Leading professional services firm MHA has reported an increase in its carbon emissions during 2023-24, highlighting the challenges businesses face in balancing growth with environmental commitments.
The firm’s total emissions rose to 6,249.54 tonnes of CO2 equivalent, up from 4,383.57 tonnes in the previous year, even as it pursues an ambitious target to achieve net zero by 2030.
The increase, detailed in MHA’s 2024 ESG Report, comes amid substantial expansion for the firm, which now operates across 23 cities in the UK and Ireland with over 1,900 employees. The firm acknowledged the rise in it’s report but emphasised the it’s commitment to its environmental goals.
“At least 201 tonnes of the increase is directly linked to building and construction work undertaken in our North West region to improve the long-term energy efficiency of office spaces,” the report states. “These improvements, while causing a short-term spike in emissions, are part of our strategic approach to achieving our 2030 net zero target.”
The firm has outlined a comprehensive strategy to reduce its carbon footprint, notably choosing not to rely on carbon offsetting. “We focus our investment on actively reducing emissions in line with the Greenhouse Gas Protocol’s definition of net zero,” the report notes. “Once we achieve 90% emissions reduction, we will look to pursue reputable carbon offsetting at this stage to mitigate the remaining 10% business-essential balance.”
The road to greener pastures
MHA’s approach to reaching its 2030 goal includes several key initiatives. The firm has developed a proprietary tool called “Activate” to assess and monitor its environmental performance, while also establishing a network of 34 “Net Zero Heroes” across its offices to champion sustainability efforts at the local level.
The report reveals that MHA is taking a scientific approach to emissions reduction, having committed to the Science Based Targets Initiative (SBTi) and actively participating in the UN Global Compact Network. The firm has also taken the unusual step of voluntarily reporting under the Task Force on Climate-Related Financial Disclosures (TCFD) framework, ahead of any regulatory requirement to do so.
“There is an increasing expectation that UK regulation will need to align with the EU in providing meaningful decision-useful information to stakeholders. The advent of comprehensive ESG reporting and due diligence by UK and global businesses with over €150 million net revenue generated in the EU will inevitably drive stakeholder expectations.”
Tim Dee-McCullough, Sustainability & ESG Technical Director at MHA
Key areas of focus in the firm’s carbon reduction plan include adapting marketing and administration processes to transition towards a near-complete paper-free approach, identifying ways to reduce reliance on petrol cars for employee commuting and business travel, and revising travel policies to minimize plane travel and hotel stays.
The firm is also reviewing its location-based versus market-based renewable energy approach and has implemented several immediate energy-saving initiatives. These include improved energy monitoring, enhanced use of standby functions on office equipment, LED light installations, and the replacement of traditional office heating systems with more efficient alternatives.
Rakesh Shaunak, Partner and Group Chairman, emphasised the firm’s commitment: “We practice what we preach. We do internally what we promise to our clients. We are all in.”
Key Energy Saving Initiatives:
- Improved energy monitoring systems
- Enhanced standby functions on monitors and printers
- LED light fitting replacements
- Installation of condensing boilers
- Creation of temperature dead bank for office air conditioning
- Improved fleet management processes
Growing stronger
The report also revealed that while environmental performance currently stands at 50%, the firm has achieved stronger results in other areas, with social impact scoring 94% and governance at 85%. This disparity highlights the challenges organizations face in achieving balanced progress across all aspects of sustainability.
The MHA 1892 Foundation Pilot
Location: North West, UK | Launch: September 2024 | Initial investment: £20,000
Project overview:
- Five grants awarded in first six months
- Focus on delivering financial education to young people
- Working with local Community Foundations
- Targeting grassroot organisations
Success Story – Daisy Inclusive UK:
- Grant awarded: £4,000
- Beneficiaries: 63 young adults
- Focus: Financial education for under-25s with multiple disabilities
- Key learnings: Benefits guidance, money management, value of coins
Looking ahead, MHA plans to create an official ESG committee in FY25, which will act as a subcommittee to the Oversight Committee and ensure sustainability remains at the heart of business decisions. This committee will review the firm’s sustainability objectives, progress and impact, notably the progression towards its net zero
commitments.
This will include our science-based targets as well as the wider business transition to adapt to the climate-related risks and opportunities facing the business. Identification and management of climate-related risks will sit with the ESG committee, however ultimate responsibility will sit with the Oversight Committee who will ensure the risks are integrated within the firm’s risk management strategy.
The firm is also expanding its focus to include Scope 3 emissions, which involve the broader value chain, and is developing frameworks to monitor exposure to carbon-intensive industries.
The company maintains that its 2030 net zero target remains achievable, despite the recent increase in emissions. As part of its commitment, MHA has joined the UN’s Race to Zero Campaign and is working with stakeholders throughout its supply chain to reduce indirect emissions.
“Corporate sustainability does not have to come at the cost of corporate profitability,” concluded Shaunak, highlighting the firm’s belief that long-term business success and environmental responsibility are inherently linked.
The challenges faced by MHA in managing its carbon emissions while expanding its business operations reflect a broader industry-wide struggle to balance growth with environmental commitments. However, the firm’s transparent reporting and comprehensive strategy demonstrate a serious commitment to achieving its environmental goals, even in the face of short-term setbacks.
Subscribe to get your daily business insights