A recent survey conducted by KPMG has shed light on the preferences of the next generation when it comes to choosing employers. The study, published in January 2023, revealed that a significant portion of Generation Z (those born between 1997 and 2010) would reject a job offer if they didn’t align with a company’s sustainability credentials. This indicates that a competitive salary and career progression are no longer the sole determinants of an ideal job. With the manufacturing industry still striving to adopt more sustainable practices, how can organizations attract this new generation of environmentally conscious talent? Patrik Eurenius, Head of Sustainability and EHS at Sandvik Coromant, delves into this issue.
According to the KPMG survey, individuals between the ages of 25 and 34 (55%) were the most likely to value environmental, social, and governance (ESG) commitments from their employers. This sentiment was also shared by 51% of respondents aged 18 to 24. Additionally, one in five participants admitted to turning down a job offer due to a company’s lack of alignment with their values regarding ESG commitments, a figure that rose to one in three among 18-24-year-olds.
Is the manufacturing industry ready to attract environmentally conscious talent? Deloitte’s 2021 report, “Sustainable Manufacturing: From Vision to Action,” suggests that significant change is underway in the industry, requiring a shift in thinking. The report predicts that growing trends such as smart factories and digitalized supply networks will accelerate. Robust ESG strategies are becoming crucial for both the bottom line and employee satisfaction. Can the manufacturing industry succeed in achieving both objectives?
Clarity and transparency are paramount when communicating sustainability objectives. While sharing a sustainability policy, companies must guard against greenwashing, which involves marketing themselves as environmentally friendly without making substantial efforts to minimize their environmental impact. It is essential for organizations, particularly those in manufacturing, to clearly communicate their goals and demonstrate their commitment to meeting them.
The sustainability agenda is evolving rapidly, and organizations may feel the pressure to constantly update stakeholders on their progress. To avoid getting lost in the noise, it is crucial to maintain a clear narrative. When communicating sustainability externally, it is best to present a simplified, consistent, and credible story.
Sustainable transformation does not follow a one-size-fits-all approach. A retail business and a machine shop, for example, will likely have different needs and strategies. Ideally, sustainability efforts should target areas that directly improve the organization’s position in the market. For instance, Sandvik Coromant specializes in developing innovations for metal cutting. Recognizing the need to make this area more sustainable, the company has implemented a resilient carbide recycling program, allowing customers to sell their used tools back to Sandvik Coromant for recycling. Additionally, the company offers a tool reconditioning service, restoring worn but still usable tools to their original condition. These initiatives align with Sandvik Coromant’s sustainability goal of achieving over 90% circularity by 2030.
Aligning sustainability goals with a company’s core business model ensures their integrity and establishes a strong connection between its identity and actions. Maintaining this narrative in external communications, especially when attracting new employees, showcases the company as one that understands its impact on the world and is consistent in its sustainability efforts.
Having a consistent sustainability strategy is important, but it is equally important to substantiate the narrative with scientific evidence. This is particularly valuable for those working in science, technology, manufacturing, and engineering (STEM) fields. Science-based models offer credibility to sustainability claims. One such model is the Science Based Targets initiative (SBTi), a global partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). The SBTi sets standards for corporate emissions reduction targets, encouraging companies to set net-zero science-based targets aligned with a 1.5°C future.
Evidence of science-based goals demonstrates a company’s commitment to improving its sustainability credentials. According to a survey by the SBTi, 79% of corporate executives reported a strengthened brand reputation as one of the most significant business benefits resulting from committing to science-based targets. Over 5,000 companies, representing more than a third of the global economy’s market capitalization, have signed up with the SBTi. Sandvik, including Sandvik Coromant, joined in 2022. As part of its environmental ambitions, Sandvik Coromant aims to halve its CO2 emissions in its own operations and actively engages with stakeholders, partners, and suppliers to reduce the organization’s total carbon footprint.
Younger generations, such as Gen Z and millennials, have grown up in an era of heightened awareness about the planet’s environmental impact. They prioritize sustainability and have a desire to make a difference. Ultimately, sustainable businesses are seen as forward-thinking and adaptable to future challenges. Attracting talent that shares these values is a mutually beneficial relationship. As KPMG’s research suggests, companies that are clear, consistent, and demonstrate sustainable credentials will attract the next generation of environmentally conscious talent. In turn, companies that attract talent interested in sustainable business practices will benefit from an engaged and invested workforce.
Sandvik Coromant, a part of the global industrial engineering group Sandvik, is leading the way in manufacturing tools, machining solutions, and knowledge that drive industry standards and innovations in the metalworking sector. With a focus on educational support, extensive research and development investment, and strong customer partnerships, Sandvik Coromant develops machining technologies that shape the future of manufacturing. The company owns over 1700 patents worldwide, employs over 7,700 staff, and operates in 150 countries.
For more information, please visit www.sandvik.coromant.com or join the conversation on social media.
