Article: The many facets of sustainability in HR – unveiled

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The many facets of sustainability in HR – unveiled

How HR can turn sustainability from a lofty goal into a practical, employee-driven movement
The many facets of sustainability in HR – unveiled
 

The notion of sustainability in HR can be broken down into four categories, each with a different emphasis. Organisations have unique advocacies and values that they espouse under the banner of sustainability.

 

The outcomes of the recently concluded COP29 have once again highlighted the need for businesses to embrace sustainability in their own right, in their own concrete ways.

And with the sustainability movement centred around people and the planet, it’s only logical that HR take an active role in championing it.

At a time of heightened environmental awareness, HR leaders are uniquely positioned to drive this transformation from within the practice.

No longer confined to traditional functions such as recruitment and payroll, HR today can embed sustainability into organisational initiatives.

After all, they are stewards of strategic and sustainable human capital management.

How is HR promoting sustainability?

Kevin Elferink, a sustainability HR consultant, believes: “HR can contribute positively to multiple SDGs [sustainable development goals] like no poverty; gender equality; decent work and economic growth; and reduced inequalities.”

On that note, “Implementing a form of SHRM [sustainable human resources management] may lead to positive outcomes for the organisation. Examples are improved retention rate, making the employer more desirable in the job market, improved work-life balance and improved job satisfaction.”

Of course, different organisations have unique advocacies and values that they espouse under the banner of sustainability.

So, Elferink deconstructs the notion of sustainability in HR into four broad categories, each with a different emphasis.

“Firstly, there is the socially responsible HRM, which has a social emphasis. Secondly, Green HRM, which focuses mostly on the environment. Thirdly, Triple Bottom Line HRM with an emphasis on economic, social, and environmental goals. Lastly, Common Good HRM which is comparable to Triple Bottom Line HRM, but with a stronger focus on social and environment. A good example of this could be an organisation with a social business model,” Elferink said.

All of these types can be “useful depending on the organisation, the industry and the context”. However, the most balanced of these four, the expert said, appears to be a Triple Bottom Line approach.

“This version of SHRM is, in my opinion, the most balanced one to the majority of organisations considering the current capitalist system most of the world operates in,” Elferink said.

Also Read: COP29 and the business of climate finance

The cultural elements of sustainability in HR

HR professionals are thus vital for cultivating a culture of sustainability within an organisation. This involves a multi-pronged approach:

1) Crystal-clear communication

HR must communicate the organisation’s sustainability goals with unwavering clarity and infectious passion. Employees need to understand not only the “what” but also the “why” behind these goals, connecting them to the organisation’s values and the broader global context.

“HR consultants can help craft messages that resonate with employees at all levels, ensuring alignment with the company's environmental goals,” said Amanda Simon, chief people officer at ASH People Partners.

“This includes regular updates, transparent reporting on progress, and celebrating achievements, which can significantly enhance morale and commitment.”

2) Engaging the workforce

Sustainability cannot be a top-down initiative. HR needs to actively engage employees in sustainable practices, making them feel like valued participants in the journey. This can involve organising workshops, setting up green teams, and creating platforms for employees to share ideas and contribute to solutions.

“Indeed, a wealth of research exists to indicate positive correlation between feelings of employee organisational ownership and employee engagement [and] this leading to greater job satisfaction, organisational commitment, retention, productivity and profitability,” said Fiona Moore, senior partner business manager at SAP.

“When you think about it, this makes employee ownership and engagement powerful tools for organisations seeking to galvanise their company’s sustainability strategy.”

3) Recognising contributions

Recognising employee contributions to sustainability initiatives, no matter how small, is essential for maintaining momentum. This could involve public acknowledgement, small rewards, or incorporating sustainability performance into performance reviews.

“Create a culture where sustainability is celebrated, and everyone feels like they’re part of the solution,” advised Karl Wood, founder and HR director at Winc HR, who specialises in change management.

This recognition system, Wood said, could be anything from celebrating employees who carpool or use public transport to “rewarding teams that come up with innovative ways to reduce waste”.

Also Read: Climate crisis and the decline of productivity

HR sustainability initiatives in action

Numerous organisations are demonstrating the power of HR in driving sustainability initiatives. Companies like Telekom AG and A1 Telecom are leveraging artificial intelligence to identify skill gaps and personalise employee development programmes, ensuring their workforce is equipped for a sustainable future. This data-driven approach allows HR to efficiently target training and development efforts, maximising impact.

Kramp, a leading agricultural company, has strategically adapted its workforce planning to maximise employee participation in environmental initiatives. This includes offering paid time off for volunteering in environmental projects and integrating sustainability goals into performance objectives.

Meanwhile, HanseWerk is leading the way in green recruiting by optimising online tools and conducting virtual interviews, significantly reducing its environmental footprint. This demonstrates a commitment to sustainability from the very first interaction with potential employees.

Even tech giant SAP is promoting eco-friendly commuting options, such as cycling and public transportation, and integrating sustainability criteria into performance evaluations. This encourages employees to actively contribute to environmental projects and make sustainable choices in their daily lives.

“It is increasingly clear that climate change is not the sole responsibility of any single entity, be it the government, corporates, the public, or non-governmental organisations. Rather it is a collective responsibility, and HR is no exception,” said Venkatesh Veerachamy, a business and tech leader passionate about sustainability and the co-founder of Zuci Systems.

“On the contrary, HR can take the lead owing to its strategic position in the organisational hierarchy, and drive sustainable initiatives for the greater good. Ultimately, it is people who will make or break sustainability, and what is HR all about if not people.”

As the stewards of human capital, HR has the power to transform the workforce into a collective force for positive environmental change and help create a more sustainable and resilient world for generations to come.

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Topics: Business, #ESG, #SustainabilityForPeople

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