Experts advise companies to prioritize the environment or face 'climate-quitting,' as workers become more environmentally conscious.

A 2023 survey found that 51% of US workers would consider quitting their jobs if the company's environmental actions don't align with their own, and 35% have already done so. The number of quitters rose to 44% among Gen Z and Millennial workers, who also said they would take a pay cut to work for a company that shared their values.

A 2023 survey led by former Unilever CEO Paul Polman, which surveyed over 4,000 employees across the US and the UK, found that 73% of American workers were anxious about climate change and 61% wanted their company to take a stronger stance on the environment. Only 34% of workers found their company's current commitments sufficient.

The majority of Gen Z and Millennials, as well as a significant portion of Gen X and older respondents, consider a company's commitment to the environment when considering a new job.

One in three 18- to 24-year-olds in the UK have turned down a job offer from a company due to its ESG record, according to a KPMG study from early 2023.

The phenomenon of employees quitting their jobs due to a mismatch between their personal values and the company's practices is known as "climate-quitting" and is part of a broader trend of "conscious-quitting."

According to Tom Lakin, global practice director at recruitment company Robert Walters Group and an expert on the future of work and ESG, employees are increasingly questioning whether they want to work for organizations that lack responsibility, purpose, or meaning. The term gained popularity in early 2023.

In 2024, as America experiences its warmest year on record, the anxiety over climate change is expected to intensify, leading to increased public demands for companies to take action. Experts suggest that managers should respond to these demands by implementing sustainable practices and reducing their carbon footprint. Meanwhile, unsatisfied employees can take action by advocating for change within their organizations and pushing for more environmentally conscious policies.

Companies need to ‘get on board’

Only 19% of companies across seven industries are addressing Environmental, Social and Governance concerns to retain, attract or motivate employees, according to a 2023 McKinsey report. The survey found that European organizations tend to prioritize environmental topics over the other two components of ESG, while North American organizations prioritize it the least.

Lakin emphasizes the importance of recruitment and HR professionals embracing this approach, as forward-thinking companies are already reaping the benefits of it. Unilever, for instance, leverages their strong environmental sustainability credentials to attract top talent. By 2030, Unilever aims to achieve zero carbon emissions and actively supports legislation phasing out fossil fuels like coal.

According to KPMG's report, by 2025, 75% of the working population will be millennials, so companies must have credible plans to address ESG in order to attract and retain this growing pool of talent.

Despite the United States lagging behind other markets in leveraging environmental commitments as a hiring edge, Lakin remains hopeful about corporate ESG initiatives.

The number of organizations linking executive pay to ESG outcomes has significantly increased, especially among S&P 500 companies, where it grew to 73% in 2021. This indicates that the pressure is coming from the top, which will be a crucial indicator of change.

Employee power

Jennifer Allyn, campaign lead for Climate Voice, stated that employees possess the ability to drive significant change within companies and across industries.

Allyn believes that companies should focus on their internal carbon footprint and operations, but he feels that this is a missed opportunity because the private sector has a significant role in public policy debates. His theory of change is that companies need pressure, and the pressure should come from their employees.

She acknowledges that not everyone can afford to quit their jobs due to financial constraints, so she suggests "climate-staying" as an alternative.

Lakin suggests examining Good Jobs First Violation Tracker, a database that displays corporate violations across multiple topics, including the environment and discrimination, to determine a company's environmental impact.

Climate Voice provides a comprehensive Employee Climate Action Guide and offers personalized one-on-one sessions to help individuals investigate a company's climate impact, including its affiliations with trade organizations, and provides guidance on how to effectively advocate for change, draft proposals, and present them to company executives.

Allyn suggests that taking action collectively is the best approach, and recommends engaging co-workers through educational events or forming a working group.

She explains that her statement is not merely criticizing the company but rather expressing her love and pride in working there, and her desire for the company to be a positive influence, citing Google's decision to halt the development of AI tools for oil and gas drilling as an example of internal pressure from employees.

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