Environmental, Social and Governance (ESG) factors are rising up the boardroom agenda, as governments and businesses grow in their commitment to be less impactful on the planet and deliver more equitable societal outcomes. The changes are, in part, driven by the attitudes of customers, lenders and investors as climate change, corporate scandals and issues of inequality continue to cause concern; with the whole being set against a backdrop of Russia's war on Ukraine and the rapid bounce back in economic demand from the pandemic.

HR professionals can play a pivotal role in helping organisations achieve their ESG goals, whether through simply reflecting the diversity of society itself or committing to the strategic cultural goals of carbon footprint reduction and sustainable business practices.

Practical policies

One way HR can play a critical role in working to shape and deliver ESG strategy. is through developing practical environmental policies for employees to help cut carbon footprints and linking those policies to a business’ purpose, culture, and values. Modern slavery and health and safety management are also considerations and firmly within the remit of HR.

How an organisation manages its relationship with its customers, suppliers, employees, and wider stakeholder networks is crucial. HR professionals can drive accountability and transparency by helping align the business with its purpose and values. Impactful organisational structure and leadership can lead to better investor and employee relations, reduce risks and regulatory pressure whilst increasing government support.

Boosting attraction

In a competitive labour market, it is important that organisations do all they can to attract and retain the best people and a strong commitment to the ESG agenda can be a differentiator in this regard. If employees have a choice over which role to accept, and the salary and benefits packages are comparable, then the deciding factor may be driven by the ESG agenda.

Training & development

HR are also well-placed to identify and implement training on sustainability issues that complement the policies set, while ESG considerations can also be fed into appropriate reward, development and recruitment strategies. One emerging trend is the linking of pay incentives to the achievement of carbon reduction or other ‘green’ targets by employees.

Equality & diversity

Reflecting the protected characteristics of wider society is an important part in the ‘S’ of ESG. HR teams can support EDI networks and employee resource groups, which, with the right purpose and governance, can drive real change in an organisation.

A voice in the boardroom

For many organisations, ESG can bring significant opportunities, drive business models and steer strategy. Many organisations who are proactively addressing the ESG agenda have HR representation in the boardroom where the function is able to directly influence strategy and culture. In cases where HR is not part of the executive management team it is vital that the Management team is onboard supporting HR with their role in delivering an effective ESG strategy.

Alumni

We have over 30 years’ experience in supporting organisational HR. We have international presence and global reach paired with local knowledge and networks. We can help you find specialist ESG expertise or work with you to develop awareness in your leadership and their teams. We are especially proud of our commitment to EDI throughout all stages of our recruitment and leadership development processes. Whatever your requirements we will partner with you to gain a thorough understanding of your unique situation and work hard to advance along your particular ESG journey.

HR as a facilitator for ESG