Principles of ESG: strategies for accountancy and finance practices

Of the many pressures facing business leaders, implementing environmental, social and governance (ESG) strategies is uppermost. As financial organizations grapple with the seeming intangibilities of the subject, let’s look at current integration challenges and what to expect on the road ahead.

4 mins read
I Stock 1424393034 (2)

almost 2 years ago

In recent years, corporate transparency has become an integral part of business operations. Through the ESG umbrella – which incorporates environmental impact, a company’s contribution to society and ethical practices - businesses are now held accountable for not just their leadership style but also how they interact with employees in terms of duty of care and initiatives that benefit both local as well global communities such as apprenticeship schemes or charity work.

As the business world shifts towards more ESG-focused practices, accountancy and finance firms have been put under close scrutiny to ensure they are keeping up with global standards.

Educating themselves on this evolving concept is essential for professionals in these fields if they wish to provide sound advice so their clients can maximize success by demonstrating their commitment to making positive change.

ESG reporting: setting the standard

The Financial Reporting Council (FRC) – regulator of auditors, accountants and actuaries – has recently published the first in a series of three reports on improving ESG data production. This report outlines how businesses can identify and collect relevant information, make operational changes from their findings, and share knowledge with stakeholders via an yet-to-be specified universal standard. Ultimately these steps will help companies establish best practices for producing robust environmental, social and corporate governance reporting that must be adhered to going forward.

Investors, consumers, and other interested parties now have access to the International Sustainability Standards Board (ISSB) – a library of detailed ESG reporting standards from the International Financial Reporting Standards Foundation. Through this system, companies can be assessed against global sustainability criteria so stakeholders make well-informed decisions with confidence before engaging them or assessing their competitors' progress.

The FRC is taking action to ensure ESG data production meets rigorous codes, standards and expectations that will positively influence strategic decision-making.

These developments are set to save time and money while uncovering areas such as supply chain risk analysis, sustainability opportunities, employee wellbeing initiatives and energy consumption levels. Additionally this forward thinking approach promises organizations greater assurance in these increasingly vital areas of business operations.

ESG data: why we need it

In their work, the FRC has identified three elements of ESG data production to explore the current landscape, the challenges, and positive actions to address them:

  • Motivation – what motivates the company to collect ESG data and how does it identify what is needed?

  • Method – how is ESG data collected?

  • Meaning – how is the data used within the company and how does it impact decision-making?

In a podcast ‘Improving ESG data production’, Phil Fitz-Gerald, Financial Reporting Lab Director at FRC, said: “Company systems and controls [for ESG data] are not as mature, perhaps, as for more established financial data. This is about companies organizing themselves to produce data they can rely on in the same way they have for financial data.

“Companies need to think about where they’re setting long-term targets or making adjustments to their business model or strategy, and how they are going to measure the success of that in a consistent way over a period of time. I think in collating ESG data, or developing company systems and controls around it, companies can learn a lot from the way financial data has been processed in the past. In doing that we’ve heard from companies that there’s a much closer relationship between finance and sustainability teams in order to enhance the processes and controls and the connections between the data.”

ESG data: collection strategies

Financial organisations face a unique challenge in addressing climate risk - the lack of available relevant data. But KPMG, one of the Big Four accounting firms is taking big strides to tackle this head on and setting an example for others to follow with their advice-based approach.

The firm’s Paul Henninger, Head of Connected Technology in the UK, said: “To progress the ESG data conversation, KPMG have collaborated with Google Cloud to develop a [Closing the disconnect in ESG data – Financial Services] report that looks at today’s ESG landscape and dive into some of the data challenges that businesses face. Within this, we look at why financial service firms desperately need more ESG data, where they currently lack the data and analysis they crave, and how they might begin to close some of these gaps. A good starting point is to look at existing systems and processes. Legacy systems and records that are out of date are already driving remedial actions. Inconsistency, a lack of standardisation, self-assessed disclosure and patchy coverage are all big issues when gathering and comparing data. As we dig deeper into these problems, we gain a better understanding of the problems and we start to create a roadmap to the answers.”

As KPMG’s report states: “The business case for transforming ESG data capabilities is compelling. Financial institutions have an opportunity to secure competitive advantage while simultaneously improving their chances of delivering positive societal outcomes.

“Perhaps most excitingly of all, ESG data transformation creates opportunities for financial institutions to build new value propositions – to develop new products and solutions for clients that add value and drive revenue growth.”

To find your next accountancy role, or the best candidates to fill your open position(s), contact us.

​

​

Articles

You may also be interested in...

Marketing & Creative (Agency) CV Template
3 mins read

Marketing & Creative (Agency) CV Template

​Build the perfect marketing and creative agency CV with our free template


[Full Name], [Field of Expertise]
[Home Address]
[Contact Number] • [Email Address]

Profile

This section is your opportunity to explain who you are, and to convince the recruiter to get in touch. It is important to keep it brief, relevant, and to use key words. You should explain your experience and benefit to an employer, and it may also be worth mentioning how you engage with clients.

