The Strategic Role of HR & Coaching in Sustainability and ESG

Recently, I have had the privilege to share how sustainability and ESG become an urge in the Human Resources area in the HR Gathering & Anniversary of Next Chapter Academy 2024. This is the first NCA HR Gathering to provide inclusive education about recent trends to HR Practitioners and Professionals in Indonesia. Collaborated with coachingyuk WMK Consulting and other sponsors and leading HR Communities in Indonesia, the event presented Bambang Yapri Rudy Afandi Maria Josefina Monica Anggar , and successfully showcased the urge of technology, flexible-working policy, and Gen-Z-centric approaches to Talent in addition to the issue of ESG and Sustainability that I presented myself with and moderated by Mohammad Savier Azmy .

Though my session was too short to share everything, the questions from the audience reflected that this topic is indeed a novum and brings more curiosity if this will be a buy-in priority for the management to pay attention to, on a larger scale, not just the management but stakeholders. Let me summarize the session and share with more audience here so hopefully, if you work as an HR, you could start to discuss this strategically. Or if you are not HR, start working with HR on how this issue could be a priority in the business strategy.

As sustainability and Environmental, Social, and Governance (ESG) concerns increasingly shape corporate strategy, Human Resources (HR) has a pivotal role in aligning organizational values, culture, and employee behavior with these goals. HR departments have the responsibility to ensure that sustainability is embedded into day-to-day practices through policies, employee engagement, and leadership development. In this context, coaching also plays a crucial role in supporting HR’s mission by promoting mindset shifts and fostering leadership aligned with ESG values. Elaborating on what I shared during the gathering, let’s explore more on HR's strategic role in driving sustainability and ESG, with some examples of HR campaigns to give more practical clarity and how coaching can bolster these efforts.

HR’s Role in Sustainability and ESG

HR departments are the key drivers of sustainability and ESG efforts, tasked with translating these goals into actionable strategies and behaviors across the organization. Here are the primary areas where HR contributes:

1. Talent Acquisition and Development. HR teams play a crucial role in hiring employees who are aligned with the company’s sustainability and ESG objectives. This involves integrating ESG-focused criteria into job descriptions and recruitment processes. For example, companies can create ESG-specific roles like “Sustainability Officer” or “Diversity and Inclusion Manager.” HR can also organize training programs on sustainability practices, offering certifications or internal workshops on energy conservation, waste reduction, or ethical supply chain management. In addition, an HR team may launch a "Green Recruiting Campaign" where potential candidates are evaluated on their professional skills and commitment to sustainability. This could involve asking about their understanding of ESG issues during the interview process and how they have contributed to environmental or social causes in previous roles. In this context, HR teams should be more knowledgeable, have to understand, be updated, and be involved with ESG issues and practices.

2. Employee Engagement in Sustainability. HR has a significant role in encouraging employees to participate in the company’s sustainability goals. HR can implement initiatives that engage employees in ESG practices, such as internal challenges to reduce paper use, promoting remote work to reduce carbon emissions, or organizing community volunteer days, and even taking initiatives to lead a sustainability project. For example, HR could launch a "Sustainability Challenge," where employees are encouraged to submit ideas for reducing the company’s environmental footprint. The best ideas could be rewarded with bonuses or incentives, such as reducing energy use in the office by encouraging the use of natural light or setting office-wide energy-saving goals. Most commonly, this practice is embedded with the innovation program or competition in the company working together across departments.

3. Diversity, Equity, and Inclusion (DEI) Policies. Under ESG, the "S" or social aspect often includes diversity, equity, and inclusion. HR is responsible for ensuring DEI policies are robust and actionable. HR can implement policies that promote gender equality, diverse hiring practices, and inclusive work environments, aligning these initiatives with broader ESG goals. In this area, HR can introduce a "Diverse Leadership Initiative" that aims to increase minority representation in leadership roles. This can include mentorship programs that support underrepresented employees and create pathways for career growth within the organization.

4. Corporate Governance and Ethical Practices. HR also ensures that the governance aspect of ESG is reflected in the company’s internal policies. This involves creating ethical guidelines that ensure transparency, anti-discrimination measures, and fair labor practices. HR can also implement codes of conduct and anti-corruption training that are aligned with ESG principles. HR can collaborate with the Legal or Compliance team or related department to implement an "Ethical Decision-Making Framework" as part of employee training to ensure that every level of the organization understands the importance of ethical business practices, ranging from ethical sourcing to transparency in decision-making processes.

How Coaching Supports HR’s Role in Sustainability and ESG

As sustainability starts in the mindset of the people, giving knowledge and awareness on the issue will not be enough to drive the actions. The closest way to shift mindset is by provoking its mind with powerful questions that could dig deep the impuls to spark the commitment. This process is called coaching. It can amplify HR’s efforts to integrate sustainability and ESG principles by nurturing leadership and driving behavioral change within the workforce.

1. Leadership Development for ESG. Coaching helps leaders to understand and internalize the importance of sustainability and ESG. Leadership coaching can encourage executives to adopt long-term perspectives, considering not just profit but also the environmental and social impact of their decisions. HR can pair senior executives with coaches who specialize in ESG and sustainability leadership. These coaches can challenge leaders to consider how their strategic decisions impact future generations, encouraging them to lead by example in promoting sustainable business practices.

2. Fostering a Culture of Sustainability. Coaching supports HR’s efforts to create a culture that prioritizes sustainability. Through group coaching or workshops, employees can be encouraged to integrate sustainability into their daily routines, helping them see the tangible ways their actions contribute to company-wide ESG goals. HR could organize group coaching sessions focused on sustainability-related challenges, such as reducing waste in the office or finding ways to make the supply chain more environmentally friendly. Coaching encourages collaborative problem-solving and helps employees take ownership of sustainability initiatives.

3. Accountability and ESG Performance Tracking. Coaching can also support HR in fostering accountability around ESG goals. Coaches can work with employees and teams to set individual or team-based sustainability targets, providing guidance and feedback along the way. HR can implement an "ESG Coaching Program" where coaches help employees develop specific, measurable goals for reducing their department’s environmental impact, such as minimizing travel-related carbon emissions by adopting video conferencing.

In conclusion, HR plays a strategic role in embedding sustainability and ESG into a company’s culture, operations, and decision-making processes. By implementing sustainability-focused campaigns, policies, and recruitment strategies, HR helps drive meaningful changes across the organization. When combined with coaching, these initiatives gain additional momentum. Coaching helps foster leadership development, promotes employee engagement, and builds a culture of accountability for sustainability. Together, HR and coaching form a powerful alliance that can guide organizations toward achieving their sustainability and ESG objectives while fostering a responsible, ethical, and inclusive workplace.

CoachingYuk, live better with coaching!

?#HRLeadership #SustainabilityForHR #ESGTraining #HRTrends #HRDevelopment #SustainableBusiness #ESGCompliance #HRBestPractices #ESGProjectManagement #EnvironmentalSocialGovernance #HRInnovation #CorporateResponsibility #ESGReporting #WMKConsulting #SustainabilityGoals #HRandESG #coaching #coachingyuk #esg #sustainability #sdg2030 #coaching101 #trip100K #nextchapteracademy #experiencecoaching #timemanagement #prioritysetting #digitalcoaching #habitcoaching #agilecoaching #esgcoaching #thelaksmana #claimyourwinning2024 #podcast #beingacoach #livebetterwithcoaching