Environmental, Social, and Governance (ESG) criteria have become essential frameworks for evaluating a company's impact on society and the environment. These criteria help investors, consumers, and employees assess an organization's commitment to sustainable and ethical practices. While environmental and governance aspects are crucial, the social criteria are gaining significant attention, particularly concerning employee well-being.

The Importance of Social Criteria

Focusing on the social aspect of ESG can yield numerous advantages for organizations:

• Attracting Talent: Companies that prioritize employee well-being are more likely to attract top talent. Research indicates that 67% of job seekers prefer to apply to environmentally sustainable companies, reflecting a growing expectation for organizations to demonstrate social responsibility.
  
  
• Enhancing Employee Engagement: Companies that invest in social criteria often experience higher levels of employee satisfaction and engagement. Employees who feel their organization positively impacts society are significantly more likely to remain loyal.
  
  
• Improving Company Reputation: A strong commitment to social responsibility enhances a company's reputation, making it more appealing to consumers and investors.
  

Recent studies support the theory that businesses with robust employee well-being programs significantly outperform their peers. For instance, portfolios composed of companies recognized for their health and wellness initiatives have appreciated by 204% to 333%, compared to the S&P 500 index, which saw an appreciation of 105%. Another study found that 45 companies with high scores on wellness assessments appreciated by 235%, surpassing the S&P 500’s 159% appreciation over a six-year period.

Key Components of Social Criteria: Work, Workforce, and Workplace

To effectively address social criteria, organizations should focus on three critical components: Work, Workforce, and Workplace.

1. Work

This component refers to the nature of the work itself, encompassing job satisfaction, employee engagement, and overall purpose. Companies should ensure that employees find meaning in their roles and feel valued for their contributions.

2. Workforce

The workforce aspect emphasizes diversity, equity, and inclusion within the organization. Companies should strive to create a diverse workforce that reflects the communities they serve, implementing fair hiring practices and fostering an inclusive culture.

3. Workplace

The workplace is a crucial component that can significantly influence employee well-being. Given that we spend approximately 90% of our time indoors and about 90,000 hours of our lives at work, the physical spaces we inhabit have a profound impact on our health and happiness. This relationship has become even more evident during the pandemic as many employees transition to new work environments.

Leveraging the Physical Workplace for Well-Being

Buildings have often been overlooked as a significant lever for delivering and measuring well-being outcomes. However, recognizing how the physical workspace contributes to employee well-being through thoughtful design and operational strategies is essential. This includes:

• Air and Water Quality: Ensuring high standards of air and water quality is fundamental for maintaining employee health.
  
• Mental Health Support: Facilities that promote mental health and well-being, such as quiet areas for relaxation, are increasingly vital.
  
  
• Catering Services: Providing nutritious food options can enhance overall employee wellness.

Despite the importance of these factors, well-being data related to physical workplaces is often not collected or monitored effectively. Real estate teams should play a central role in creating spaces that foster workforce well-being. Leaders must educate themselves on how to optimize work environments to support employee health.

Emerging certifications, such as the WELL Building Standard, highlight the changing perception of the physical workspace and its role in promoting well-being. This performance-based system measures, certifies, and monitors features of built environments that affect human health. As standards like WELL evolve, real estate professionals are uniquely positioned to advance the adoption of well-being indicators in the workplace.

Legislative Developments

Recent legislative changes underscore the growing importance of well-being in the workplace. For example, the Hong Kong Stock Exchange’s ESG Reporting Guide introduced mandatory ESG disclosure requirements, focusing on four environmental and eight social pillars. Companies are now required to disclose information related to working hours, rest periods, and equal opportunity, alongside traditional health and safety disclosures. Similarly, the Workforce Investment Disclosure Act of 2021 in the United States mandates public companies to disclose basic human capital metrics, reflecting the increasing expectations regarding workplace well-being.

How We Can Help: My Rooftop is Green and Botani Bloom

At My Rooftop is Green and Botani Bloom, we specialize in enhancing workplace environments to support social ESG criteria. Our services include:

• Landscape Services: We offer expert landscape design and maintenance that transforms office spaces into green, inviting environments. By incorporating plants and greenery, we help improve air quality and create a more pleasant atmosphere for employees. We also offer rental plant services that allow companies to enhance their spaces with greenery without the long-term commitment of ownership. You can check our website for more information and request a quote
  

 

• Plant Workshops: Our plant workshops serve as excellent team-building activities that promote collaboration and engagement among employees. These workshops not only enhance team dynamics but also validate a company's commitment to social ESG criteria by fostering a culture of well-being and connection.
  

    

Prioritizing employee well-being through social ESG criteria is not just a trend; it is a strategic imperative for organizations aiming for long-term success. By focusing on the components of Work, Workforce, and Workplace, and leveraging the services of My Rooftop is Green and Botani Bloom, companies can enhance their ESG strategies and create thriving environments for their employees.