Published on July 8, 2022
Giles Gibbons
Founder and CEO, Good Business

1.  Dirty Power(s)

While it hasn’t exactly been a slow news week here in the UK, and the goings of at the Supreme Court in the US have rightfully been getting plenty of air time recently, overturning Roe vs Wade wasn’t the only regressive ruling it has made recently which deserves the world’s attention.

Last Thursday, it was the turn of West Virginia vs EPA, which saw the Court rule that the Environmental Protection Agency – or EPA, the US government agency that sets and enforces national pollution-control standards – does not have the authority to set limits on carbon emissions from existing power plants. This creates a big challenge for Biden’s goal for an emissions-free power sector by 2035, and a decision he described as "another devastating decision that aims to take our country backwards".

But it also conflicts with the global nature of climate change: while coal-dependent West Virginia – and its coal baron Senator, Joe Manchin – may focus on the short-term benefits of its fossil fuel industry, this ruling will impact the transition to clean energy in many US states, delaying the inevitable. But the impacts on the climate will also be felt across the globe. Meanwhile, there is also a risk that this acts as a template for other lawsuits that further tighten the EPA’s remit on other areas of emissions mitigation, such as transportation and industry.

However, federal law isn’t the only mechanism for accelerating progress: attention will turn to states, localities and businesses, which can all influence decision making on climate action. The battle isn’t lost, but this ruling adds to the need for climate action from all parts of society, legal and otherwise.

2. Habitats and humanity

While there’s no single answer for how to fix the UK’s housing crisis, there is one that everyone agrees on: build more homes. But housing isn’t the only crisis we’re facing at the moment. Like the rest of the world, Britain is experiencing rapid and widespread biodiversity loss, having lost nearly half of natural biodiversity since the industrial revolution.    

Preserving the UK’s biodiversity is undoubtedly essential. But so is the availability of affordable housing. Through “biodiversity net gain”(BNG) – a legal requirement that new developments in England yield a net biodiversity gain of 10% – the UK government is hoping to do both.  

In short, BNG requires that developers compensate for 110% of any biodiversity loss caused by their construction. Where impossible to achieve this onsite, developers can purchase biodiversity offsets representing habitat that has been created or enhanced elsewhere in the country.  

Biodiversity gains sound great – and will be if the government can get it right. But there are a number of reasons scientists are apprehensive about the scheme, including concerns that it may result in an overall reduction in natural area, the disproportionate creation of ecologically low value habitats, and a poor system for enforcement. 

These aren’t only problems for the UK to contend with. Governments around the world are looking at, or already using, biodiversity offsetting schemes as a way of preserving biodiversity. Businesses too are beginning to consider their impact on species decline and seeking ways to mitigate it.  

Ultimately, the world needs a credible system for ensuring that human activities don’t come at the expense of ecological health. Whether that system is offsetting remains to be seen. 

3. The Nanny employer

Gone are the days when a monthly pay cheque was the only exchange between employer and employee. Whether its holiday allowance, gym memberships, hot yoga sessions or other wacky and wonderful perks and benefits, companies are recognising the impact they have on the personal lives of their employees.

Employers are increasingly attending to the wellbeing of their staff, particularly mental health and wellbeing wherever possible. And for many, this is a welcome addition, with many wanting more attention and care regarding these important and often sensitive issues.

But a recent article in the Financial Times poses the question of whether it all gone too far, and whether we are living in what it terms a “nanny employer” state?

It argues that the level of influence on people’s lives (whether explicit or implicit) that is embedded in some of these so-called perks mirrors Orwellian control. It quotes one company which had gone all in, offering a fitness benefit, a wellness allowance, a farmer’s market share, and continuing education allowances, but has recently done a complete volte face, as they felt they were getting “too deep into nudging people’s individual choices”. Instead, they opted to bump up employee pay and allow them to spend it on whatever they wanted.

Then there’s also the fact that for all the noise about companies making mental health a top priority, rates of employee burnout and distress remain high.

So do all of these benefits actually make a difference?

Let’s start with the fundamentals. Additional perks and benefits shouldn’t be used to mask or compensate for unnecessary professional stresses; all the free yoga lessons in the world won’t help to correct situations in which employees are over worked and under remunerated. It’s also clear that some people want work to be more of a transaction, that doesn’t blur the lines of personal and work life.

But we’d also be cautious of throwing the baby out with the bathwater. The relationship employers have with their employees should be an evolving and live one, that responds to the way times and needs are changing. And having a progressive and thoughtful optional benefits package can be a great way of demonstrating a desire to move forward, and to signal respect and value.

As is often the case, engagement with employees is key. Have a discussion to find out what additional benefits employees would truly value – demonstrating that the company isn’t trying to be paternalistic in the process. Listening and responding, not dictating and directing, means companies can show they care without turning into anyone’s nanny.

4. ESG: the final frontier

We are strong believers in the importance of cross-sectoral collaboration when it comes to sustainability. We are therefore excited for the 2022 Frontiers in ESG (Environmental, Social and Governance) Symposium, which is coming up in September. Jointly organised by Saïd Business School and St Edmund Hall (both part of the University of Oxford), the symposium will bring together academics, corporates, NGOs, financial institutions and other businesses. The key aim of the two-day event is to advance collective understanding of ESG. In particular, the symposium will explore key issues and knowledge gaps around ESG measurement, its implementation and opportunities.

The symposium will take place over two days, from 8th to 9th September. During this time, there will be invited talks, panel discussions and debates from a diverse group of speakers. We’re particularly excited for the session on how to design and implement a credible net zero plan on day 1, as well as the session on ESG and inclusivity on day 2. There will also be plenty of opportunities for networking, including a symposium dinner on the Thursday evening.

We hope to see lots of you at this special inaugural event – if you are interested in finding out more, check out the website.

The Goods: Carbon freebie

This week on the Goods we want to highlight a great new business product from one of our longest standing clients.  

NatWest is launching its Digital Carbon Planner tool this month, and it is going live on July 28th. The tool will allow all UK businesses, including those which are not NatWest customers, to start their journey to better understand and manage their carbon footprint. The tool, designed with the help of customers, will support businesses to understand their emissions hotspots in scopes 1 and 2, understand which reduction options might be best for their business, start planning next steps and deliver on their plan.  

If you are ready to take a bigger step in understanding and managing your carbon impact, our friends at Net Zero Now have been working hard to create sector specific protocols to help SMEs understand their emissions throughout their value chain (scopes 1,2, and 3). They can also support you in defining reduction targets and get you certified net zero. . 

Every organisation will need to play their part to get to net zero by 2050, yet access to support in carbon accounting and management services for SMEs is very limited, so it is great to see tools to support small business owners.   

Want to receive the Friday 5 newsletter straight into your email inbox every Friday morning? Sign up by following this link

We’re always open to suggestions, so if you’ve got an interesting story that you’d like to be featured, send us an email - friday5@good.business