Angela Moran, ESG Director at Silentnight, argues that accuracy and transparency are crucial to monitoring and communicating a business’ ESG goals and achievements. In this piece, she explains how businesses like Silentnight can do that.
Moving towards a more sustainable future is one of the most pressing issues facing UK businesses. Stakeholders increasingly seek accurate insights into the impact their businesses are having on the environment and, as such, the size of the ESG market continues to grow.
We think there are two elements needed to ensure ESG advances continue in a way that drive the industry forward and engage businesses: transparency and accuracy. So, what does that mean for a business like Silentnight?
Accuracy
First take accuracy, which we’ve been able to better refine through the adoption of various ESG frameworks. In turn, this has enabled us to recognise the importance of measuring our impact on society and the environment when assessing our ESG performance.
One of the frameworks that we rely on is the Science-based Target initiative (SBTi). Science-based targets provide companies with a clearly defined path to reduce emissions in line with the Paris Agreement goals. We’re one of around 4,000 other businesses across the world who have adopted this approach which helps us have clarity and confidence that our decarbonisation plans are robust and transparent.
The SBTi has become the gold standard for corporate climate targets since its inception in 2015. It allows businesses to not just blindly commit to reducing their carbon footprint by an arbitrary amount by a point in the future, but to commit to targets that are in line with what scientists have said are needed to avoid the worst effects of climate breakdown.
We’re the first sleep brand to get our targets validated by the SBTi and, our latest annual carbon report covering scopes 1,2 and 3 found that we had achieved a 36% reduction across Scope 1 and 2 emissions and an 8% reduction on its Scope 3 emissions target. That puts us in a healthy position to reach our targets of reducing Scope 1 and 2 emissions by 54% and Scope 3 by 28% over the next seven years to 2030. It will also support our target of reaching net zero by 2040.
Building on the momentum of SBTi, the Science-based Targets organisation also launched the Science Based Targets Network (SBTN). The SBTN highlights the interconnection of the broader ecosystem of global initiatives mobilising businesses working towards a nature positive future.
Moving beyond climate commitments, the SBTN allows businesses to address environmental impacts across freshwater, land, biodiversity, and ocean. Led by environmental NGOs, the network helps companies to comprehensively quantify their environmental impacts across their operations and value chains and then move to precise and credible action at landscape-level.
We’ve also recognised how critical halting and reversing nature loss is. Our long-term goal is to become the world’s first sleep brand to integrate biodiversity commitments into our net zero journey.
To do this, we are working on developing our Science Based Targets for Nature with the support of SBTN’s Corporate Engagement Program. We’re already a certified FSC business but we know there is so much that we still need to do.
Transparency
It’s unsurprising that, as consumers, investors and climate activists are looking to businesses to be more climate conscious, there are gaps between what businesses are pledging to achieve and what they are actually doing.
But it still needs to change. By increasing transparency in ESG reporting, businesses can demonstrate a real commitment to responsibility and sustainability. This has become even more important as consumers become more attuned to a business’ ESG performance and activity before engaging with them.
We’re committed to transparency in our ESG practices. Not only do we publish our ESG progress report every year, but all our ESG activity is disclosed on our website in an easy-to-read format – making it more accessible for our customers to get the information they need before they choose to buy from us.
In addition to this, we are also in the process of introducing Digital Product Passports that allow for the collection and sharing of a product’s data to aid post-consumer recycling and keep materials in circulation at the highest value for longer.
As we look to the future, the hope is that businesses will recognise just how important accuracy and transparency is in achieving climate goals, as well as improving their reputation with potential consumers and investors.
Companies who prioritise transparency and accuracy in their ESG journeys are leading with their best foot forward, positioning themselves as leaders in sustainable business practices and fully showcasing the positive impact they are making.
