3 letters which have a huge impact on companies…

ESG, have you heard of it?

  • Environmental
  • Social
  • Governance

ESG is a framework which helps stakeholders manage risks and opportunities relating to Environmental, Social, and Governance Criteria. It’s helping change how investment decisions are made.

It’s crucial companies adapt to new lengths to attract the new generation of talent. 

A recent Bupa survey stated 1 in 3 Gen Zs would turn down a role if the company had poor ESG credentials, and over half would be willing to take a pay cut to work for a company that reflects their ethics.

Let’s delve a little deeper…


The environmental criteria refer to a company’s environmental impacts and risk management. This could be in reference to their greenhouse gas emissions, whether direct or indirect, and their resiliency against climate risks.

It’s also related to how well a company performs against key environmental issues such as pollution and deforestation.


This relates to the company’s relationships with stakeholders, which may be monitored using human capital management metrics, i.e. fair wages. The social segment encourages team diversity, good working conditions, and measures the impact on the local community.


Governance entails how a company is led and managed – it’s tax strategy, board diversity, and structure.

ESG is becoming an important framework particularly when it comes to investment as it can visualise sustainable business growth.

Being ESG can give you competitive advantage as people look to have a greater positive impact on the planet and work in more diverse teams.

Here at Engage, we believe this is driving the industry forward, and it’s important for all companies to think about ESG moving forward.

To read why ESG is important for your business, click here

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