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TECHNOLOGY REPORT

and regulatory compliance helps com- where companies make false or exaggerated claims about the Tips to become ESG-compliant
panies stay ahead of regulations, avoid environmental benefits of their products or services. And non- For those wanting to become ESG-
fines and legal issues while also contrib- compliance can result in enforcement action by the CMA, compliant, the advice from Harris is to
uting to societal goals. This, emphasises including fines and legal action. take time to understand relevant ESG
Harris, is “particularly important for regulations, develop a comprehensive
the environmental impact of print What ESG can do ESG strategy, engage stakeholders,
products as it is part of a company’s So, should print firms get onboard with ESG? Are they being implement robust data collection and
brand and therefore has to reflect their forced to? Can they just ignore it? reporting, ensure good governance and
own value”. From Harris’ perspective, it’s certainly true that businesses train and educate employees. He also
But there is another function of ESG have different motivations towards ESG, and he notes too that recommends engaging in continuous
– that sustainable practices often lead the size of business is important as he says that legislation improvement, third-party certification
to greater efficiency, such as reduced applies according to turnover and headcount. and preparing for scrutiny.
energy usage and waste, which can However, he says that customers usually drive printers to do
lower costs and improve profitability. more. “Certain segments are pushed hard because of the envi- Case study: Arc-UK Technologies
In essence, Harris says that ESG is ronmental impact of the product that is supplied.” He points to a Arc-UK Technologies is a print,
increasingly viewed as not only good business card having a miniscule level of CO2e compared with a design, signage, and document scan-
for society but also for business perfor- retail display, which is why “customers maybe more focused on ning company headquartered in
mance “making it a critical considera- the biggest contributors.” Dartford. Darren Moorhouse, sales
tion for modern companies”. Putting the matter into context Harris says that “all packag- director, reckons that ESG factors are
He worries, though, that the UK is ing, display materials, books, magazines, direct mail, plastic increasingly recognised as essential for
lagging behind the rest of the developed based products, clothing and transport are areas that see lots of long-term business credibility and sus-
world in relation to regulations. Even focus. So, if a printer produces a product for a retailer or a bank, tainable business development.
so, he thinks that there’s more to story they can expect to have advanced ESG practices. Alternatively, if Moorhouse offers several tips to
than legal sticks: “Laws are typically a printer produces a menu for a local burger joint, there will be firms looking to become ESG-
compliant. He says to “start small with
Making sense of ESG employment law or waste disposal, but to winning or retaining customers. He gives the instance of achievable goals and gradually expand
less focus there”.
adhered to around areas such as
Overall, he thinks that having a strong ESG strategy is critical
your ESG initiatives as business grows”.
when it comes to the environment, big
He also thinks it important to engage
businesses are driving change through
Landsec partly based on a strong ESG story, but of most impor-
their own ESG policies.” As a conse- Arc-UK Technologies that “secured a large contract with stakeholders and involve employees,
customers, and suppliers as this can
quence, he says that “if you produce tance, being able to produce rich carbon footprint data to their “generate support and stimulate ideas
materials for these businesses, you are customer.” for improvement”.
expected to adhere to much higher And then there are the supermarkets. Harris says of them that Next, Moorhouse recommends
standard than legislation dictates”. they “are driving better behaviour in their print supply chains – measuring ESG performance and
And he gives examples of AkzoNobel, businesses such as Delta, Augustus Martin, SMP, Service reporting to stakeholders to build credi-
P&G, Unilever, Costco and KraftHeinz, Graphics, Kolorcraft and Fero have captured most of this work bility and allow for improvement. Then
amongst others, who have engrained because of their strong ESG focus”, there is the need to keep up to date with
ESG into their being and insist that sup- ESG regulations and best practice to
ensure the business remains compliant
pliers do the same. Another stick and competitive. Allied to this are certi-
But if the potential to win or lose business wasn’t enough, as fications to demonstrate commitment
The print sector’s view noted earlier, ESG is increasingly being governed by a combina- to ESG. But ultimately, Moorhouse says
Sadly, Harris says that the commer- tion of specific legislation, regulations, and guidance. it’s essential to “make sure that all
cial reality of ‘being green’ is that it is As Harris details, while there isn’t a single comprehensive employees understand the benefits of
seen as a cost and not an opportunity by statute focused solely on ESG, several address aspects of ESG ESG, both for the company and for
many in the sector. To him only for- such as the Companies Act 2006, UK Corporate Governance their own work environment.” He
ward-looking businesses invest heavily Code (for publicly listed companies), Modern Slavery Act 2015, believes that this can help build a cul-
into these areas while many simply do Gender Pay Gap Reporting Regulations, UK Stewardship Code ture that supports sustainability and
only the bare minimum. Here he points 2020 (for institutional investors), Environment Act 2021, EU ethical practices.
to the need for the UK Green Claims Taxonomy Regulation (Retained Law), and the Pensions In summary
Code, a set of guidelines issued by the Schemes Act 2021. Whatever your view of ESG, it’s cer-
Competition and Markets Authority Collectively he says that “these laws and regulations promote tain that it’s now embedded in the
(CMA), to help businesses ensure that ESG practices by requiring companies to disclose how they are world of business. Granted, the need to
their environmental claims are accu- managing environmental and social risks, and by ensuring that comply will depend on business size,
rate, clear, and not misleading. governance structures support responsible and sustainable busi- work and client demands. But it’s per-
Introduced in September 2021 the ness practices”. Non-compliance can lead to legal penalties, fectly clear that compliance can only be
code sought to combat ‘greenwashing’ damage to reputation, and loss of investor confidence. a good thing.

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