The term “ESG” refers to a broad category of corporate responsibility initiatives that focus on governance, social, and environmental issues. In the previous editions of Kreston Menon News, ESG experts talked about how the emergence of ESG requirements persuades businesses to think beyond profit generation and about the long-term impact of their activities on the environment and society.
In this edition we will be focusing on the ‘S’ of ESG and how those social initiatives can be put into play in your businesses. Companies with a vision for tomorrow have identified that supporting ESG initiatives can have a meaningful impact on employee engagement and well- being which in turn will contribute to enhanced productivity and profitability.
Infusing ESG Strategy to the EVP
I recently visited a real estate company where the salesperson was focusing more on the positive impact the sustainability measures incorporated into the building will have on the day to day lives of the tenants and residents. When probed more on his approach of centering his conversation on the green initiatives than the infrastructural details and layout of the units, he disclosed that these ESG factors are the deal breakers when it comes to the purchase decision of young potential buyers.
Similarly, in today’s war for talent, many organizations are positioning ESG as the focal point of their EVP (Employee Value Proposition) and using it to market themselves to the younger generation. They do not opt to work with organizations unless they are certain that those businesses have a futuristic vision and have the sustainability of the planet at the core of what they do.
In a recent study among recruiters, it was found that most discussions of Gen Z jobseekers rotate around the environmental and social aspects of the employer. They are drawn towards purpose-driven organizations, who
promote wellbeing as well as Diversity and Equity within the workplace, follow high ethical and quality standards, and reach out to the society. For them, these attributes have become non-negotiable.
The Pivotal Role of HR in ESG
Talent Acquisition and Retention
ESG conscious organizations understand how critical it is to attract and retain talent who is committed to sustainability. HR departments are instrumental in incorporating ESG values into the organization’s culture, ensuring that current and prospective employees align with the defined ESG goals. According to the recent Gen Z and Millennial Survey of Deloitte, majority of the respondents prefer an employer who offers proper work/life balance and has made steady progress in Diversity, Equity & Inclusion (DEI), societal impact, and environmental sustainability.
SHRM says, 86% of employees who work at organizations that have ESG related initiatives stated that the ESG goals make them feel proud to work for their employers, bring in a meaningful dimension to their jobs and encourage them to stay with their organization.
Employee Engagement and Societal Impact
The Human Resources department plays a vital role in fostering an ESG oriented mindset among employees. Through training programs and communication strategies, HR ensures that employees understand the significance of ESG initiatives and how they can contribute to the company’s sustainability goals. Beyond mere announcements, HR should initiate the ‘walk the talk’, by formulating employee engagement activities like wellness programs, volunteering opportunities and participation in social causes.
At Kreston Menon we encourage our people to support societies and communities in a socially responsible, sustainable manner. We have forged partnerships with Dubai Cares, Al Jalila Foundation, Al Noor Training Centre
for Persons with Disabilities, Rashid Pediatric Therapy Center, Dubai Autism Center, Dubai Center for Special Needs, Dubai Foundation for Women and Children, Make a Wish Foundation and Red Crescent UAE where our people are offered opportunities to interact and contribute.
Diversity, Equity and Inclusion
HR is responsible for positioning the organization as an equal opportunity employer, by providing employment opportunities to the most competent and suitable candidate. This conscious effort should not stop with recruitments, where the organization should strive to provide every person with an equitable opportunity for growth beyond the differences of nationality, colour, religion, gender or abilities.
Green Initiatives
Progressive organizations are taking measures to reduce their carbon footprint by creating environmentally conscious workplaces. HR team will be the change agents by introducing sustainable practices at the workplaces through policies and programs that encourage “green” behaviours.
It is a fact that ESG friendly workplaces improve employee engagement and productivity. Employees who are proud of their company’s ethical and social responsibility are likely to be more engaged and productive, thus contributing to overall business success.
ESG Initiatives at workplace
1. ESG Awareness Programs: Conduct ESG awareness program for employees.
2. Sustainable office practices: Implement recycling, and eco-friendly supplies and sustainable meetings.
3. Energy-Efficient Office: Implement measures to reduce energy consumption in the workplace by reducing the use of electric lights during day time and opting for sustainable products.
4. Reduce Paper Usage: By going digital, reduce the usage of paper.
5. Plastic-Free Challenge: Discourage single-use plastics at work. Introduce reusable mugs and stainless-steel water bottles.
6. Physical and Mental Wellness: Promote employee well- being by organizing sports activities and encouraging an active lifestyle. Ensure a healthy work environment and provide the needed support.
7. Eco-Friendly Transportation: Encourage carpooling and public transport.
8. Education Partnerships: Collaboration with schools and universities for internships and student training.
9. Employment Opportunities for people of determination: Bring people with disabilities to the mainstream by providing them employment opportunities and avenues to contribute and grow.
10. Ethical Supply Chain: Ensure suppliers follow ethical and sustainable practices.
11. Education and Skill Development: Enhance employee knowledge and expertise through training and development programs.
12. Involve Employees in CSR: Encourage employee participation in social causes like philanthropy, volunteering, blood donation and environmental initiatives.
United Nations Sustainable Development Goals (SDGs) adapted by Kreston Global
Let the World Know
Communicate
The study by Marsh McLennan has found that by 2029, the Millennial and Gen Z generations will make up 72 percent of the world’s workforce, compared to 52 percent in 2019. The younger generation place greater importance on ESG than their predecessors do – and will expect more from employers on environmental and social concerns.
This brings in the need for businesses to have effective communication of their sustainability achievements through mailers, social media and career pages to their internal and external audience.
At Kreston Menon, we have opened an interface on our career page where we talk about ‘Life at Kreston Menon’ highlighting how we have created a workplace that is diverse, equitable and inclusive and how we are doing our bit to make this earth a better place for the generations to come.
Involve
Employees are your best brand ambassadors. The success of your ESG strategy depends on their involvement in your green initiatives. Stories shared voluntarily by the employees will have more credibility and impact than the well curated social media posts of the organization.
As people would love to work for organizations that are taking measures to make this planet a better place, integrating your EVP with your ESG strategy can bolster your efforts to attract and retain talent.
Shibu, Shibu Abraham, Director – Human Resources & Administration - Kreston Menon and Chair of the Leadership Team, HR & People Network - Kreston Global
