HR is central to sustainability because almost everything an organisation does to become more sustainable is done by people, and HR owns the systems…
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HR is central to sustainability because almost everything an organisation does to become more sustainable is done by people, and HR owns the systems that recruit, develop, motivate, govern and account for those people. ESG is usually described in three pillars — environmental, social and governance — and while the "E" is often led by technical and operational teams, the "S" and much of the "G" are delivered through people: how an organisation treats its workforce, its diversity and inclusion, its health and safety, its ethical labour practices, its culture, its board and management conduct, and its honesty in reporting. These are precisely the domains HR shapes, which is why a sustainability strategy that leaves HR out is missing the function that turns intentions into behaviour.
Consider the social pillar first. The "S" in ESG is essentially about an organisation's relationships with people — its own workers and the people in its supply chain and community. It covers fair and safe work, wellbeing, diversity, equity and inclusion, freedom from discrimination and harassment, ethical labour practices and the absence of exploitation such as modern slavery. Every one of these is delivered through people systems that HR designs and runs: recruitment and selection, induction, training, remuneration and conditions, grievance and complaints handling, performance management, work health and safety culture, and workforce planning. An organisation cannot credibly claim to be strong on the social dimension while its actual employment practices tell a different story, and it is HR that makes the day-to-day reality match the stated commitment.
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