ESG for NEDs: Steering Through Change, Driving Growth

Following an esteemed career leading organisations such as Collect Plus and Yodel, Neil Ashworth is now a Non-Executive Chair, Director, Mentor, expert in digital transformation in multichannel retail, supply chain & logistics to lead sectors for retail, e-commerce, logistics, supply chain & consulting companies.

We spoke with Neil to discuss ESG for business, whether that’s a start-up, scale up or a mature business, in securing long term success and the role of NEDs in steering their businesses through this seemingly ever-changing landscape.

Tell us about your role as an NED?

I've been a Non-Executive Director (NED) for over six years, my appointments often come via private equity or venture capital firms, or directly from founders or controlling shareholders. Central to my role is to provide independent oversight and ensure the interests of all stakeholders—not just investors, but also employees, customers, regulators, and others—are considered. I'm generally not involved in day-to-day operations, but I help guide strategy, challenge the executive team, and ensure the business stays true to its purpose.

In your role as an NED, how are you seeing the ESG agenda evolving in today's geopolitical landscape?

It’s a fascinating and shifting dynamic. A few years ago, ESG—particularly environmental sustainability—was at the forefront of many boardroom conversations. At times, it felt somewhat faddish, with a risk of greenwashing as companies scrambled to be seen as doing the right thing.

What I’m seeing now is a maturing of the ESG agenda. It’s receded slightly from the headlines, but the organisations taking it seriously are doing so in a more integrated, authentic way. As an NED, I always encourage boards to embed ESG into the core business model—not treat it as a bolt-on or a silo. It needs to influence how the organisation operates and evolves strategically.

There’s also a growing shift in how investors evaluate businesses. It’s no longer just about financial return; they’re increasingly assessing ESG performance alongside it. Some investors, like Mobius Capital in London, have gone a step further by adding “Culture” to the ESG equation—forming ESGC—recognising that strong culture alongside ESG tends to correlate with long-term success.

So, while the noise around ESG may have quietened, the depth and seriousness with which leading organisations are engaging with it is increasing—and that’s a positive shift.

How are you seeing this play our from a private equity and investor perspective?

I think you can look at ESG from two angles. Some still view it through the lens of regulation—seeing it as red tape or added cost. But increasingly, private equity, venture capital  and independent investors are recognising that ESG is simply good business. It’s about managing an organisation ethically, engaging well with people inside and outside the business, and doing right by the planet.

From that perspective, ESG isn't a separate initiative—it’s should be central to a business strategy. Yes, you may measure it independently, but it shouldn't be treated as a bolt-on or in any way optional. The most forward-thinking investors are looking for efficiencies, resilience, and long-term opportunity through ESG, not just compliance.

There's a maturing in how the investor community views this. ESG is re-emerging as a serious boardroom topic, not just because of regulation, but because it’s becoming a proxy for leadership quality and long-term value creation. Even though some businesses I work with fall below the formal reporting thresholds, every one of them has ESG on the agenda—formally or informally—because their investors expect it.

For the businesses you are NED to- what are the main drivers for them on ESG?

At the core, good environmental practice is just good management. The old principle of "where there's muck, there's brass" still holds true—there’s real commercial value in reducing waste, reusing resources, and operating more efficiently. That mindset has been around for decades, but it’s now more embedded in business strategy.

On the social side, diversity and inclusion are becoming increasingly important. Historically, UK industry hasn't always prioritised this, but that's changing. Interestingly, one of the businesses I work with—operating in a traditionally male-dominated sector—is now majority female. We've had open discussions about whether we’ve overcorrected, but we always come back to hiring the best person for the job. In this case, the best people just happen to be women, and that’s a positive reflection of progress.

As for governance, it’s foundational. Running a business ethically, transparently, and accountably isn’t just a regulatory requirement—it’s the right thing to do. The UK continues to lead globally on corporate governance standards, and the legal framework has become more structured over time. That’s helped clarify expectations and raise the bar, which ultimately strengthens organisations.

So, across the businesses I support, the main ESG drivers are operational efficiency, workforce inclusivity, and strong governance—all underpinned by a belief that these are good business practices for building long term value.

Are you now seeing any new ESG-related issues emerging that investors are paying particular attention to, or are those still the dominant themes?

I wouldn’t say entirely new issues are emerging, but there is a noticeable shift in how existing themes—like culture and accountability—are being viewed. Culture, in particular, is becoming more visible in ESG conversations, though in my experience, private equity investors aren’t necessarily driving that discussion. They’re certainly aware of it and expect businesses to track progress, but it’s not always front and centre on their agenda—likely because capital markets have been tight, and their primary focus has been on returns.

That said, there is a growing expectation for transparency and integrity in ESG. I’m seeing much less greenwashing and fewer superficial tactics like relying on carbon offsets to tick boxes. Instead, businesses are becoming more proactive in changing how they operate, redesigning infrastructure, and seeking genuine, measurable impact. A good example is in the logistics sector, where switching to LED lighting has delivered both environmental benefits and significant cost savings.

From an investor perspective, what matters now is accountability. ESG done well doesn’t have to mean higher costs—it often results in operational efficiencies. But as a non-executive, what’s crucial is understanding the evolving expectations of all stakeholders—not just investors, but also employees, regulators, and customers. Each has a different lens, and our role is to ensure those perspectives are reflected in strategy and decision-making.

What’s changed in the last 5–10 years is that this level of stakeholder consideration has filtered down from the FTSE 100 to startups and scale-ups. And with a new generation of founders and leaders who are naturally more ESG-conscious, that momentum is only likely to grow.

If a smaller business is looking to bring in an NED or advisor—perhaps informally—what should they be thinking about, particularly in relation to ESG and stakeholder needs?

One of the key responsibilities of a Chair is to ensure the board’s composition reflects the needs of the business and the market it operates in. That means having a broad mix of skills—financial, risk, ESG, people, and sector-specific expertise. As the business evolves, the board’s capabilities need to evolve too.

For smaller or scaling businesses, even in less formal advisory setups, the same principle applies: you need access to people who bring knowledge and perspective around ESG, stakeholder expectations, and responsible business practices. That doesn’t always mean hiring a formal NED—it could be an experienced advisor or mentor who understands the realities of your industry and can help future-proof your decisions.

It’s also important to think about board development. Whether you’ve had the same advisors for years or are bringing in new ones, it’s worth asking: do they have the training and knowledge to guide us through today’s ESG and governance landscape? The agenda is shifting quickly.

Interestingly, I’m seeing more people moving from executive roles into portfolio careers who bring strong ESG credentials—whether that’s in sustainability, workforce and DEI issues, or managing complex supply chains. Often, they don’t immediately see the relevance of their experience, but they’ve dealt with key ESG themes like fair pay, well-being, human rights, and equity—making them highly valuable.

So, for smaller businesses, the top tip is: look beyond titles. Focus on the skills and values you need to grow responsibly, and don’t underestimate the benefit of someone who brings an outside-in perspective on ESG, governance, and long-term stakeholder value.