WHAT CLIMATE CHANGE HAS TO DO WITH YOUR COMPANY

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We are living in an age when working for a responsible company has become of paramount importance for employees. It is now vital for companies, of all sizes, to genuinely prioritise how environmental, social and governance (ESG) factors are being addressed in their business – not just from a compliance perspective but for talent recruitment too.

Many facets like diversity and inclusion, social responsibility and culture continue to shape the HR agenda, and environmental action is no exception.

Findings in Deloitte’s Global 2022 Gen Z and Millennial Survey uncovered that a large percentage (90 percent) of Gen Zs and millennials make an effort to reduce their impact on the environment. This, invariably, affects how they view a company’s response to climate change and other environmental issues facing the world.

Closer to home, research commissioned by Mastercard indicates that South Africans have a growing interest in environmental issues. In 2021, 81 percent of adults in South Africa were more conscious of their impact on the environment following the advent of Covid-19, and 76 percent of

South African respondents indicated that seeing companies show sustainable and eco-friendly behaviours was of utmost importance.

The survey highlights that the younger generations in the workforce would like to see businesses and their own employers do more. Only 17 percent of Gen Zs and 16 percent of millennials believe that their employees are strongly committed to fighting climate change.

They’d like to see employers prioritise visible climate actions where employees can get directly involved, such as banning single-use plastics or providing training on how to make better environmental decisions. Ultimately, employers will need to prioritise sustainable choices and prove environmental action to entice employees.

MTN SA’s CHRO Tebogo Maenetja says that securing the best talent is a fiercely fought battle.

“A company must use every arrow in its quiver to create an employee value proposition that differentiates itself from all the rest in the market,” she said.

She added, “Sustainability and a company’s ability to create shared value may well be the secret weapon to set one’s company apart from the rest. Increasingly, we at MTN are seeing candidates who are actively looking for work that offers more than just good pay and decent benefits.”

In essence, employees are increasingly looking for employer accountability. “The kind of employees we are hoping to attract are also interested in working for a company whose values align with their own. These are people who do not want to be embarrassed about who they work for,” Tebogo said.

Walking the walk

Dr Dieter Veldsman, thought leader at the Academy to Innovate HR (AIHR) said climate change is one of the key things that will impact the HR agenda this year.

“Earth’s average temperature has been rising year by year and as such this will have a big impli- cation for HR, with green movements becoming essential. So there will be a lot of talk about our role in sustainability. What stance are we taking as an organisation and as a fraternity concerning our contribution towards bigger problems that stretches beyond the boundaries of our organisation, and what that’s going to look like,” he explained.

Dieter highlighted that organisations will no longer be able to greenwash their way through their operations as discerning employees will hold them accountable. "It's great that you talk the talk, but are you actually walking the walk?” he asked.

Tebogo added that “greenwashing” is often a consequence of a lack of real engagement with the subject at hand and that sustainability has to be embedded in every element of the business in order to succeed. Every part of the business has to take ownership in the delivery of its success.

“This creates accountability across the board, meaning greenwashing becomes something the business will not accept. If sustainability is seen as the ‘project’ of a single department, there is no vested interest by numbers, to see credible and authentic sustainability being created,” she said.

Ways forward

As climate risk continues to surge, it is important for organisations to be sincere and accountable.

Joanne Bushell, MD of IWG (International Workplace Group) South Africa believes token gestures and vague claims will no longer be tolerated and conversations about sustainability are no longer the preserve of green organisations.

“It’s clear that businesses that don’t set serious sustainability targets will lose credibility and trust: the trust of consumers, employees and business partners. Regulators and watchdogs will continue to develop sustainability standards for companies to follow, and tokenistic green policies will therefore be called out,” she explained.

With the workforce becoming increasingly selective about environmental action and personal autonomy, there are ways to encourage employee retention and recruitment.

One key way to show a commitment to sustainability is to encourage hybrid working.

According to a IWG white paper, hybrid working can play a significant role in accomplishing ESG goals. Joanne said that adoption of this model can lead to significant reductions in fossil fuel use and green gas emissions due to fewer car and plane journeys while companies can reduce their own carbon footprint by downsizing offices.

The report highlights that working from home can result in a net reduction in emissions of as much as 77 percent, making hybrid working an indirect form of climate action as it creates a significant environmental footprint reduction.

“On its own, this isn’t the answer to the climate emergency, and other measures will need to be taken but nevertheless, it’s a step that brings positive results,” she added.

As IWG’s founder and CEO Mark Dixon said, “It’s hard to argue with a strategy that helps to reduce carbon emissions, improves employee health and wellbeing, aids economic growth and makes local communities more sustainable.” 