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Survey: Women, millennials care the most about employer ESG stance

Results of a new survey slated to be released later in June is expected to show that a majority of employees of Fortune 1000 companies, particularly women and millennials, want their companies to implement programs and offer retirement investment options that reflect socially responsible policies.

Global research consultant Povaddo LLC is expected to release a report in the coming weeks on its survey about how employees of some of the largest companies view environmental, social and governance issues and the extent to which they expect to see their employers, or prospective employers, incorporate ESG issues into their practices, said Tony Calandro, president and founder of Purposeful Strategies LLC, who is working with Povaddo on the report. Calandro previewed portions of the survey's findings at a June 1 conference in Washington, D.C., hosted by US SIF: The Forum for Sustainable and Responsible Investment.

"Women and millennials by a significantly statistical margin want this more than anyone else," Calandro said.

The findings of the survey are important indicators for companies looking to retain their existing workforce and remain competitive with other companies to attract new talent to replace retiring employees, according to Calandro. "You've got this younger workforce coming, and they have a distinct point of view on this option and they think companies ought to have a line about their sustainability commitments as well," he said.

According to Calandro, four in 10 millennials look at the socially responsible or sustainable investment options a company offers when weighing whether to stay with, or apply for a job at, that company. That figure drops to 30% of Generation X employees and 24% of baby boomers, he said.

The survey also found that 54% of all employees said having their companies align retirement investment options with social and environmental commitments is important. But among millennials and women of all ages, 67% listed those factors as being important, Calandro said in providing a sneak peek at the survey's findings during a panel on the challenges of convincing companies to offer ESG screens in employee retirement plans.

A majority of employees want to play a role in impacting social issues, and they expect their companies to offer those kinds of opportunities, Calandro said. But a slide he showed at the event indicated that a slightly lower percentage of employees said they cared about it in 2018 than in the prior year's survey.

The 2018 survey found that 76% of employees want their companies to provide matching funds for employee donations to nonprofit organizations, down from 81% in 2017. And 62% want their companies to provide paid time off and/or on-site opportunities to demonstrate public support for important societal issues, which is one percentage point lower than the prior year. However, 74% of employees in both years said they want their employers to provide new and better feedback channels to ensure employee attitudes on important social issues are being heard by senior management.

The vast majority of Fortune 1000 employees invest for retirement through company 401(k) or pension plans, but only 36% of those surveyed said they are familiar with the types of funds their employers offer in those plans, Calandro said. The survey found that 54% of women and 65% of millennials say they are likely to participate in 401(k) ESG investment options if offered, compared to 46% of all employees surveyed, he added.