HR environmental, social and governance (ESG) considerations
Posted Tuesday 2nd May 2023
Employers in the UK are becoming increasingly aware of the importance of environmental, social, and governance (ESG) factors both externally in the business world to meet the expectations of investors and customers as well as internally, in respect of their employment practices to retain and attract the best talent.
Here are some key points that employers should be considering:
- The impact of ESG on your culture: ESG factors are closely tied to your company’s culture and values. Employers need to align their employment practices with their ESG goals and values, such as creating a diverse and inclusive workplace, promoting employee well-being, and minimising your environmental impact.
- ESG compliance is becoming mandatory: Many countries and jurisdictions are introducing regulations and guidelines related to ESG. Employers must ensure their business complies with these regulations and integrates ESG considerations into their HR policies and procedures.
- ESG impacts talent acquisition and retention: Job seekers and employees are increasingly seeking out companies that prioritise ESG considerations. Employers should take ESG into account in relation to their recruitment and retention strategies, such as highlighting their commitment to sustainability and diversity in job postings and offering training and development programs that promote ESG-related skills.
- ESG impacts reputational risk: Your company’s ESG performance can have a significant impact on your reputation, which can in turn affect the company’s ability to attract customers, investors, and employees. Effective communication strategies, responding proactively to stakeholder concerns, and conducting regular ESG-related audits and assessments can help to mitigate reputational risks relating to ESG.
By ensuring the business is acting in line with the company’s ESG goals, it can help your business to attract and retain top talent, comply with regulations, minimise reputational risks and increase the overall performance of your business.
If you require any guidance or have a query on how to implement your ESG goals through HR policies, please do get in touch with a member of the Joelson employment team. To learn about Joelson’s ESG journey, please click here and here for information.
This article was written by Reema Jethwa, Senior Associate at Joelson
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.