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Why diversity is good for sustainability and business

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27 Mar, 2025

This post was originally published on Sustainability Matters

A study of 4011 video game projects published by The National Library of Medicine found that increased diversity and inclusion within the projects led to an increase in creativity. Here Greg Brotherton, Resourcing Advisor for Ovarro, a specialist in remote telemetry systems, explains how aligning environmental, social and governance (ESG) principles with recruitment for engineering roles can support creativity, product innovations and even benefit manufacturers’ bottom line.

The gaming industry study — conducted by academics from the University of Oxford and the University of Budapest — measured gaming projects on their gender diversity plus inclusivity. The results showed that teams with low inclusivity, “when there is a ‘token’ female team member highly integrated in a male network”, were less creative. Those with high inclusivity, “based on de-segregation, strong ties across genders and the incorporation of women into the core of the team”, produced more creative results.

This is a great example of how the social criteria of environmental, social and governance (ESG) goals can benefit businesses in unexpected ways. Indeed, Forbes magazine reports that diversity boosts innovation and financial results, quoting the book How Diversity Makes Us Smarter: “Diversity jolts us into cognitive action in ways that homogeneity simply does not.”

Yet, despite these creative and financial advantages, many companies overlook the significant impact of recruitment practices on their ESG goals. Let’s look more closely at the benefits.

Diversity and inclusion

First, why are ESG objectives so important? Increasingly, businesses’ ESG commitments demonstrate their conduct in relation to environmental preservation and societal welfare — which include human rights and labour practices. ESG objectives have become a big obligation for businesses, particularly for investors and socially conscious stakeholders, who are increasingly basing their investment choices on companies’ ESG performance.

Investopedia reports that “Behaving in a consistently ethical manner can lock in a solid reputation and long-term financial rewards for companies”, while a study of 366 public companies by McKinsey found those with more diverse management teams were more likely to have higher financial returns.

What steps can businesses take to promote these qualities in their workforce? Examples from our own business include Ovarro being a ‘Real Living Wage’ and ‘Disability Confident’ employer; we also are looking to build inclusive teams through various diversity, equity and inclusion (DEI) projects. That includes, to paraphrase The National Library of Medicine’s report, integration diversity into the core of our teams’ networks.

For instance, Ovarro strives to see interview candidates from diverse backgrounds to encourage representation and inclusion at all levels in the organisation. We also hold regular training sessions to eliminate unconscious bias from the recruitment strategy and process.

Inspiring Gen Z

Strong ESG principles can also help attract top talent. A YouGov study found that 75% of millennials and Gen Z are open to taking a reduced salary in exchange for employment at an environmentally responsible company; while 64% would not consider working for a company lacking strong social values.

Ovarro’s partnerships with educational institutions, such as the UK’s University of Sheffield and University of Huddersfield, among others, play a crucial role in its recruitment initiatives for ESG goals. These partnerships involve collaborating with universities, colleges and schools to create programs and initiatives that promote awareness of ESG issues and prepare students for careers that align with these values.

At Ovarro, where we specialise in developing technology for monitoring and controlling water, energy and infrastructure networks, attracting candidates passionate about sustainability is paramount. However, my prior experience recruiting for a racing video game company taught me the importance of seeking candidates who not only possess passion for the sector, but also fill knowledge gaps and challenge the team.

Similarly, we prioritise candidates with a passion for sustainability while ensuring diversity in our talent pool. In fact, we have recently launched another ambitious graduate training program, which encompasses both engineering and sales opportunities. The latter is harnessing the potential of recent graduates to bolster Ovarro’s sales function through data analytics, and eventually develop a dedicated sales operations team. By investing in their education and development, the company can cultivate a pipeline of candidates who are passionate about ESG principles.

The graduates are all enthusiastic about their roles at Ovarro, eager to develop skills, collaborate and contribute to the company’s mission to help drastically reduce water leakages around the world. It is just one example of how, to quote The National Library of Medicine study, businesses can greatly enhance the future development of their own leak-detection solutions by improving “the collective intelligence and creative capacity” of teams.

Image credit: iStock.com/oakstudio22

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Published in Science, the research combined global soil moisture data estimated by the European Centre for Medium-Range Weather Forecast (ECMWF) Reanalysis v5 (ERA5), global mean sea level measurements and observations of Earth’s pole movement in order to estimate changes in terrestrial (land) water storage (TWS) from 1979 to 2016.

“The study raises critical questions about the main drivers of declining water storage on land and whether global lands will continue to become drier,” University of Melbourne author Professor Dongryeol Ryu said.

“Water constantly cycles between land and oceans, but the current rate of water loss from land is outpacing its replenishment. This is potentially irreversible because it’s unlikely this trend will reverse if global temperatures and evaporative demand continue to rise at their current rates. Without substantial changes in climate patterns, the imbalance in the water cycle is likely to persist, leading to a net loss of water from land to oceans over time.”

Between 2000 and 2002, soil moisture decreased by around 1614 gigatonnes (1 Gt equals 1 km3 of water) — nearly double Greenland’s ice loss of about 900 Gt in 2002–2006. From 2003 to 2016, soil moisture depletion continued, with an additional 1009 Gt lost.

Soil moisture had not recovered as of 2021, with little likelihood of recovery under present climate conditions. The authors say this decline is corroborated by independent observations of global mean sea level rise (~4.4 mm) and Earth’s polar shift (~45 cm in 2003–2012).

Water loss was most pronounced across East and Central Asia, Central Africa, and North and South America. In Australia, the growing depletion has impacted parts of Western Australia and south-eastern Australia, including western Victoria, although the Northern Territory and Queensland saw a small replenishment of soil moisture.

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