ESG
as a workforce
strategy
Part I: Overview and Results
ESG as a Workforce Strategy
© Marsh & McLennan Companies
2
SUMMARY
Environmental, social, and governance (ESG) issues are no longer treated as an afterthought by


set of internal stakeholders: its 

the importance of attracting and engaging young employees – 
 Global Talent Trends 2020 found that 46 percent



The ESG as a Workforce Strategy



• Employers with highly satised employees score higher on ESG performance (14 percent


• Employers with an attractive image among young talent have better ESG performance


• Compared to their peers, top employers (as measured by employee satisfaction and
attractiveness to young talent) tend to:
– 
– 
– 
• ESG performance will become increasingly important to attracting and retaining talent


• As a workforce strategy, ESG performance has become a competitive advantage – both

ESG as a Workforce Strategy
© Marsh & McLennan Companies
3
CONTENTS


Characteristics of ESG
The rise of ESG




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ESG as a Workforce Strategy
© Marsh & McLennan Companies
4
The results of the ESG as a Workforce Strategy
study are illustrated on our ,


 analyses
in an interactive manner and access links


by providing more detailed information on the

methodological 
https://
ESG as a Workforce Strategy
© Marsh & McLennan Companies
5
OVERVIEW:
THE ESG LANDSCAPE
CHARACTERISTICS OF ESG
Environmental, social, and governance (ESG) 


Environmental




Social 



Governance

 
THE RISE OF ESG

 stakeholders:
• Institutional investors like 

• Lenders 

linked loans amounted to
• Regulators

• Credit-rating agencies are racing
• Consumers64 percent of them choosing,

But how important is ESG performance to the modern corporation’s key asset – its people?
ESG as a Workforce Strategy
© Marsh & McLennan Companies
6
RESULTS:
ESG PERFORMANCE AND
WORKFORCE SENTIMENT



the global average  



higher ESG scores of top employers are driven by superior environmental 
 
to produce better results for the 
Global average employers
Top employers by attractiveness to students and young professionals
Overall ESG Scores
4.9
6.1
Environmental Scores
6.1
5.2
Social Scores
4.5
4.6
Governance Scores
4.9
5.0
+25%
+17%
Exhibit 1: Average ESG and pillar scores of top employers by employee satisfaction and
average employers
0-10 scale, 2019
Source: MSCI, Marsh & McLennan Advantage Insights analysis
Exhibit 2: Average ESG and pillar scores of top employers among young talent and
average employers
0-10 scale, 2019
Global average employers
Source: MSCI, Marsh & McLennan Advantage Insights analysis
Top employers by employee satisfaction
Overall ESG Scores
4.9
5.6
Environmental Scores
6.5
5.2
Social Scores
4.7
4.6
Governance Scores
5.4
5.0
+14%
+25%
ESG as a Workforce Strategy
© Marsh & McLennan Companies
7
young talent


25 percent higher than the global average employers  




suggests that higher ESG scores are driven to a great degree by superior environmental 

availability of human 

 
Exhibit 2: Average ESG and pillar scores of top employers among young talent and
average employers
0-10 scale, 2019
Global average employers
Source: MSCI, Marsh & McLennan Advantage Insights analysis
Top employers by employee satisfaction
Overall ESG Scores
4.9
5.6
Environmental Scores
6.5
5.2
Social Scores
4.7
4.6
Governance Scores
5.4
5.0
+14%
+25%
Global average employers
Top employers by attractiveness to students and young professionals
Overall ESG Scores
4.9
6.1
Environmental Scores
6.1
5.2
Social Scores
4.5
4.6
Governance Scores
4.9
5.0
+25%
+17%
Exhibit 1: Average ESG and pillar scores of top employers by employee satisfaction and
average employers
0-10 scale, 2019
Source: MSCI, Marsh & McLennan Advantage Insights analysis
ESG as a Workforce Strategy
© Marsh & McLennan Companies
8


