The real deal – ESG on the ground

ESG initiatives have become an easy reputation stunt for companies that can afford to plaster good deeds online – when it is often growing businesses who drive real, consistent ESG.

Last week, far from the PR bubble that is London, Eamonn and Max visited Wolverhampton and met firms that represent the original motivation and objectives behind ESG goals – and no, they do not advertise their work on every billboard.

1. ‘E’ – Environment: A.J.S Metals Ltd

On the environmental front, A.J.S Metals are a great example of a company who are naturally having a strong impact with their environmental credentials. They have been a leading player in the aluminium industry with over 35 years of experience within the space, taking old scrap metals, often from cars, and using on-site furnaces to melt and reuse metal.

Much of this scrap metal is in fact repurposed back into new automotive projects and other vehicles. This is clearly a sustainable production process and shows us that making quality products through driving a big recycling push is entirely possible.

Having visited last week, it was obvious that it’s all hands on deck, with new parts constantly coming in to be recycled, leaving no scrap metal unmelted. Without companies like A.J.S metals, waste would be amplified and tons more energy would be spent extracting new metals. Their model has a strong focus on green practices and this environment conscious work supports them in making a mark in regional, wider UK and European recycling sector. Their extensive client base is evidence enough of their strong business, showing that customers’ trust is earned through years of perfecting craft and responsible production in action rather than spending thousands on consultants to create an ESG strategy and tens of thousands more marketing it.

2. ‘S’ Social: Next Step West Midlands

First up is Next Step West Midlands, who are a non-profit Community Interest Company, with a team who has 25+years of experience under their belt. They work to provide a quality service for those who have varied levels of learning abilities/ disabilities aged 16+, currently with 15 clients. This ranges from running a 12-week programme teaching valuable life skills and setting up a peer service, to regular recreational activities, like swimming sessions. It is an invaluable outlet, providing the clients an opportunity to develop social skills and engage their community more. In turn, it also ensures support and rest for family members and carers.

When we asked to Diane Littlehales, one of the directors at Next Step WM, why the service is so important and what the purpose of the organisation is, she said; “It’s about encouraging [the clients] to advocate for themselves. We encourage interaction and communication to instil a sense of confidence, meaning and personal growth”.

She also added that, “Recently, a client who used a communication pad to support with speaking and understanding speech, no longer requires the tool anymore”, showing just how transformational their support can be. They are a real example of what the ‘S’ in ESG should look like – what it should encompass. Their work supporting the community and pushing for equal opportunities is something that every community should strive for.

3. ‘G’ Governance: Prosperity Wealth Ltd

Last but not least, Prosperity Wealth, who are a firm of financial advisers also based in the West Midlands. They have a team of commercial finance specialists who should be noted for their transparent and ethical governance in what can be an incredibly difficult and opaque industry.

Navigating through and understanding the niches of raising finance for businesses can be tough for clients who can have a limited understanding of the complex procedures and variety of products available. So, when relying on advisers for the answers it can be an easy gap for overinflated or hidden fees to fester.

Prosperity Wealth prevent this by having their advisers work with a transparent commission structure that is detailed to the client at the very outset, via a Terms of Business which is signed at the beginning of the process. Clients know exactly where their money is going and why.

Stephanie Cooper, one of the advisers explained to us that “The maximum that [clients] will pay to Prosperity Wealth is 1.25% of the amount that they’re looking to borrow. Crucially, we deduct from this whatever the lender pays us in commission, so if we get 1% from the lender, then the client pays the balancing 0.25%. This is all detailed within a recommendation report that the client is presented with, before making any application to the lender. The client is kept up to date at every stage of the process, and we work through the deal from start to finish – we don’t stop being involved once the lender has approved something.”

The makeup and structure of Prosperity Wealth ensures a genuinely client-centric and expert based business. The strict focus on honest governance, through practises designed to keep the client informed, leads to more transparency – in an industry that can otherwise lack it.

What these three businesses show is, upholding a good ESG strategy needs care, consistency and honesty – which not always requires overpriced, external guidance. Next time you look to adopt or update your company’s ESG mandate, sometimes it’s better to look at the firms you are surrounded by on the ground instead of the huge firms whose advertising desperately sit up on every billboard.