5 Reasons to Incorporate ESG Investments Into Your Employee Benefits

Employees invest in their retirement accounts because they care about the future, but increasingly, awareness of how these funds are acquired inform their decision-making; today, more employees want savings accounts that also support ethical practices in the here and now. Here are five reasons why it pays for you to include ESG investments in your employee benefits.

Support Employee Retention

It’s normal for businesses to offer shares or other investment opportunities to employees in the organisation; it helps to support long term commitment to the company. But as the world changes and becomes more eco-conscious, employees become pickier about investments.

While many employees might be happy to accept shares in the company or investments as part of their retirement package, they might not align with some of the investments you have to offer. Investments in oil companies or multinationals can be unacceptable, but ESG ones are not.

Boost Recruitment Efforts

ESG investments, which are investment opportunities that support environmental, social, and governmental causes, are an excellent option for retirement plans, but they can also help to attract top talent to your business. ESG retirement options are appealing to newer generations.

If you want to attract the best talent to your business, you need to think as they do, especially when it comes to the value systems in operation in your business. When the top talent can see that your business is run in an ethical way, it makes it easier for them to work for you instead.

Boost Retirement Plan Participation

Having more of your employees buy into your retirement plan options is a good thing because it means your company has won the confidence of employees over the long term. Equally, if your employees are not buying into the plan you offer it points to confidence and retention issues.

Offering ESG principles in your retirement options not only encourages more employees to onboard with the plan and commit to the company long-term, but it also increases the likelihood that they will recommend the plan to others, thereby increasing confidence and commitment.

Encourage Employee Savings

It helps a business if employees put more money into their savings and investment accounts, but how can you persuade them to do this? After all, most people are reluctant to save more than they have to. The answer is to align company values with employees’ ethical standards.

The best way to do this is to offer ESG investment opportunities in the retirement plan; as soon as employees see that their investments are supporting social and environmental issues, they are likely to reconsider their personal investment capacities and their company saving strategy.

Align With Employee Values

Awareness of environmental, social, and governmental issues continues to grow and develop in the minds of employees and participants, so if you want your company to retain more workers and encourage top talent to work with you, it makes sense to turn your attention towards ESG investment opportunities. These practices also help to enhance the reputation of your business.

How to implement ESG Investment benefits

Through our technology, Lumina, you’ll have access to ethical funds and Net Zero Now, carbon neutral pensions.

Lumina’s Money tile encourages your employees to invest ethically, and sustainably. That’s great for wellbeing, as your people know their money is invested sustainably, and great for your business, as you can shout about your carbon offsetting simply by switching your pension.

Whilst being a legal requirement, pensions aren’t for everyone. So, we’ve also included flexible savings products like Stocks and Shares ISAs, LISAs, and Cash ISAs, to ensure every employee has access to save the way they want to, depending on what’s important to them.

We would be delighted to show you how Lumina could work for your business. Book a free, no-obligations demo today.

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