carbon emissions than their peers

intensity –  – across all three employer groups
1


 
 
apply across both high-emission
2

3

 the most attractive companies to young

 
1 The employer groups used in this study can be found in the methodological appendix of this report
2 High-emission sectors have a carbon emission intensity above the global average. These include the energy, materials, and
utilities sectors.
3 Low-emission sectors consist of sectors whose carbon emission intensity is below the global average. These include industrials,
real estate, consumer staples, information technology, telecommunication services, consumer discretionary, healthcare, and
nancials.
High-emission sectors Low-emission sectors
Exhibit 3: Average employer carbon emission intensity
Metric tons per USD million sales, 2019
Top employers by
attractiveness to students
and young professionals
Top employers
by employee satisfaction
Global average employers
393
299
- 24%
- 49%
Source: MSCI, Marsh & McLennan Advantage Insights analysis
53
27
39
High-emission sectors Low-emission sectors
Exhibit 3: Average employer carbon emission intensity
Metric tons per USD million sales, 2019
Top employers by
attractiveness to students
and young professionals
Top employers
by employee satisfaction
Global average employers
393
299
- 24%
- 49%
Source: MSCI, Marsh & McLennan Advantage Insights analysis
53
27
39
High-emission sectors Low-emission sectors
Exhibit 3: Average employer carbon emission intensity
Metric tons per USD million sales, 2019
Top employers by
attractiveness to students
and young professionals
Top employers
by employee satisfaction
Global average employers
393
299
- 24%
- 49%
Source: MSCI, Marsh & McLennan Advantage Insights analysis
53
27
39
1 The employer groups used in tthis study can be found in the Part II: Methodology Document of this study
2 High-emission sectors have a carbon emission intensity above the global average. These include the energy, materials, and
utilities sectors.
3 Low-emission sectors consist of sectors whose carbon emission intensity is below the global average. These include industrials, real
estate, consumer staples, information technology, telecommunication services, consumer discretionary, healthcare, and nancials
.
ESG as a Workforce Strategy
© Marsh & McLennan Companies
9

satisfaction and attractiveness to young talent make





set employee engagement targets and regularly report on progress against these 

 

higher than the global 
Global average
employers
5.0
Top employers
by employee
satisfaction
6.3
+26%
Top employers by
attractiveness to
students and young
professionals
7.5
+50%
Exhibit 4: Average employer effort in understanding employee sentiment
0-10 scale, 2019
Source: MSCI, Marsh & McLennan Advantage Insights analysis
ESG as a Workforce Strategy
© Marsh & McLennan Companies
10

satisfaction and attractiveness to young talent tend to






 
Exhibit 5: Average Proportion Of Female Board Members
2019
50%
Global average employers
Top employers by employee satisfaction
Top employers by attractiveness to
students and young professionals
19%
29%
31%
Source: MSCI, Marsh & McLennan Advantage Insights analysis
ESG as a Workforce Strategy
© Marsh & McLennan Companies
11
CONCLUSION
The trends are clear: companies that best satisfy and attract talent rate higher in ESG performance
 



4
These generations place even greater importance on
environmental and social concerns than their predecessors
5
– 


 
1 The employer groups used in tthis study can be found in the methodological appendix of this report
2 High-emission sectors have a carbon emission intensity above the global average.
These include the energy, materials, and utilities sectors.
3 Low-emission sectors consist of sectors whose carbon emission intensity is below the global average. These include industrials, real
estate, consumer staples, information technology, telecommunication services, consumer discretionary, healthcare, and nancials.
4 Analysis uses ILOSTAT data from Q4 2019. Generation denitions are from Pew Research Center.
5 The Global Shapers Risk Landscape 2020” in The Global Risks Report 2020.

ESG as a Workforce Strategy please visit our 

Lingjun Jiang
,


Angela Ferguson
,


Jaclyn Yeo
,


Rob Bailey
,



MSCI Inc.:


Mercer:

Marsh & McLennan Advantage:



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