Having worked in the marketing industry for the last [number] of years, I have gained valuable experience in [area of expertise] working with organisations such as [organisation names], and have a particular wealth of knowledge and skill in [specific area].

My core strengths include, but are not limited to [categorise the areas in which you have worked/had exposure to and how this has benefitted certain organisations e.g. digital, content, SEO, PPC, web campaign pages, whitepapers, articles, videos, infographics, brochures, value propositions, case studies, presentations, blog posts etc.]

I am looking for my next opportunity within an [business type/industry] organisation, where I can bring real value and develop my skills further.

Courses, Training & Education

This is your chance to talk about your qualifications, both academic and vocational. This is a particularly important section for those with less experience. You should give detail about what you studied, where and when, and list them in chronological order. If you have completed professional training and industry specific courses and qualifications detail these first with the relevance to your chosen field.

[Professional Qualifications/Courses/Associations/Memberships]

[Date M/Y– Date M/Y]

  • E.g. CIM Diploma

[University/College Name], [Location]

[Date M/Y– Date M/Y]

  • [Degree Class] [Degree Name] [Add any relevant degree content/modules e.g. dissertation]

[School/College Name], [Location]

[Date M/Y– Date M/Y]

  • A-levels:

  • [Subject] – [Grade]

  • [Subject] – [Grade]

  • [Subject] – [Grade]

  • [Subject] – [Grade]

GCSEs:

  • [Number] GCSEs, grades [range], including Maths and English

Achievements

If you have worked on specific projects with clients or campaigns this is a great place to highlight the success of these. Ensure that there are a wide range of keywords relating to your expertise. This will help to ensure that you are picked up by a recruiter on a search.

My important achievements include working alongside the [team name] team at [organisation] contributing to projects including [project name]. I was responsible for/organised [task] and increased [profit/other metric] by [£X/X%]. In my current and past roles I have been responsible for [e.g. digital marketing strategies, website management, SEO, PPC, social media, email, CRM, third party sales, affiliate marketing etc.]

Work Experience

This part of your CV should be clear and succinct, and focus on the last five years of your career, or last three roles that are relevant to your field, in chronological order with the most recent at the top.

If it is not obvious, put a brief explanation of the sector that the organisation sits in/works with. You should highlight your key achievements, and use bullet points rather than lengthy descriptions. If you have worked on specific projects or with particular clients, list this here.

[Job Title], [Company Name] [Location] [Sector]
[Date M/Y- Date M/Y]

Give a brief role overview and you may want to break the role down into particular areas to show your breadth of experience.

Responsibilities:

  • Account management and reporting

  • Account delivery

  • Project management

  • Strategic and tactical planning

Achievements:

  • Worked alongside [team] to produce [project]

  • Implemented [change] which resulted in [benefit]

  • Received an [award name] for [reason]

Hobbies and Interests

This section is not essential to include, but you may wish to depending on the role you are applying for. It can be a useful chance to show a little more of your personality. However, be warned this can be very subjective, ensure anything listed here reinforces your application and the idea that you’ll be the right fit for the role. If you don’t have any real relatable hobbies, it is probably best to omit this section.

  • Undertook a [course] in order to improve my [skill].

  • I organise a weekly [sport] game, manage bookings, transport and help to coach the team.

  • I have recently created and designed a content marketing guide, this includes audience engagement, idea generation and product research.

Download our full marketing & creative (agency) CV template.

Enhancing the candidate hiring experience for success
6 mins read

Enhancing the candidate hiring experience for success

​The candidate experience can make or break your ability to attract top talent. It encompasses every touchpoint a candidate has with your company, from the initial application process, right through to the onboarding phase and beyond.

In an age where shared experiences are commonplace, it’s much more likely candidates will not apply for a position at a company if they’ve had a bad experience with them, and some will actively advise their peers to not apply either. Focusing on creating a positive candidate experience will not only create a positive image for your company but will also enhance your employer brand – setting the stage for a productive and satisfied workforce.

We delve into the key stages of the candidate experience and what you can do at those stages to ensure the journey is seamless.

The application process

The application process is often the first interaction a candidate has with your company, so it needs to set the tone for what candidates can expect if they progress through the hiring process.

For the best experience you should make sure your application process is:

Simple: an overly complex application process can deter qualified candidates – with 60% of job seekers abandoning a job application due to its length and complexity. Simplify your application form to include only the most essential information needed at this stage. Avoid lengthy forms and repetitive questions.

Clear: job descriptions should be detailed and clear, outlining the necessary qualifications, responsibilities, and expectations. This transparency helps candidates self-assess their suitability for the role, saving time for both parties.

Accessible: ensure your application portal is mobile-friendly and accessible to individuals with disabilities and impairments. A user-friendly interface reflects well on your company's inclusivity and attention to detail.

Responsive: automated acknowledgments for received applications and realistic timelines for the hiring process can significantly enhance the candidate experience. Candidates appreciate knowing where they stand and what to expect next.

A streamlined, transparent application process shows respect for the candidate’s time and signals that your company values efficiency and clarity, making it more likely for high-calibre candidates to apply.

