Human resource directors have a chance to guide their company’s strategic focus in the context of social sustainability, according to a Mercer report on ‘people sustainability.’
Internal focus on higher employment standards in the organisation and its supply chain, as well as the potential to impact external issues through enabling the workforce, are all part of ‘people sustainability.’
According to Mercer’s 2017 HR in ESG Survey, four out of five organisations believe ESG is a major concern for them and that their ESG goals are linked to their corporate purpose.
Mercer partner David Wreford says: “While ESG may be on the agenda for many executive boards, identifying appropriate leaders within organisations for specific operational elements can be a challenge.There can be many internal and external ESG touchpoints across an organisation and recognising where particular elements have a natural ‘home’ can often be a struggle.
Wreford adds: “This can result in ESG inertia, where an organisation is unable to identify and fully commit leaders to achieve its ESG goals. Mercer’s research shows that there is a natural home for people sustainability within HR leadership.”
Employee activism appears to be driving organisational ESG goals, according to the Mercer report, with 86 percent of respondents citing employees as the most influential stakeholder group in influencing ESG actions within their company, followed by customers at 83 percent. But how far has HR recognised sustainability as a strategic priority? What is the maturity level of its implementation?
Mercer recently launched a free diagnostic tool to help HR leaders improve sustainability through their people. The tool helps HR leaders examine how well their company is organised to deliver on its ESG objectives, as well as identify HR levers that can accelerate their achievement of these objectives.
Wreford says: “Mercer’s HR & Sustainability Alignment Diagnostic covers 38 key HR considerations, from fostering an inclusive culture to providing retirement support. HR plays a critical role and it is important for leaders to be able to break down sustainability into manageable individual elements to improve the employee experience. In addition, people sustainability must be thought of holistically beyond the company‘s own employees and be anchored in the company‘s everyday life.”
Wreford adds: “In view of increasing corporate transparency, the diagnostic supports in directing HR leaders on what levers to operate and understand how to address ESG commitments, ensuring employees do not see ESG as a ‘bored’ agenda.”