I was talking to a partner in a Big 4 firm who said a key driver of their sustainability strategy is talent. They’re a people-based business and their success depends on attracting and retaining the best people. “There’s a war on talent” they said.

You don’t have to be the Big 4, this applies to any professional services business. To be competitive, you need great people working for you. And all the evidence suggests that your sustainability actions will be an increasingly important way of attracting, engaging and retaining them.

The data

You may be hearing anecdotal evidence to support this.  You may even be seeing the impact in your business. And several large, credible surveys provide the data to back this up.

For example, the 2022 Edelman Trust Barometer found that across 27 countries surveyed (including UK):

• 60% of global employees surveyed agreed that they “choose a place to work based on their beliefs and values”.
• 60% of people said that “when considering a job, I expect the CEO to speak publicly about controversial social and political issues that I care about”.
• 68% of people said that they “expect CEOs to inform and shape conversations and policy debates about global warming and climate change”.
• 52% of people said that businesses aren’t doing enough to address climate change.

A 2023 KPMG survey of UK workers paints a similar picture:

• 46% said they want their employer to “demonstrate a commitment to ESG”.
• 20% report turning down a job because “the company’s ESG commitments were not in line with their values”.
• 9% are looking for an ESG-related role, with this figure increasing to 14% among 18–24-year-olds.

What’s clear is that many people expect businesses to be tackling climate change … and that they are looking at what a business is doing when choosing whether or not to work there.

The changing workforce

Those figures are for now. But the make-up of our workforce is changing and this will only make the issue more pronounced.

Millennials and Gen Z are making up an increasing proportion of the workforce – by 2029 it is forecast to be 72%.  And they are more demanding of their employers when it comes to operating in a socially and environmentally responsible way. If you want them to choose to work for you then you definitely need to have a clear sustainability plan. And you must be acting on it.

Deloitte’s 2024 Millennial and Gen Z survey found that 48% of millennials and 54% of Gen Zs report “putting pressure on their employers to take action on climate change”. They are looking to drive change within the businesses where they work.

In a study carried out by Marsh McLennan“companies with the most attractive image to students and young professionals have ESG scores 25 percent higher than the global average employers”.

Actions speak louder than words

What employees and prospective employees are looking for is action. They want to see that your bold words around sustainability (e.g. your Net Zero pledge) are backed up by a plan, targets and progress. They’ll be checking that what you do is consistent with what you say.

You might want to think about how sustainability is embedded into your organisational strategy and operational activities such as:

• Your performance management approach, including how you reward senior leaders;
• Internal and external communications;
• Your procurement process;
• Your investment approach and corporate pension scheme; and
• Decision making processes and metrics.

The boldest businesses that have ambitious targets and are turning their plans into action will attract the best people. You need to be walking the walk, not just talking the talk.

Your sustainability roadmap

Employees increasingly want to work for businesses that have strong sustainability credentials. What would you say if someone asked you what you’re doing to make progress against your targets and plans during the interview process?

If you don’t have a strong enough answer, I’d recommend you start by creating your sustainability roadmap. This will help you get clear on your priorities and the steps you need to take to deliver lasting change within your business. This is where Keartland & Co can help, supporting businesses as they move from sustainability commitments and plans into action that makes a meaningful difference – get in touch if you’d like to find out more.