Businesses that have poor environmental credentials are struggling to attract top talent, according to a new report.
Research carried out by business services provider DWF found two in five businesses are failing to find staff due to their environmental, social and governance (ESG) policies being perceived as “weak”.
The fresh figures underline the growing importance workers are assigning to employers’ role in helping to tackle climate change and practice good corporate governance when considering their next career move.
Kirsty Rogers, Head of ESG at DWF, said: “The clear message from our survey is that companies not only understand the need to have a strategy for ESG, but that without one there are clear costs.”
Losing out on work
DWF also found 61 per cent of businesses are losing out on work as a result of poor ESG credentials, underlining the importance of firms taking ESG principles seriously in order to remain attractive business partners.
Issues with universal reporting standards for ESG credentials limiting the degree to which businesses can display how they are responding to climate change show little signs of persisting.
Nearly half of firms are limiting their ESG disclosures to those that they believe will not create any legal issues, DWF found.
“Following COP26, it is even more clear that companies have a huge role in driving the global transition,” Rogers concluded.