ESG matters to Gen Z and millennial job hunters

KPMG UK’s recent research shows that ESG concerns are influencing a growing number of British office workers’ employment decisions. Millennials and younger generations in particular appear to be driving the rise of ‘climate quitting’; the seeking out of more environmentally friendly jobs.

Of 6,000 surveyed adults, 46% indicated wanting employers to show commitment towards ESG values, while 20% had rejected job offers due to a lack thereof. These trends suggest an increasing emphasis by employees for businesses across all industries and sizes to prioritise sustainability initiatives as part of workplace culture today.

Creating a strong ESG proposition 

ESG commitments are proving to be an increasingly sought-after job requirement across all generations, with 82% of 18-44 year olds placing importance on their ability to align values and purpose between themselves and the organisation they work for. In particular, 55% of 25-34 year olds value ESG commitment from employers when looking for a role – plus 20%, rising up to one third (33%) among those aged 18–24 have turned down jobs simply because such commitments did not match their personal ideals.

Commenting on the findings, John McCalla-Leacy, Head of ESG at KPMG in the UK said:

It is clear from recent COP27 discussions that, while some progress is being made, there is still a long way to go if we are going to limit global temperature rises to 1.5C. It is the younger generations that will see the greater impacts if we fail to reach this target, so it is unsurprising that this, and other interrelated ESG considerations, are front of mind for many when choosing who they will work for.

“For businesses the direction of travel is clear. By 2025, 75 per cent of the working population will be millennials, meaning they will need to have credible plans to address ESG if they want to continue to attract and retain this growing pool of talent.”

This research reiterates that ESG issues are increasingly central to a firm’s reputation and ultimate financial performance, as scrutinised by a variety of stakeholders, including employees. The fact is, good employers have higher ESG scores. Satisfied employees work harder, remain with their employers for longer, and strive for better results for the organisation.  Companies adhering to high standards can not only better anticipate risks and capitalise on opportunities with greater ease, but also enjoy superior financial returns as well as reduced fluctuation in performance.

Driven by changing public attitudes, there is increased investor demand for ESG-focused funds. SI Engage offers fund managers greater oversight and cohesion in ESG & impact investing. The system streamlines engagement tracking and reporting, enabling you to use your time where it counts. Make a start by contacting us today!

 

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