Sustainability: HR As Strategic Partner For Success

By Tunde Oyadiran, FNIM , SAP Certified, CCP , GRP

Sustainability refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs. It involves balancing economic, environmental, and social considerations to ensure that resources are used efficiently and responsibly to create long-term value for society. Sustainability is a major focus for businesses for several reasons:

Long-Term Viability: Sustainable practices enable businesses to operate in a way that preserves resources and minimizes negative impacts on the environment, ensuring their long-term viability.

Risk Mitigation: Addressing environmental and social issues proactively helps businesses mitigate risks associated with climate change, regulatory changes, supply chain disruptions, and reputational damage.

Cost Savings: Sustainable practices often lead to cost savings through energy efficiency, waste reduction, and resource optimization.

Market Demand: Consumers are increasingly demanding products and services that are produced sustainably, driving businesses to adapt their practices to meet these demands and remain competitive.

Regulatory Compliance: Governments worldwide are implementing regulations to promote sustainability and combat climate change. Businesses that align with these regulations are better positioned to comply and avoid penalties.

Enhanced Reputation: Embracing sustainability can enhance a company’s reputation, attract investors, customers, and top talent, and differentiate it from competitors.

Stakeholder Expectations: Stakeholders, including investors, employees, customers, and communities, expect businesses to act responsibly and contribute positively to society and the environment.

Innovation and Efficiency: Embracing sustainability drives innovation and efficiency by encouraging businesses to find new ways to operate more sustainably and create value through sustainable practices.

Overall, sustainability is a critical consideration for businesses in today’s world as it not only addresses environmental and social challenges but also presents opportunities for growth, innovation, and long-term success. By integrating sustainability into their strategies, businesses can create shared value for all stakeholders while contributing to a more sustainable future
Human Resources (HR) plays a crucial role in organizations achieve sustainability goals by aligning human capital strategies with environmental, social, and governance (ESG) initiatives. Sustainability has become a key focus for businesses worldwide, and HR functions are instrumental in driving this agenda forward. Below are examples of how HR contributes to sustainability efforts in various industries and regions:

Technology Industry (United States)

Recruitment and Talent Management: HR in technology firms focuses on recruiting individuals with sustainability-oriented mindsets and skills. For instance, Google incorporates sustainability questions in its hiring process to ensure candidates are aligned with the company’s ESG goals.

Employee Engagement: HR implements programs to engage employees in sustainability initiatives. For example, Apple encourages employees to participate in volunteer programs focused on environmental conservation.

Automotive Industry (Europe)

Training and Development: HR in automotive companies provides training on sustainable practices to employees. Volkswagen offers workshops on eco-friendly driving techniques to promote sustainability.

Diversity and Inclusion: HR promotes diversity and inclusion to foster innovation in sustainability. Volvo Cars has a diverse workforce that contributes unique perspectives to sustainability projects.

Financial Services Industry (Asia)

Compensation and Incentives: HR designs reward systems that recognize sustainable behaviors. HSBC links employee bonuses to ESG performance to drive sustainability outcomes.

Compliance and Ethics: HR ensures employees adhere to ethical standards and regulatory requirements related to sustainability. Mitsubishi UFJ Financial Group has stringent policies on responsible investing guided by HR.

Consumer Goods Industry (South America)

Wellness Programs: HR in consumer goods companies focuses on employee well-being to support sustainability. Unilever provides wellness programs to enhance employee health and productivity.

Supplier Diversity: HR works on promoting supplier diversity to support local communities. Natura &Co prioritizes sourcing from diverse suppliers to promote economic growth in regions of operation.

In all these examples, HR functions as a strategic partner in driving sustainability by Policy Development, creating policies that embed sustainability into the organization’s culture. Training and Development: Providing education and training on sustainable practices. Employee Engagement: Engaging employees in sustainability initiatives to foster a culture of sustainability. Performance Management: Monitoring and evaluating ESG performance to drive continuous improvement. Stakeholder Engagement: Collaborating with stakeholders to advance sustainability goals.

By integrating sustainability into HR practices, organizations can enhance their reputation, attract top talent, and contribute positively to society and the environment. HR’s role in sustainability is essential for organizations to thrive in a rapidly changing global landscape.