The Role of HR in Driving Corporate Sustainability
Tragedy struck the town of Lodi, Italy on 11 July 2023.
A sweltering heat wave had swept the country and around midday, when temperatures had touched 104°F (40°C), a worker who was painting road signs collapsed and succumbed to the heat a little later.
There was an uproar among labor unions, who considered the tragedy “avoidable and absurd.” They placed the blame squarely on the company’s policy that required employees to work on asphalt and concrete under such conditions.
For the first time, suddenly and without warning, climate change became an HR issue!
At the time, comprehensive policies protecting employees from climate change-related heat had been formulated but their implementation, unfortunately, was more of an exception rather than the norm.
The EU had introduced the Corporate Sustainability Reporting Directive (CSRD) to enhance sustainability reporting for European companies as well as companies doing business in Europe. Meanwhile, the UK introduced groundbreaking Sustainability Disclosure Standards (SDS) that were designed to provide a foundation for future sustainability reporting laws or regulations. They sought to improve the understanding of sustainability risks and opportunities for businesses. In the US, the Securities and Exchange Commission (SEC) had proposed a set of regulations that were adopted in 2024, and require companies to disclose climate-related information, from greenhouse gas emissions to anticipated climate risks.
Here are some interesting statistics about sustainability from an HR point of view.[1]
From these statistics, it is fairly obvious that people are more willing to work at sustainable organizations, and in a time of talent shortage, companies cannot afford to ignore this insight. Moreover, businesses have strong financial incentives to be environmentally friendly as well.
What can HR do to mitigate and adapt to climate change?
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 organizations. Rather it is a collective responsibility, and HR is no exception. On the contrary, HR can take the lead owing to its strategic position in the organizational 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!
Here are a few things HR can do in this direction:
One of the primary reasons for unsustainable practices, especially at the individual level is a lack of awareness about what exactly sustainability means, and what one can do personally to further its goals.
Most people know about sustainability, but only a few will be able to spell out clear steps of action items that they need to follow to implement it.
A great resource that all organizations can refer to and adopt is the United Nations Sustainable Development Goals (SDGs) which is an all-encompassing overview of sustainability in its entirety. It spans everything from addressing poverty and hunger to gender equality and education, from water and air pollution to energy and economic growth.
It is a wonderful resource that I would encourage all companies to incorporate in their HR policies. You can view it here: https://www.undp.org/sustainable-development-goals
Another aspect that HR can address is explaining the scope of sustainability.
There is a typical conundrum of the family that wanted to keep their street clean but were never able to because their neighbors did not. Viewed at a global scale, this problem translates into what have come to be known as Scope 1, 2, and 3 emissions.[2]
From the purview of an IT company these would be:
-?????? Scope 1: direct emissions from your organization, e.g., by the usage of computers,? airconditioners, etc.
-?????? Scope 2: indirect emissions from energy purchased by your organization, e.g., by diesel generators, etc.
-?????? Scope 3: all indirect emissions, e.g., by users of computers sold by you, etc.
There are also the recently added Scope 4 emissions, which refer to “avoided emissions” due to adoption of alternate, environment-friendly systems, e.g., usage of more energy-efficient laptops.[3]
In practice, the key sustainability approaches are:
-?????? Mitigation: aimed at minimizing climate change, e.g., by adopting more energy efficient systems
-?????? Adaptation: designed to reduce the impact of climate change, e.g., by setting up systems for remote working during adverse events
-?????? Resilience: to ensure business continuity, e.g., creating data and power backups to guard against floods or storms
领英推荐
What we do at Zuci to ensure sustainability
At Zuci, we are aligned with the UN Sustainable Development Goals. For instance, here are some of the practices we follow:
The wellbeing of our employees is a primary focus, and we regulary conduct several health and wellness programs like Happy Minds that ensure our people are cared for at all times.
We understand the importance of education and support social programs like Ellowhale Education aimed at providing high quality education to underprivileged students in our local community. Furthermore, we encourage a culture of learning and nurture employees who seek to advance their knowledge.
We are a 100% non-discriminatory organization, and do not judge people on the basis of gender, age, race or sexual orientation. More than 44% of our employees are women, which includes several leadership roles.
As we grow, we create more and more employment opportunities, and provide high quality work environments that enable our people to be more productive, innovative, and motivated to achieve their fullest potential.
We continuously invest in innovation and infrastructure, contributing to economic growth and sustainable development.
We focus on energy-efficient systems that reduce our carbon footprint, maximizing the utilization of resources and minimizing wasteful consumption.
Following these simple measures can help organizations do their bit to drive sustainable initiatives in their premises and within local communities as well. It is a collective responsibility that we all share, and HR leaders need to be at the front and center of corporate sustainability, with a view to ensuring a better future for us all.
There has to be a transformation in HR’s role in sustainability. Organizations need to push mitigation, adaptation, and resilience using the UN Sustainable Development Goals as a guide. If required, they must create new business models, and undertake upskilling drives to meet this challenge. HR leaders have a critical responsibility to increase their organization’s contribution to global sustainability measures.
References:
1.???? Based on a study by Sustainability News
2.???? As per the GHG Protocol
3.???? According to World Resources Institute (WRI)
Readers – A Quick Note:
People management is not just a matter of dry theory; it's about practical insights and actionable strategies. So, if you are curious about leveraging your team's full potential and understanding the true power of people, read my book, People Forever. In this book, I have tried my best to dive into the 'how' and 'why' of team building, employee recognition, and everything in between.
Now available in Amazon and Notion Press!
Would love to hear your feedback and suggestions. Thank you.