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WHY IS SUSTAINABILITY IMPORTANT IN BUSINESS? INSIGHTS FOR 2023



Last year, 93% of all employers in the world were looking to carry out some form
of hiring. This underlines what a tough job recruitment can be. Businesses have
to compete with one another in a crowded market to secure the best and
brightest.  

Today’s top talent cares deeply about sustainability - whether it relates to
environmental or social matters. Statistics show that companies without
compelling sustainability initiatives are less appealing to candidates. And if
you want proof of this reduced appeal, the (enter brand) Sustainability Insights
study can provide plenty of evidence.  

Conducted between May and June 2022, Michael Page surveyed 4,755 workers and
jobseekers across continental Europe to discover their thoughts not only on the
UN’s 17 Sustainable Development Goals (SDGs) and the impact they are having on
the job market but also, and especially, the respondents’ own job searches and
the impact sustainability has on them.  

Across Michael Page, a vast majority of respondents stated that they care enough
about sustainability to have already changed their behaviour as a result. A huge
potential workforce is already out there that is keen to work for a company that
shares its values. These employees are ready to be hired by a company that
demonstrates it cares about sustainability as much as they do.  

Sustainability is no longer simply something that is “nice to have.” It is
essential for protecting the planet, tackling inequality and improving the
quality of our lives - both now and in years to come. It is also key to
attracting the workers that will help you fulfil your strategic goals. The
future of sustainability in the workplace has arrived. Are you ready for it? 


WHY IS A SUSTAINABLE BUSINESS STRATEGY IMPORTANT?  

Sustainability is being championed everywhere you look. But it’s not a buzzword.
An overwhelming 90% of business leaders think sustainability is important.
Workers agree. According to our Michael Page Sustainability Insights, two out of
three workers say that sustainability is important when applying for a job. Four
out of 10 admit that their decision to join a company would be influenced if it
had no sustainability programme at all. 



It’s important to note, however, that creating a sustainable future means doing
more than just taking care of the environment. While many of the UN’s SDGs have
an environmental focus, others set their targets elsewhere. SDG 5, for example,
aims to “achieve gender equality and empower all women and girls.” SDG 1 is
committed to ending poverty in all its forms everywhere. Many of the SDGs
recognise that sustainability is a broad term - one that encompasses different
overlapping aspects of environmental, social, and governance (ESG) criteria.  

Regarding the social aspect, for instance, one in three European workers say
that “health and wellbeing” is the sustainability topic that they care most
about. Other important issues highlighted by the (enter brand) Sustainability
Insights include the provision of decent work and economic growth, as well as
good quality access to education. To be truly sustainable, businesses must
consider all aspects that fall under the ESG banner. 



Making yourself attractive to “socially sustainable” candidates is essential if
companies want to come out on top when competing for talent. A socially
sustainable candidate is one that is keen to identify and manage business
impacts, both positive and negative, on people. As such, topics like diversity,
inequality and labour rights are hugely important to them.  

Notably, the kinds of initiatives that are important to these candidates can
vary by demographic, including the job role, industry, location, and age. In
fact, 86% of young people prefer to support or work for organisations that care
about the same issues they do, with 30% having left a business due to its lack
of a corporate sustainability agenda. 

Making decisions on the exact makeup of a company’s sustainability agenda should
ideally involve all stakeholders, covering environmental and social issues. For
example, diversity and inclusion are paramount for many candidates, especially
Gen-Z workers, where 83% listed it as being important when choosing an
employer.  

Candidates may be asking to work for more socially sustainable employers but
such a request is mutually beneficial. McKinsey & Company found that
organisations with more ethnically and culturally diverse leadership teams were
more likely to outperform their peers. A recent BlackRock report into the
financial performance of companies similarly showed that organisations with a
better ESG record outdid their contemporaries. This performance boost will
likely then be noticed by candidates, increasing a company’s appeal further. In
fact, sustainability can improve recruitment in several ways. 


SUSTAINABLE RECRUITMENT 

For all the talk of the important role that sustainability can play within
recruitment, evidence suggests that many companies still have work to do in this
area. In reply to our survey, about four in 10 (37%) of all respondents agreed
that their company was “doing enough in the sustainability space”, while three
in 10 (28%) disagreed. This is something of a mixed response, suggesting that
many sustainability initiatives could certainly be strengthened. 



