Ways To Highlight ESG Strategy To Boost Employer Branding

The severity and frequency of extreme weather events have increased dramatically in the last few decades around the globe. Ordinary citizens are increasingly concerned about rising pollution levels, increasing inequality, and persistence of various forms of discrimination. In this context, meaningful investment towards ESG goals is indispensable for any organisation seeking to attract and retain top talent.

In this article, we focus on the significance of ESG goals for employers and explain how you can highlight your ESG strategy to boost your employer brand.

What Are ESG Goals – A Short Primer

ESG is an acronym for Environmental, Social, and Governance goals. Historically speaking, it was a framework that gradually evolved to help investors to put pressure on organisations to look beyond the bottom line at the impact their activities have on the environment, the society, and other stakeholders.

With the growing recognition of the importance of sustainable and responsible business practices, many organisations have adopted the ESG framework in setting corporate strategies. Let us have a quick look at the major components of ESG goals:

Environmental Goals

This component focuses on the organisation’s impact on the environment, widely acknowledged as a decisive factor for the future of recruiting. Important environmental goals include climate change, energy efficiency, waste management, pollution, recycling, and resource management.

Social Goals

The wider society in ESG framework refers to the customers, suppliers, employees, and vendors of a business, along with the local communities in which the organisation operates. Social goals can include diversity and inclusion, human rights, and labour rights.

Governance Goals

Governance refers to the various systems and processes through which an organisation is controlled. Important aspects include board structure, business ethics, corporate governance, and executive compensation.

Importance Of ESG In Attracting And Retaining Talent In India

According to the Global Climate Risk Index, India is among the top 10 countries that are most vulnerable to climate change threats. And 39 of the world’s 50 most polluted cities are in India, and the country as a whole ranked number eighth.

According to a 2022 report on the Asia Pacific region by Bain & Company, 43 percent of Indian consumers considered sustainability as a top 5 priority and 60 percent are willing to pay a premium for sustainable products. Even more pertinent for employers is the attitude of employees. Across the Asia-Pacific, 75 percent of employees expect their companies to follow sustainable business practices. 

Numerous surveys of Millennial and Gen-Z jobseekers have confirmed this trend over the last few years. According to a Fortune India report, robust sustainability and climate practices is a decisive factor for younger generations in joining a company. Diversity and equity are also important, with almost 70 percent saying they are more likely to apply for jobs in companies that promote DEI strategies.

Your organisation’s ESG performance can also impact employee productivity and satisfaction levels, according to McKinsey reports. Poor track record in ESG parameters often translates into low employee morale, high attrition, low productivity, and in worst case scenarios, strikes and shutdowns.

Insights from the current state of ESG hiring in India

Employers in India are waking up to the changes in the job market. According to Indeed statistics reported by the Economic Times, jobs related to the ESG sector have grown a whopping 223 percent in the country since 2019. 

This is indicative of a massive shift towards ESG strategies among major employers in India. As more and more consumers and jobseekers start to prioritise sustainability and other ESG goals, organisations are also following suit.

On the other side of the equation, job searches for roles related to sustainability have also increased by 31 percent between 2022 and 2023, with an average increase of 13 percent recorded since 2020. It is quite clear that more employees are seeking positions where they can make an impact on sustainability, DEI, and other parameters.

With the Indian job market facing an ever widening talent gap, particularly in high-level and specialist tech roles, the implications for employers are quite stark – you simply cannot afford to ignore ESG goals if you want to improve your employer branding and attract top talent in India.

How To Highlight Your ESG Strategy To Improve Your Employer Brand

Incorporating ESG goals into your employer branding is a long-term project that requires considerable preparation, planning, and effort. Here are several strategies to effectively highlight your ESG initiatives and enhance your employer brand:

Focus on developing clearly defined goals

There are numerous parameters and actionable goals under the ESG framework. Focusing on too many can lead to lack of clarity and state of confusion, while not focusing on any can lead to accusations of lack of firm commitment. McKinsey suggests focusing on a maximum of five goals that are closely aligned to your organisation’s core business and capabilities.

Set specific targets and use hard metrics

Try to set clear, actionable targets with strict metrics instead of making vague claims about “promoting diversity” or “investing in sustainability.” Having clear goals makes it easier to get the support and participation of your employees and managers. Consultations with both internal and external stakeholders can be useful in setting these targets and metrics.

Integrate your ESG activities into corporate branding

You may have to revamp some aspects of your branding to include ESG initiatives. This can include adding ESG goals to your mission statement, corporate values, and workplace culture. For maximum impact, it is essential to put ESG as a significant aspect of your corporate identity.

Create and post authentic ESG content

Highlight your ESG activities and achievements on your website and social media handles for maximum impact. Blog posts, videos, articles, and other interactive content can be used to tell stories related to your sustainability initiatives, DEI efforts, and community outreach programmes.

Make ESG a part of your recruitment process

To attract new talent, consider adding aspects of your ESG commitments and goals to the recruitment process, starting with the job postings. Further, train your recruiters to include and emphasise these values during interviews, and in the onboarding experience for selected candidates.

Collect feedback from employees

Your employees are essential stakeholders and ambassadors of your ESG goals. To accurately gauge the impact of your ESG strategy in talent retention, collect regular feedback from your employees. Use surveys and other metrics to measure the actual value generated and find ways to improve your ESG strategies.

Final Thoughts

Business organisations exist as an extension of the wider economy and society. They have to evolve with the changing norms and priorities of critical stakeholders like consumers and employees/jobseekers. Our recent experiences make it quite clear that ESG goals are important for the continued sustainability of modern human life on earth. As an employer/recruitment manager, you can no longer afford to ignore these goals if you want to maintain a viable employer branding and continue attracting talent to your organisation.