27th September, 2022

REAL LIVING WAGE INCREASES TO £10.90 IN UK AND £11.95 IN LONDON AS THE COST-OF-LIVING RISES

• 10.1% increase in real Living Wage, the largest year-on-year rise
• Over 390,000 Living Wage workers are set for a pay boost at over 11,000 Living Wage employers
• £338m in extra wages has gone to low-paid workers since January 2022, and more than £2bn since 2011
• The new rates are now worth almost £3,000 more per year in the UK than the minimum wage, and almost £5,000 more in London

See more information on the Living Wage Foundation website here.

Almost 400,000 people working for over 11,000 real Living Wage Employers throughout the country are set for a vital cost-of-living pay boost, as the new Living Wage rates rise to £10.90 an hour across the UK (£1 increase), and £11.95 an hour in London (90p increase), supporting workers and families. This year’s Living Wage rates have been brought forward in recognition of the sharp increase in living costs over the past year.

The real Living Wage rates remain the only wage rates independently calculated based on what people need to live on. This year the rate increased by 10.1% in the UK, more than ever in the Living Wage Foundation’s 11-year history reflecting sharp increases in living costs.

New research from the Cardiff Business School shows that Living Wage workers have benefitted from more than £338m in extra wages since the start of this year alone, with one in 10 employees now working for an accredited Living Wage Employer.

The new Living Wage rates and the ‘National Living Wage’ – know the difference

Unlike the Government minimum wage (‘National Living Wage’ for over 23s – £9.50) the real Living Wage is the only wage rate independently calculated based on rising living costs. A full-time worker earning the new, real Living Wage would earn £2,730 a year more than a worker earning the current government minimum (NLW), and £1,950 more than their current pay.

In London, a full-time worker on the new real Living Wage rate would earn an additional £4,777.50 a year compared to a worker on the current NLW.

The Living Wage movement continues to grow

Over the past two years the Living Wage movement has continued to grow, with the number of Living Wage employers more than doubling, and major new Living Wage employers announced during that time including Royal Albert Hall, Aston University, and the Excel Centre. They join half of the FTSE 100 companies, household names like Aviva, Everton FC, Ikea, Burberry and Lush as well as thousands of small businesses, who are choosing to pay the real Living Wage to provide workers and families with greater security and stability.

There are now also 39 Living Hours employers, including abrdn and GBC accredited Aviva and West Brom Building Society, going beyond payment of the real Living Wage to also provide a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked.

Low pay

There are 4.8m workers paid less than the real Living Wage. Research published last week by the Living Wage Foundation found that over the past 6 months more workers are skipping meals and using food banks than ever before.

Katherine Chapman, Living Wage Foundation Director, said: “With living costs rising so rapidly, millions are facing an awful “heat or eat” choice this winter- that’s why a real Living Wage is more vital than ever. Today’s new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times.

“We are facing unprecedented challenges with the cost-of-living crisis, but businesses continue to step up and support workers by signing up to the Living Wage in record numbers. We know that the Living Wage is good for employers as well as workers, that’s why the real Living Wage must continue to be at the heart of solutions to tackle the cost-of-living crisis.”

Archbishop of York, Stephen Cottrell, said: “As we reflect during a very sad and troubled period, we can take heart from this news which will make a vital difference to the lives of many thousands of workers across our country. With living costs rising and many families struggling, a wage that meets every day needs is more essential than ever. These new Living Wage rates will see thousands of employers provide hundreds of thousands of workers with a wage that will help support them through the difficult times ahead. Decent pay that covers living costs should be a foundational principle for business and, as we approach a difficult winter, I hope to see more employers adopt a Living Wage.”

Kristof van Beveren, General Manager, UK, Getir. “Getting our people a decent living wage is very important to Getir.  It embodies Getir’s values and is essential for attracting and retaining talent.  In this way, we set the bar for q-commerce, and we fully intend to continue doing so.”

Ibrahim Hassan Ali has been working for Getir since June, he said: “I’m 21 and with the current economic environment, working for a business with the living wage accreditation is very important as I feel more secure. We have guaranteed scheduled working hours alongside the real living wage and we get bonuses and tips on top. They provide everything I need – pensions, paid annual leave, sick pay, insurance, protective equipment and electric delivery vehicles. I enjoy the positive environment within the workspace with a diverse team and try to keep our customers satisfied having completed almost a thousand orders since I started.”