The interview process

The interview process is a critical phase where candidates form deeper impressions of your company culture and values. This will likely be the first time your hiring managers or senior members of staff interact with candidates, so impressions from this point help reinforce the right messaging for your business.

To create a positive experience for all those who have accepted an interview, consider the following:

Be prepared

Ensure your interviewers are well-prepared and familiar with the candidate’s CV, application, and the specifics of the role.

Show respect

Be punctual for interviews, whether they are conducted in person, over the phone, or via virtual call. A candidate’s time needs to be valued – just as much as your time is to them.

Promote transparency

Before the interview, clearly explain the structure of the process, including the number of rounds, the types of interviews, and who is conducting the interview. Transparency will help candidates feel more comfortable and prepared.

Encourage engagement

Interviews should be conversational and two-sided. Encourage candidates to ask questions about the role, team, and company culture. This engagement provides them with necessary information and shows you value their input and what they deem essential knowledge.

Give feedback

Provide timely and constructive feedback after each interview stage. If a candidate is not moving forward, clear and specific feedback can help them in their future job searches and leaves them with a positive impression of your company.

Onboarding

Onboarding is the bridge between hiring and the early stages of employment, with 69% of employees more likely to stay with a company for three years if they experienced a positive onboarding process.

An effective onboarding process can significantly impact a new hire’s experience and productivity – helping them to settle into their new surroundings more quickly and effectively.

What do you need to consider?

The overall onboarding process: have a detailed onboarding plan ready before the new hire’s start date. This plan should include necessary paperwork, a schedule of training sessions, and introductions to key team members.

The initial welcome: make new employees feel welcome with a warm introduction to the team. This could include a welcome package, a personalised welcome note, and a team lunch – which can all go a long way in making new hires feel appreciated from the start.

Training and resources: provide comprehensive training to help new hires understand their role, the tools they will be using, and the company’s processes. Tailor the training to the specific needs of the role and the individual.

Support: assign a mentor or buddy to help them navigate the company culture and land on their feet. New jobs can be overwhelming at first, so an effective support system can help new hires acclimatise faster and feel more connected to the team.

You want those new hires to feel valued and supported from the start, helping to lead to higher job satisfaction, quicker productivity, and better retention rates.

The opening months of employment

The first few months are crucial for a new employee’s long-term success and integration into the company.

Consistent support and recognition during the initial months can significantly enhance job satisfaction and performance. There are still things you can do at this point to ensure employee satisfaction levels remain high.

Try to schedule regular check-ins to discuss progress, address concerns, and provide feedback. These check-ins help identify any issues and show you are invested in employees’ success, while goal setting will give new hires a sense of direction and purpose.

Ongoing encouragement in those early parts of an employee’s tenure is crucial for creating a sense of value and boosting morale – be it in meetings, 1-2-1s or via internal channels to the wider workforce. Acknowledging contributions – no matter how big or small – will help to reinforce positive behaviour and motivate new hires.

Spare a thought for those unsuccessful candidates

The entire aim of the candidate experience is to allow your reputation as an employer to stand out – this is especially true when liaising with those candidates who weren’t offered the job. Their experience in the overall selection process will determine whether they apply for another job at your company.

A positive candidate experience should extend to those who do not get the job. Handling rejections with care is essential for maintaining a positive employer brand and leaving a lasting good impression.

It is important to inform candidates of your decision as soon as possible as delayed communication can leave candidates feeling anxious. If possible, it is also worth providing candidates with personalised feedback that can help them in their job search. Generic or vague responses can be frustrating; specific feedback shows that you took the time to consider their application thoughtfully.

Also remember to thank people for their time and interest in your company, and if appropriate, encourage them to apply for future opportunities – which will help maintain a pool of potential talent.

Remember that every stage of the hiring process, from application to onboarding and beyond, presents an opportunity to showcase your company’s values and culture. A positive candidate experience leads to a more engaged and productive workforce, ultimately driving your business forward.

If you want to provide the best candidate experience for a vacancy you have at your company, get in touch with our experienced recruiters who can help today.

How to fight economic inactivity
1 mins read

How to fight economic inactivity

It was recently my turn to pick up the pen and contribute to City AM’s ‘The Note Book’.

I chose to write about the issue of economic inactivity and to focus on ways to encourage younger people into the workforce and ways to incentivise older workers to work for longer.

My thinking is that this will encourage the highly paid and highly skilled to work up until retirement age rather than choosing, as many do, to retire early.

And my estimation is that this would result in more, not less, tax being collected and collected sooner because these individuals are frequently higher rate taxpayers who will typically find ways to avoid inheritance tax in the extra spare time they have after they’ve taken early retirement.

Instead, these highly capable higher rate tax payers will be incentivised to continue to contribute to the growth of their organisations and the wider economy and consequently to the exchequer as well.

One for the Office of Budget Responsibility (OBR) to grapple with perhaps… but I’ve no idea how you’d model such an idea. Sometimes it’s just better to give things a go!

And if you do get a chance to see the play ‘A View from The Bridge’, you should go. It’s a precious thing - a brilliant play, brilliantly acted!

Click here to read the article.