The Critical Role of HR in Shaping Sustainable Futures
We were present at this inspiring event and have distilled the key highlights for you.
The introduction of ESG reporting requirements (Environmental, Social, and Governance) has propelled sustainability into the forefront of many companies' agendas. However, making an organization future-ready goes beyond adhering to corporate standards.
Equally crucial is boosting team resilience and attracting, as well as retaining, the right talent.
The focus of this year webinar was on innovative HR strategies and best practices, spanning talent acquisition, employee engagement, and diversity and inclusion
Insights from International Experts:
- Michael Sarsteiner, CEO at Talentor International
- Michael Eger, Partner at Mercer
- Jaana Pedras, People Consultant at Nordea
- Alessandro Spadaro, People Experience (HR) Director at Pfizer
- Bethlehem Hailu, Regional Corporate Affairs and Sustainability Manager at Nestlé
Key Takeaways
The Global Talent Study 2023 by Mercer provided intriguing results:
- Employer brand/reputation is the second most critical factor influencing job choices, just after job security.
- 96% of employees expect their employers to be engaged in sustainability efforts.
- 1 in 4 leaders states that employees and candidates drive the sustainability agenda.
"People sustainability is about creating a condition where everyone can do their best and everyone can be authentic."
ESG and HR Sustainability: A Symbiotic Relationship
Sustainability, clear ESG goals, and results are becoming increasingly critical in attracting and retaining high-potential talent. However, the reverse is not as prevalent. According to Michael Eger of Mercer, only 30-40% of companies consider the candidates' sustainability mindset during recruitment.
"When it comes to D&I, we have two key metrics: 1) Gender composition: No gender should be represented less than 40% until 2025. 2) Employee response on being treated fairly: Our target is 92 index points in our people poll survey."
Companies on the Sustainability Path
Many global companies still have work to do in implementing ESG and sustainability practices. A survey by Greco among Austrian companies also emphasizes an environmental focus. Although 90% prioritize environmental protection and sustainability, only half currently possess a written sustainability strategy. Social issues rank lower in priority, with discrimination and human rights violations perceived as challenges by only 1% and 4% of respondents, respectively.
Global Sustainability Perspectives
Mercer's Global Talent Study 2023 reveals that 83% of companies in the DACH region (Germany, Austria, Switzerland) focus on environmental sustainability. Interestingly, globally, the top priority is Diversity, Equity, and Inclusion (DEI), ranking second in DACH at 70%.
‘’At Nestle we even went now one step further. Not only sustaining the environment. We want to give more back than we take actually. ESG means full transparency. We strive to have zero emissions by 2050. And you can hold us accountable for those KPIs. They are at the core how we act. Sustainability is about maintaining. Two years ago, we adopted a new term: Regeneration, which is going beyond sustainability. It's about giving back more than we take."
The Mercer report also put a clear spotlight on the resources and energy level of leaders right now in critical times. 43% stated that they have too many priorities. 34% are exhausted by the level of pressure they face at work. Exhaustion is real now…after the pandemic, global crisis and inflation. 34% companies are surviving. And still, we are in a high global talent shortage.
Rising Pressure for Sustainability
The sustainability pressure on companies is increasing, driven by legislation, consumers, investors, employees, and applicants. Sustainability is evolving from a "Nice-to-have" to an absolute necessity. 96% of employees in the Mercer study demand the company to persue a sustainability agenda.
What do you stand for?
Purpose, equity, inclusion is on top of the agenda and priorities as a company. Culture, well-being and career opportunities are even rated below, and at least compensation, benefits and flexibility. Creating companies with a sustainable agenda to make this planet in any way better, will be the performers of the future as talent will stay. And as Michael Eger stated:
‘’We can have the greatest tools. They are useless without the culture and mindset in place.’’
The consensus among HR and sustainability experts is clear: Taking a leadership role in ESG and sustainability requires significant investment. Yet, in the end, this investment will become a crucial competitive advantage.
