Companies wanting to attract top university graduates to work for their businesses have to demonstrate their green credentials, business groups have warned.

According to the UCAS Future Leaders Survey 2006-7, almost half of all university students rate the environmental provenance of their future employer as an important consideration when deciding which job to accept.

'With such an army of graduates hitting the job market each year, the smartest businesses will be looking to attract – and retain – the very best,' said Chris Hodgson from the government body Envirowise. 'There are simple actions businesses can take to send out a positive message to their future employees, with the added benefit of helping to save money.

'Publishing a formal environmental policy on the company website, having a named employee who spearheads resource efficiency measures and giving new employees the opportunity to contribute ideas are all constructive steps.

'And of course it is essential that companies take the actions to ensure they deliver on their environmental objectives,' he added. 'Often these can be no-cost or low-cost changes, such as water displacement devices in toilets.'

The Chartered Institute of Personnel and Development agrees that an environmentally friendly organisation is more likely to attract top staff, and also points out that such firms can expect to benefit from greater levels of motivation and commitment.

'We know that increasing numbers of people want to work for organisations that can demonstrate environmentally-friendly policies,' said Gerwyn Davies of the CIPD. 'This is particularly true of the best graduates who will tend to scrutinise the profile of their potential employers.

'At the same time, experience shows that by being serious about environmental issues, companies can increase staff motivation and engagement: two important attributes in any strong workforce,' he claimed.