As the climate emergency and other pressing social issues get worse, many of us are feeling helpless and it’s affecting our mental health. It’s no surprise that people are beginning to hold their employers accountable for their impact on the planet.
‘ESG’ isn’t just a buzz word - it really is important that companies have a strategy in place to make the best possible impact on environmental and social issues.
Some insightful new data from Bupa proves that every business should be making their ESG proposition a major priority if they haven’t already:
64% of those surveyed said it’s important that employers act on environmental issues, with lack of action affecting the mental wellbeing of two in five (43%). That’s a huge percentage.
1/3 would turn down roles in companies with poor ESG credentials. 😱
Why you should be concerned about Gen Zs
By 2025, millennials are set to make up 3/4s of the workforce. While Gen Z is the demographic cohort that succeeds millennials, it won’t be long until they make up the majority of your organisation.
The burden of the climate emergency falls on younger generations. It’s their job to clean up the mess made by the generations before them, and it’s taking a toll on their wellbeing. The new research by Bupa shows that they’re more anxious about climate and social issues than any other generation.
63% of Gen Z feel the burden of climate change on their shoulders versus just 37% of Gen X and 28% of Boomers.
63% of Generation Z are anxious about social justice issues like racism and homophobia, compared to 52% of Gen X and 43% of Baby Boomers.
Unsurprisingly, 60% of Gen Z respondents said they expected their anxiety to get worse in the future (versus only 46% of Generation X and 40% of Baby Boomers)
But ESG doesn’t just provide benefits to Generation Z
While 6/10 Gen Zs (59%) said they would stay longer with a company that had ESG commitments (as well as recommend it as a good place to work), 52% of people overall said the same thing. As well as this, around half (51%) of people of all ages said they would be more engaged with their organisation overall, 53% said they’d be more satisfied in their jobs and 47% said they’d be more productive.
Ripples of Impact is the new Return on Investment
More and more, employees are turning down cash in favour of impact. Of those surveyed by Bupa, more than half (54%) would take a pay cut to work for a business that reflects their ethics, on average sacrificing more than a quarter (27%) of their salary.
But it turns out there’s actually growing recognition that issues concerning a business’s environmental and social impact have financial effects over time, impacting the company’s long-term success. This stuff is hard to report on, but there are resources out there, and it’s definitely worth doing…
63% of >2000 studies found positive results on the impact of ESG propositions on equity returns.
Global sustainable investment now tops $30 trillion - up 68% since 2014 and tenfold since 2004.
One of the key ways that ESG relates to value creation is increasing employee productivity.
Having a wellbeing programme that incorporates ‘giving back’ to the local community makes for happier employees. And a happier workforce is a more productive workforce.
Randomly selected employees at one Australian bank who received bonuses in the form of company payments to local charities reported greater and more immediate job satisfaction than their colleagues who weren’t selected for the donation program.
We don’t need to tell you how important mental wellbeing is for your business.
In case you forgot, Deloitte says it costs UK employers up to £45 billion a year.
The London Business School’s Alex Edmans found that the companies that made Fortune’s “100 Best Companies to Work For” list generated 2.3% to 3.8% higher stock returns per year than other companies over a >25-year period.
It pays to engage your gang in environmental and social good.
ESG reporting helps organisations show their prospective and current customers, employees, and investors that they’re up to par on the things that matter.
But reporting is just the tip of the iceberg. According to Ricardo, a solid action plan for sustainability generally works better than a strategy that is 90% background and policy. Getting your team involved in real-life action, where they can see the difference they’re making, is going to have a greater impact on their wellbeing, and the planet.
“Designing sustainability projects with a series of challenging targets, supported by a strong plan, can motivate teams to achieve sustainability goals, and enable the wider employee base to contribute towards success.”
Where should you begin?
No matter what you do, you already have an impact on the planet. So you might as well take some steps to make it as positive as possible!
Start by looking at what you’re doing now. Ask yourself questions, and provide honest answers, about what your business’s sustainability goals are.
Are you taking any real-life actions in the environmental or social spaces? If not, how do you want to implement them? What concerns do your employees have about the climate emergency and other social issues?
Bupa has created a really handy infographic that you can use to help you along your ESG journey:
For info on how OnHand can help you manage eco-anxiety, encourage healthy habits, and facilitate action on eco and community issues in your workplace, chat to our team.