IoD Scotland Autumn 2021

Actionable insights
n Set transparent goals – as board directors, hold
yourselves accountable and measure progress
n Set out your values on sustainability and the
environment – and then recruit against them to
ensure you have a team of like-minded people
n ESG – think of it in the same way as you think of
financial reporting; look at your energy, water and
waste every month at board level as part of your
oversight responsibilities
Session chair
Patrick Macdonald,
Chair, IoD:
“It feels like we
are crawling in a
direction we should
be sprinting in.”
Business leaders warned to
ignore ESG at their peril
Today’s business leaders will be held
accountable to the next generation
for their actions – and this demands
a vigorous response to the threat of
climate change.
That was the view of the second
Conference panel session, which
brought together Jojo Mehta, Chair
of the Stop Ecocide Foundation; Tony
Wines, Turnkey Group; Prof David Hillier,
University of Strathclyde Business School;
and Jill Farrell, Zero Waste Scotland.
Prosecute ecocide
Jojo Mehta had the strongest
words on the issue. Her organisation
is promoting the concept of making
‘ecocide’ – unlawful or wanton acts
committed with knowledge that there
is a substantial likelihood of severe,
widespread or long-term damage to the
environment being caused by those acts
– a crime, with directors held personally
responsible for their companies’ actions.
This went far beyond current health
and safety or corporate liability laws
and was increasingly likely to be added
to legal frameworks around the world –
within 10-15 years, Jojo believed.
She was highly critical of current
economic models: “Too much of how
IoD Scotland
Chair Aidan
O’Caroll with
panellists Jojo
Mehta, Professor
David Hillier,
Tony Wines and
Jill Farrell
we operate is based on a model that
threatens sustainability. We need to end
the linear model that places no price on
the cost of losing finite natural resources,
and promote a circular economy.”
She asked why society placed such
a high value on ‘ownership’ of goods
which were rarely used, when leasing/
hiring everything from capital equipment
and car fleets to the DIY equipment
that gathers dust in your shed may be
a better solution, both financially and in
regard to production costs and use of
natural resources.
ESG at top of agenda
Tony Wines was keen to see more
directors promote a strong ESG agenda
at every board meeting. The importance
of ESG (Environmental, Social and
Governance) had increased hugely in
recent years, though many businesses
were struggling to apply its principles to
their actions.
“Transparency of your processes is
critical,” he said. “Look at ESG reporting
the same as you do financial reporting,
adding it to board agendas and setting
strong metrics to measure progress.
Look at your energy use, waste and
“We need to end linear
models that place no price
on the cost of losing finite
natural resources...”
Jojo Mehta
water every month and track reductions.”
He saw huge opportunities for
businesses to promote their ESG to their
stakeholders.
Be active in good times and bad
ESG tasks us to generate financial
returns as well as positive societal
impacts, said Professor Hillier, and he
reinforced the need to think of your
organisation’s ESG in bad times as well
as good. Too often financial crises see
issues such as sustainability jettisoned
in favour of a race for profit; that’s a
philosophy that needs changing for a
constant focus on a triple bottom line –
people, planet and profit.
Investors support
Investors were clearly swinging behind
businesses with strong ESG performance
and Jill Farrell reiterated how the first
steps were easy to take. “There is plenty
of low hanging fruit,” she stressed: “cut
waste and energy, use renewable energy
and switch your transport to electric
cars.”
But go deeper; look across your supply
chain to ensure suppliers are following
similar paths. “Some businesses respond
eagerly to zero waste ideas, motivated
by interest, but others because of
‘threats’ - from customers or suppliers.
“You need a vision of why you are
reforming your operations and bring
your team with you.”
There was a consensus that good
governance is not good words, it’s
good actions, and it was imperative
for organisations to move away from
a “lawful legitimation” of their current
practices and take responsibility now.
“Get ahead of the legal framework
before you find yourself on the wrong
side of the equation.”
Autumn 2021
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