Chris Smallwood, Owner of Anchor Removals, a Living Wage employer, said:

“When I started my business, I wanted to acknowledge the importance of a wage that values people. I wanted to break this mentality that is endemic in my industry that it has to be tough. When I get up in the morning, I can look myself in the mirror knowing all the good things around me are not at the expense of other people, because I’ve paid them well. I’ve seen an employee go from gambling addiction and debt to become debt free and move into a home with his girlfriend at the age of 42. He got on the wrong track in life and just needed an opportunity and at the heart of that was a Living Wage job. Think of the benefit to individuals, but also society, by paying a wage that enables workers to stand on their own two feet.”

Gavin Ryan, a Living Wage worker at Anchor Removals, said: “When I started working for Anchor 10 years ago, the wages were poor and we were struggling. I found it really hard. Our Managing Director Chris changed us to a Living Wage Employer in 2016, as he had always said when we got through the tough times he would look after us and he has. Now, I have stability and job security, and the wages have helped me move out of my mum’s house and into a home with my partner. I can also look after my daughter and buy her the things she needs. During the pandemic, my partner Nic lost her job as a travel consultant and went to work for a supermarket. Her hours and pay were not great, but because I was earning the Living Wage with guaranteed hours, I knew I could support her. It was a life saver.”

Notes to Editors:

Living Wage Foundation Media Contacts for interviews and case studies:

John Hood – 07507 173649, john.hood@livingwage.org.uk

Emily Roe – 07581430577, emily.roe@livingwage.org.uk

Maisie Caro – 07950 666882, maisie.caro@livingwage.org.uk

Matt Ford – 07507478967, matt.ford@livingwage.org.uk

What is the real Living Wage? 

The real Living Wage is an hourly rate of pay set independently and updated annually (not the UK government’s National Living Wage). It is calculated according to the basic cost of living in the UK, and employers choose to pay the Living Wage on a voluntary basis. According to the Living Wage Foundation, since 2011 the campaign has impacted over 390,000 employees and delivered over £2bn extra to some of the lowest paid workers in the UK.

About the Living Wage Foundation

The Living Wage Foundation is the institution at the heart of the independent movement of businesses, organisations and people who believe that a hard day’s work should mean a fair day’s pay. We recognise and celebrate the leadership shown by the over 11,000 Living Wage Employers across the UK who voluntarily commit to ensure their staff earn a real Living Wage that meets the cost of living. We are an initiative of Citizens UK.

Only the real Living Wage is calculated according to the cost of living in the UK and in London. Employers choose to pay this wage on a voluntary basis. The real Living Wage applies to all workers over 18 – in recognition that young people face the same living costs as everyone else. It enjoys cross party support.

The UK Living Wage for outside of London from Thursday 22^nd September is £10.90 per hour. The London Living Wage is £11.95 per hour. These figures are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in the UK and in London.

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Business leaders call for more organisations to join and raise the bar on responsible business behaviour.

York’s commitment to good growth will be celebrated in style on the closing day of York Festival of Ideas 2022, with a number of activities centred around building the city’s entrepreneurial culture as well as a panel discussion to look more widely at how partners are collaborating to respond positively to the levelling up agenda.

With a firm national focus on the cost-of-living crisis, the Good Business Charter framework is well established to bring about positive change with its focus on holistic responsible business behaviour, including a commitment to pay the real living wage (currently £9.90 an hour outside of London), provide secure work and care for employee wellbeing alongside commitments to the environment and ethical sourcing.

Organisations accredited by the Good Business Charter share their passion for what the Charter stands for and how they are improving practices to remain compliant, such as increasing salaries or ensuring suppliers are also reaching for these high standards.

Founder and local entrepreneur, Julian Richer, who will be speaking at the Festival of Ideas event, said:

“It is exciting to see my home city embrace the Good Business Charter and champion it voraciously throughout the city whether that be Councillors, both Universities or partners such as Federation of Small Businesses.  I am particularly pleased to see the Universities encourage entrepreneurs in their programmes to adopt the GBC right from the outset.  This will put them in a strong position as they scale up, through treating their colleagues well, prioritising happy customers and ensuring resilience in their supply chain.”

