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ESG is more than a buzzword for Reward

Updated: Feb 17

In recent years, Environmental, Social, and Governance (ESG) investing has become increasingly popular.

But what is ESG investing? And why is it gaining popularity?

ESG investing is an investment strategy that focuses on companies with strong ESG practices. This can include companies that are environmentally friendly, have strong social policies, and are well-governed. There are a number of reasons why ESG investing is gaining popularity.

First, more and more investors are becoming interested in socially responsible investing. Second, there is growing evidence that companies with strong ESG practices outperform their peers. And third, many institutional investors are now incorporating ESG factors into their investment decisions. If you're thinking about incorporating ESG factors into your investment strategy, there are a few things you should keep in mind.

Why is ESG important to employees?

There is a growing trend of employees who want to work for companies that value ESG factors. In fact, a recent study found that 87% of employees would like to work for a company that is committed to making a positive impact on society.

So why is ESG so important to employees? One of the main reasons is that employees want to work for companies that share their values. If a company is committed to making a positive impact on society, it shows that they care about more than just making money. This can be an attractive quality for employees who want to make a difference in the world.

Another reason why ESG is important to employees is that they want to work for companies that are sustainable and responsible. With the growing threat of climate change, more and more employees are looking for companies that take a wider view on societal issues and their own moral standing.

How can ESG be integrated into reward?

ESG criteria are playing an increasingly important role in investment decisions, as investors seek to align their portfolios with their values. This same focus on ESG can also be applied to employee reward programs.

ESG criteria can be integrated into Reward in a number of ways. For example, companies can reward employees for behaviours that are aligned with ESG goals, such as reducing energy consumption or increasing recycling. Alternatively, companies can invest in ESG-focused employee benefits, such as green transportation options or sustainable workplace catering.

By integrating ESG into employee reward programs, companies can send a strong message to their employees that they are committed to sustainable and responsible business practices. This, in turn, can help to engage and motivate employees, as they feel that their work is having a

positive impact on wider society.

The challenges of ESG-integrated reward

ESG-integrated reward is an important but challenging topic for companies. It is important because companies need to find ways to better align their employees' interests with the company's long-term strategy and objectives. It is challenging because it can be difficult to find the right balance between financial and non-financial reward.

ESG-integrated reward can take many forms, but some common examples include stock options, bonus programs, and long-term incentive programs. Each of these programs has its own set of advantages and disadvantages, so it is important for companies to carefully consider which type of program is best suited for their needs.

There are many challenges involved in implementing an ESG-integrated reward program, but if done correctly, it can be a powerful tool for aligning employees' interests with the company's long-term success.


ESG is a critical factor to consider in Reward strategies. By integrating ESG into Reward, businesses can better align their ESG strategies with their overall business agendas. This article provided an overview of how businesses can integrate ESG into Reward. If you would like to learn more about how your business can better align its ESG strategies with its Reward agendas, please give us a call or fill out the contact us form.

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