In conversation with: Kunaal Wharfe, Leeds Bradford Airport

Hi Kunaal, it’s good to see you. Thanks for taking the time to talk to us about ESG. Could you start by telling us why you believe General Counsel are best placed to lead on ESG initiatives?

For me it’s all about access and the breadth of the role of a GC. As a GC you get to interact with all parts of the business and this broad view of a company’s operations and interactions with different departments makes it possible to integrate ESG considerations into the overall business strategy. You gain the ability to understand the teams around you, and can then influence and develop tailored and achievable objectives and initiatives. GCs also naturally, by virtue of their role, have a strong moral compass and ability to act impartiality, which are hugely beneficial in developing an ESG agenda. And of course, as a GC your understanding of the legal and regulatory landscape has to be first rate, so navigating the often complex compliance requirements is a part of the process where you can really add value. Finally, the role of GC involves significant interaction with Board and senior management, which is a huge enabler when it comes to advocacy and driving ESG initiatives more effectively.

What’s your approach to ensuring that ESG is tackled in a strategic way? Where do you start?

First of all I like to gain a really clear understanding of what might have already been done – it’s incredibly helpful to know where you’re starting from. Listening and engaging with stakeholders, the local community, employees, business partners and customers is a large part of this, as is looking at the industry as a whole and seeing what other people are doing. But it’s also worth remembering to be realistic, and by that I mean considering the size, type and role of your business and ensuring your ESG efforts are proportionate to this. Taking a tailored approach is imperative – a cookie cutter approach is a sure way for an ESG agenda to fail.  I can’t emphasise enough how worthwhile it is to take the time to understand what’s important to your specific business, area and community.

What do you think are the biggest barriers for a GC taking on an ESG role? How do you tackle these and are there any specific strategies you’ve found effective for gaining leadership buy-in for ESG initiatives?

Understanding what and how ESG applies to your organisation is, is a big one to be honest. That and businesses having a collective understanding of why it’s so important. Resource and budget do come into it to a certain extent, and if there’s no support or buy in (from top to bottom) within the organisation it can be really hard to make progress.

I don’t think there’s a magic bullet to help tackle these issues unfortunately, but training can help. I always recommend talking to people in person to help them understand the importance of ESG from the perspective of their own roles and relating it to their work and responsibilities. If you can get people to see the significance of the business they work in, its current impact, and its potential for more – then you start getting positive buy in and can really start to move the dial. In some cases, it can be beneficial to link ESG to business objectives, for example in private equity businesses or PLCs, because it’s often a key component of investor expectations. Also, providing examples of other similar or competitor businesses’ activities and objectives in this space can be motivating and offer the evidence that some people need to really get on board.

Are there any significant challenges you’ve faced in your ESG journey that would be valuable for other GCs to learn from? What approaches helped you navigate them?

Being slow off the mark – often because of other priorities (for example LBA’s historic lack of investment) can really hinder progress. Covid and the subsequent recovery period was of course a huge challenge, and the impact of previous management teams shouldn’t be overlooked either. Historically there’s been a focus on certain topics, e.g. Environmental – specifically carbon and noise, but it’s still important to create awareness of the Social and Governance parts of the ESG equation. Not considering the whole picture may cause issues further down the line.

As I touched on in the last question, navigating these kinds of challenges requires training, investment in time talking to people, and evidencing the importance of what you’re trying to do and the impact it can have.

In an era where transparency is essential, what’s your advice on communicating ESG efforts and progress to the public? How can GCs ensure they’re being transparent without exposing their organisations to undue reputational risk?

In the first place you have to monitor and report – to individual teams, management, Board committees, and the general public. Having specific KPIs and targets ensures your reporting remains objective. Although obviously you’ll need to give serious thought to your targets at the outset so that you’re completely comfortable reporting on them! And if progress isn’t sufficient, it’s vital that you’re honest and transparent about why – providing a clear outline of what you are going to do to rectify or remedy the situation.

How do you measure the success of ESG initiatives, and what metrics would you advise other GCs to focus on to demonstrate impact?

You need specific KPIs that can be actively and routinely measured and reported on. Afterall, there’s absolutely no point setting objectives and KPIs that can’t be measured!  That said, those KPIs do need to be kept to a number that’s manageable – if you have too many it will be a much harder job to manage, track and report on them, and with a large number there’s a tendency to lose impact. Make sure you keep them tailored and specific, ideally based on a strategy that’s been developed from a materiality assessment – this way the impact is then directly relevant to your business’ stakeholders.

What resources, training, or networking opportunities would you recommend to GCs looking to build their expertise and stay updated on ESG trends?

Reading would be top of my list – there’s so much available and easy to access. The UN Sustainable Development Goals are good for linking to your strategy and KPIs, and law firms and many legal events have discussions and panels on ESG so it’s worth keeping an eye out for those. Extra resource can be invaluable. I lobbied for a Head of Corporate Affairs & Sustainability to provide more knowledge and ownership, as well as an extra pair of hands. Perhaps most importantly, use your network and talk to other lawyers! Don’t hesitate to reach out to other GCs and in-house lawyers who are always very helpful and a fantastic source of ideas, direction, and reassurance.