The latest research from auditing firm KPMG shows that Environmental, Social and Governance (ESG) factors are influencing employment decisions for almost half of UK office workers, particularly millennials. The figures show the increasing impact of ESG on the perception of firms and their employer branding efforts.

KPMG UK surveyed around 6,000 UK adult office workers, students, apprentices and those who have left higher education in the past six months on their attitudes to work. Some 46% want the company they work for to demonstrate a commitment to ESG, while 20% have turned down a job offer when the company’s ESG commitments were not in line with their values.

Those aged 25-34 are the most likely (55%) to value ESG commitments from their employer, with 18-24 years olds (51%) and 35-44 year-olds (48%) not far behind. And when it comes to looking for a new role, one in five respondents (20%) said they had turned down a job because the company’s ESG commitments were not in line with their values, rising to one in three for 18–24-year-olds.

COP27 impact

Shared values are also a key consideration with 82% placing some importance on being able to link values and purpose with the organisation they work with.

“It is clear from recent COP27 discussions that, while some progress is being made, there is still a long way to go if we are going to limit global temperature rises to 1.5C. It is the younger generations that will see the greater impacts if we fail to reach this target, so it is unsurprising that this, and other interrelated ESG considerations, are front of mind for many when choosing who they will work for,” said John McCalla-Leacy, Head of ESG, KPMG UK.

“For businesses the direction of travel is clear. By 2025, 75% of the working population will be millennials, meaning they will need to have credible plans to address ESG if they want to continue to attract and retain this growing pool of talent.”

The environmental impact of their employer would influence 46% of respondents.

Living wage

Fair pay was also a concern for those surveyed, with 45% of 18-24-year-olds saying it would affect their choice and the same number saying they would research a company’s ESG credentials during the application process. Some 14% of 18-24-year-olds are actively seeking a job directly linked to ESG.