Greening of HR. October, 12 th by Vinciane Istace & Sophie Grall

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1 Greening of HR October, 12 th 2011 by Vinciane Istace & Sophie Grall

2 Historical perspective Stockholm UN Conference International environmental issues Brundtland Report Our common future Rio UN Conference Agenda 21 Kyoto Protocol Greenhouse Gas Johannesburg Summit Sustainable development EU Green Paper Energy efficiency Rio +20 Sustainable Development US don t sign! Sustainable Development CSR Scientists & NGO Governments & Nations Corporations 2

3 Sustainable development extracted from Brundtland report 3

4 Conceptual framework Interdependent ENVIRONMENTAL Global Livable Viable Sustainable SOCIAL Equitable ECONOMIC 4

5 Current context Green is not just for tree huggers any more: How to live green : what about HR? 5

6 A shift in values A business that makes nothing but money is poor business Henry Ford Market based Competition Distinction Performance Efficiency Growth Urgency Fast & short term Human based Solidarity Relationships Empathy Flexibility Diversity Wellness Agility Slow & long term Work better to live better 6

7 The role of corporation It is not the role of corporation to save the planet! However, sustainable development is transversal and global enrolls all the functions of the organisation (production, marketing, finance, distribution, procurement, HR) is a social engagement from the leadership and as a consequence the HR Director CSR integrates the responsibility of the corporate organisation as the foundation of Sustainable Development 7

8 Greening of HR Definitions : Types of environmentally friendly green initiatives that companies are utilizing involving their workforce and HR practices 60% of green program are embedded in HR mission Integrates the 3 pillars of sustainable development The HR function is a balancing function as it monitors the relationships and interactions between the various stakeholders (Employees, Investors, Providers, Clients) It is an HR management based on TRUST, both in the individuals and in the company and aims at the development of each one through a mission statement where each employee is a contributor 8

9 The driving forces Why a company should go green? Increase employee engagement Attract and retain top talents Improve operational efficiency Drive profitability through energy, water and new materials savings Brand the business with differentiation Address the expectations from your stakeholders: regulators/ consumers/ investors/ employees Monitor reputational risk Reduce pollution, waste and CO2 emission 9

10 The role of HR HR as a sponsor HR as an actor HR as a contributor Build the culture Build the necessary capacity Build ownership and responsibility Mission statement, Values, Code of Conduct Individual green behaviour Supportive processes and policies Integration in business operations Measure and reward Communicate (reporting) Green HR is how to organise harmonious relationships across the systems within a company. Those systems are made of people and as such the HR Director is the key stakeholder to organise those interactions 10

11 Type of environmental responsibility initiative in place 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 63% 35% 30% Envt. Responsibility as part of mission statement Envt. Responsibility charter Organisational sustainability report Source: Buck survey January

12 Corporate department reponsible for green program Operations Human Resources Communication Corporate responsibility Facilities management Finance Environmental, health and safety Strategic planning Administration Other 12% 9% 6% 5% 5% 5% 3% 8% 38% 47% 0% 20% 40% 60% 80% 100% Source: Buck survey January

13 HR offering related to green program Using web or teleconferencing to cut down on business travel 78% 7% 1% 6% 9% Putting summary plan description or other information online to reduce printing 77% 7% 6% 4% 7% Promoting the reduction of paper usage 76% 10% 2% 8% 3% Wellness programs around proper nutrition, fitness and healthy living Offering opportunities for employees to "telework" or work from home 68% 57% 10% 1% 14% 24% 10% 7% 1% 8% Ride/share programs 52% 7% 2% 33% 6% "Green" newletters or other "green" communications 40% 12% 6% 36% 7% Training programs for employees on "green"practices 18% 17% 6% 40% 19% Environmentally responsible 401(k) investment options 12% 7% 3% 45% 33% Recruiting employees with green skills and experiences 10% 2% 3% 64% 20% 0% 20% 40% 60% 80% 100% Currently exists Unsure No plan to implement Plan to implement in more that 12 months Plan to implement within 12 months Source: Buck survey January

14 Green HR impacts all HR processes Recruitment Performance Management Training & Development Do your jobs description reflect your green commitment? Do you test green awareness when recruiting? Do you measure the carbon footprint of your recruitment process? Do you hire green collars? Is your recruiting material printed on recycling paper? Do your capture environmental metrics? (transport costs, paper) Do you set accountability target for business units, for executive? Do you write and integrate green criteria in appraisals? Have you set carbon neutral objectives? Do you train your employees on green practices? (eco driving, recycling, waste management, energy savings, landscape and urban gardening, ) 35% of companies have started! Do you develop the green skills of our employees? Do you train staff to produce green analysis of workspace (carbon footprint) Do you print your training material? 14

15 Green HR impacts all HR processes Employment relations Pay & Rewards Exit Do you communicate about your green programs? Do you distribute green newsletters? Are you involved in community activities? Do you have an environmental policy? Do you encourage employees to use green forms of transport? Do you have an employee help-line for guidance on green matters? Do you restrict access to social networks? Do you facilitate and engage employees in environmental sustainability? Do you reward green behaviours? (special recognition, green team members of the month) Do you propose environmentally responsible investment options? (pension plan) Do you propose incentives? (subsidy for hybrid cars, on-site farmer products, green commuting vouchers, organic dry cleaning)? Do you link suggestion scheme to reward system? Do you still print pay slips? Do you have health & well-being program in place? Have employees left for greener workplaces? Do you assess perceptions of your firm green-ness? 15

16 Message must be authentic and congruent! PricewaterhouseCoopers S.à.r.l.