From obligation to motivation: why employee engagement is the key to ESG success

In the ever-evolving landscape of environmental, social and governance (ESG) strategies, organizations face a myriad of challenges – not because of a lack of ambition, but rather a disconnect with their own workforce. Our recent LinkedIn poll reveals a compelling insight: Nearly half of the participating companies (over 200 respondents) cite a lack of employee engagement as their primary obstacle to achieving sustainability goals. Despite having clear ESG targets, many organizations struggle to transform intentions into impactful outcomes. This underscores a critical reality: The human factor holds the key to bridging ambition towards tangible, lasting results.

Traditional ESG strategies often take a top-down approach, where leadership sets goals, disseminates policies and expects results. However, this model frequently falls short. Employees may perceive ESG efforts as mandates imposed from above rather than shared goals, leading to disengagement. Without a connection to their daily roles or a clear understanding of why these initiatives matter, employees are less likely to contribute meaningfully.

An inclusive model rooted in engagement begins with empowering employees at every level. The Kaizen philosophy exemplifies this approach. By actively engaging employees, organizations align individual contributions with broader ESG objectives, transforming ESG from a compliance exercise to a lived organizational value.

Employee engagement significantly influences all three dimensions of ESG:

Externally driven ESG compliance – focusing on regulatory mandates or satisfying external stakeholders – can lack the intrinsic motivation necessary for enduring impact. Internal engagement transforms ESG from an obligation into an integral part of organizational culture. Companies that inspire purpose and weave ESG goals into daily operations see stronger buy-in, greater innovation and sustainable results.

Digital transformation can facilitate this shift by enabling better data collection, fostering communication and supporting employee-driven initiatives. However, technology alone is insufficient; organizations must cultivate a culture that values each individual as a key contributor to ESG success.

How to boost employee engagement in ESG:

1. Transparent communication: Foster open dialogue on ESG goals, progress and challenges. Clear communication builds trust and connects employees with the purpose of sustainability efforts.

2. Ownership and recognition: Encourage employees to take ownership of specific initiatives and recognize their contributions. Recognition builds pride and intrinsic motivation.

3. Training and education: Provide the skills and knowledge necessary for meaningful contributions. This lays the foundation for ESG based on expertise and practicality.

4. Empowered decision-making: Involve employees in shaping sustainability initiatives through participatory processes and feedback loops.

5. Digital tools: Leverage digital platforms to simplify ESG reporting, track progress and share best practices.

Many companies are successfully leveraging these methodologies to drive employee engagement in their ESG initiatives. Sonova Group, a global hearing care solutions provider, has used them to strengthen social and governance outcomes. Cross-departmental Continuous Improvement (CI) initiatives embedded Kaizen principles across all functions, including customer-facing roles. Tools like daily management and leadership-driven engagement fostered transparency and collaboration.

Meanwhile, IKEA’s efforts to achieve energy independence and transition to renewable and recycled materials by 2030 reflect their deep commitment to sustainability. A key driver of their success is employee motivation, which aligns individual efforts with corporate sustainability goals. By embedding sustainability across all aspects of their operations, IKEA engages employees through training, internal campaigns and direct involvement in eco-friendly projects. This inclusive approach fosters a sense of ownership, making sustainability a shared mission.

Ardagh Glass Poland, a leader in glass and metal packaging, exemplifies how employee engagement can be integrated into sustainability journeys. By involving staff in waste reduction projects, they achieved both environmental and operational advancements. Open communication and continuous training empowered employees across all levels to drive sustainable practices.

Polling data from September 2024 highlights key areas for improvement:

To achieve true ESG excellence, organizations need to prioritize employee engagement as a strategic focus. When employees connect their daily work to broader sustainability goals, ESG becomes more than a framework – it becomes a way of life. By leveraging the principles mentioned above, organizations can drive meaningful, lasting progress across all ESG pillars.