Home How We Help Be a better employer Managing people HR’s critical role in Sustainability

Managing people

HR’s critical role in Sustainability

HR leaders have become vital partners in driving sustainability strategies within their organisations.

24 Apr 2024

Catherine Ngo

Content writer, presenter and podcaster

Sustainability has become a paramount concern globally, with individuals and organisations alike recognising the urgent need to address the long-term consequences of inaction. While discussions on sustainability have long been prevalent, the time for tangible action is now.

Recognising this imperative, HR leaders have become vital partners in driving sustainability strategies within their organisations.

The concept of sustainability is multifaceted. It entails catering to the present era's necessities while maintaining future generations' ability to meet their needs. Among the three pillars of sustainability—economic, environmental, and social—the first two receive the most attention. These pillars are often informally referred to as "profit," "planet," and "people," respectively.

Historically, the emphasis on sustainability issues has been on the environment. While this is understandable, given the paramount importance of preserving the natural world around us, it needs to provide a comprehensive view of sustainability. Increasingly, there is a growing recognition of the need to focus on the other pillars—profitability and people—as well. The human aspect of sustainability is self-explanatory, as people are one of our most valuable resources. However, it is equally crucial to consider how we can generate sustainable profits. Without sustainable profitability, a company has no future.

Sustainability in Business - A Changing Scenario

In 2012, the United Nations established 17 sustainability goals for countries to achieve by 2030. These goals have impacted entities, from governments and corporations to individuals.

Corporations have responded by translating these goals into session-level targets for their operations. This shift coincides with the mandatory requirement for listed companies to disclose environmental, social, and governance (ESG) information, ensuring accountability for their sustainability practices.

The focus on sustainability has prompted the emergence of a new business model known as Public Benefit Corporations (PBCs). These businesses prioritise positive societal impacts, including employee benefits, communities, and the environment.

While PBCs are designed to operate with sustainability at their core, existing businesses can adjust to achieve similar goals. HR teams play a significant role in facilitating this transition in traditional business structures.

By embracing sustainability, businesses can align with global goals, enhance their reputation, attract socially conscious customers and employees, and contribute to a more sustainable future.

Corporate Social Responsibility (CSR) and Sustainability: Exploring Differences and Similarities

As businesses increasingly adopt sustainability practices, it is crucial to understand the distinction between CSR and sustainability and how they contribute to securing a company's future. CSR involves reporting on a business's contributions to society, leading to backward-looking initiatives. On the other hand, sustainability is forward-looking, emphasising securing the company's future.

While CSR has led to positive initiatives, it has also focused on protecting the reputation of businesses in developed markets. CSR is traditionally managed by marketing and communications teams. Sustainability, in contrast, is driven by the need to create opportunities in emerging markets and is managed by various players in operations and marketing departments.

In simpler terms, CSR can be likened to giving someone a fish, while sustainability is akin to teaching someone to fish. CSR creates a dependency on external support, whereas sustainability builds self-sustaining systems. By embracing sustainability, businesses can reduce waste, strengthen supply chains, develop new markets, and enhance their brand.

HR's Contribution to Sustainability

Leading employers recognise the significance of social responsibility in their business strategies. To bring these goals to fruition, they place emphasis on employee engagement. HR plays a central role in this regard, facilitating sustainable business practices. HR's strategic involvement in engaging employees in sustainability initiatives is crucial in achieving the overall business sustainability goals.

When integrating sustainability practices into a business, it is essential to recognise it as a multifaceted process that encompasses various social responsibility components, including CSR and ESG. This process involves assessing the company's commitment to enacting these changes, determining how employees will be engaged, and communicating these efforts effectively. From this perspective, HR is fundamental in achieving organisational sustainability goals.

HR's involvement in the sustainability puzzle varies across organisations. However, some aspects commonly handled by HR include facilitating conversations between employees and the board, defining a code of conduct, launching equity initiatives, volunteering initiatives and engaging employees through training, competency models, and leadership development. HR is crucial in supporting the technological and cultural changes necessary for achieving sustainability goals.

In addition to facilitating current employees' involvement in sustainability projects, HR also plays a crucial role in redefining the employer brand. They are responsible for identifying and attracting new talent who align with the company's sustainability values.

Over to you

Sustainability is a multifaceted issue that requires the collective efforts of individuals, organisations, and governments. By embracing sustainable practices collectively, we can create a healthier and more prosperous future for ourselves and future generations. We must prioritise sustainability in all aspects of our lives, from the products we consume to the energy we use.

Leading employers prioritise social responsibility and rely on employee engagement to make it tangible. HR is crucial because it facilitates sustainable business practices, especially regarding people involvement. Integrating sustainability into a business requires recognising it as a multifaceted process involving CSR and ESG. HR's involvement varies across organisations but commonly includes: