ESG and the future of work

The next generation wants purpose, not just pay. Companies must rethink what it means to work sustainably.

For generations, the unwritten contract between employer and employee was relatively straightforward: work hard, remain loyal and deliver results; in return, receive a salary, benefits and the promise of career progression.

That contract is changing.

Today, particularly among younger workers, compensation remains important—but it is no longer sufficient to secure commitment, loyalty and discretionary effort. Employees increasingly want to know: Why does this organisation exist? What does it stand for? Does my work matter? And can I thrive while doing it?

Deloitte’s 2025 Global Gen Z and Millennial Survey, covering more than 23,000 respondents across 44 countries, found that 89% of Gen Zs and 92% of millennials consider purpose important to job satisfaction and wellbeing. Significantly, 44% of Gen Zs and 45% of millennials reported leaving a role they felt lacked purpose. This is not simply a generational preference. It is an ESG issue.

The workplace is becoming a sustainability ecosystem.

Environmental, social and governance conversations have traditionally focused on emissions, climate risk, reporting, compliance and board oversight. But sustainability ultimately lives or dies through people.

The intergenerational workplace is forcing organisations to rethink leadership itself. Baby Boomers, Generation X, Millennials and Generation Z often bring different expectations about authority, communication, flexibility, technology, ethics and career success.

The old model says, “This is how we have always done it.”

The emerging model asks, “Is this still the right thing to do?”

That question is profoundly important for governance.

Younger employees are increasingly willing to challenge practices they perceive as unethical, exclusionary or inconsistent with corporate values. They want leaders who listen, explain decisions and demonstrate integrity, not merely executives who occupy senior positions.

This is why reverse mentoring, employee voice, flexible work, psychological safety, skills-based career progression and more inclusive decision-making are becoming governance imperatives rather than HR initiatives.

Purpose must meet pay

However, we must be careful not to romanticise purpose.

A Nigerian graduate struggling with rent, transportation and food cannot be sustained by corporate purpose statements. Fair remuneration remains fundamental to decent work.

The future is therefore not purpose instead of pay, but purpose alongside fair pay, wellbeing, growth and dignity.

The World Health Organisation reminds us that decent work can provide livelihood, purpose, confidence, positive relationships and inclusion. Conversely, poor working environments can damage mental health. Globally, depression and anxiety are estimated to result in 12 billion lost working days annually, costing approximately US$1 trillion in lost productivity.

This makes employee wellbeing a business issue, not merely a welfare programme.

The UN Sustainable Development Goals recognise this connection through SDG 8: decent work and economic growth. The ambition is not simply to create jobs but productive, inclusive and sustainable employment.

Africa is already showing the way.

There are encouraging examples on our continent.

Safaricom in Kenya has deliberately positioned itself as a purpose-led technology company, connecting its people strategy to its purpose of “transforming lives”. Its 2024 sustainability reporting describes a future-of-work agenda built around skills, adaptable structures, hybrid working, wellbeing, inclusion and AI-enabled capabilities. Its reported 2024 Purpose Index of 97 suggests a strong connection between employees and organisational purpose.

Equity Group in East Africa similarly treats employee wellness, skills development, diversity and inclusion as components of a sustainable talent strategy, recognising that future competitiveness depends on both attracting and developing people.

In Nigeria, companies such as Seplat Energy increasingly articulate sustainability as part of their corporate legacy, linking environmental and social priorities with decision-making, health, safety and value creation.

These examples point to an important lesson: the organisation of the future will not merely have an ESG strategy. ESG will increasingly shape how people are recruited, led, rewarded, developed and governed.

Ancient wisdom still understands this.

Our ancestors understood something modern management sometimes forgets: people cannot be reduced to economic units.

African wisdom teaches Ubuntu – I am because we are.

The biblical parable of the Good Samaritan similarly challenges us to measure leadership by how we treat people, particularly those whose vulnerability makes them easy to overlook.

And the Parable of the Talents reminds us that leadership is fundamentally about stewardship: what have we done with the people, resources and opportunities entrusted to us?

These are not antiquated ideas. They are increasingly relevant principles of sustainable governance.

The leadership imperative

The leaders who will thrive in this new world must become less hierarchical and more human-centred.

They must create workplaces where an experienced employee can transfer wisdom without resisting change, while a young employee can challenge convention without being dismissed as inexperienced.

Boards must therefore ask different questions: Are our people psychologically safe? Are we developing future skills? Is remuneration equitable? Are managers equipped to lead across generations? Can employees speak truth to power? Do our values survive commercial pressure?

The future of work is not simply hybrid, digital or AI-enabled.

It is human, ethical and purpose-driven.

As I have consistently argued, ESG is ultimately a human agenda. Policies establish intent, but people determine whether that intent becomes culture.

The organisations that understand this will not merely attract the next generation of workers. They will earn their belief, commitment and trust.

And in the future workplace, trust may prove to be the most valuable currency of all.

Sarah Esangbedo Ajose-Adeogun is the founder and managing partner of Teasoo Consulting Limited, a leading ESG strategy and sustainability advisory firm committed to helping organisations build resilient, responsible, and future-ready businesses. She is a former Community Content Manager at Shell Petroleum Development Company and a former Special Adviser on Strategy, Policy, Projects, and Performance Management to the Government of Edo State. She is the host of the #SarahSpeaks Podcast on YouTube @WinningBigWithSarah, where she shares practical insights on leadership, ESG, etc. Teasoo Consulting is the developer of ESG Horizon, the first Africentric ESG reporting tool, designed with context-specific ESG reporting aligned with global and local standards. More information can be accessed at www.teasooconsulting.com.