Pay, hiring, sand, ports & travel

Published by Giles Gibbons
Good Business - Sustainability | Strategy | Impact

1. Time to pay up

Just over a year has passed since we wrote an article about the importance of pay, and how it is all too frequently overlooked as a marker of responsible business, despite its foundational importance. In recent months, the cost-of-living crisis, industrial action and ever-rising inflation have focused our minds even more squarely on the issue, particularly as corporate profits break records in some sectors, and executive pay continues to rise.

So it was with interest that we saw Paul Johnson, of the Institute for Fiscal Studies writing about this very issue in The Times. His main focus was on the fact that despite there being record numbers in employment, around 60% of people living in poverty are either employed or live with someone who is in work.

We continue to believe strongly that business that rely on poverty-level wages to remain profitable simply don’t have a viable business model. Businesses have a responsibility to pay their employees enough money to live on and this responsibility also extends to those that facilitate the success of a business, namely contractors and workers throughout a business’s supply chain. This might sound blindingly obvious, but it remains the case that a high proportion of businesses publish extensive impact reports without mentioning in-work poverty and what they do to prevent it.

Johnson also brings up another area we are focused on – pay progression. As he writes: “Too many people are left with little scope to progress to better paid or more fulfilling work.” We called this ‘scope 2’ in our vision of a new pay protocol (with ‘scope 1’ focused on wages). Employers can and should engage with their workers to overcome the barriers that exist to pay progression so that as many people as possible have the chance to progress out of low pay roles.

Paying fairly isn’t just the right thing to do, or just a way of meeting stakeholder expectations, but is a necessary investment in business success. Creating a positive pay environment helps create a positive working environment. When people feel they are paid fairly they are more likely to contribute their best, remain loyal, support each other, and stick around. Individuals reap these benefits, and so do the organisations they make up.

2. No CV, no interview, no problem

How many times have you agonised over a CV or sweated your way through an interview? Applying for jobs is difficult for everyone, but particularly so for non-white applicants or those with criminal records, both groups who studies have shown are systematically discriminated against by hiring processes. Add to that the fact that these processes aren’t cheap (the average business spends £3,000 to hire an employee) and you might begin to wonder if there isn’t a better way.

For some roles, there might be. The Body Shop has recently shared the results of its ‘open hiring’ policy, which has been in place since 2020. Under the policy, the recruitment process for seasonal positions has been reduced to just three questions about legal rights to work, ability to work 8-hour shifts, and ability to lift loads up to 11 kilos. And according to the results, this is really all that matters. Since implementing the new hiring policy, The Body Shop has achieved higher sales, improved rates of retention, and a more diverse workforce.

Open hiring isn’t an entirely new concept – the approach was first pioneered in New York in the 1980s by Greystone Bakery, where it is still used today. Critically, what Greystone have found is that successful open hiring is about creating an ecosystem that addresses personal barriers to success at work. Resources like housing, childcare, and counselling are all essential to keeping employees on the job – and all things that The Body Shop says it will be looking at offering next.

Ultimately, open hiring won’t be appropriate for all – or even most – roles. But it does form part of a growing toolkit of inclusive hiring practices for businesses. (For example, here at Good Business we use the BeApplied platform, which uses anonymised applications and predictive skill-based assessments to identify the best talent, including from applicants who may otherwise have been overlooked). We may not be able to ditch CVs entirely, but we could be getting closer to ditching discrimination. 

3. Sand's end

We have our head in the sand when it comes to understanding the demographic, industrial and economical importance of these tiny grains. Recent years have seen the cost of sand rise significantly and 2023 is predicted to see higher than average price increases for sand used in construction. Sales of sand and gravel extracted in the US for industrial purposes rose 78% in value last year. Why, then, is sand becoming so precious? To put it briefly, it’s because while our appetite for sand grows, so too does our awareness of the impact of sand consumption on coastal erosion.

Because sand is a key ingredient of glass and cement, it is present everywhere, from jam jars to global infrastructure projects. Vast land reclamation projects such as Singapore’s Tuas mega port, due to be completed in the 2040s, have caused demand for sand to soar. At the same time, investment in infrastructure in African countries is driving the fastest increase in demand for sand, to build roads, hospital and schools in response to fast growing populations.

