More than two thirds of UK employers say they are integrating sustainability into their HR strategies, putting them well ahead of their European peers. But new research suggests workers are far less convinced by these efforts, pointing to a growing credibility gap between employer messaging and employee trust.
The findings come from a wide-ranging study by SD Worx, a European HR solutions provider, which surveyed 5,625 HR leaders and 16,000 employees across 16 countries. The data revealed that 68 percent of UK employers have now embedded sustainability into their HR strategy, compared with 55 percent across the continent.
While the change appears strongest in the United Kingdom, Ireland and Romania, where the rate was also 68 percent, the figure fell to 47 percent in Belgium and Germany. The research points to a clear momentum in certain countries, driven both by internal HR priorities and external regulatory pressure.
UK firms ‘more proactive on sustainability communication’
The UK also outpaced the European average regarding public communication and reporting. Around 77 percent of UK employers said they publicly promote their organisation as sustainable in terms of employee treatment, compared with 62 percent of UK employees who agreed with that characterisation.
Across Europe, Romania recorded the highest level of employer promotion at 92 percent, followed by Norway at 85 percent and Ireland at 81 percent. Finland had the lowest visibility, at just 46 percent.
The research also found that 63 percent of UK employers actively report and evaluate their sustainability performance across environmental, social and governance (ESG) criteria, significantly higher than the European average of 46 percent.
Although the United Kingdom is not bound by the European Corporate Sustainability Reporting Directive (CSRD), nearly half of UK employers surveyed said they felt sufficiently prepared for the new framework. The CSRD, which came into effect in January 2023, requires large companies in the European Union to publish regular sustainability reports. It applies to companies with more than 250 employees, a turnover above €50 million or a balance sheet total exceeding €25 million.
Laura Miller, UK People Country Lead at SD Worx, said UK companies appeared to be taking voluntary sustainability reporting seriously despite not being bound by EU legislation.
“The CSRD legislation sets out clear criteria. Large companies in Europe are subject to the rules as soon as they meet at least two of three conditions: more than 250 employees, a turnover above €50 million or a balance sheet total above €25 million. So it’s interesting to see that UK companies are taking their own responsibilities very seriously,” she said.
Employees less convinced by sustainability messaging
Despite the efforts, the study uncovered a significant gap between how employers perceive their sustainability image and how employees view it. While 79 percent of UK employers said they believe their sustainability image is credible, only 61 percent of employees agreed. That credibility gap of 18 percentage points was one of the widest in Europe, exceeded only by France (22 points) and followed by Italy (16).
In contrast, countries like Croatia, the Netherlands and Finland saw credibility gaps of just 10 to 11 percentage points.
Laura De Boom, a doctoral researcher at the University of Antwerp, said many organisations failed to connect their values with day-to-day experiences in the workplace. “Employers often strongly believe in their sustainability narrative, but employees do need to be taken on a journey if they are to be convinced,” she said. “This creates tension between what organisations mean and how employees experience it.”
She added that communications alone were not enough to build trust. “Fine words or powerful campaigns sometimes strike the right emotional chord, but they don’t always match everyday practice. In other cases, employees do feel the values behind the message, but they lack confidence because words are not followed by actions.
“This is where the challenge lies for HR and communication: not only visibly communicating what you stand for but also making it tangible in the work and the organisational culture. Only when employees see the promise reflected in their own experience does a sustainability story gain real credibility.”
Credibility boosts attraction, retention and motivation
The research also indicated that employee perceptions of sustainability had a direct impact on engagement. Workers who viewed their employer’s sustainability messages as authentic and credible were 12 percent more likely to find the organisation attractive. Job satisfaction and motivation were 8 to 10 percent higher, while intention to leave was 2 to 2.5 percent lower.
De Boom said the effect was especially strong among older workers. “Credible sustainability communication makes an employer more attractive, increases satisfaction and motivation and reduces the likelihood of people leaving. This applies to everyone, but the effect on satisfaction and motivation is strongest among older employees,” she said.
She added that HR and communication teams should focus on three key elements: accuracy, authenticity and consistency. “Share facts and figures, showcase real stories from leaders and employees and ensure that words and actions reinforce each other. True persuasiveness only arises when sustainability also comes from sincerity — something that not only employees, but increasingly also customers, suppliers and investors expect.”