Some good news: 70% of survey respondents from higher job roles (C-suite,
Director, or Manager) agreed that sustainability commitments are important - a
higher figure than among non-managerial workers. Clearly, sustainability
initiatives have support from the highest level.  

Improving your sustainability credentials - and reaping the associated benefits
for your recruitment drive - is within your grasp. Writing better job postings
that clearly and simply state how your sustainability initiatives run throughout
the company is a good starting point. Plus, make sure your job ad is inspiring.
Your candidates are passionate about sustainability, so make sure you are too! 

Also, communicate your values using the LinkedIn “commitments” tab, such as
“environmental sustainability,” to supercharge your Green Recruitment strategy.
In fact, make sure you display your values prominently across all the
appropriate channels. For example, we have a Social Impact job category for
roles that a strong ESG focus. When you shout about the positive impact your
work can have, you can attract a wider, more diverse talent pool. 

With over half (51%) of European workers reporting that they faced workplace
discrimination once or more in the past 12 months, clearly many businesses still
have work to do in creating the sort of diverse environment that appeals to
candidates. More than two-thirds (69%) of respondents to our survey told us that
being a part of a company that practises diversity and inclusion is important to
them. Evidently, prioritising social sustainability is important to workers. 

Adopting a skills-first approach is another way of prioritising sustainable
recruitment. Previously, most organisations sourced talent by posting job ads
that focused on specific prior experience. In conversation with the World
Economic Forum, LinkedIn’s co-founder Allen Blue, recommends focusing on skills
instead. This could create more opportunities for candidates from
non-traditional educational backgrounds, making workplaces more inclusive and
diverse. Given that it’s predicted half of all employees worldwide will need to
learn new skills by 2050, skills-focused recruitment can be a great way for
businesses to future-proof their hiring programme - ensuring it can be sustained
for the long term.  


HOW TO ENHANCE YOUR SUSTAINABILITY AGENDA 

More and more companies from around the world are focusing on sustainability.
Some well-known businesses that are making a real difference in this area
include: 

 * Unilever - Multinational consumer goods firm, Unilever, publicises Unilever
   Compass, its sustainable business strategy, to highlight the work it does
   around topics like raising living standards, equity, diversity and inclusion
   and a waste-free world. 
 * IBM - An early proponent of sustainability, today IBM works to reduce
   resource demand and procure from green sources to deliver a holistic
   sustainability agenda. The company ensures its ESG goals lead to genuine
   impact. 
 * Air Liquide - Air Liquide prioritises environmental and societal actions to
   help further the UN’s SDGs. This includes its work on the creation of a
   low-carbon hydrogen economy and in improving healthcare outcomes. 
 * Nike - Nike’s Move to Zero initiative is all about creating a better future
   for all of us. It involves a focus on zero carbon and zero waste. The
   sportswear giant uses recycled materials where possible and also educates its
   customers on how they can extend the life of their purchases. 
 * IKEA - Multinational furniture company IKEA has several sustainability
   ambitions, including using its scale to enhance global forest management. The
   company also works hard to create products and services that support people
   in making positive lifestyle changes and consuming in more circular ways. 
 * AXA - AXA’s 2023-26 sustainability strategy, titled “Roots of Resilience,”
   focuses on establishing a clear outline of the company’s impact on nature,
   supporting green businesses, and advancing its sustainability reporting. The
   company also supports the communities in which it operates through its “Hears
   in Action” scheme. 

Taking inspiration from some of the businesses listed above, there are many ways
that companies can improve their sustainability credentials. Start out by
creating clear goals. Outline your current challenges, whether they are around
company culture or resource waste and assess how you can resolve them. Then,
create a sustainability strategy using input from all stakeholders - managers,
employees, and customers. And don’t forget to track the results of your
sustainability strategy - that’s the only way of identifying improvements. 


WHY SUSTAINABILITY IS KEY TO BUSINESS SUCCESS 

At Michael Page, we can help businesses from a broad spectrum of industries to
enhance their recruitment by closely incorporating sustainability. With our
expert advice, we will present your company as one that job candidates can be
proud to work for - one that cares deeply about people and planet - while making
sure all legal requirements are met. We will ensure no biases exist within the
hiring process so you can find the right talent for your needs. 


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