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Mismatch between employer ESG pledges and actions risks talent loss

by Benefits Expert
21/01/2025
low carbon, ESG, climate change, green pension
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Just over half (52 percent) of UK employees believe that their employer’s self-promotion is consistent with their actions around social, ethical, and environmental issues, research from Opinium has found.

The research agency found that 60 percent of senior decision-makers believe their business aligns with its self-promotion. But this belief is lower (58 percent) among middle managers and lower still (46 percent) among junior staff. More than one in 10 (12 percent) workers said their employer’s actions are inconsistent with its image.

Talent risk
Almost half of UK employees said they value environmental, social and governance (ESG) principles. This percentage is over half (54 percent) for employees aged 18 to 34. In fact, a third of employees, and 43 percent of younger workers, said they would think about leaving their job if their employer’s ESG values didn’t match their own.

However, just one in five employees said employers should give more attention to their ethical, social, and environmental impact. Younger workers were found to be most likely to feel this. Among employees aged 18 to 34 54 percent agreed with this sentiment, while this was true for 43 percent of people between the ages of 35 and 54, and only 34 percent of those over 55.

Opinium CEO James Endersby said: “Businesses of all sizes are facing challenges at the moment, whether it’s escalating costs and rising tax bills, pressure on performance or a drive for efficiency and automation. As a result, it appears that ESG matters have fallen down the priority list somewhat. 

“However, environmental, social and ethical principles are not just nice-to have initiatives – they are becoming essential to retaining and attracting talent, particularly among younger generations. With Gen Z set to make up a third of the global workforce by 2030, their demand for meaningful ESG action will shape the future of work.

“Our research shows that nearly half of workers aged 18–34 would be willing to leave their jobs if their employer’s ESG commitments do not align with their own values. This generation is vocal about their expectations for action, not just promises, and businesses that fail to meet these expectations risk not only losing talent but also damaging their reputation.”

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Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

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Return-to-office mandates are a topic that’s generating plenty of heat in the media, but how closely do the headlines match workplace reality? 

In this episode, one of a three-part series of 10-minute podcasts, hosts Claire Churchard and Steve Herbert discuss data that shows remote or home working is on the rise.

We look at what this means for HR, from balancing employee flexibility with business needs, to ensuring benefits packages remain fair and accessible. We discuss the pinch points, and the opportunities, in building the new normal of work.

Benefits Unboxed – Hybrid work: reality versus rhetoric
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