, it’s not always done like that.
An overwhelming majority of these offsetting companies exist solely for profit; profit they make by allegedly neutralising a client’s carbon usage. The client then claims that they are carbon neutral, receiving praise for their false eco-friendly activity. This is called greenwashing.
In 2021 the European Commission found that 42% of corporate environmental claims were false or deceptive. Over 50% lacked evidence.
Credentials and accreditation are fundamental to the legitimacy of ESG initiatives. To ensure their investment is protected, investors are likely to check how genuine a company’s claims are. Illegitimate claims can damage a company’s reputation, affecting revenue and ultimately harming investment.
Our eco-hiring solution is 100% traceable through approved schemes with quantifiable records of how your company’s carbon emissions are offset.
For every hire you make through Amsource you have the option to offset that employee’s carbon footprint for the first 12 months of their employment. At no charge to you - we cover the cost. It’s as simple as that.
Eco-hiring is underpinned by 3 high-impact actions:
• 12.7 tonnes of certified carbon credits
• 34kg of plastic waste recovered and repurposed
• 8 trees planted
The only way to prove legitimacy is full transparency. We are steadfastly committed to transparency.
As we mentioned above, all actions in our eco-hiring are completely quantifiable with the exact location of plastic recovery and trees planted documented and sent to you.
Once the hire has been onboarded, we will send you a certificate and a link showing you where these actions have been carried out.
Companies developing CleanTech are attracting an increasing amount of investment. This PitchBook report shows that in 2019 Venture Capitalists invested $300.2m in Carbon and Emissions tech, while 2022 saw that figure rise by 1312% to $4.2b. This astronomical growth proves that the attention of investors has turned towards companies implementing sustainable business practices.
My business doesn’t develop CleanTech, how does this relate to me?
Your business doesn’t have to be operating in this specific area to implement the ESG initiatives that will attract investors. Incorporating ESG practices like eco-hiring is a great way for businesses of all sizes to demonstrate to investors that they are committed to the fight against global warming.
Any decent marketer will tell you that it’s nigh-on possible to have a successful business without a positive brand image. There’s no doubt that incorporating sustainability into a brand’s image has become the trendy business decision in recent years. Reusable cups at Starbucks; Sky’s net carbon zero commitment; the array of electric cars on the market… the list goes on.
The biggest names in business making multi-million-pound decisions to promote their brand as eco-friendly is a decent indicator that it will have a positive impact.
We wonder how many of them can claim that the first 12 months of every employee was completely carbon neutral.
A study by PwC found that 65% of job applicants in the UK and Germany want to work for a business that is environmentally conscious. Porter Novelli found that 90% of employees who work at companies with a strong sense of purpose say they're more inspired, motivated and loyal.
Incorporating environmental initiatives into your company’s Employee Value Proposition (EVP) is a sure-fire way to appeal to the generation of talent looking to work in purpose-led surroundings. Take a look at why a strong EVP is essential for for attracting talent.
Eco-hiring is a unique, distinctive added value that sets your business apart from the competition and will help attract new customers and investment.