Employees are now the toughest ESG critics – and they’re looking behind the slogans

Employees have become the most demanding audience for ESG commitments – and they’re no longer persuaded by glossy reports or high-level pledges.

Belinda Lyone, Co‑CEO of COS noted that sustainability has moved from “strategy deck” to “shop floor”, and staff are scrutinising what leaders do in day‑to‑day operations – not what they say.

ESG has moved from the boardroom to the warehouse floor

According to Lyone, employee scrutiny of ESG has intensified as sustainability has shifted from ambition to execution.

“Employees now assess commitments through what they see in decision-making across sourcing, logistics, infrastructure and supplier relationships, rather than through statements or targets alone,” she explained.

Where leaders talk up sustainability as a priority but allow cost, speed or growth to consistently trump environmental and social considerations, confidence drops fast.

Trust erodes quickly when there’s a disconnect between the message and how the business actually runs. Employees look for progress they can see: clear roadmaps, visible action and real accountability are what build confidence over time.

For HR leaders, this means ESG is now a lived employee experience issue as much as it is a corporate reporting one.

Why employees are the most critical ESG audience

Lyone argues that employees are now the most important – and most discerning – audience for sustainability claims because they sit “closest to operational reality”.

“They interact directly with suppliers, products, systems and workplace environments, giving them a clear view of whether sustainability commitments are being upheld or compromised,” she said.

That proximity means employees are often the first to spot when ESG is genuine – and the first to detect when it is performative.

“When sustainability is embedded into everyday processes and decision-making, credibility strengthens internally and externally. When it is not, employee confidence weakens and that sentiment can quickly influence broader reputation,” she added.

For HR, this has direct implications for trust, engagement and employer brand. A workforce that believes the organisation is “greenwashing” will not only disengage, but may also become vocal critics on social media, in exit interviews and in the broader talent market.

Red flags: When ESG turns performative

There are clear early warning signs that ESG activity has tipped from substantive to symbolic.

“One of the clearest warning signs is when sustainability is spoken about primarily in strategy documents or reporting, but not reflected in operational decisions,” Lyone said.

If environmental or social considerations are routinely deprioritised in favour of short‑term commercial pressures, employees quickly notice the disconnect.

Other red flags she cites include: a lack of visible, on‑the‑ground progress, limited or ambiguous accountability for ESG outcomes, and minimal integration of ESG into workplace systems or supplier expectations.

“When employees cannot point to tangible changes or improvements, ESG commitments begin to feel symbolic rather than substantive,” Lyone said.

This is a space where HR can play a powerful role: ensuring leaders are aware of these perception gaps, capturing internal sentiment in engagement surveys and pulse checks, and linking leadership performance and rewards to ESG behaviours, not just financial outcomes.

The small daily choices that make or break trust

Lyone stressed that trust is and more by the “micro‑signals” staff see every day.

“Procurement choices, product design, packaging, delivery methods and supplier standards all signal what is genuinely being prioritised,” she explained.

She noted that sustainability should be built into how products are sourced, designed and packaged – including reducing unnecessary plastic, increasing recycled content and improving durability so customers can choose more sustainable options through everyday purchasing.

Reliable, efficient supply chains are another lever: improving delivery efficiency, trialling electric vehicles and supporting smarter ordering practices can reduce emissions while maintaining service standards.

Workplace infrastructure sends some of the strongest signals to employees. Initiatives such as on‑site solar, energy‑efficient workspaces, electric vehicle trials and centralised waste systems “embed sustainability into the environment employees work in each day”.

“When these choices are consistent and visible, they reinforce trust; when they are absent or overridden by short‑term priorities, trust erodes quickly,” she said.

For HR, this translates into a clear brief: bring employees into the conversation about these choices, showcase operational wins in internal communications, and ensure sustainability is visible in the places people work, not just in annual reports.

Credibility comes from momentum

The central lesson, Lyone said, is that ESG credibility is built through momentum, not messaging.

“Sustainability is not about ticking a box, it’s about continuing to evolve how you operate as your understanding improves,” she added.

For HR leaders, that means:

• Treating ESG as a core element of the employee value proposition, not a side initiative

• Holding leaders accountable for aligning daily decisions with stated sustainability priorities

• Giving employees visibility of real operational change – and opportunities to contribute ideas and feedback

• Using engagement data to identify where ESG feels genuine and where it feels performative

As employees become the sharpest critics of corporate ESG claims, organisations that embed sustainability into the lived experience of work – not just the language of strategy – will be the ones that earn and keep their trust.