Research from GRiD, the industry body for the group risk sector, highlights a growing focus among employers on the Environmental, Social, and Governance (ESG) policies of their employee benefits providers.
The survey indicates that a significant majority (86%) of employers now regard a robust ESG policy in benefit providers as a priority or fairly important. This reflects a 34% rise from last year, suggesting that businesses are recognising the strategic importance of integrating ESG into their human resources and employee wellbeing initiatives.
The findings reveal that, beyond aligning with organisational values, employers believe that ESG credentials matter to their workforce. This year, 88% of employers agreed that working with ESG-aligned providers is important to their staff—a considerable increase from 62% the previous year.
Katharine Moxham, spokesperson for GRiD, commented, “ESG is going to be increasingly important to businesses of all sizes, but in many cases, the social responsibility element has played second fiddle to environmental and governance concerns. HR departments can rectify this, and increase their focus on social responsibility, by focusing on the wellbeing of their staff.”
Group Risk Benefits and Social Responsibility in ESG
Group risk benefits, such as employer-sponsored life assurance, income protection, and critical illness cover, are emerging as key tools for fulfilling the social component of an ESG policy. Unlike more selective benefits like private medical insurance (PMI), which is often reserved for senior staff, group risk policies are generally accessible to all employees. This broad coverage supports organisational ESG goals by promoting equitable support for employee wellbeing across all levels.
In addition to their inclusivity, group risk policies usually offer continuity of cover without the need for annual re-underwriting, making it easier for employers to provide consistent protection to their workforce. This structure enhances social responsibility by ensuring accessible support to employees regardless of their position or salary.
The added support services embedded within many group risk benefits also extend the impact of these policies. They provide ongoing assistance to employees, line managers, HR teams, and business leaders, creating a foundation for daily support and proactive engagement in employee wellbeing.
As health and social care systems face increasing strain, companies offering group risk benefits are seen as alleviating some of the pressure on public resources by directly providing for their staff’s health needs. This, according to Moxham, positions these organisations as socially responsible, which can positively influence their reputation.
Moxham noted that a company’s approach to employee wellbeing can significantly affect its reputation. She stated, “Negative practices towards staff can be harmful to the reputation of an organisation but the opposite is also true. Looking after the wellbeing of staff is not just the right thing to do, or something that ticks a social responsibility box, but it has a fundamentally positive impact on the organisation.”
