Companies are increasingly seeing sustainability as a critical factor in attracting and retaining talent, particularly among senior executives. A recent survey reveals that a significant portion of top-level professionals consider environmental, social, and governance (ESG) factors when making career decisions. In contrast, junior employees show less emphasis on ESG due to financial pressures and job security concerns. The findings suggest that sustainability is becoming an essential element in workplace culture, influencing both job choices and corporate strategies.
Past research has shown a growing emphasis on sustainability in corporate decision-making, but this survey highlights a shift in how employees across different levels perceive its role. While previous reports primarily focused on external pressures such as regulatory requirements and investor interest, this study underscores the internal workforce dynamics driving ESG prioritization. Senior executives, in particular, are showing a stronger inclination to align their careers with sustainability values, a trend not as pronounced in earlier assessments.
How Does ESG Influence Career Decisions?
According to the survey, 41% of senior executives consider an organization’s ESG commitments when applying for jobs, while more than 43% would accept a pay cut to work for an employer prioritizing sustainability. In contrast, only 24% of junior employees factor in ESG reputation, and just 18% would take lower pay for a sustainability-focused role. Economic concerns such as cost of living and job stability appear to be more pressing for junior employees, limiting their ability to prioritize ESG considerations in career moves.
What Are the Main Barriers to Workplace Sustainability?
Senior and junior employees view obstacles to workplace sustainability differently. For senior executives, commercial trade-offs are the primary challenge, cited by 27%, while nearly half of junior employees (47%) believe inadequate leadership engagement hinders sustainability efforts. Both groups rank unclear sustainability roadmaps and complex sustainability-related regulations among the top barriers. Despite these challenges, they share a common perspective on workplace priorities, emphasizing the need for employee education and training on sustainable practices.
The study also highlights differences in how employees perceive social impact within their organizations. Only 36% of junior employees feel confident that their company effectively protects workers’ rights in supply chains, compared to 45% of senior peers. Moreover, 56.5% of junior employees advocate for stricter policies against workplace harassment and discrimination, surpassing the 51.7% reported by senior executives. These findings indicate a stronger inclination among younger professionals toward social sustainability concerns.
Organizations are implementing sustainability initiatives focused on operational efficiencies, with 54% of employees reporting the adoption of energy-efficient systems and 52% indicating reduced resource consumption efforts. However, only 26% report sustainable supply chain strategies being prioritized. Looking ahead, the main drivers of sustainability efforts over the next few years are expected to shift, with efficiency and productivity cited as the top priority in the short term, while long-term focus is expected to shift toward sustainability innovation and brand reputation.
Companies are using various incentives to promote sustainability among employees, including training programs, environmentally friendly commuting options, and support for employee-led sustainability groups. However, only 7% of employees report that sustainability goals are integrated into performance evaluations. Economist Impact’s Head of Policy and Insights, Jonathan Birdwell, emphasized the need for greater employee engagement in sustainability efforts:
“Corporate sustainability cannot succeed as a top-down directive alone. While senior executives set ESG strategies, junior employees are closest to operational realities and often hold the insights needed for effective implementation. Companies that engage employees at all levels—by embedding sustainability into job performance, fostering collaboration, and creating opportunities for bottom-up initiatives—will be better positioned to drive meaningful, lasting change.”
The findings indicate that while senior executives are currently more engaged in sustainability-driven career decisions, junior employees are actively seeking sustainability-related skills and advocating for social responsibility within organizations. Companies aiming to strengthen their ESG commitments may need to bridge the gap between leadership strategies and employee participation. Addressing economic constraints, providing clear sustainability roadmaps, and incorporating ESG factors into job performance evaluations could enhance corporate sustainability efforts. As organizations refine their approaches, balancing top-down directives with bottom-up engagement may be essential for long-term success.
