Companies and employees are increasingly aware of the importance of ESG. Research from Deloitte found that 27% of people would consider a company’s position on sustainability before accepting a job.
Businesses are rising to the challenge of greater governance, transparency, and accountability, driven by the last decade’s 155% increase in ESG regulation.
As ESG becomes an increasingly important issue to companies and employees, impactful and purpose-driven employee engagement is crucial.
Companies need to prioritise empowering employees and supporting their learning and development around key ESG issues through employee networks and reward programmes, and by embedding a culture of learning into everyday working life.
Read more: CSR vs ESG – a battle between FDs and HR?
Use collaboration to drive change
Creating internal networks for employees who have a shared passion for ESG-related issues can help create a forum for knowledge sharing and collaboration. Inviting diverse voices into company-wide discussions can help find effective solutions to relevant business challenges. Deloitte has found that empowering employees with an existing interest in environmental issues, for instance, can accelerate corporate sustainability plans.
Last year, Grundfos introduced ‘The Carbon Busters Network’ for employees who want to catalyse climate action. Around 700 of our employees have volunteered to join the network’s virtual meetings, sharing practical advice to drive climate action at work and at home.
This year, we broadened the reach with ‘Grundfos Sustainability Community’, engaging even more team members in webinars and training on the broader sustainability agenda inside and outside of our company. It is through networks such as this that employees develop a sense of belonging and feel empowered to participate in decisions that enact impactful change.
Align rewards with ESG goals
Everyone wants to feel valued and incentivised to contribute towards their company. By creating tailored programmes to nurture this, companies can significantly improve their sustainability strategies. Grundfos has integrated incentives related to both climate performance and employee motivation into remuneration schemes for executives, helping build a culture that champions action on ESG initiatives from the top down as well as the bottom up.
Sustainability performance should be treated with the same level of accountability as financial performance. Since 2017, executive and senior leadership bonus schemes at Grundfos have been linked to key sustainability ambitions. Other companies are beginning to recognise the effectiveness of these schemes. Shell, for instance, became the first major oil company to link executive renumeration to environmental performance in 2018.
These are all useful means of mobilising leaders in the business who are best equipped to keep employees engaged.
Embed ESG learning into company culture
In every company, training and development plays a crucial role in contributing towards employee growth and engagement. Fostering a culture in which learning is embedded ensures that employees are continuously motivated in their work for the company. Online learning platforms that provide information on a company’s approach to ESG can have a long-term impact on the growth of both the company and its employee.
Take Nordea, the largest financial services group in the Nordics, which recently launched a new modular sustainability training programme for its 30,000 employees. Its curriculum ensures that all staff understand Nordea’s positions on sustainability issues and equips them with the skills to support client shifts to sustainable business practices. Dedicated training programmes can show employees that their contributions are valued as part of the wider company and can lead to higher overall productivity.
Read more: HR's role in aligning a people and sustainability strategy
A call to action
As concern for these issues is only set to grow, companies need to take the time now to implement long-term employee engagement programmes that can create champions of ESG efforts throughout the structure of their business. As company leaders, we need to be proactive, invested, and motivated to bring our employees with us on this journey, to ensure a sustainable future for us all.
Louise Koch is group head of sustainability at Grundfos