Kiran Trehan, Pro Vice Chancellor for Partnerships at the University of York, who features in the anniversary video said:

“It has been a privilege to spearhead York as the first GBC city.  I say to organisations of all sizes that it just makes good business sense to commit to the Good Business Charter and my hope is that in the future, the ones who have not joined are the ones that are left behind.  We are excited to launch Enterprise Works and York Accelerator on this auspicious date of the anniversary of GBC York and hope to see further collaboration to bring good growth for the city.”

The Good Business Charter is as relevant for small organisations as big.  Chris Pegg, Commercial and Marketing Manager at City Cruises, which achieved GBC accreditation last year said:

“Good things happen to good businesses.  If businesses look after their staff right, look after their customers and look after their suppliers I think they’re really set up to have a phenomenal run in business and that’s why we encourage others to get involved in the GBC.”

Over 60 organisations in the city are currently accredited by the Good Business Charter, a national accreditation scheme that certified the Institute of Directors as its 1,000^th organisation in March 2022, just two years after it launched.  The Good Business Charter requires organisations to commit to minimum standards in all ten components covering care for employees, suppliers, customers and the planet all whilst paying their fair share of tax.

ENDS

To watch the anniversary video please see here.

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17th June, 2022

A blog by Good Business Charter’s CEO, Jenny Herrera.

When I came on board to lead the Good Business Charter, there is no doubt I had a lot more experience in the S and G of ESG than the E! As a chartered accountant I am hopefully relatively au fait with what good governance looks like, and having run a charity helping people in UK poverty for over a decade (and before that living and working in a developing country) I am acutely aware of the impact of low pay and insecure work, key elements of the S.

Whilst passionate about our planet and doing my own little bit to be sustainable (including strongly and successfully resisting being a 2-car family even though my husband needs the car to commute), the actual terminology around the technical stuff like Scope 3 emissions was something of a mystery. How could we effectively signpost our accredited organisations, especially the smaller ones, to advice on what getting to net zero really means for them?

The Good Business Charter prides itself on focusing on concrete actions and commitments. Therefore, when I was introduced to the team at Net Zero Now, I really liked the fact their focus lay with SMEs and was about creating practical protocols for how to reach net zero, that was detailed enough to meet the requirements of a complex calculation, but simple enough to be readily understood by small businesses without the budget to bring in a sustainability consultant.

As a chartered accountant it was a perfect fit for me to form part of the pilot group to look at the protocol for the accountancy sector and we were delighted to provide 3 of the 4 pilot accountancy firms to test out the protocol. It was also an excellent way for me to learn more about what net zero entails. To work alongside such leaders of the sector as ICAEW, AAT and Sage, gave Net Zero Now real credibility in what is something of a crowded market for support around environmental impact.

It was not just me who learned a lot through the process. This is what our pilot firms had to say:

Lee Davy-Martin, Partner of Wilson Wight:

“Wilson Wright takes great pride in always trying to do the right thing, which includes being a good corporate citizen as custodian of our environment for generations to come. The principle of Net Zero has been familiar to us since the signing of the Paris Agreement in 2015 which a client of ours made a significant contribution to.

Since then, as a firm we have been cognisant of our carbon footprint but critically we lacked the ability to measure it reliably. When we heard of the work that Net Zero Now were doing through our membership of the Good Business Charter, we jumped at the chance to shape the development of a protocol that would have the ability to benchmark the footprint of professional services firms like our own.

Having now completed our own benchmarking, we will fully offset our 2022 carbon footprint as well as target a 20% year on year reduction.”

Dave Gibson, Co-Founder and CEO of Blu Sky:

“Blu Sky consider themselves to be a modern accountancy practice in all senses of the word, so our organisation and employees set the bar high for ethical and social initiatives. We’d already demonstrated that by joining GBC in the first few days of formation, and measuring – and reducing – our carbon footprint was high on our to do list. NZN worked closely with us to formulate and explain how we might measure where we have flexible and remote working policies. They were incredibly helpful, and the initiative has proven popular with the team and with clients.”

