Posted on Jul 11, 2022 at 12:46 PMUpdated on Jul 12, 2022 at 3:28 PM
Soon, companies will have to show their credentials. With the European CSRD (Corporate Sustainability Reporting Directive) adopted in June 2022, extra-financial reporting will be imposed on large groups from 2024, on common standards.
Having become issues of reputation, recruitment, loyalty but also growth, ESG criteria already play an important role in the decisions of companies, regardless of their size. More and more, employees want proof of commitment. This is what led ChooseMyCompany to develop WeImpactIndex® last year, a label and ranking based 100% on employee feedback.
“Today, the opinions of ESG experts are no longer enough, the opinion of those who experience the impacts of these actions on a daily basis takes precedence, since 95% of people outside the company listen to their opinion. Employees then become the voice of their company and true vectors of reputation”, observes Laurent Labbé, co-founder of ChooseMyCompany.
More than 10,000 employees questioned
For eight months, ChooseMyCompany questioned 10,876 employees, from 83 volunteer companies, on the ESG strategy of their organization. Result: 63.5% of employees say they are satisfied with their company's ESG commitments.
It is on the environmental criterion that employees are the least convinced. In particular those under 35: only 53% of them consider, for example, that their company places the preservation of the environment at the heart of its strategy (slightly less than the average employee, 58%). The efforts of their employer seem to them too far removed from their daily lives. The choice of suppliers, means of production or the support of associations still very often under management, explains the study.
ChooseMyCompany ranked companies according to the results of eighteen questions on the three themes of environment, social and governance. In addition to the quantitative scores for these three dimensions, there is a qualitative score based on responses to “open questions based on positive or negative comments (example: mentions of harassment or discrimination)”, says Celica Thellier, research director and co-founder of ChooseMyCompany.
In 2022, only 37 companies managed to meet the two conditions to obtain the ImpactESGIndex® label: an employee participation threshold of at least 50% and a minimum score of 3.5/5.
ZOOM on the CSRD directive
Voted in June 2022, this new European directive (Corporate Sustainability Reporting Directive) requires all large companies with more than 250 employees and a turnover of 40 million Pounds, whether listed or not, to report their ESG performance ( environmental, social and governance criteria). The CSRD directive will be applied in 2024.
About 50,000 companies will thus have to communicate information on their impact on the environment, human rights, social standards and work ethics, on the basis of common standards.
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