Agencies Consult on ESG, but Only 15% Publish Their Own Reports

29. 10. 2024

The obligation to report ESG information will soon apply to most companies. While from next year, large banks, insurance companies, and publicly traded companies with more than 500 employees must publish a non-financial report, the following year, the requirement will also extend to companies with more than 250 employees, turnover exceeding one billion crowns, and assets over 500 million crowns. Association of PR agencies (APRA) situated in the Czech Republic aanounced member agencies will also have to report on their sustainable and social matters. The first agency to have already released its ESG report in the Czech market is PRAM Consulting.
 
ESG is not just a matter of carbon footprint; it equally focuses on how the company behaves towards the community around it, its stance on social issues, and its governance. "ESG is, therefore, a path to organizational sustainability in terms of long-term efficient business," explains Patrik Schober, founder and managing partner of PRAM Consulting.
 
According to a survey conducted by Patrik Schober among 120 agencies worldwide in preparation for the ICCO Global Summit, many agencies consult on ESG, but only 15% have their own report. About another 20% plan to have their non-financial report ready within two years. "Without a non-financial report, large corporations, which base their ESG reports on so-called Scope 3, will not collaborate with agencies, as they track ESG compliance throughout their supply chain," Schober emphasizes.

 
Up to 80% of surveyed agencies publish content portraying them as thought leaders in the ESG field, but only 45% do so more than three times a year. To establish such a role, it is necessary to increase the frequency.
 
"Only 40% of agencies have a DEI policy, i.e., a diversity, equity, and inclusion policy, in written form. All rules and processes should be documented within companies because, if they are not documented and distributed to all team members or employees, we cannot be sure that all employees follow the rules. Additionally, to attract new talent and support innovation, we must prioritize DEI in our workplaces," Schober notes.
 
An equally important part is corporate governance. Only 28% of agencies have management systems in place, such as CMS, ISO, EOS, or quality management systems. "Corporations want assurance that they are collaborating with a relevant company with well-managed processes. Additionally, management systems help PR agency management in recruitment, training, and retention of employees, as well as in business development and financial management. The goal is to be more efficient and profitable," says Patrik Schober, whose agency summarizes all its activities and processes in environmental protection, social engagement, and sustainable governance in its non-financial report.
 
Next year, other APRA member agencies, which have had to undergo CMS (Consultancy Management Standards) certification since 2002, will have to join PRAM Consulting. "As of 2024, CMS includes adherence to DEI and ESG rules, meaning at least a written ESG strategy," Schober explains, adding, "If PR agencies want to be sustainable businesses, their goal should be to transform into consulting companies; however, they must undergo a so-called existential transformation. They need to operate more like well-managed corporations, adopt strategic planning, robust management systems, and a commitment to DEI and ESG."

Full report

In its first ESG report, PRAM Consulting calculated, for example, that its total carbon footprint in Scopes 1 and 2 was 12.98 tons of CO2, with the largest contributors being heating (37%) and business car travel (34%). The proportion of direct and indirect emissions between Scopes 1 and 2 reached 34% to 64%. In the social sphere, PRAM Consulting became a strategic partner of goalball, a ball sport for blind and visually impaired athletes, provided communication strategy for the "Weather Kids" climate action support project for the UN, organized regular PR Brunch seminars, and Leadership Lab workshops. In corporate governance, the agency successfully renewed its CMS certification and maintained a high proportion of women among its employees (87%) and in its leadership (80%).
 
In preparing its ESG strategy, PRAM Consulting held detailed consultations with key stakeholders from the company’s employees and management, conducted a thorough analysis of internal policies and documentation, and reviewed publicly available information about the company. It also included outputs from recent certifications and audits and analyzed its activities in each area of E, S, and G, collecting data on the carbon footprint of its activities within Scopes 1 and 2 in the area of E. Lastly, the agency analyzed the market areas in which it operates and their impact on other stakeholders, as well as its charitable, pro bono, and educational activities, which affect both its immediate surroundings and the Central European industry market community.
 
The full version of PRAM Consulting's ESG report can be downloaded here.

Source: Article on MediaGuru.cz (link)

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