Staff at firms with strong ESG policies are more likely to be satisfied with their jobs and boost bottom lines.
A study by management consultants Bain & Company and EcoVadis, Do ESG Efforts Create Value?, looked at how 100,000 companies across the world handle environmental, social and governance (ESG) issues. It found that, between 2019 and 2021, businesses with the most satisfied employees had revenue growth of up to 6% more than those with the least happy staff in their sectors. The average net income margin at companies with the least satisfied employees was 10%; those with the happiest staff saw this increase to 16%.
Staff at firms with strong ESG policies are more likely to have fair pay and a safe work environment as well as benefits such as childcare, healthcare, networking and upskilling, the study shows.
It also found that companies with the highest proportion of women on their executive teams grew twice as quickly between 2019 and 2021 as those with the lowest share.