ESG (environmental, social and governance) implications for talent

Business, societal and environmental challenges are defining hiring strategy

ESG (environmental, social and governance) has become a priority in corporate strategy and a central part of business development. A present and intensifying climate crisis has triggered demand for skills that encourage a more circular economy. As employers look at ways to reduce their environmental impact, the right people and meeting of ESG objectives will require new ways of working, new roles and new skills.

MSCI’s ESG data shows that top employers, as measured by employee satisfaction and attractiveness to talent, have significantly higher ESG scores than their peers. Millennials and Gen Z, who place considerable importance on ESG priorities, are expected to comprise 72% of the global workforce by 2029. ESG performance will become ever more important in attracting and retaining talent, helping companies to improve employee satisfaction and to attract prospective employees. As the demand for talent increases, there will be a need to create and expand a diverse talent pool with appropriate training and experience to meet ESG objectives.

The Chartered Financial Analyst institute (CFA) surveyed over 15,000 current university students and new graduates from 15 markets. Nearly nine in 10 respondents said it was important for them to work in an industry that makes a positive societal and environmental contribution. The CFA stated “it is now incumbent on companies to adapt to the new realities, such as hybrid workplaces, in order to attract and retain the young talent we need to help lead us out of the pandemic.” Employers need to continually evaluate and refine their approach based on business drivers and the overall environment for talent. The CFA found that students had concerns about developing work-related skills during degree programs and after graduating. When approaching the complex job market, students and graduates see value in further education. Nearly 90% feel that upskilling and post-graduate qualifications are important in the current job market.

Achieving your ESG ambitions is only possible with the right people and new ways of working, new roles and new skills will require an responsive operating model. Taylor Osborne have partnered with our clients to provide a tailored combination of services and help the identify the talent that is needed to meet the impacts of our changing world. We can explore your existing talent and see where you might shift your workforce to fill the gaps and new requirements as they arise. We will work with you to recruit candidates at every level and upskill your current workforce. We will share all our data and intelligence with you to inform your current and future strategy.