Why ESG is critical for Filtrona’s long-term sustainability and success

Environmental, social, and governance (ESG) has evolved beyond being just a buzzword or framework; instead, it is now a comprehensive approach to corporate responsibility that integrates sustainable practices into the core of business operations.

Speaking with HRM Asia, Robert Pye, Chief Executive Officer, Filtrona, elaborated, “The scope of ESG has expanded to include a company’s overall commitment to environmental stewardship, social responsibility, and governance integrity. This evolution demonstrates how ESG has progressed from an external concern to becoming a core component of corporate strategy and long-term planning.”

At Filtrona, ESG is seen as the foundation of their business strategy and serves as a bridge to employees, customers, suppliers, investors, and other stakeholders sharing a passion for ESG. Ambitious targets are set to reduce carbon emissions, increase workplace diversity and inclusion, and ensure strong governance practices.

Pye said, “There is no doubt that the integration of ESG principles helps organisations to better manage risks, foster innovation, and meet the growing market demand for sustainable products and services. ESG is no longer seen as an option but rather a critical part of doing business to achieve corporate resilience and success in a rapidly changing global environment.”

“ESG is no longer seen as an option but rather a critical part of doing business to achieve corporate resilience and success in a rapidly changing global environment.” – Robert Pye, Chief Executive Officer, Filtrona

To gain employee buy-in, Filtrona has also created a culture where all employees work towards achieving ESG targets. “We embed sustainability in everything that we do, in our culture, in our corporate values, and help the company to sustain growth as we take steps to reduce our production waste, improve organisational efficiency, and minimise the impact of climate change.”

Filtrona’s 2023 Sustainability Report also highlights the growing importance of sustainability to their employees and the measures that can be taken collectively as a team. This is important for talent retention, said Pye, as more employees care about global environmental and social issues, and seek to work with companies that align with their values.

Filtrona employees are also engaged through corporate social responsibility (CSR) activities where they volunteer at community events such as tree-planting days, disaster relief efforts, and supporting the less privileged community.  “This helps to provide our employees with a sense of purpose, increase job satisfaction, and boost retention while contributing to our ESG objectives,” said Pye.

Moving forward, Filtrona’s progressive sustainability journey will continue to be defined by three key pillars: Environmental Stewardship, Social Responsibility, and Governance Excellence.

For instance, the company is committed to environmental sustainability and improving on efforts to reduce their carbon footprint. In 2023, they achieved a 29% reduction in net CO2 emissions from 2022 levels and a 32% increase in using renewable energy at their facilities.

READ MORE: Filtrona makes strides in sustainability and diversity

Where social responsibility is concerned, fostering an inclusive and equitable workplace is a top priority, as Pye described, “As of 2023, women hold 26% of leadership positions in Filtrona. Our aim is to achieve 40% female representation in management roles by 2040. This commitment to gender diversity is supported by initiatives to ensure equal opportunities through our diversity and inclusion policy and leadership training.”