ESG stands for Environmental, Social, and Governance. It refers to a set of requirements that organisations must meet to be considered socially and environmentally responsible.
Health and social care services are under increasing pressure to not only deliver high-quality care but to also demonstrate responsible, sustainable practices. One way to achieve this is through ESG compliance.
Where does the ESG requirement come from?
The UK’s ESG compliance requirement comes from a variety of sources, including the Companies Act 2006, the Climate Change Act 2008. In essence, these laws require businesses to demonstrate how they are operating in a socially and environmentally responsible way.
For health and social care organisations the requirement to meet ESG requirements comes from CQC’s Well-led quality statement, which in turn is part of the Single Assessment Framework (SAF) released in 2022. Introduced as part of CQC’s aims to improve the quality and safety of care, the new quality statement focusses on ensuring health and social care providers take steps towards ensuring the principles of net zero are embedded in the planning and delivery of care. In addition, care providers are required to continue to demonstrate good governance – the G of ESG – under CQC Regulation 17: Good Governance.
Why does ESG matter in health and social care?
Given CQC now has an expectation of care providers to demonstrate how they are reducing their environmental impact, ESG is rightly a hot topic.
ESG compliance in health and social care is more than a tick-box exercise. It directly impacts the quality of care provided, the wellbeing of staff and residents, and the long-term sustainability of services. Here’s how:
- Environmental responsibility: Care providers must reduce their impact on the environment by cutting energy use, managing waste, and lowering carbon footprints. Sustainability is crucial due to climate change.
- Social impact: The wellbeing of staff, residents, and the community must be prioritised. This can happen by providing safe, inclusive, and compassionate care, promoting diversity, and supporting employee health.
- Governance and accountability: Strong governance ensures ethical and transparent operations, and builds stakeholder trust.
What steps can I take as a care leader?
Regular steps to improve areas around ESG can lead to significant progress. Getting ahead of this relatively new requirement can set you up for successful assessment against the ESG requirement at inspection time. Here are some practical things you can do, today:
- Environmental initiatives: Review your processes to uncover ways to reduce emissions, improve energy efficiency, and cut waste. Eg, Stop using single-use plastics and install low-energy lightbulbs.
- Supporting social outcomes: Seek out opportunities to enrich resident’s lives. Offer mental health support to staff. Engage with the local community.
- Strengthening governance: Create policies that ensure accountability, transparency, and accessible leadership, with clear channels for staff feedback.
How Florence’s new ESG course can help
To support care providers on their journey toward ESG compliance, Florence Academy has launched a new course specifically tailored for the health and social care sector. The course offers an understanding of ESG principles, with a focus on how these can be practically applied within care settings to align with CQC requirements.
This course is ideal for care home owners, managers, and frontline staff, offering insights into how environmental sustainability, social responsibility, and strong governance can enhance service quality and compliance. By completing this course, you’ll be well-equipped to lead your organisation toward a more sustainable and ethical future, while meeting regulatory expectations.
Your move to a more sustainable future
As the health and social care sector continues to evolve, the integration of ESG principles will become increasingly important. ESG compliance is not just a regulatory requirement; it’s a pathway to improving care quality, supporting staff, and protecting the environment. Forward-thinking care providers are already recognising the benefits of adopting these practices, from cost savings to better reputation, and better outcomes for residents.
Learn more here about how ESG can help you meet CQC standards, improve your service, and make a positive impact.
To get access to this course for you and your workforce, talk to our team.