Infographic: What can ESG principles mean for employers and employees?

Incorporating ESG principles into your retirement plan and workplace benefits offering doesn't just feel good — it can help drive results employers can see.

Sep 09, 2021
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Environmental, Social, Governance (ESG) is more than a buzzword — it’s an approach employers can use to gain an edge, especially when applied to investing, employee benefits and retirement plans. While it may sound complex, incorporating ESG principles in your plan can be as simple as:

  1. Utilizing environmentally friendly plan services (environmental).
  2. Offering plans designed to encourage broad-based participation (social).
  3. Prioritizing plans that have diverse plan committees, reasonable fees, and sound investment policies (governance).

Help improve employee engagement and retention: 41% of full-time employees are more likely to stay with their employers if their retirement plan includes ESG-focused products.¹

Boost recruiting efforts. 95% of Millennial employees are interested in ESG investments— an increase of 9% from 2017.²

Help drive retirement plan participation. Voya's survey shows 76% of respondents would be more likely to enroll or participate in a workplace retirement plan if it offered ESG investment options.³

Help employees save more. Voya's survey shows 60% of respondents said that they'd likely contribute more to a plan that values ESG.3

Yield cost savings. Due to the increased plan participation, ESG plans can offer cost reductions that benefit employers and employees: Paperless; Increased participation leads to economies of scale; E-delivery saves paper and cost of delivery

Related Items

1 Voya Participant Experience Survey Report, January 2021

2 Morgan Stanley Institute for Sustainable Investing, Sustainable signals, July 2020

3 Voya Consumer Insights and Research, 2020

Products and services offered through the Voya® family of companies. 

All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. All security transactions involve substantial risk of loss.  Environmental, Social and Governance (ESG) Risk has factors that may cause the portfolio to forgo certain investment opportunities and/or exposures to certain industries, sectors or regions.

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