Are you prepared for the imminent changes in Environmental, Social, and Governance (ESG) compliance in the UK? For commercial and industrial (C&I) businesses, aligning with ESG standards will soon be more than just a best practice; it will be a legal requirement.
The good news is that this can form part of your long-term growth, aligned to an energy transition plan that we covered in our last blog. And if you missed it, you can read more about that here.
This post breaks down everything you need to know to ensure you stay ahead of the ESG curve.
The New Mandate for ESG Compliance
In the evolving landscape of corporate responsibility, ESG compliance is becoming a crucial component for businesses worldwide. The UK is leading this charge, with new rules and regulations set to take effect soon. If you’re a Sustainability Manager, Business Owner, Managing Director, Facilities Operations Manager, or Finance Director, this post is for you. We’ll explore what ESG compliance entails, why it’s essential, and how you can prepare your business effectively.
What ESG Compliance Means
ESG compliance involves adhering to standards focusing on environmental stewardship, social responsibility, and strong governance practices. For UK businesses, these guidelines are influenced by the Task Force on Climate-related Financial Disclosures (TCFD) and will soon become mandatory.
Key Deadlines and Requirements
The Financial Conduct Authority (FCA) will enforce these new rules for UK-listed companies, with non-listed companies expected to follow suit by mid-2025. Starting January 1, 2026, companies will need to report on climate-related issues and disclose their plans for a sustainable future.
The Benefits of ESG Compliance
Your Business is Legally Compliant
The FCA will ensure compliance, providing a framework that encourages transparency and accountability. By understanding these requirements now, and deploying the right measures, businesses can avoid penalties and position themselves as sustainability leaders.Enhancing Customer and Employee Loyalty
Modern consumers are more aware of sustainability issues than ever before. A NielsenIQ study found that 3 out of 4 consumers want companies to reduce their environmental footprint, with 61% stating that sustainability is more important than two years ago. Employees care too: 38% of UK workers would accept lower pay to work for a company prioritizing sustainability.Reduce Your Energy Costs
Businesses can significantly reduce energy costs by deploying renewable energy solutions. Solar energy, for instance, often costs less than traditional fossil fuels. APS provides a fully funded solution, which means organizations don’t require capital outlay to benefit from renewable energy.Attracting Investors
Investors are increasingly looking for companies with strong ESG credentials. According to an EY survey, 78% of investors believe companies should invest in ESG improvements, even at the expense of short-term profits.
The Role of APS in ESG Compliance – Expert Support and Guidance
APS has over a decade of experience helping businesses improve ESG compliance. We provide expert advice and support, ensuring your business meets all regulatory requirements and maximizes the benefits of sustainable practices.
Fully Funded Renewable Energy Solutions
APS helps commercial and industrial businesses benefit from renewable energy with fully financed solutions. Power Purchase Agreements (PPAs) lock in a fixed rate for a specified volume of renewable energy, often below market rates, helping businesses achieve financial stability and protect against energy price volatility.
Long-term Partnership
We build long-term partnerships with our clients, offering continuous support and ensuring your renewable energy systems operate at peak efficiency. With APS, you can be confident in your ability to meet current and future ESG requirements.
How We Helped Jones Food Company
Jones Food Company, a leader in vertical farming, partnered with APS to install a solar PV system at their Lydney site. The project, operating under a PPA model, resulted in a 43% annual reduction in electricity costs and a 152-tonne annual reduction in CO2 emissions. This collaboration improved their ESG performance and provided significant financial savings.
Find Out How APS Can Power Your ESG Compliance
ESG compliance is no longer optional for commercial and industrial businesses in the UK. By understanding the requirements and implementing a robust ESG strategy, you can ensure your business stays ahead of the curve. From enhancing your brand reputation to attracting investors and retaining top talent, the benefits of ESG compliance are substantial.
Ready to take the next step? Contact APS today to learn how our fully funded renewable energy solutions can help your business achieve ESG compliance and thrive in a sustainable future.