Per this article in FEI, CFOs are giving more attention to the Social component of ESG because:
As to investors:
- There is a 71% increase, since 2018, in surveyed investors reporting the Social component of ESG as “important/critical” to their investment thesis.
- There is an 88% increase, since 2019, in surveyed investors reporting Social as “very important” to their long term success.
As to retaining existing employees:
- Roughly 50% of all employees say they will leave their current job if they can find a company that aligns with their environmental and social views.
- Given the cost of replacing employees is roughly 6-9 months of that position’s pay, not including intangibles like team bonding and workflow, keeping existing employees happy is a key objective.
As to finding new employees:
- Given that prospects want to work for companies that align with their views, having a robust ESG program helps a company attract top talent.
- Incorporating both environmental and social components accomplishes this.
As to stimulating the employees you have:
- Engaged employees contribute more significantly and companies that have robust ESG programs have more engaged employees.
- Again, to accomplish this, incorporating both environmental and social aspects is key.
If you are a small to mid-sized enterprise, let Edenark Group help you develop your ESG program and get your S to be Super.