The Role of ESG in Building a Strong Employer Value Proposition

In today’s fiercely competitive job market, the role of ESG (Environmental, Social, and Governance) in building a strong employer value proposition is crucial for attracting top talent. 

Candidates are now sizing up companies by their ESG actions, checking how closely these align with their own values. Companies with standout ESG credentials not only boost their EVP (Employee Value Proposition) but also shine as top-choice workplaces. Millennials and Gen Z, in particular, are drawn to organisations making a real impact on society, tackling environmental issues, addressing the pay gap, and driving sustainable business practices.

Key Research Insights on ESG at Work

Our latest research, involving 2,188 engineering and tech professionals, highlights the rising significance of ESG in recruitment and retention:

• 35% of job seekers say a company’s ESG strategy is a major influence on their job hunt.
• Another 25% actively factor in ESG practices during decision-making.
• Equity, Diversity, and Inclusion (ED&I) tops ESG priorities for candidates, followed by environmental sustainability, renewable energy initiatives, and corporate philanthropy.
• Both contractors and permanent job seekers see ESG as vital, reflecting widespread demand for ethical workplace practices and progressive talent strategies.

Demographic Insights: How ESG Influences Job Seekers

Gender differences: ESG factors weigh heavily for women with 41% citing ED&I as key, compared to 23% of men.

Age variations: Younger job seekers (up to age 24) prioritise ED&I, with 33% marking it as crucial. This dips to 25% for those aged 44+, though views on environmental and social impacts remain steady across age groups.

Age-specific priorities: Professionals aged 24–35 often focus on Learning & Development, health and wellbeing, and workplace equity as part of their decision-making.

Enhancing Your Employer Value Proposition Through ESG

Integrating ESG into your EVP isn’t just a box-tick. It’s a proven way to attract high achievers and retain them. Here’s how HR leaders can align ESG with talent strategies:

1. Showcase ESG throughout the recruitment process

Make ESG efforts visible at every hiring step. From job ads to interviews, highlight how your values align with ESG principles and sustainable business goals.

2. Train hiring managers on ESG initiatives

Equip hiring managers to discuss the company’s ESG actions with confidence. This includes ED&I, renewable energy projects, environmental sustainability, corporate responsibility, and employee engagement opportunities like Employee Resource Groups (ERGs) and volunteering.

3. Tailor ESG messaging to different demographics

Diverse candidates have diverse priorities. Younger professionals might focus on diversity, equity, and climate impact, while experienced candidates may look for robust development programmes and evidence of closing the pay gap.

4. Highlight comprehensive ESG commitments

A strong ESG strategy demonstrates your dedication to ethical, responsible, and sustainable business. Key areas include:

• Reducing carbon footprints and investing in renewable energy
• Transparent, ethical business practices
• An inclusive work culture with diverse leadership
• Strategies for sustainable growth
• Ethical sourcing and sustainable supply chains
• Community involvement and corporate philanthropy

5. Regularly update ESG communications

As ESG norms evolve, keep messaging fresh. Sharing progress builds trust, while transparency about challenges strengthens loyalty.

Final Thoughts: The Strategic Importance of ESG at Work

For HR leaders, embedding ESG in your EVP is not optional — it’s essential. Meeting today’s workforce expectations on diversity, equity, and environmental responsibility attracts top talent and fosters loyalty, ultimately driving long-term success.

To stand out, communicate ESG initiatives that genuinely resonate with candidates’ values. Align ESG with your EVP to not only bring in the right people but to create a workplace driven by shared purpose and responsibility.

Lucy Pope, Head of Sustainability, states:

“Embedding ESG into your EVP is no longer optional but a fundamental duty. It’s our path to sustainable and inclusive growth.”

Find out more: Our latest resources here | Gattaca’s Sustainability Report | Our other services here