On the other hand, candidates are evaluating multiple job offers and for them the prospective employer’s commitment to climate change, environmental protection, or reduction of carbon footprint is becoming increasingly important, in addition to providing an inclusive workplace.
Additionally, they consider the company's sustainability reporting and disclosures, track record in implementing ESG policies and how they measure their progress toward sustainability.
ESG as a norm for recruitment
ESG is a holistic approach to sustainable and responsible business practices that encompasses environmental, social, and governance factors. Companies that prioritize ESG recognize their broader impact on society beyond the bottom line. Environmental factors focus on reducing a company's carbon footprint and promoting sustainability, social factors address inclusivity and diversity, and governance factors ensure transparency and ethical behavior. In practice, ESG involves creating policies aligned with these principles and measuring and reporting on progress toward sustainability. This approach can lead to long-term business success, increased stakeholder trust and a positive impact on society and the environment.
Diversity, Equity and Inclusion form the “S” in ESG. Besides it increasingly having an importance in executive search methodology, it features as high priority for candidates who prioritize social responsibility over financial gain. Candidates are seeking for companies where their voice counts, where they are valued and they feel a strong sense of belonging. Therefore, ESG and DEI are likely to continue to influence executive search, particularly as companies recognize their importance in attracting top talent and promoting long-term success.