Green HR

Greening HR is more than just saving the environment, it facilitates long-term business success and can help get the right talent on board for less money

November saw the InnoAsia conference take place at the Hong Kong Science Park, with a host of international speakers sharing insights on worldwide strategies for sustainable development and how CSR deserves to be top of the agenda for local firms and multinationals alike. We examine why green HR practices are not only good for the environment, but also for the business.

CSR not just altruistic—it makes money

Far from being an empty gesture to blind side shareholders and the general public, Ramana James, National Sustainability Manager, Stockland claimed that companies must bring their mindset up to date in order to thrive in today’s marketplace. The Australian property development company builds green communities and, according to James, the reward is clear to see. Outdated policies may view CSR as simply the practice of caring for the environment and ‘being seen to be green’, but in today’s world most corporations view CSR as essential for social prosperity, producing a long-term shared value and creating a lasting legacy.

The company plans and develops communities to foster collaborative spirit between its residents and a sustainable lifestyle. James remarked, “Why do we do this, to be altruistic? No, not only this, we do it because it works and we can sell more products.” The families looking to inhabit the communities of today want different things than the families of the past; where priorities would have included facilities, shops and cleanliness. James cited a recent KPMG survey, which showed that safety, friendliness of neighbours and communication are now valued most when selecting where to live.

Green credentials essential

It seems that green credentials can be a major game changer. Dr Michael Voigt, Head of the Eco Commercial Building Center of  Excellence China, Bayer MaterialScience (China) Company, revealed that job applicants approaching them in Shanghai are reportedly not only looking at economic factors when deciding who to work with. The availability of information regarding CSR and sustainable business practices, he advised, can mean the difference between yourself and a competitor offering an otherwise similar package.

Jobseekers—conscience over money

James concurred, in recent times his organisation has received applications from individuals overqualified for positions advertised. When asked, applicants have stated that they want to join a company with a conscience and with a mapped future strategy, which cares more for its impact on its surroundings than the corporations of the past. Richard Bellingham, Deputy Director and Senior Research Fellow of Energy Policy at the Fraser of Allander Institute at the University of Strathclyde, Glasgow added that graduates seem to view sustainable future-minded companies as a better prospect in terms of their own personal growth and that companies stand more chance of being around further down the line if they are implementing earth-friendly policies now.

This sentiment was shared by Gary Steel, Executive Vice President and Head of Sustainability at ABB Group in Switzerland. He explained, “Young people today have a much higher social conscience than previous generations when it comes to environmental issues and they are attracted to companies that have a green innovation policy. Therefore, organisations should be attracting new talent using sustainability as a major part of their value proposition. Of course this has to be authentic—Gen-Y is much more aware of the world around them due to  communication being faster and more easily accessible, so they are better informed if a company is not being honest in terms of its policy and is failing to meet their expectations.”

HR should also try to get involved in the production of their organisation’s Annual Report—as some of the most avid readers will not be shareholders, but rather the employees of tomorrow. Sustainable CSR practices and a green HR clearly portrayed in the Report could well tip the balance when it comes to attracting the crème-de-la-crème. Companies looking to green their HR need to get all stakeholders and senior management on board. HR can influence strategy by not only showing the long-term economic benefits of policy change, but by also clearly demonstrating the short-term returns that can be gained by attracting talent who choose to join the organisation specifically for green reasons.