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ESG and Employment Law Reforms: What They Mean for Executive Recruitment in 2025

  • Publish Date: Posted 06 June 2025
  • Author: Gina Le Prevost FIRP DipRP, CEO

How Regulatory Shifts in the UK, Switzerland, and the EU Are Shaping Demand for ESG Talent

Environmental, Social and Governance (ESG) frameworks are no longer just a corporate trend — they are fast becoming legal mandates. As regulations tighten across the UK, Switzerland, and the EU, businesses are under pressure to demonstrate sustainability, transparency, and ethical employment practices. At AP Executive, we are seeing a sharp increase in demand for senior-level professionals who can lead ESG strategy and compliance from the top down.

United Kingdom: ESG Disclosure and Employment Rights Drive Demand

Key Regulatory Updates:

The UK is leading the way with sweeping ESG-related reforms. In late 2024, the Financial Conduct Authority (FCA) moved to regulate ESG ratings providers, placing new emphasis on transparency and data integrity. Financial services firms are also adapting to the Sustainability Disclosure Requirements (SDR), which demand greater clarity in marketing and reporting green claims. In employment law, the 2024 Employment Rights Bill introduces day-one protection against unfair dismissal, extends tribunal claim deadlines, and restricts “fire and rehire” practices. Additionally, from October 2024, UK employers have a legal duty to actively prevent workplace sexual harassment — a move that places greater responsibility on leadership teams and HR functions.

Executive Talent in Demand:

  • Chief Sustainability Officers (CSOs)

  • Head of ESG / ESG Strategy Directors

  • ESG Data and Reporting Leads

  • HR Directors with Employment Law Expertise

  • In-House Legal Counsel (ESG & Employment Law)

Top Skills:

  • ESG framework integration (TCFD, ISSB, GRI)

  • Sustainability reporting and stakeholder engagement

  • Ethical leadership and DEI (Diversity, Equity & Inclusion) policy development

  • UK employment law compliance and risk management

Switzerland: Corporate Accountability and Supply Chain Due Diligence

Key Regulatory Updates:

Switzerland continues to strengthen its ESG reporting obligations. The Swiss Ordinance on Due Diligence and Transparency, which took effect in 2023–2024, requires large companies to disclose environmental and human rights risks across their operations and supply chains. While the 2020 “Responsible Business Initiative” was ultimately rejected by referendum, it significantly influenced Swiss ESG policy, especially in the areas of corporate social responsibility and ethical sourcing. Financial services firms face additional ESG-related reporting requirements, and companies with 100 or more employees must now conduct workplace equality audits. This regulatory momentum is driving greater demand for professionals who understand sustainable supply chain governance and ESG compliance frameworks.

Executive Talent in Demand:

  • Sustainable Finance Directors

  • Group Compliance Officers (ESG/Due Diligence)

  • Legal & Risk Officers – Supply Chain Governance

  • Head of Corporate Social Responsibility (CSR)

Top Skills:

  • Supply chain sustainability and human rights due diligence

  • ESG integration in investment strategy

  • Regulatory compliance with Swiss transparency laws

  • Audit, assurance and ESG risk assessment

European Union: CSRD, Pay Transparency, and Green Governance

Key Regulatory Updates:

The EU’s Corporate Sustainability Reporting Directive (CSRD), introduced in 2024, marks a major step toward standardised ESG disclosures across the bloc. Over the next three years, nearly 50,000 companies will be required to report against the European Sustainability Reporting Standards (ESRS). Meanwhile, the upcoming Pay Transparency Directive (set for full implementation by 2026) obliges employers to disclose salary ranges in job ads and publish gender pay gap data. The pending Green Claims Directive will also tighten regulations around environmental marketing and greenwashing, impacting both brand positioning and employer branding. These combined measures are reinforcing the need for strategic ESG, HR, and legal leadership.

Executive Talent in Demand:

  • ESG Reporting Directors (CSRD Implementation)

  • Chief Diversity & Inclusion Officers

  • Corporate Affairs & Sustainability Executives

  • Compensation & Benefits Specialists (Pay Transparency)

Top Skills:

  • CSRD and ESRS reporting compliance

  • ESG risk strategy and internal controls

  • Remuneration benchmarking and gender pay analysis

  • Public affairs, reputation, and stakeholder strategy

How AP Executive Can Help

As a global executive search firm with deep sectoral knowledge across financial services, corporate governance, legal, and sustainability, AP Executive is uniquely positioned to support clients navigating these regulatory shifts. We offer:

  • Tailored executive search for ESG, compliance, legal, and HR leadership

  • In-depth market mapping for ESG and sustainable finance talent

  • Consultative support on evolving role profiles aligned to new legal standards

  • Access to a global talent network across the UK, EU, and Switzerland

With 2025 shaping up to be a watershed year for ESG regulation and employee rights, hiring the right leadership is critical. From ESG disclosures to workplace compliance, today’s businesses need forward-thinking professionals who combine regulatory understanding with ethical leadership.

If your organisation is preparing for these changes, AP Executive can help you attract and retain the senior talent that will lead with integrity and foresight.

Contact our specialist consultants today to learn more about executive recruitment in ESG, compliance, legal, and HR.