ESG in the portfolio: The North Alliance
Interview with Hanne Bismo Mustad, Head of Operations at NoA
Q: How does an agency network approach ESG?
A: Our industry has had a lot to learn on the ESG front. Among other things, this has helped us to focus on the shortage of women in management positions and to establish better control routines internally but also given us increased confidence that the jobs we do for our customers can actually make a difference in terms of sustainability. We have noticed that many employees are passionate about sustainability. When we acquire new agencies for the NoA Group, there is a general onboarding of our systems and routines, where ESG is a key element. We have defined an ESG policy that has to be embedded in all subsidiaries, and we make sure to set KPIs that make sense to us. A common ESG platform for all the companies makes reporting easier to implement. The aim is to spend as little time as possible collecting and retrieving data.
Q: Can you tell us more about how you have set KPIs in the ESG area?
A: Norvestor helps all portfolio companies to carry out an annual ESG review. This is defined by an ESG consultancy in collaboration with senior management and the ESG manager in Norvestor. In the annual review, we look at focus areas across our whole value chain and define KPIs within each area. We also have projects that we focus on in our ESG work linked to gender distribution, a common IT solution, reducing flights taken by employees, and influencing the green transition through customer assignments. We carry out an annual follow-up of these projects in a report that is approved at the board level and includes the general and company-specific KPIs.
Q: Can you tell us more about how the NoA agencies work to ensure that customers have an impact on the green transition?
A: There are differences between the agencies and among our customers, some of whom are well advanced. As an example, &Co, our Danish creative agency, has run campaigns about the green transition for the roof window manufacturer VELUX. The company is aiming to capture its historical CO2 emissions, as well as reducing future emissions in line with the Paris Agreement. In general, NoA has established ESG guidelines for the whole group, which exclude various industries and business purposes, for example. We help our customers to create growth through customer orientation and also aim to inspire customers to focus more on ESG. We are working to develop offerings on behalf of the group for customers who want to have a positive impact.
Q: The gender balance is something your industry has had on the agenda for a long time and which you have also set out as a priority project. How is that going?
A: In addition to Norvestor, NoA has around 160 employees who own shares in the company. This is unique within our industry, and we are proud to offer partnerships to our employees. We are striving to increase the proportion of female partners. The level is unchanged from the same time last year, although we have brought in new women partners. That is because some female partners have left, and we have acquired companies that were more or less wholly owned by male partners. Most of the agencies we have acquired are like that, so we are "skewed" from the outset. However, we do dare to talk about it and admit that we are not perfect. We also have this topic high on the agenda and are the main sponsors of the SHE Conference, for example. One of the companies in the group, NoA Ignite, is at the top of the SHE Index, which looks at diversity and inclusion in Norwegian companies.
Q: How has the coronavirus pandemic affected the ESG work at NoA?
A: We acted early and cut costs, which saved us and allowed us to retain most of the staff. Over time, we have arranged for people to work from home and ensured that they are happy with this. However, much of the magic in our creative services happens in the office – in workshops in the same meeting room, for example. Carbon emissions have naturally decreased as a result of the pandemic. The number of employees and of women in management has remained stable.
Q: Can you tell us about NoA's priorities in its ESG work in the coming years?
A: We are relatively new to the game, and it is good to have KPIs for ESG that can stand up over time. On the one hand, we plan to incorporate sustainability into all our agencies and ensure that everyone is on board while we also develop our sustainability offering for our customers. ESG reporting should be simple – then it can really drive organisational development. There is good cooperation between Norvestor and the NoA Group on the goals that we set, and we are anxious not to impose a process over the heads of our companies. NoA consists of many agencies with their own unique culture and capabilities, and that's how it should continue to be.