Donald Inglis, Director of Inglis Chartered Accountants:

“In August 2021 the effects of covid was putting massive pressure on many businesses – and of course we were not immune. I was reading about the GBC on facebook and thought that as we complied with the 10 components anyway – then it was a perfect way for us to show outwardly our business ethos and values. Of course as is often the case one thing leads to another and through the Good Business Chartered we were introduced to Net Zero Now. Climate change is happening and carbon reduction is one method of trying to slow the pace of climate change. We completed the survey and found that although we had a relatively low carbon footprint anyway – we could do better. One of the ways we have improved is to purchase refurbished IT equipment (especially monitors). Reducing waste and saving £££ is a brilliant win win scenario.

I would strongly recommend any business to join the NZN initiative and see where the wins are in their own situation.”

Find out more about the Net Zero Now accountancy initiative here: https://netzeronow.org/accountants

Net Zero Now is working to develop initiatives for new sectors. Please note there is a monthly charge for using the actual platform.

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10th June, 2022

I have recently finished reading Martin Vander Weyer’s informative analysis of why we have lost faith in capitalism in “The Good, the Bad and the Greedy” which at times had me plunged into despair at the scale of some of the issues that have arisen in recent decades, particularly in areas of governance such as payment of taxes and the dramatic rise in the CEO pay ratio.  There does seem to be an inherent problem where individuals have acted recklessly and yet faded from the spotlight, still enjoying huge figure sums in pensions.  It hardly sends out a resounding warning to others considering similar ways to be greedy.

Indeed, this felt like a big focus in the book – and the way the disconnect between bosses and workers has exacerbated the loss of faith in capitalism.  Vander Weyer draws out a really useful comparison from two centuries ago between industrial Manchester and Birmingham to illustrate this.  In the large factories of Manchester, it was apparently well known that the working people were at the mercy of the manufacturers and the unskilled workforce were merely a factor in their profit equations.

In Birmingham, however, there was more social mobility with successful small masters and highly skilled artisans moving up in the world whilst unsuccessful ones slipped downwards (p41).  As Vander Weyer concluded, the tale of these two cities tells a great deal about the principles of good and bad business – as well as the fact that well-developed skills are always the workers’ best protection against exploitation and best hope of social and material advance.

As I read this section, I mused on a visit to GBC accredited Brompton Bicycles where I was treated to a tour round the factory by CEO Will Butler-Adams.  It was great to see his obvious pride in the product they were so carefully manufacturing, and to learn of the way they upskill their workers on the factory floor into some really highly skilled roles.  Just the fact that he was walking comfortably around the factory floor, greeting colleagues by name, shows that all important community of interest between owners, managers and workers that makes a business more humane, as Vander Weyer says.

In a lengthy section on tax, I of course rejoiced that this has such a focus, given that we have it as one of our 10 components and work closely with Fair Tax Mark and TaxWatch UK who are two sides of the coin in inspiring good tax behaviour and signalling out bad.

“One reason why many people have lost faith in capitalism is a belief that big companies don’t pay sufficient tax,” p175

Yes indeed.  That is why we see it as just as important as caring for people and planet – and are concerned when it seems to be discounted.  Ask people on the street and they will tell you a responsible business ought to be paying its proper taxes rather than taking advantage of the benefits power and influence can bring them.

Towards the end of the book, Vander Weyer addresses the question of purpose – including referencing various people I have encountered as I journey in this same arena.  His opening sentence is “I’m worried about purpose” (p257).  I must agree, which is why our focus is on responsible business behaviour which we feel is more concrete and comprehensible to ESG experts and the general public alike.

I loved his image of purpose having become “absurdly overburdened with ethical baggage, like a cartoon Mini with a wobbling stack of suitcases, furniture, pots and pans on its roof rack” (p257).  It is his suggestions about hard metrics that seem to me to be more useful than talk of purpose – given that they can be explained and comparisons are possible.  Experts have told him that this is what is needed to “give clarity to the thrust for sustainable, socially responsible business and, in doing so, to make the rising pressure from investors for ‘ESG compliance’ more transparent and meaningful: in effect, to tell boards of directors precisely what it is they are expect to do if they wish to remain both investable and socially acceptable.” (p280)

This, of course, is precisely what the Good Business Charter is seeking to do – provide that set of transparent, meaningful metrics, that gives clarity to boards of directors, and CEOs, Heads of Sustainability, and founders and managers of small businesses.  A framework they can look at, readily understand, and work to achieve, in the process enabling them to apply for GBC accreditation which can act as a credible signpost of a capitalism that is not bad nor greedy, but good.

