Government as an employer Data privacy and security is the most important ESG issue for federal employee survey respondents (88 Government is the largest U.S. employer, so its percent), followed closely by infrastructure 15 human capital footprint is vast. Protecting the health modernization (76 percent). State and city employees and well-being of government employees and report infrastructure modernization as the top issue improving DEI in the government workforce not only (86 percent), followed by data privacy and security (83 benefits employees, but also creates a better 19 percent). opportunity for employees to advance their agency’s mission and ultimately, create positive change that Our research shows that environmental and social impacts constituents. issues are important to employees, but ESG as a term is new to government, and most employees are not Some 60 percent of government executives say their 20 familiar with the term. Of those who are, they have agencies struggle to attract, engage, and retain heard about ESG mostly from the news, indicating a younger, digitally skilled talent while managing an need for continued education and engagement on the 16 aging workforce. Governments have the opportunity 21 topic. Generally, federal government leadership is to lean into a commitment and action around ESG more familiar with ESG issues than their employees, issues that employees care about to inspire purpose signaling an opportunity for leadership to provide and attract, retain, and engage talent. clarity and increase communication about the value of ESG throughout the agency. The majority of federal, state, and city government employees indicate they are satisfied with their To embed ESG into the workforce, governments 17 employers’ DEI efforts. However, government need to demonstrate a commitment to ESG both employees, like the general public, want to see internally and externally, consider how to inspire broader impact and change around ESG from purpose and mission in employees, and continue to governments. Both federal (63 percent) and state and modernize to better enable employees do their jobs. city (68 percent) government employee respondents In addition, governments should focus on increasing say governments are not taking the appropriate ESG fluency among employees, as well as attracting amount of action to address environmental issues, and and upskilling employees with ESG skillsets needed more than 59 percent and 73 percent, respectively, now and for the future. 18 say the same about addressing social issues. The majority of federal, state, and city go vernment employee respondents say government is not taking the appropriate amount of action to address ESG issues. Respondents who disagree or strongly disagree that government is taking the appropriate amount of action to address: Environmental issues Social issues Federal government 63% 68% employees State and city government employees 59% 73% Source: KPMGsurvey among U.S federal, state, and city HPWFSO N FO U
employees, n=427 18 15 21 U.S. Office of Personnel Management website Ibid. Ibid. 19 16 KPMG Modern Government survey, 2021 Ibid. 20 17 KPMG survey among U.S federal, state, and city government employees Ibid. Environmental, Social, and Governance: Government leadership as a catalyst for success Environmental, Social, and Governance: Government leadership as a catalyst for success 12 11 © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.