Relationship between ESG and school finance

Nowadays, responsible operation is no longer optional — it’s essential and your organisation should embrace it. Environmental, Social and Governance (ESG) principles are becoming critical to how organisations, including schools, are assessed by their communities, stakeholders, and regulators. From funding to attracting talented students and staff, ESG is more important than many school leaders realise.

What is ESG?

ESG stands for Environmental, Social and Governance. It refers to the broad set of standards that schools, businesses, and organisations can use to measure their impact on society and the environment, alongside how effectively and ethically they are governed.

So what sort of actions do each of the three categories stand for?

• Environmental: energy use, waste management, green buildings, sustainability initiatives.
• Social: diversity and inclusion, community engagement, staff wellbeing.
• Governance: financial transparency, risk management, leadership accountability.

These are just a small glimpse of all the actions that fall within one of the three. The list is rather extensive and even the smallest action can count.

Why consider ESG in school finance?

There are several areas within school finance that are directly affected by ESG initiatives and the subsequent compliance.

• Budgeting for sustainability: Allocating resources for energy-efficient buildings, green transport initiatives, and carbon reduction projects.
• Financial transparency and governance: Ensuring that financial decisions are made ethically, transparently, and in a way that manages long-term risk.
• Supplier and contract management: Selecting suppliers who align with ESG goals, such as those with robust environmental policies.
• Stakeholder reporting: Being able to demonstrate financial responsibility, track ESG-linked targets, and report on progress in a credible and timely manner.

Embedding ESG into finance isn't just about meeting today’s standards — it’s about preparing for the future. Schools that plan financially for sustainability, social impact, and governance today will be more resilient to the demands and challenges of tomorrow. The future is unpredictable and the best way to be resilient is to prepare in advance. After all, many parents, pupils, staff, trustees, and the wider community expect schools to behave responsibly.

How Bromcom Finance can support you in achieving your ESG goals

At Bromcom, we understand the increasing importance of ESG in school operations. Our cloud-based Finance solution, fully integrated with Bromcom MIS, is designed to help schools not only manage their money, but also drive forward their ESG ambitions. We support school across the UK in eliminating tedious processes which are not only costly and chaotic, but also not in alignment with ESG standards.

Switching to digital invoicing transformed my business. This system simplifies invoice management, storing everything in one convenient place. It's user-friendly, saving me valuable time and hassle. Now, I can concentrate on business growth instead of paperwork chaos. I wholeheartedly recommend it for anyone seeking to streamline their invoicing process! - Trevor Hood, Fordwater School

Let's get into more detail of how we can actually support you.

Paperless processes and cloud efficiency

Bromcom Finance is fully cloud-based, meaning less paper, less printing, and fewer manual processes. Key data is stored securely under one roof, supporting your environmental targets by reducing your carbon footprint.

Real-time reporting and transparency

With live dashboards and seamless integration with the MIS, financial data is always up to date and accessible. Leadership teams can monitor spending against ESG projects in real time, support governance best practices, and increase financial transparency with stakeholders.

Smart supplier and contract management

Online Payment Mapping and integrated staff contract management features make it easier to oversee relationships with suppliers and employees. Schools can track spending with suppliers who meet ESG standards and ensure employment policies reflect social responsibility goals.

Sustainability-aligned budgeting

Using our Budgeting Dashboard, schools can allocate funds toward green initiatives, diversity programmes, or staff wellbeing projects with ease. This ensures ESG-aligned spending is planned, monitored, and reported effectively.

Streamlined statutory reporting

Bromcom Finance supports statutory returns like Consistent Financial Reporting (CFR) — helping schools demonstrate good governance and financial compliance efficiently, freeing up time to focus on ESG strategic priorities.

Schedule a call with us now

Bromcom Finance offers a reliable and cost-effective solution that enables your school to efficiently drive your ESG ambitions.

Schedule a call today.