In a book that feels depressing at times as you look at the recent past, there is some encouragement that change is coming as articulated by the CEO of JPMorgan Chase & Co, that “major employers are investing in their workers and communities because they know it is the only way to be successful over the long term” (p265).  May they give the same consideration to their policies on CEO pay, tax, ethical sourcing and their care for the environment.  You leave out some of these key areas at peril and miss the wider point that can inspire the best sort of capitalism – care for workers, suppliers, customers and the environment whilst paying your fair share of tax.

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25th May, 2022

It is one thing to say you are committed on paper to our 10 components.  To embed them into the very core of your organisation is quite another, yet it is as this occurs that the real value of the GBC is unlocked. 

Our vision is for each employee within a GBC accredited organisation to know all about what it means: to proudly include the logo in their email signature and know what their employer stands for. 

I had the opportunity pre-pandemic to work shadow Julian Richer which included popping in to an induction of new colleagues. I watched Julian question the cohort about the importance of the customer experience and more widely on The Richer Way. Right from the outset, the principles of ethical capitalism were instilled in the workers. 

If we are saying that the GBC is serving the market of consumers wanting to shop with responsible business and employees wanting to work for responsible businesses, then they need to see evidence of that, otherwise they are empty words. For a small organisation with four or five employees that can be relatively straightforward, especially in examples such as these:  

Having a visual prompt helps to champion the GBC so more people understand what we do and what our accreditation means, but it is also to show an organisation’s employees, customers and suppliers what their GBC status is so that they can whistle-blow if any of the ten component commitments are not being adhered to.  

In chatting to our larger members in recent months, we have heard some excellent examples of how a larger organisation might go about embedding the GBC. Saffron Building Society took one component a month and communicated to their staff team what it meant to them and what they were doing to continue on that journey of embracing diversity and inclusion, reducing their environmental impact, or sourcing goods ethically. 

Schroders Personal Wealth has published a fantastic report which has set out their work and future ambitions across our 10 components which equips them to explain both internally and externally why this matters to them. 

Joel Ripley, their Chief Finance Officer who chairs their Responsible Business Network said: 

“We would recommend working with the Good Business Charter to any company wanting to become a more responsible business. For us, the GBC’s ten components are a simple to understand but extremely robust framework that show us how we should think about responsibility and sustainability. They certainly reflect the business standards that are important to us and which I am genuinely passionate about. 

At Schroders Personal Wealth we have been committed to transparency from the very start. Being open and honest with ourselves, our clients, and our stakeholders. We recently produced our first Responsible Business Report, based on the GBC’s ten components, as an important extension of that commitment to clarity. 

It has forced us to assess where we are relative to the targets we have set. We’ve got the basics right, but we now need to push forward to stop ourselves becoming too comfortable. As we move closer to our targets, we’ll begin asking: how can we improve? What’s the next target? How do we get from good to better to best? It’s about always striving to succeed and exceed. 

It’s an exercise which I think every company should undertake as a celebration of what it’s achieved and as a reminder that there is always something else to do. We will definitely be publishing a report every year to make sure we keep heading in the right direction.”

It is our hope that many organisations will indeed take their commitment to the Good Business Charter’s ten components as a baseline from which to push forwards to continually improve.  We look forward to hearing more examples from our accredited organisations of what they are doing in each component, so that we in turn can share those with our community and together inspire one another to be better. 

Our message to all those who are passionate about responsible business behaviour is to model it and communicate it well so that all those people who want to shop ethically and work for a business that cares can see you are one of them. 

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3rd May, 2022

Passionate suppliers of woodworking tools and machinery, Axminster Tools have spent 50 years building our family business into the renowned organisation it is today. We do what we do to maintain a sustainable future for Axminster Tools, for the prosperity of our staff and the communities we support and engage with. We know that if we attract, retain and invest in the best people, we will deliver the best results for our customers and for the business. Axminster Tools are very proud to have gained the Good Business Charter accreditation. It showcases to our customers, suppliers and employees how serious we are about delivering and living good business behaviour. Likewise, it highlights our commitment to good ethical business practises in our approach to the environment, legal and financial compliance. Our employees will continue to enjoy good working conditions, with fairness, representation and diversity. Furthermore, we encourage shared responsibility towards supporting environmental initiatives and good working practises.

