ESG in focus: an urgent and shared responsibility 

As the ARC360 Conference 2025 unfolded under the banner ‘A New Era – The Changing Dynamics of a Sector’, one of the most future-facing sessions of the day was also one of the most collaborative. On the Main Conference Stage, a diverse and expert panel convened for a focused, fast-paced session titled ‘ESG – what does it really mean for the sector?’ 

Led by ILC Content Director Mark Hadaway, the panel explored the environmental, social and governance challenges and opportunities facing stakeholders across the claims and repair supply chain. 

Joined by Sally Jones, Managing Director – Coatings UK, BASF; Peter Randhawa, Director of ESG & Special Projects, Steer Automotive Group; and Kate Nash, Head of Outsourcing & Supply Chain Management, Tesco Insurance, Mark set the tone early: “We can’t keep looking back to what we once were. This is a moment to embrace change and ask ourselves how we want to do business differently.” 

Moving beyond the ESG stereotypes 

For many in the industry, ESG – particularly the ‘E’ – can feel abstract or bureaucratic. But as Sally pointed out early on, this view is increasingly outdated. “In reality,” she said, “we’ve already made huge progress.” From ambient and low-temp cure coatings to UV-cured products, BASF has helped bring carbon-conscious materials into daily workshop use. These innovations aren’t future concepts – they’re already standard practice for many progressive repairers. 

Sally also introduced BASF’s biomass balanced approach, which targets the harder-to-reach Scope 3 emissions. “We’re delivering real reductions for repairers – not just in Scope 2, but into Scope 3,” she explained, encouraging attendees to engage with BASF for more detail. 

Why Scope 3 matters – and why no one can do it alone 

For Peter, the ESG discussion has become increasingly strategic at Steer Automotive. Having spearheaded one of the most comprehensive ESG rollouts in the repair sector, he shared the realities of working within the SBTi framework, which has been the organisation’s newly adopted standard as a recognised path to Net Zero alignment, following the retirement of PAS2060 later this year. 

“Most repairers have focused on Scope 1 and 2,” Peter said. “They’re easier to control – energy, travel, fuel. But Scope 3? That’s the real challenge. And the only way we’ll meet it is through circular collaboration.” 

He gave an illustrative breakdown: a typical repair includes four key components – labour, parts, paint/materials, and ‘other’. While repairers can manage the first, the carbon footprint of parts and materials is inherited from the supply chain.  

“If I buy a door from an OEM, I carry the emissions of that door. The only way that number changes is if the OEM reduces their own production emissions,” Peter explained. 

The takeaway? Scope 3 is not something any single business can solve. True carbon reduction will only happen when every stakeholder – from vehicle manufacturer to part distributor to repairer – shares data, tracks improvements, and co-develops new supply protocols. 

ESG, risk, and return: the commercial imperative 

While ESG might be framed as a moral or societal obligation, Peter and Kate made it clear: it’s also a commercial reality. “Over 50% of private equity investors now request ESG disclosures,” Peter noted. “Some banks are even offering better lending rates to businesses with ESG frameworks in place.” 

From Kate’s perspective as an insurer, the relevance of ESG is both brand-led and operational. “Being part of Tesco Group, there’s a baseline expectation around sustainability,” she said. “But even beyond that, there’s increasing weight given to ESG credentials in our supplier selection process – especially in Requests for Proposal (RFPs).” 

While Scope 3 reporting isn’t yet mandatory for insurers, Kate believes it soon will be. “We’re preparing for that now. Our supply chain must be aligned to those goals. That includes expectations around emissions reporting, governance, and ethical sourcing,” she said. 

Building a smarter, safer ESG culture 

One of the consistent themes across the panel was the importance of data. From energy audits to recycling contracts, capturing and using credible data is essential for measuring impact and setting reduction targets.  

Sally emphasised the importance of data governance, especially in distributed environments: “A lot of our products are delivered through partners, so we need clear, secure data-sharing frameworks that protect our IP and serve our clients’ reporting needs.” 

Kate agreed, saying insurers are not looking for a tick-box exercise, but for structured, long-term partnerships. “We want to see credible roadmaps. This isn’t just about 2025 – it’s about whether we can still deliver affordable, high-quality claims service in 2030,” she said. 

Getting started: the practical ESG playbook 

For many in the room, the biggest question was: ‘Where do we begin?’ 

Peter offered a grounded, step-by-step guide from his own experience at Steer. 

1. Benchmark the baseline: Pick a 12-month period – ideally your financial year – and gather data across energy, waste, materials, and logistics. This becomes your foundation year. 

2. Set a measurable reduction target: A five per-cent annual reduction is a practical first step. 

3. Target easy wins first: “If it’s Scope 2, switch to renewable energy. That’s a huge impact with low effort,” Peter said. 

4. Engage upstream: Find out where your parts and materials come from, and what your suppliers are doing to reduce emissions. 

5. Choose a framework: Whether it’s PAS 2060, SBTi, ISO 14068, or the new ARIES repair industry standard, select a structured reporting standard and follow it. This gives your programme credibility and comparability. 

The role of collaboration – and why the clock is ticking 

The panellists agreed that cross-sector collaboration is non-negotiable. Scope 3 cannot be managed in silos. It demands partnerships, transparency, and shared accountability. 

Kate noted that ESG collaboration must be long-term and integrated. “This isn’t a campaign – it’s a cultural shift. We need to plan for the next five to 10 years. Every decision we make – procurement, training, reporting – needs to align with that view.” 

ARC360 2025 was supported by Corporate Partners: BASF, CAPS, Entegral, Enterprise, NWVA, Mirka, S&G Response, Sherwin Williams and Solera Audatex; alongside Partners: e2e and Repairify; with Vehicle Manufacturer Partner: Stellantis; and Event Sponsors: Onyx and Thatcham Research.