Some 79% of European employers say that their organisations have increased their focus on ESG initiatives over the past 12 months, a new study by Littler has found.
The employment and labour law firm announced the findings as part of its seventh annual European Employer Survey Report, which surveyed more than 630 HR executives, business leaders, and in-house lawyers at European firms.
It found that climate risk is a ‘particular concern’ for employers, with 76% placing greater focus on sustainable business over the past year.
Due diligence directive
Action in these areas are being driven by pressure from employees, customers, and stakeholders, as well as legal requirements like the EU Corporate Sustainability Due Diligence Directive, which entered into force in July, Littler’s study found.
EU member states have until 2026 to implement the directive’s requirements into their national laws, however 85% of businesses say that they are ‘at least somewhat prepared’ for the new compliance obligations.
Employers’ concerns
Other findings from Littler’s study include that a large majority (83%) of European employers are worried about how upcoming elections in 2024 and 2025 may impact employment laws. The forthcoming U.S. presidential election is identified as a concern for 77% of employers.
Elsewhere, managing political tensions among employees has become a bigger issue than in previous years, with 86% reporting difficulties, up from 75% in the previous year.
“Ongoing cultural debates and geopolitical events—such as the war in Gaza and the growing salience of LGBTQ+ rights issues—are bringing political discourse into the workplace in novel ways,” commented Jan-Ove Becker, Littler partner in Germany.
“Managing varying beliefs and opinions is becoming a significant employee relations issue for C-suite executives and creating an environment where employers are expected to do more than simply manage their workforces. Business leaders are increasingly expected to take positions on divisive topics, and even silence itself can become a stance.”
Employers are also concerned about financial conditions (63%), social and cultural changes (53%), and geopolitical risks (37%), with post-pandemic workplace norms and employee satisfaction are seen as ongoing challenges. Read the full report here.
