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If we were to imagine a Venn diagram showing the overlap between HR strategy and environmental, social, and governance (ESG) policy, there’s no doubt the past few years have seen a significant expansion of the area marked ‘intersection.’
The emergence of the “People & ESG Director” job title is arguably proof enough of this, but if you’d like to be a bit more “scientific” about it, consider that according to HR Grapevine research, 58% of UK HR professionals say their investment in ESG and wellbeing has increased in 2024 compared to 2024.
Moreover, with 71% of UK HR professionals expecting their C-suite to increase investment in ESG over the next 12 months, these twin forces of sustainability are a vital part of how people teams help their companies balance people, purpose, and profit.
As they do so, one of the most important tools at their disposal is HR technology, a perhaps unexpected but unavoidable pillar of ESG strategy.
E for environmental: HR software can help companies go green
In companies where investment in ESG & wellbeing increased in 2024 compared to 2023, HR leaders ranked a link between ESG, wellbeing, and business success (76%) as the most common reason for the growth in support.
Effective reporting underpins each component of ESG, and HR software plays an important role in delivering environmental policies and tracking their impact on business goals.
Sarah Wheatley, People and ESG Director, ProCook, observes some primary impacts.
“HR technology can help companies to become environmentally friendly through enabling virtual collaboration and remote working which reduces the need for commuting and thus lowers the company's carbon footprint,” she explains. “They also help with help replacing paper-based processes with electronic ones, reducing waste and conserving natural resources. HR systems are typically cloud based which are generally more energy efficient.”
Rebekah Wallis, Director of People & ESG, Ricoh UK, confirms her company has taken such steps, including the use of electronic signatures and digital forms that eliminate the need for printing and physical document storage, and flexible-first working arrangements or benefits such as an electronic vehicle salary sacrifice scheme.
HR technology can help companies to become environmentally friendly through enabling virtual collaboration and remote working which reduces the need for commuting and thus lowers the company's carbon footprint
“By allowing employees to work remotely, the number of daily commutes is dramatically decreased and directly translates to lower carbon emissions from personal vehicles or public transport,” Wallis says, though adds that digitisation is not a complete fix. “Whilst there is no doubt that digitisation brings numerous benefits to businesses, employees and customers alike, we must be aware that data also generates carbon emissions and is something organisations must consider as part of their ESG agenda,” she asserts.