As part of the components that make the Good Business Charter we continue to be committed to championing inclusion, diversity and equality within the workplace. We have recently formed an ED&I Champion group who have received training by Equality and Diversity UK. Working alongside HR, this has enabled them to improve on the components set by the GBC.

As Living Wage employers we believe that a hard day’s work deserves a fair day’s pay. We also believe that all staff deserve to start each day with guaranteed hours and equal employment opportunities and benefits. We were recently accredited by Zero Hours Justice to further acknowledge our responsibilities and demonstrate our commitment to good working practises.

We continue to work towards our International Organisation for Standardisation (ISOs) and as part of the ISO14001 we have a document called “Environmental Aspects and Impacts”. This highlights all the aspects of the business and the impacts which they have environmentally. As part of this process we have an Environmental Committee made up of employees across the business which supports communication. We engage with staff to come up with ideas for improvement, highlight risks and incidents. We have recently signed up to The Planet Mark sustainability certification which recognises continuous improvement to support our ethos of making a difference.

We continue to interact and communicate with our Customers enabling us to succeed and excel in our services and offering. A similar process we work with our suppliers ensuring both them and us comply with the laws, rules, regulations, and policies of the countries and locations in which they operate. They are expected to be familiar with the business practices of their own suppliers and subcontractors, and ensure they operate according to this code of conduct.

As we have mentioned before as a Company we want to maintain a sustainable future for Axminster Tools, for the prosperity of our staff and the communities we support and engage in especially in today’s climate where it has never been more important to play our part in society. By gaining our accreditation, is proof that we are doing just that!

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UK Accountancy Profession Takes Next Step Towards Net Zero

We are delighted to share that our partners at Net Zero Now have launched their first industry-wide protocol & certification to set standard for Net Zero, in collaboration with Sage, ICAEW, ACCA, AAT and our team at the Good Business Charter. This new digital platform helps accountancy practices go net zero cost-effectively. See below for more details, or go to www.netzeronow.org/accountants for free resources.

26  April 2022

The Net Zero Accountancy Initiative is being launched today by a coalition of industry partners, marking a major step forward in the accountancy profession’s journey toward Net Zero greenhouse gas emissions(1). The Initiative puts the tools for action on the climate crisis into the hands of accountancy practices. Today’s announcement includes: 

• A profession-wide protocol that provides a clear and consistent path by which accountancy firms can reach Net Zero and a common standard against which they can be certified
• A dedicated, sector-specific digital platform providing a complete solution for accountancy firms to calculate their carbon emissions, set targets, get tailored reduction plans, compensate for unavoidable emissions 

Trusted Certification Marks for firms to communicate their success to clients, employees, and other stakeholders.

Net Zero Now, the climate action platform, worked with Sage , the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, ICAEW, ACCA, AAT and the Good Business Charter to develop the Net Zero Accountancy Initiative. The Initiative makes it easier and more cost-effective for businesses of all sizes to take action on the climate crisis. 

The UK government has set a target of reducing greenhouse gas emissions to net zero by 2050(2). Net Zero Now estimates that accountancy practices in the UK are responsible for nearly half a million tonnes of greenhouse gas emissions every year(3), equivalent to the emissions of over 100,000 cars being driven for a year(4). While big firms can afford specialist sustainability advice, 80% of all accountants in practice work for a small or medium-sized firm(5) and the process of going Net Zero is seen by most SMEs as being expensive, time-consuming and complex(6). 

At the heart of the initiative is the Net Zero Accountancy protocol which provides an industry standard for reaching net zero greenhouse gas emissions, which sits alongside a Climate Action Toolkit providing useful guidance for practices on how to reduce emissions. These resources are freely available at www.netzeronow.org/accountants

Following a robust development process, the protocol has been peer reviewed by a broad base of stakeholders, representing the sector and sustainability and climate experts, and is aligned with international climate science. This means that for the first time there is cross-industry consensus on net zero for the accountancy sector. Accountants who follow the protocol can either be certified Net Zero or have their Net Zero target date certified. 

