Introduction
Understanding the ESG picture on a company is a complex exercise. As a tentative first step on gathering data and understanding our own impact we have created a simple ESG scorecard for companies, including ourselves, around 15 datapoints. Five in each of E, S and G.
finnCap ESG Scorecard
Our simple ESG scorecard for companies is based around key datapoints that are quantitative, unambiguous, uncontroversial, easily obtained and – hopefully – meaningful. And we apply those data points to our own performance.
How we rank
Environmental
|
Energy consumption (MWh/£m) |
17 |
|
Carbon Dioxide Emissions (tonnes/£m) (view our Planet Mark Business Certification report - updated April 2020*) |
11 |
| Water Consumption (m3/£m) | 25 |
| Waste Production (tonnes/£m) | n/r |
| Environmental & Sustainability Policies (view our policy - updated Jan 2021) |
yes |
Social
| Employee turnover (%) | 14% |
| Tax paid (as % of PBT) (updated 27 Sept 2021) | 26% |
| Discrimination policies (view our policy) | Yes |
| Community policies (view our community outreach programmes) | Yes |
| Ethics Policies (view our policy) |
Yes |
Governance
| Female representation on the board | 29% |
| Independent board members (updated 27 Mar 21) | 43% |
| CEO cash compensation (vs UK median earnings) | 21.9x |
| CEO & Chairperson role split? | Yes |
| Adheres to relevant Corporate Governance Code? (view our Corporate Governance) | Yes |
* Planet Mark statement: As the economy recovers after the disruption induced by the pandemic in 2020 we expect to see an increase in the greenhouse gas emissions generated by many of our members in year end 2021 (YE2021).
In order to address this challenge we will be applying our Emissions Banking approach.
Under this methodology, emissions reductions achieved in YE2020 beyond the minimum reduction of 2.5% can be carried forwards by up to three years and applied against potential increases in emissions due to business activity returning to pre-pandemic levels. This approach will even out the large swings in carbon emissions that we will see whilst still maintaining a downwards trajectory on emissions over time.
By way of example, if a company has emissions in YE2019 of 100tCO2e they would have a minimum target for YE2020 of 97.5tCO2e. If the impact of the pandemic led to a carbon footprint in YE2020 of 67.5tCO2e then this company will have ‘banked’ which can then be drawn on over the next three years. Their new target would be set at 2.5% below their YE2020 footprint of 67.5tCO2e but they would be able to exceed this total by as much as 30tCO2e and still be able to pass. The banked emissions are available to use in this way for up to three years after they were banked or until they have been used up.
Download the finnCap ESG Scorecard & Guidebook
Based around key datapoints that are quantitative, unambiguous, uncontroversial, easily obtained and meaningful, our simple ESG Scorecard and corresponding guidebook helps ambitious businesses monitor and report on their ESG goals.
Company Tracker by World Wide Generation (WWG)
To help improve and measure our social, economic and environmental impact mapped to the Sustainable Development Goals, finnCap uses the digital sustainability monitoring and measurement app, Company Tracker on the G17Eco platform provided by World Wide Generation (WWG) to assess our performance against key policies, standards and frameworks.
Below is a sample view of the WWG dashboard.
Our ESG Report
Our ESG report, ESG Focus, we put the UK smaller companies market under the ESG microscope, giving useful insight into how institutional investors are thinking about these issues as well as providing a simple, practical approach to assessing companies with our finnCap Scorecard.
ESG - Working with our clients
At the heart of finnCap Group, our purpose is to help companies on their growth journeys. With that in mind, we understand that every business does not exist simply to benefit its shareholders, but also drives innovation, social and environmental impact and economic prosperity. We believe doing the right thing is good business and can create real sustainable advantage – delivering competitive financial returns, while also delivering positive environmental and societal outcomes.
Find out more about how we're working with our clients to simplify their ESG reporting and gain sustainable advantage.