Double Materiality and its Growing Impact on Hiring

Organizations in 2025 are expected to balance financial performance with environmental, social, and governance (ESG) responsibilities. Double materiality has become a standard framework for understanding how a company’s activities, risks, and opportunities affect financial outcomes and broader environmental and social impacts. This dual lens is shaping not only how businesses operate but also how they compete for talent.

What is double materiality?

Double materiality assesses a company’s performance from two perspectives:

• Financial materiality (Outside-In): How external factors such as climate change, resource scarcity, or labor rights affect company performance. For example, tighter emissions rules may increase costs, while reputational risks linked to poor labor practices can reduce profitability.
• Environmental and social materiality (Inside-Out): How a company’s activities affect society and the environment. This includes carbon emissions, supply chain standards, diversity and inclusion practices, and contributions to social equity.

Together these perspectives guide long-term strategy, operational decisions, and investment priorities.

How double materiality is shaping recruitment

Recruitment has shifted as ESG expectations grow across industries. Companies now want candidates who combine technical expertise with sustainability awareness. At the same time, job seekers increasingly prioritize employers whose values align with their own.

At Selby Jennings, we continue to see strong demand for:

• ESG and sustainable finance specialists
• Impact investing professionals
• CSR and sustainability managers
• Compliance experts focused on ESG reporting and disclosures

Professionals are choosing employers based on purpose, culture, and long-term sustainability commitments, not just compensation or career progression.

Attracting purpose-driven talent

One of the key benefits of embracing double materiality is its ability to attract purpose-driven talent. Many professionals, particularly younger generations such as millennials and Gen Z, are deeply concerned with the environmental and social impacts of their work. They want to be part of organizations that make a real difference in the world.

Financial institutions, for example, are increasingly focusing on green finance, ESG investments, and social impact initiatives. These efforts are not only helping to reduce global carbon emissions but also providing investment opportunities that align with the values of socially-conscious investors. At Selby Jennings, we've seen growing demand for candidates specializing in sustainable investment, green bonds, and renewable energy projects. 

JPMorgan Chase, a major financial institution, has made significant strides in adopting ESG principles. Through initiatives like their $2.5 trillion commitment to sustainable development and inclusive finance, they’ve positioned themselves as an attractive employer for individuals passionate about integrating environmental sustainability into business practices. 

Strengthening company culture through ESG integration

Incorporating double materiality goes beyond just attracting new talent—it builds company culture focused on sustainability and social responsibility. As organizations embrace ESG reporting and take meaningful steps to address climate change, inequality, and governance issues, they naturally attract employees who share those values. 

We’ve seen that hiring processes are increasingly focused on candidates who fit within this culture of sustainability. Organizations are not only seeking skills and experience but also individuals who can contribute to their ESG agendas. This cultural alignment is crucial, particularly in industries where a firm’s reputation is closely linked to its commitment to social and environmental causes. 

BlackRock, one of the world’s largest investment management firms, has made ESG integration a central part of its investment strategy. The firm’s CEO, Larry Fink, has consistently highlighted the importance of sustainability and the role of business in driving global progress. For professionals in finance, working for an organization that champions these values can provide a sense of purpose that goes beyond financial success.

The growing demand for ESG expertise