With many client companies now setting emissions targets to include required reductions in their supply chain(7), working towards Net Zero is increasingly important for all accountancy practices to attract business. Data also shows that a majority of younger employees consider a company’s social and environmental commitments before deciding where to work(8), making Net Zero a critical recruitment tool. A pilot of the Initiative from November 2021 to January 2022(9), with firms including Grunberg and GBC Accredited Wilson Wright, found that: 

• Compared to other sectors with a more complex carbon footprint, it’s relatively simple for accountancy firms to get to net zero
• There is consistency across accountancy practices in the challenges they face going net zero, so a sector wide approach can be highly effective 
• The key emissions sources for the profession are energy for offices, employee commuting and business travel and IT equipment 

Neil Ross Russell, Managing Director of Net Zero Now, said:

“The accountancy profession has an enormous role to play in the transition of our economy to net zero, both through reducing its own emissions and in guiding its clients through their own sustainability accounting requirements. Using the Net Zero Accountancy platform, it’s now simple and affordable for all accountancy practices to take action on their own greenhouse gas emissions. Developed in partnership with the industry, and underpinned by global climate science, the Net Zero Accountancy Initiative can transform the sector’s response to the climate crisis, delivering a host of business benefits along the way.”  

Richard Spencer, Director of Sustainability at ICAEW, said:

“Widespread change on net zero can only be achieved through collective action from business, government, NGOs and civil society, and accountants can play a vital leadership role in this. At ICAEW we’ve already embarked on our decarbonisation journey and are here to support our members and firms by providing the necessary tools and guidance to do the same. We hope that the Net Zero Now Protocol will encourage our members to embark on their own net zero journeys.”

Glenn Collins, Head of Policy, Technical & Strategic Engagement of ACCA said:

“Achieving net zero needs careful and consistent measurement, accounting, reporting and verification – and accountants’ skills are vital to realising all this. ACCA has supported the protocol development to help practitioners on their journey.

As a professional body with our own commitments to the UN SDGs – including achieving net zero – we know that our members are committed to contributing solutions in the public interest and achieving climate change targets. Being part of this prominent steering group will ensure a consistent and co-ordinated approach as reaching net zero cannot be done in silos – it needs integrated thinking, expertise and action.”

Adam Williamson, Head of Responsible Business and Policy, AAT (Association of Accounting Technicians), said:

“Climate change is one of the biggest issues facing the world today and we all have a role in driving the effort to achieve net zero – both as individuals and organisations. AAT works closely with partners such as The Prince of Wales’s Accounting for Sustainability Project (A4S) Accounting Bodies Network to raise awareness and provide guidance. From an organisational perspective AAT are moving to a new energy efficient building in Canary Wharf this spring, and will continue our efforts to encourage government to take further action to reach the net zero goal.

We are also working closely with our members to help them to engage in this crucial collective effort, which we know can seem daunting to many small businesses. The Net Zero Now Protocol provides an affordable, practical route for SMEs to achieve this, and we would encourage our members to explore the free Protocol and Climate Action Playbook and how they can help them to reach their net zero goals.”

Paul Struthers, Managing Director, UK & Ireland at Sage, said:

“Sage is showing up and standing with the millions of small and medium size businesses we serve around the world by tackling the big challenges of our time. We want to create partnerships that help knock down the barriers businesses face to operate in a more sustainable way. We know through our partnership with Net Zero Now we are helping practices gain access to great insight and support that will enable them to start their sustainability journey, using technology and insight to drive forward their net zero ambitions.”

Jenny Herrera, CEO, Good Business Charter, said:

“Tackling the climate crisis needs to be a collaborative effort including organisations of all sizes.  The Good Business Charter is a deeply practical accreditation. We want to ensure our current and potential members, especially the smaller ones with fewer resources to work on this, are connected to effective ways they can meet net zero. We have a good number of professional services firms and we believe working on a protocol that takes their specific industry and sets out tangible ways to achieve net zero will be such a valuable tool.”

