Putting people and the planet first can pay off - Andy Hadden

Proving your business is sustainable financially was historically always the key point when dealing with investors and trying to get it off the ground. Of course, this still remains the most fundamental pillar of any investor's decision. But now many investors want to know that their money is going into a project that they can be proud of and is supporting a wellbeing economy that prioritises people and planet.

Of course, businesses that only look at environmental, social and governance (ESG) principles at the expense of viability should be wary of simply capitalising on a trend, and investors should be warned this is prevalent in the market. The sweet spot is to find a way that investing in ESG increases profitability in the longer term.

Ultimately, a business that protects the planet, supports the local economy, and looks after its people should, if set up correctly, be more financially sustainable in the long run than those who shun these principles.

My team and I are in the process of delivering Lost Shore Surf Resort, which will be host to Europe’s largest inland surfing cove, complete with accommodation, spa, and restaurants. At first glance, you might think that constructing a man made pool that is three times the size of Wembley is not the most environmentally friendly thing to build. However, I have been determined from the off that this business will adhere to the importance of ESG principles and help deliver a destination that is not simply a zero sum game, maximising profit at the expense of other meaningful metrics.

Andy Hadden is founder of Lost Shore Surf Resort

All businesses, including mine, must ensure these commitments are genuine too. Accusations of greenwashing or ethics washing, can be hard for any business to shake off. Nowadays, you do not have to look far in the media to see businesses being called out for hypocritical claims of environmental action.

Despite being a man made lagoon, we will use the same amount of water as a football stadium. We will take the non-potable water from the Union Canal, improve it so much that it is drinkable, before returning it to its source. Our state of the art wave technology developed by Wavegarden will use ten times less energy than current surf parks around the world, and less than a single chair lift at a ski resort.

We can really excel with the social aspects too. Partnering with Edinburgh Napier University we are delivering a global first research collaboration. Numerous research projects will be delivered, and bolster the university’s academic reputation around the world. Importantly, it will help to harness the power of surfing to improve mental and physical well being.

When we open next year, we will employ around 130 people and bring £11 million per annum to the economy. Local schools will be able to come along and try surfing too.

The resort will be set in a free to access 60 acre country park, and brings a derelict site back into proper use. Previously, the site was a disused quarry, with steep cliff edges. So our development will actually increase the biodiversity of the land and ensure that the local community can get better use out of it than in its previous guise.

I am under no illusions that prioritising ESG principles throughout the entire development of Lost Shore Surf Resort has been key to getting it off the ground. Without it, we would have been lacking the support of the local community, politicians, and, of course, our investors. In short, there would be no Lost Shore Surf Resort to speak of.

There will always be more to do, but businesses across Scotland, great or small, must take heed of these lessons if they are to succeed in the future.

​Andy Hadden is founder of Lost Shore Surf Resort at Ratho, near Edinburgh