Environment Social & Governance (ESG) and the future of care
Looking at the pipeline of finance proposals for funding applications it is becoming clear that lenders are increasingly enquiring into how care businesses are including the pathway to net zero within their governance plans.
The race to net zero carbon highlighted at COP 26 is gathering momentum and as it establishes will be seen as an additional value enhancement to a care business.
Social governance, already sitting well within the care sector, has accelerated with the onset of the pandemic, and there is now far greater onus on company culture bringing with it diversity and inclusion.
Reporting on ESG, whilst initially aimed at mandatory reporting for large companies, is an area that Small and Medium enterprises will increasingly take on board. In due course taking on the ESG principles will no doubt increase the public façade of care businesses.
ESG reporting potentially creates a sustainable USP for a care business adding a new value creation to increase occupancy in care homes as well as increasing care in the community awareness.
Having an ESG checklist to follow is a starting point for the net zero pathway, and having an ESG champion within the care business helps to drive the ethical policies forward.
As part of developing an ESG policy this may result in restructuring energy infrastructure. If changes needed within the business cannot be funded out of available cash flow, consider other financing options.
Chandler & Co can access secured and unsecured commercial loans, including some options that can be drawn down without a valuation or moving your current mortgage.
For more information email finance@chandlerandco.co.uk or call 01622 817484.
