How businesses can turn net zero promises from words into action: Nick Houghton

As we hear more scientific evidence that global warming is destroying our planet, we should all take a closer look at our sustainability responsibilities and act.

It’s the right thing to do - for the good of the environment and for your business.

Many businesses, like ours, have committed to become net zero, by adding no more greenhouse gases to the Earth’s atmosphere than the amount we take out.

Legislation for our industry to reduce carbon emissions is coming, and we want to be running ahead when it does land.

Knowing where to start is key.

For us at JMG Group, working with Flotilla, which provides end to end climate reduction services, we now have a robust understanding of our carbon footprint and what actions to take to mitigate it.

We have set science-based targets and created a plan to benchmark against.

We started by calculating the equivalent in tonnes of greenhouse gas our business creates in a year, based on direct emissions from things we own; emissions from things we buy; as well as indirect emissions.

The latter is more difficult to measure, but not impossible, and it’s important to include it as it can account for up to 80 per cent of a business’s carbon footprint.

This exercise can also lead to financial savings for businesses. In our first year of working towards net zero, we expect to make meaningful savings, for example in energy and travel expenditure, which we will reinvest in green technology.

Unavoidable emissions can be offset through VERA-approved projects aligned with the UN’s Sustainable Development Goals. Flotilla has helped us select quality international and UK schemes which match our company values, and we will also plant the ‘JMG forest’ as part of a verified carbon

offset scheme.

Asking your employees for their input on how they would like to see the sustainability of the business improve is an important part of the journey, especially for service-led businesses.

The feedback we received from our teams was compelling and overwhelmingly in favour of taking positive action to reduce the business’s impact on the environment - 99 per cent of respondents expressed a willingness to support the business to reduce emissions.

Another employee benefit comes in the shape of attracting new staff who share your values, vision and commitment to taking action. We, like many industries, are experiencing a serious talent challenge where staff retention and attraction are more vital than ever before.

Ensuring employees remain engaged and committed as well as acting on our sustainability commitments and attracting the right candidates is critical.

Embedding purpose in our company culture has been invaluable and very rewarding. Like everything in business, do it for the right reasons, do it properly and do it well.

If you haven’t already set the wheels in motion, then ask yourself what is stopping you?

Nick Houghton is CEO at Yorkshire-headquartered insurance broker group JMG Group