Elsewhere, the perspectives are very different: Indonesia, Malaysia, Vietnam and Thailand have all banned or limited exports of natural sand because of the environmental and social impacts of extracting it from waterways. Crucially, natural sand resources are increasingly under threat from the consequences of climate change, with rising sea levels driving littoral and dune erosion, placing more and more beaches at risk of submersion. Climate change is expanding arid areas, provoking more sandstorms.

If the sands of time are running out, what’s the answer? Well, one option is olivine sand. This green volcanic mineral, ground down to the size of sand particles, is not only a cheaper alternative to sand but has also been shown to absorb CO2 very easily. One tonne of olivine sand can absorb up to one tonne of CO2, depending on the conditions, and it works well for fertilising and landscaping projects. Elsewhere, we need to start seriously considering alternatives – concrete can be made from recycled plastic or quarry ash, while there is promising new research to suggest that we can replace sand in glass manufacturing with…recycled glass. The true definition of circularity.

4. Port of call

The global shipping industry accounts for at least 2.5% of the world’s total greenhouse gas emissions. This is similar to the contribution made by the aviation industry, but shipping doesn’t get nearly as much airtime.

Shipping emissions are driven by growing demand for commodities and goods. What we buy needs to be moved – and the vast majority of the time, it is moved by sea. While alternative fuels and operational solutions like weather routing can help reduce in-transit emissions, it’s not just ships in motion that have negative environmental impacts. Ports also come with a high environmental cost.

Ports are a vital part of the shipping industry, but their operations have an impact on water quality and the health of marine life. Waste from ships degrades ocean environments causing damage and loss of species, so it is good to see initiatives in place to tackle this uncharted issue.

One such initiative is The Living Ports Project – currently showcased at the Port of Vigo in Spain – where academics and material suppliers have collaborated to develop and install 'living' sea walls. These sea walls, created by ECOncrete, help marine ecosystems to thrive by using a bio-enhancing concrete that sequesters carbon, increases biodiversity, promotes local species, and improves water quality.

Unlike traditional concrete, which is costly and harmful to marine organisms, the use of ECOncrete signifies a forward-thinking approach to adapting port infrastructure while actively mitigating climate change. While it cannot eliminate shipping emissions single-handedly, it showcases an inspiring vision for the future of construction and has the potential to drive change within the industry.

The Living Ports Project showcases an inspiring vision for the future of port infrastructure. With its nature-friendly and carbon sequestration abilities, it not only sets a new standard but may serve as a powerful catalyst for change.

5. The A-Z of sustainable travel

Travelling is rewarding and enriching, but it comes at a cost: an often detrimental effect on the environment and the communities we visit. That’s why it’s important to travel sustainably, meaning that we minimize our footprint, respect the culture and nature of our destinations, and contribute to their development.

Sustainable travel is a broad term and can cover everything from genuinely environmentally mindful tourism to light touch (at best) gestures towards sustainability. Nevertheless, a survey from Booking.com in 2021 found that 83% of global travellers think sustainable travel is vital. And encouragingly, there are increasingly legitimate and tangible ways to travel sustainably, from choosing accredited accommodation and less carbon intensive transportation, to supporting local businesses and off-season travel.

Conveniently, Condé Nast Traveler has compiled an excellent A-Z of sustainable travel tips and tricks to help you plan your summer holiday. One of our personal favourites: I is for “Impact communities with your itineraries”. They go on to explain how, by prioritising charities, social enterprises and purpose-led ventures, your own travel itinerary can have a significant societal impact, an element of sustainable travel which is often overlooked.

None of these suggestions will negate the negative impacts of travel altogether – there is carbon associated with long distance travel that you won’t incur if you camp in your garden, and any degree of tourism risks crowding out locals to some extent. But travel teaches us about each other, and about the world, and draws attention to sustainability issues in ways we would miss if we never left our homes. So travel, travel responsibly and check out the guide to make sure you tread lightly and do good as you go.

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Published by

Giles Gibbons

Good Business - Sustainability | Strategy | Impact

In this week's edition of Friday 5, we're giving the Good Business take on fair pay, The Body Shop's 'open hiring' policy, Condé Nast Traveller  's A-Z of sustainable travel, and much more. hashtag#business hashtag#travel hashtag#sustainable hashtag#responsiblebusiness hashtag#newsletter