More than two-thirds (68 per cent) of North American employers have a formal diversity, equity and inclusion policy or program, while 60 per cent offer employee education on DEI, according to two separate surveys by Leger Marketing Inc. on behalf of ESG Global Advisors and ACI Argyle Communications Inc.

North American employers are increasingly implementing policies to “build more inclusive and human-centric work environments”, but their efforts are not having a significantly positive impact, according to a ‘State of Social in ESG’ report by ESG Global Advisors. It found that 94% of organisations are embracing flexible work models and 79% are increasing investments in employee physical and mental health.

While the “S” in ESG investing has largely been overshadowed by the “E” to date, recent trends have moved social risks to the forefront, says a new report from ESG Global Advisors Inc. and Argyle Communications Inc. that assesses how well companies address those risks.

Over the past few years, climate change has been a driving force behind the rapid growth of investments that consider ESG factors. While the focus on the “E” in ESG is warranted, recent and emerging trends suggest we’re entering a new era for the “S” — an era defined by social risks that investors and companies cannot ignore.

Environmental concerns have dominated the conversation when it comes to ESG risks, but the growing focus on the “social” component is prompting a search for ways to better assess corporate performance on issues ranging from diversity to employee mental health to human rights.