Footnotes 

1. Deloitte defines net zero as: ‘Essentially, we reach net zero when the amount of carbon dioxide we add is no more than the amount taken away. These goals guide us to significantly reduce our absolute emissions and find ways to sequester any residual carbon emissions – so there’s no net increase in CO2’.  According to the Science-Based Targets Initiative (SBTi)  to reach a state of net zero emissions for companies implies two conditions:
   a. To achieve a scale of value-chain emission reductions consistent with the depth of abatement achieved in pathways that limit warming to 1.5°C with no or limited overshoot and;
   b. To neutralise the impact of any source of residual emissions that remains unfeasible to be eliminated by permanently removing an equivalent amount of atmospheric carbon dioxide.
2. UK enshrines new target in law to slash emissions by 78% by 2035 – GOV.UK (www.gov.uk)
3. Net Zero Now Accountancy Initiative 
4. Greenhouse Gas Equivalencies Calculator | US EPA
5. Net Zero Now Accountancy Initiative 
6. Broadway Initiative SMALL BUSINESS ADVICE ON NET ZERO, April 2021
7. Of the 239 companies that signed up to the Science Based Targets Initiative in 2020, 94 percent included commitments to reduce supplier emissions (McKinsey & Co, June 21) 
8. 76% of millennials consider a company’s social and environmental commitments before deciding where to work, (Carbon Intelligence, Oct 19)
9. Net Zero Accountancy Initiative pilot data is available on request. 

For more information, please contact: 

• Ruth Pott-Negrine, ICAEW 07557 616 315 or ruth.pott-negrine@icaew.com

• Laura Cooney, AAT 0207 397 3912 or laura.cooney@aat.org.uk / prteam@aat.org.uk

• Natalie Falkous, Sage, 07587175991, natalie.falkous@sage.com

• Ros Hunt, Net Zero Now, +44 7734 915901, ros@fabledcomms.co.uk

About the initiative partners 

Net Zero Now is a sector-based climate action platform that collaborates with industry experts to define what net zero means for different sectors, offers businesses within the sector guidance and tools on how to get there and provides a standard against which businesses that want to claim net zero can be certified. Visit www.netzeronow.org or follow us on Twitter or find us on LinkedIn.  

About ICAEW

Chartered accountants are talented, ethical and committed professionals. There are more than 1.8m chartered accountants and students around the world, and more than 186,500 of them are members and students of ICAEW. ICAEW promotes inclusivity, diversity and fairness. We attract talented individuals and give them the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.

Founded in 1880, we have a long history of serving the public interest and we continue to work with governments, regulators and business leaders around the world. We are proud to be part of Chartered Accountants Worldwide, a global network of 750,000 members across 190 countries, which promotes the expertise and skills of chartered accountants on a global basis. We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create strong economies and a sustainable future for all.

About AAT

AAT (Association of Accounting Technicians) is the UK’s leading qualification and professional body for technical accountants and bookkeepers, and has around 130,000 members in over 100 countries. We have been helping people enter and develop their skills within the accounting sector for the past 40 years.

We offer a range of qualifications that are open to all regardless of previous education or age, such as the AAT Accounting Qualifications that provide a non-degree route into chartered accountancy, and the AAT Bookkeeping Qualifications that can support business growth through accurate and up-to-date financial records. Students encompass a wide range from school and college leavers, to older people hoping to change their career or learn the skills to run their own business. 

An AAT Accountant is a qualified accounting professional with the practical and technical skills needed to support businesses with their accounting activities. Typical job roles of an AAT Accountant include: Financial Accountant, Commercial Analyst, Senior Finance Officer, Payroll Manager, VAT Accountant and Tax Supervisor. An AAT Accountant in the UK can sign off the accounts for small companies that meet two out of three of the criteria of turnover less than £10.2 million, total assets less than £5.1 million and less than 50 employees. Currently over half a million businesses trust AAT Accountants and AAT Bookkeepers to service their accounting requirements.

AAT awards around 80% of all technical qualifications in accounting in the UK, and generous exemptions are provided by many of the senior UK bodies including ACCA, CIPFA, ICAEW, CIMA and ICAS. As part of our ongoing commitment to service excellence, we’re proud to be a member of the Institute of Customer Service, the independent professional body for customer service.

AAT’s qualifications are internationally respected. AAT works hard to raise the profile of accounting technicians worldwide and their role in building stronger economies. Globally, in select economies, AAT plays a role in establishing, maintaining and raising professional standards of accountancy practice. See our international page for more information about options for international students.

About Sage

Sage exists to knock down barriers so everyone can thrive, starting with the millions of small- and mid-sized businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology, and experience to tackle digital inequality, economic inequality and the climate crisis. Learn more at www.sage.com/en-gb/

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