How Environmental Social Governance Impacts HR Management
Equity and inclusion are part of our DNA. This means that we not only promote equal opportunities as an employer, but we also promote a culture of inclusion and gender diversity with our clients and through the partnerships we forge. Our partnership PWN Global results from these goals, and our collaboration aims to set the path for change and for fostering equity in the workplace, an essential keyl for leadership innovation and business development. The UN Commission defines sustainable development as “meeting the needs of the present without compromising the ability of future generations to meet their own needs”. In business terms, it means balancing the pursuit of profit and market share with broader social, environmental and economic obligations. Sometimes referred to as people, planet and profits, these obligations are known as the three pillars of sustainability.
Sustainable Development
In 2015, the United Nations 2030 Agenda for Sustainable Development was signed. It included 17 Sustainable Development Goals (SDGs) related to eco-sustainability and resilience, human dignity, regional and global political stability and economic prosperity.
The UN’s sustainable development agenda has prompted many companies, including Michael Page, to reflect on their approach to sustainability. The challenge can be framed in simple terms. How do you build a successful business while at the same time making the world a better, fairer, greener place? And how does this impact recruitment and HR management?
More and more companies are using the Environment / Social / Governance (ESG) categories to shape their business models and strategies. Enterprises that prioritise sustainability are best placed to attract both capital and talent. However, companies must do more than pay lip service to the green revolution. To be worthwhile, sustainability, and Diversity & Inclusion (D&I) goals must be pervasive across all levels of the company. This requires skill and commitment on the part of senior figures.
Forward-thinking leaders regard sustainability as a personal responsibility as much as a corporate commitment. More and more Board Members, CEOs, DHRs and Marketing Directors feel a strong obligation to their staff and customers and strive to meet their expectations. They want to build a better, more sustainable world for future generations.
The Is No Absolute Rule
However, let’s clarify a controversial aspect. There is no absolute rule. It depends on the situation. For example, the finance, human resources, marketing, and communications sectors cannot be excluded from sustainability processes. Once the strategy has been defined, we recommend gradually adding managers with prior experience in the sector. Companies should also draw up a map that leads to a transversal organisational model in which sustainability affects all corporate functions.
The will of the shareholders is essential because it is they who decide the company’s strategy and it is they who should drive sustainability and D&I. In family businesses, it is the family that should believe in these topics.
In other types of companies, it is important that there is a group of managers capable of wagering on such a challenging objective. A single individual is never enough to complete the process. An enthusiastic manager certainly helps and can make a difference, influencing stakeholders and bringing interesting projects to the table. But then it is the whole company that has to take up the challenge. In reality, no single figure can drive a company’s sustainability and D&I transformation. It needs concerted, all-round leadership.
The Need For Concensus and Buy-In
In conclusion, sustainability and D&I rely on consensus and buy-in across the entire company. To achieve this, leaders need to communicate their objectives transparently, particularly when those objectives are shaped by information and processes that weren’t an integral part of the business strategy until now.
No single figure can lead sustainable transition in a company. There are, however, several different roles within an organisation that can contribute to the mission. Among them is an emerging profession: Head of ESG, whose Head of ESG is a new, evolving role. As such, this figure’s responsibilities aren’t set in stone and will vary from company to company. Finding professionals with the right profile for this position is a challenge.
The positions’ primary areas of responsibility involve working closely with investment teams and leadership to develop the best company wide ESG policies and frameworks. The Head of ESG will work to minimise risk and maximise opportunities while interpreting the company’s mission and vision in terms of sustainability.
What Does a Successful Head of ESG Need?
What expertise, areas of competence or concrete experience might a Head of ESG profile have? Although these profiles are constantly evolving, there are currently certain backgrounds that are in high demand and can be used to accurately identify a head of ESG.
We should clarify that, in order to provide an exact definition of a Head of ESG profile, we need to consider several parameters such as, for example, the size of the company, the positioning of the company in the market, the industry or sector in which it operates or the development objectives of the company. Depending on these parameters, the manager's approach to business development will be defined. This could be a profile that is more interested in strategy and business development, with concrete and operational activities, as opposed to a manager who is more focused on positioning the company in an institutional, associative, or external communication environment.
Identifying the most appropriate backgrounds and experiences for your company is a very important step in identifying a Head of ESG who can add value and make a difference. Each position has its own unique characteristics that sets it apart from the others, which best match the company's specific background and culture.
Besides Head of ESG, various other positions are evolving to drive sustainability initiatives. Sustainability and D&I challenges are transforming corporate structures in various sectors.
The Head of Diversity & Inclusion is becoming increasingly relevant. These profiles are specifically dedicated to the smart and business friendly implementation of corporate D&I policies, often with international, multicultural backgrounds and global vision.
Another prominent figure is the Sustainability Development Manager, a Cross-functional professionals engaged in implementing sustainability aspects in all (direct and indirect) processes of the company, from business and operations to employee culture and behaviour.
The Rise of the Strategy Development Manager
Finally, we highlight the rise of the Strategy Development Manager, a profile with a strategic vision on both the financial and commercial side. They can analyse different business plans and understand what the new opportunities for organic and inorganic growth of the company might be.
Clearly, not only are new managers being introduced as agents of change, but new professions are evolving. The common denominator for all these professions is the ability to align with the sustainability and D&I mission as outlined by the Head of ESG.
Greater expectations call for greater actions. There’s an urgent need to invest in innovative talent development programs with a sustainability perspective. One option is to partner with consulting firms that constantly analyse innovations and disruptions in the sustainability sector and who can leverage that knowledge to offer talent and recruitment solutions.
When it comes to sustainability and D&I, Michael Page believes in leading by example. Within our own organisation, we are increasing transparency, promoting gender equality and providing better opportunities for professional development.
Good Global Citizenship
The Group strives to minimise and mitigate its environmental footprint, demonstrating responsible business practices and good global citizenship.
As part of our partnership with PWN Global, and to encourage good global citizneship, we are advertising a range of diverse, global volunteer opportunities. If you would like to volunteer with PWN Global, helping empowering women in the corporate world, we'd love to hear from you - visit our site (sson to be available in English language) to find out more.
Date: Juy 2022 Author: Joana Barros, Marketing Manager, Michael Page Editor: Rebecca Fountain, Marketing Consultant, PWN Global |