Running a business in the UK will certainly require you to think about a number of different things. One of the big things is managing the finances of your company. This can take a lot of time and effort. Sometimes, it makes sense to get help from other companies. These are called finance outsourcing services. And there are a number of specialised accounting outsourcing companies, such as Specialist Accounting Solutions (TeamSAS). They can take care of your business's money matters for you. This way, you can spend more time on the things that make your business special.
Right now, there's a big idea that's changing how businesses in the UK think about their money. It's called ESG. These letters stand for Environmental, Social, and Governance. It's about looking at how a business affects three important things:
- The Environment: This means things like how much energy the business uses and how much waste it makes. It also includes what the business does to help the planet.
- Society: This is about how the business treats people. This includes its workers, customers, and the community around it. It also looks at things like being fair and doing good.
- Governance: This is about how the business is run. It looks at how honest and clear the business is and if it follows good rules.
More and more, companies in the UK are thinking about ESG when they choose a company to help them with their finances. They want to work with companies that also care about these important things.
Why ESG is a Big Deal for Your Business
People today care a lot about businesses that do the right thing. They want to buy from companies that are good for the world. Investors also want to put their money into businesses that are responsible. Even people looking for jobs want to work for companies that care about ESG.
Here are some of the reasons why ESG is so important for your business in the UK:
- It can make your business look good: When you show that you care about the environment and people, customers will like your business more.
This can help you build a good reputation and make people trust you. - Investors want it: Many people who invest money want to support businesses that have good ESG practices.
If your business focuses on ESG, it might be easier to get funding. - It can help you save money: Being green, like using less energy, can actually save your business money in the long run.
- It can help you follow the rules: There are more and more rules in the UK about things like reporting on your environmental impact.
If you're already thinking about ESG, it will be easier to follow these rules. - People want to work for you: People like to work for companies that care about making a positive impact.
Having good ESG practices can help you attract and keep good employees.
How Outsourcing Can Help Your Business with ESG
When you work with finance outsourcing services or accounting outsourcing companies in the UK, they can help you with your ESG efforts in several ways:
- Helping you be greener: These companies can use technology that saves energy and reduces the amount of paper used.
Some even try to use energy from renewable sources like solar power. If their workers work from home, they can also help reduce the environmental impact of that. They can also have good ways of recycling and getting rid of old computers and other electronic waste. - Making sure people are treated fairly: Outsourcing companies should have good rules for how they treat their own workers.
This means paying them fairly, making sure they have safe places to work, and offering them things like health programmes. They should also try to create workplaces where everyone feels welcome and has a chance to learn and grow. - Helping you show you're doing well: These companies can help you keep track of all your ESG efforts.
They can help you create reports that show how your business is doing in these areas. This is important because more and more people want businesses to be open about their ESG performance. There are also specific ways of reporting, like using frameworks such as GRI and SASB, which outsourcing partners can help with.
Choosing the Right Outsourcing Partner for ESG
If you decide to use a finance or accounting outsourcing company in the UK, it's important to choose one that also cares about ESG. Here are some things you should think about when you're making your choice:
- What are their own ESG plans? Ask them what they are doing to be more environmentally friendly. Do they have goals for reducing their carbon footprint? Do they support social responsibility programmes? What are their rules about treating people fairly?.
- Can they help you with ESG reporting? Find out if they know about the different ESG reporting frameworks. Have they created ESG reports before? Can they help you gather the information you need for your own reports?
- Do their values match yours? Make sure that the things they believe in about ESG are similar to what your business believes in.
Do they also think it's important to be open and honest about their ESG work?. - Are they willing to share information? Ask if they will share their own ESG information with you. Will they give you the data you need for your own ESG reports?.
- Do they manage risks well? Find out what they do to manage any risks related to ESG in their own business and in their supply chain.
- Will they make promises in your contract? See if they are willing to include specific things about sustainability in your agreement with them.
By thinking carefully about these things, you can choose a finance outsourcing partner who will not only help you with your money but also help you be a more sustainable and responsible business.