How L&D can unlock company-wide ESG success

Many organisations have confident, forward-looking ESG ambitions. On paper, these look right as leaders are clear on what needs to change, while employees believe in the intention behind the commitments. Yet, the external pressure to deliver has never been greater, and inside the business, real progress often feels slower than expected. That’s because the challenge lies in translation. Sustainability goals rarely land with the clarity people need to act on them, and ESG becomes something admired, but not fully lived.

 

This gap is rarely about attitude. Most employees care deeply about environmental and social issues and take pride in working for a company that aligns with their values. What they often lack is a shared understanding of what ESG means in practice and how their decisions influence sustainability outcomes. Learning and development teams hold the key to change.

 

 

Employees care, but they want direction

Employees consistently want to support their organisation’s sustainability work. Indeed, according to the Deloitte report, around 89% of Gen Zs and 92% of millennials said a sense of purpose is important to their job satisfaction and wellbeing. In fact, they place strong value on working for companies that take social and environmental responsibility seriously, with 70% of both Gen Zs and millennials considering a company’s environmental sustainability credentials important when evaluating a potential employer. When people understand the reasons behind the organisation’s commitments, teams can see engagement and productivity rise.

 

The challenge appears when expectations are unclear. Without a common understanding of environmental impacts, ethical conduct, responsible sourcing, inclusion or community engagement, people guess their way through decisions that should be informed by principles. As a result, organisations can face incorrect reporting and unintentional misinformation spreading, with sustainability only concentrated in smaller specialist groups.

 

This is where L&D brings the foundations into focus by giving people the context they need to act confidently. When teams understand the basics of climate change, net zero goals, the green economy, pollution, diversity, governance and sustainable procurement, they gain the ability to make informed choices in their own work.

 

 

Creating clarity and consistency with learning

Structured ESG training can prove powerful in large organisations. Completing sustainability learning designed around real roles and responsibilities creates teams with high engagement, where employees understand the organisation’s sustainability strategy more clearly. This immediate improvement in understanding has a direct effect on operational consistency. Teams can respond more accurately to data, communicate more confidently with colleagues and avoid common errors that often surface in reporting cycles.

 

Clear understanding across functions also helps protect the organisation from reputational and regulatory risk. A 2023 example of the U.S. Securities and Exchange Commission fining DWS Investment Management Americas Inc. for making misleading statements about its ESG investment process illustrates how easily sustainability claims can be misinterpreted or overstated when employees lack a proper understanding. Training gives people the knowledge to communicate responsibly and recognise when sustainability information needs careful handling.

 

Sustainability goals also become far more achievable when people feel confident linking them to their own responsibilities. Once the basics are understood, teams naturally begin noticing opportunities for improvement. For instance, a sourcing decision may raise questions about supplier practices, or a facilities team may spot avoidable waste. Managers begin approaching culture, inclusion and ethical behaviour with a clearer sense of the impact on organisational performance. These changes emerge because people feel more prepared.

 

This is an important part of how organisations progress along their ESG maturity journey. Early activity often focuses on philanthropy or isolated CSR efforts. As understanding deepens, companies begin integrating environmental and social considerations into operations, governance and long-term planning. Eventually, ESG becomes an advantage that strengthens the organisation’s identity, reputation and resilience.

 

 

Embedding ESG into everyday organisational life

For training to influence behaviour, it has to be woven into the everyday practices of the organisation. This means recognising that different teams hold different pieces of the sustainability puzzle. Whether it’s finance, HR, procurement or leadership, each group needs relevant, role-specific learning that helps them understand what ESG means for the decisions they make every day.

 

As standards evolve, reporting expectations increase and new risks emerge quickly. Continuous learning keeps the organisation aligned as the external environment changes. Over time, this steady reinforcement fosters a shared understanding that enhances communication and facilitates faster, more confident decision-making. ESG stops feeling like an add-on and becomes part of how the business operates.

 

Strong ESG performance is deeply connected to culture. Organisations with engaged, informed teams consistently perform better on sustainability measures. Employees who feel aligned with their company’s purpose show higher levels of motivation and loyalty. Businesses that report accurately build stronger trust with customers, investors and partners. These outcomes create a reinforcing cycle: the more people understand ESG expectations, the more confidently they contribute, and the stronger the organisation becomes in its sustainability commitments.

 

L&D sits at the centre of this progression. By giving employees the knowledge, context and confidence to act, it turns ESG from a set of well-intentioned goals into practical, everyday behaviour. When that understanding reaches across the organisation, sustainability becomes a shared responsibility rather than a specialist task. And that is where meaningful progress truly begins.

 

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Simon Sentence is the Product Owner at Kineo Courses

 

Main image courtesy of iStockPhoto.com and Sakorn Sukkasemsakorn