ESG and sustainability: employment issues

This Overview provides a summary of the content in the subtopic, ESG and sustainability: employment issues. Environmental, social and governance (ESG) considerations, along with sustainability, are broad concepts and in the business context generally include the impact an entity is having on the environment and society. This content aims to help practitioners advising businesses by providing an overview of the many pervasive ESG issues in the employment context and also signposts other relevant materials. The Overview considers terminology such as ‘corporate responsibility’ (CR) and ‘corporate social responsibility’ (CSR), as well as considering a wide variety of established areas of employment law and practice that can be relevant in this context, such as gender and other pay gaps, diversity and inclusion, human rights, modern slavery and human trafficking, corporate governance, health and wellbeing, data protection and pay. It also sets out details of the various employment-related sustainability clauses produced by The Chancery Lane Project (TCLP), which are reproduced with permission.

Understanding the terminology

The terminology used in this area is extensive. Terms such as ‘sustainable business’, ‘responsible business’, ‘corporate responsibility’ (CR) or ‘corporate social responsibility’

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PAC criticises Home Office over failures to tackle exploitation under skilled worker visa route

The Public Accounts Committee (PAC) has found that the Home Office failed to adequately address the risk of exploitation and non-compliance under the skilled worker visa scheme, particularly in the care sector. In its 4 July 2025 report, the PAC criticises the department for failing to prevent abuse following the scheme’s 2022 expansion to support adult social care, highlighting serious weaknesses in safeguarding, compliance monitoring, and tracking of visa expiries. While the expansion helped alleviate workforce shortages during the pandemic, it also exposed migrant workers to exploitation, with evidence submitted to the inquiry detailing cases of debt bondage, excessive working hours and poor living conditions. Despite early signs of abuse, the Home Office was slow to respond and does not hold data on how many visa holders have been identified as potential victims of modern slavery. The PAC further found that the department lacks key data on visa compliance, including whether workers leave the UK at the end of their stay, are re-sponsored, or remain unlawfully, and has not analysed exit check data since the route’s introduction. In light of the recent decision to end overseas recruitment for care workers, the PAC warns of further risks unless cross-government workforce strategies are coordinated and calls for a joined-up approach to tackling exploitation and addressing domestic skills shortages.

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