Human Resource Management System

HR professionals play a pivotal role in fostering environmentally conscious behaviors among businesses and employees. 

Here are easy-to-implement ‘green’ goals:

1. Reduce Waste:
– Make recycling and reusing the norm.
– Provide reusable office resources, like coffee cups and utensils, and ensure accessible recycling bins.

2. Support Green Travel:
– Encourage carpooling, cycling, or walking to work.
– Review the necessity of air travel and explore ways to offset carbon footprints from flights.

3. Conserve Energy:
– Encourage staff to shut down equipment during inactive periods to minimize energy use.

4. Promote Eco Volunteering:
– Support employees in participating in green initiatives like tree planting or volunteering at environmental charities.

5. Implement Training:
– Conduct training sessions to raise awareness of eco-friendly practices among employees.

Additionally, HR professionals can garner support for ‘green’ responsibilities at the management and C-suite levels. Securing buy-in from senior members ensures the adoption of environmental practices across all organizational levels. Developing a comprehensive net-zero strategy and climate resilience plan establishes a strong foundation for integrating sustainable practices.

If you’re aiming to enhance your learning and development culture, establish diversity targets, or create a sustainable supply chain, consider the following reflections:

1. Values-Aligned Suppliers:

   • Are your suppliers aligned with your organizational values?

2. Community Contributions:

   • Do you contribute profits to the local community?

3. Employee Volunteering:

   • Do you encourage employees to volunteer locally?

4. Working Conditions:

   • How favorable are your working conditions for employees?

5. Workforce Planning:

   • Will your current workforce meet future challenges?

6. Product Safety and Working Conditions:

   • What safety risks are associated with your products or working conditions?

7. Market Impact of Social Changes:

   • How might future social and demographic changes affect your market?

8. Geopolitical Considerations:

   • What geopolitical events could impact your business?

Engage with internal stakeholders, including procurement, CSR professionals, and the c-suite, using these questions as a framework for meaningful discussion

When contemplating HR’s influence on integrating people factors into board-level decision-making, Ed Houghton, CIPD’s Head of Research and Thought Leadership, outlines three key approaches:

1. Data-driven Insights:
   • Provide the board with high-quality workforce data to facilitate discussions. A clear reporting structure, incorporating both data insights and narrative, is essential, especially for complex concepts like culture. Narrative plays a pivotal role in conveying qualitative aspects.
2. Prioritizing People and Culture:
   • Elevate people and culture as top priorities on the board’s agenda. Restructure board committees to better address people factors. Some organizations experiment with dedicated People and Culture committees or even establish a shadow board, offering employee/workforce perspectives, resulting in promising outcomes.
3. Effective Disclosure Practices:
   • Shift from a ‘tick-box’ approach to meaningful disclosure in people measures and reporting, aligning with the calls for holistic data sets by the Financial Reporting Council. Overcoming challenges in data valuation by proxy firms is crucial for effective communication of ESG initiatives.

Considering the Corporate Governance Code and Wates Principles, which emphasize the need for employee consideration in board decisions, is pivotal. ESG performance, encompassing employees and other stakeholders like shareholders, retired staff, investors, customers, suppliers, charities, and communities, is fundamental for comprehensive business sustainability. 

Traditionally, the CEO and board play a central role in spearheading and embedding ESG purpose throughout an organization, strategically addressing and mitigating risks associated with ESG challenges. 

Senior leaders, including those in HR, actively contribute to the development of the ESG strategy and its effective communication. In certain cases, businesses designate Chief ESG Officers or Chief Sustainability Officers to oversee these aspects. However, it is crucial for managers at all levels within the organization to become champions of ESG initiatives, fostering a collective commitment to environmental, social, and governance goals.

Organizations are increasingly under scrutiny for their ESG (Environmental, Social, and Governance) performance. As an HR leader, mitigating the risk of litigation or regulatory sanctions is paramount, with implications varying across different businesses. 

ESG has become a driving force behind new laws, performance standards, and reporting requirements. Legal compliance is evolving to encompass ESG risk governance, and employment law plays a crucial role in promoting responsible business behavior.

There is a specific emphasis on sustainable operations without violating human rights. Robust checks are essential to ensure the avoidance of employing victims of modern slavery or engaging in child labor within both the parent company and the supply chain.

Businesses can align with the Guiding Principles on Business and Human Rights (UNGPs) to pledge adherence. Human rights diligence, especially relevant for larger businesses, is mandated by the UK’s Modern Slavery Act, reinforcing the commitment to ethical and responsible business practices.

Choosing sustainable suppliers which have a positive impact on society and effective governance will contribute to meeting your ESG goals. 

Screen your suppliers during onboarding and procurement, focusing on the ESG metrics that are important to your business.