Top employers have lower carbon emission intensity than their peers.
environmental
Social
GOVERNANCE
Top employers make more effort than their peers to understand employee sentiment.
environmental
Social
GOVERNANCE
Top employers typically have more diverse leadership than their peers.
environmental
Social
GOVERNANCE
ESG
as a workforce
strategy
A company’s ESG performance is increasingly
important to external stakeholders.
But how important is ESG performance to the modern corporation’s key asset – its people?
EmployEEs
business partners
Investors
Investors
Consumers
Data providers
Rating agencies and lenders
How does
ESG performance
relate to
workforce sentiment?
1
Employers with
highly satisfied employees
are …
ESG
outperformers
Top employers by employee satisfaction have average ESG scores 14% higher than the global average, likely due to their strong environmental scores.
Satisfied employees work harder, stay longer with their employer, and seek to produce better results for the organization.
Employers with an
are …
attractive image among young talent
Top employers by attractiveness to students and young professionals have ESG scores 25% higher than the global average, likely due to their strong environmental scores.
Eager prospective employees strengthen
a company’s talent pipeline and ensure the availability of crucial human capital.
ESG
outperformers
Top employers by employee satisfaction
Global average
employers
Global average
employers
Top employers by attractiveness to students and young professionals
How are
related to
specific esg issues
workforce sentiment?
2
ESG scores are calculated by aggregating a company’s performance on a range of environmental, social, and governance issues.
We dug deeper to analyze the relationship between specific ESG indicators and workforce sentiment.
Environmental
social
Governance
Carbon emission intensity
Effort in monitoring employee satisfaction
Board diversity
in the next decade...
3
ESG performance will become increasingly important to attracting and retaining talent as Millennials and Gen Z come to make up most of the global workforce.
In 10 years’ time
See more on this generational shift
Note: Analysis uses ILOSTAT data from Q4 2019. Generation definitions are from Pew Research Center
of the global workforce
Baby boomers
Gen X
Gen Z
Millennials
of the global workforce will consist of Millennials
and Gen Zs
2029
2019
Born 1946-64
Born 1965-80
Born 1981-96
Born 1997-2012
52%
72%
16%
These generations place greater importance on environmental and social concerns than their predecessors do – and will expect more from employers on these issues.
Young people see environmental and societal risks as
more impactful
than business and societal leaders do, according to the World Economic Forum’s Global Risks Report 2020.
Today’s young people are ushering in a new social contract, with:
