July 29, 2021 was declared Earth Overshoot Day. This meant that the world’s population had already consumed more that year than the planet could regenerate in the same time.

There are several other data points that could contribute to our collective discomfort. However, the one stated above is clearly a Human Resource problem. Here is why…

In 2023, the employment-to-population ratio worldwide was estimated to be approximately 58 percent, indicating that nearly 60 percent of the global population above 15 years was employed. Among the provided regions, Northern America had the highest employment-to-population ratio, at 59.8 percent, with Europe and Central Asia having the lowest at 55 percent. (Source: Statista.com). 

This underscores the fact that more than 50% of the world’s population is potentially impacted by process, policies and values that they witness on a daily basis at their workplace. The architects of these process, policies and values are more often than not the top management, including the leaders within the HR function. In that sense, the impact of Green HRM is significantly higher than what we would otherwise imagine.

The simple fact is that no company can go green without employee buy-in. Let’s get the import of this right. Leadership has to be all-in too. However, if our people aren’t on board with our green initiatives and policies, they’re going to fail and fail hard. This is where HR comes in.

Here are some data points that indicate how employee and consumer expectations are rapidly evolving:

• 70% of sustainability believers would pay a 35% premium for sustainable brands (Source: study conducted by IBM and NRF for Positive Planet)
• 60% consumers globally are willing to change shopping habits to reduce environmental impact (Source: study conducted by IBM and NRF for Positive Planet)
• 86% of Americans expect companies to address social and environmental issues (Source: Process.st)
• 73% of millennials are willing to pay more for sustainable products, compared to 66% of the general population, globally (Source: Nielsen study)
• 71% of job seekers worldwide place a premium on a company’s environmental track record when they’re deciding on a potential employer (Source: Gallup research)

Sustainability Maturity Path

However, let’s take a step back here.

Even before we deliberate on Green HRM, it is imperative to think about how we might make our businesses more sustainable. Not only does that propagate sustainability at the core, it helps organizational and leadership alignment without asking for it! 

It is becoming increasingly apparent that sustained corporate success harmonises with a healthy society and environment.

As per a study done by PwC, 84% of business executives recognize the importance of adopting a sustainable business. 

Academicians, such as the environmental economist Robert Mendelsohn, agree that sustainability is key. 

“We can’t afford not to be sustainable.” – Robert Mendelsohn

Measuring activities against the Sustainability Maturity Path provides a clarifying look at business sustainability goals.

There is no silver bullet for a sustainable business. Becoming a sustainable or more sustainable business is a process.

This six-stages framework gives us a deeper understanding of the journey towards mature sustainability:

Stage 0: Disregard

The company doesn’t act with the environment in mind. Since most industries have some form of environmental regulation, this would be an exception.

Stage 1: Compliance

If a company’s environmental decision-making is driven by compliance, it is solely to reduce operational risk and to comply with regulations.

Stage 2: Obligation

When a company complies with the expectations of outside market forces, it is motivated by Obligation. This could be the case when customers are demanding certain products, proof or validation. The company is not yet motivated by internal forces, but by external (customer and market) forces. However, it is acting more proactively than just complying with regulations, as it were in the previous stage.

Stage 3: Efficiency

Many companies realize that Environmental Process Optimization can lead to operational cost savings. This doesn’t mean they are purpose-driven. However, they actively try to reduce harm to become more efficient. That is usually the stage in which full-time sustainability personnel take ownership of the processes.

Stage 4: Leadership

When a company actively pursues sustainable innovation and views it as brand enhancement, it starts to be driven more from internal perspective. The leadership team is highly bought into sustainability as a management philosophy, and sustainability becomes a driver for the long-term viability of the business. Innovative products or business models are actively pursued.

Stage 5: Purpose

Purpose-driven companies are aiming to create value for society and the environment beyond business economics. They are often founded with that purpose specifically in mind. Sustainability is not a factor to consider, but the main factor in any business decision. It does not imply that the company is not aiming to be profitable; it simply means that compromises are the exception, not the norm.

It would be helpful for organizations and leaders to identify their current stage of sustainable maturity. Needless to say, HRM practices and leadership values and behaviors would then need to be closely aligned to the requirements of that stage of sustainable maturity. 

The Sustainability Maturity path provides a holistic road map for HR to make sustainability efforts tangible and measurable, and thereby serve as a guiding document.

Notable Business cases

Over the past few years, several organizations around the globe have made tangible efforts to implement sustainable practices. Here are some notable businesses that have successfully implemented these practices:

Patagonia

Environmentally Conscious Business Model

Industry: Outdoor apparels

Sustainability Practices: Patagonia has embedded sustainability into its core values, focusing on environmental conservation. The company uses organic cotton, recycled materials, and promotes "Worn Wear," a program that encourages customers to repair and recycle their products.

Impact: By 2025, Patagonia aims to use 100% renewable and recycled materials across its entire supply chain. It also donates 1% of its sales to environmental causes, totalling over US$ 140 million since 1985. This strategy has strengthened its brand loyalty and positioned Patagonia as a leader in sustainable business.

IKEA

Circular Economy and Renewable Energy

Industry: Furniture and home goods

Sustainability Practices: IKEA has committed to becoming a circular and climate-positive business by 2030. The company has invested in renewable energy, owning more than 500 wind turbines and solar panels to power its stores. IKEA also focuses on sustainable sourcing of materials like FSC-certified wood and recycled plastics.

Impact: As of 2020, IKEA produced more renewable energy than it consumed, achieving 100% renewable energy in its operations. Its recycling initiatives and sustainable materials are driving both environmental impact reduction and long-term profitability.

Unilever

Sustainable Living Plan

Industry: Consumer goods

Sustainability Practices: Unilever launched its "Sustainable Living Plan," focusing on reducing environmental footprint, improving health and well-being, and enhancing livelihoods. The company aims to halve the environmental impact of its products and become carbon-positive by 2030.

Impact: By 2020, Unilever had reduced CO2 emissions from energy by 65% per ton of production. Sustainable brands like Dove, Hellmann’s, and Ben & Jerry’s, which account for over 60% of the company's revenue, have experienced faster growth due to their sustainability credentials.

 Tesla

Driving Renewable Energy Adoption

Industry: Automotive and energy

Sustainability Practices: Tesla has revolutionized the electric vehicle (EV) industry, reducing reliance on fossil fuels. Its mission is to accelerate the world's transition to sustainable energy through EVs, solar energy, and energy storage solutions. Tesla’s Gigafactories focus on reducing manufacturing emissions.

Impact: Tesla has delivered over 1.3 million electric vehicles as of 2021, displacing millions of tons of CO₂ emissions. Its solar energy solutions and battery storage systems have further promoted global adoption of renewable energy, pushing the entire auto and energy sectors toward sustainability.

Walmart

Project Gigaton

Industry: Retail

Sustainability Practices: Walmart’s "Project Gigaton" is an initiative to eliminate one billion metric tons (a gigaton) of greenhouse gases from its global value chain by 2030. Walmart focuses on reducing waste, improving energy efficiency, and promoting sustainable product sourcing.

Impact: As of 2021, Walmart reported over 230 million metric tons of avoided emissions through its sustainability efforts. The retailer has also committed to reaching 100% renewable energy across its global operations by 2035.

Google

100% Renewable Energy

Industry: Technology

Sustainability Practices: Google achieved 100% renewable energy for its global operations in 2017. The company invests heavily in wind and solar power to offset its electricity consumption and has implemented energy-efficient infrastructure across its data centers.

Impact: Google’s data centers are now 50% more energy-efficient than the industry average, helping to reduce its overall carbon footprint. Google has also committed to running its data centers entirely on carbon-free energy by 2030, setting a benchmark for other tech companies to follow.

These case studies demonstrate how integrating sustainability into business models can not only reduce environmental impact but also enhance brand reputation, customer loyalty, and long-term profitability.

Green HRM initiatives

Green HRM is an evolving area aiming to augment organisational performance by re-examining HR policies, practices, and technology and making them environmentally friendly to reduce costs and increase efficiency while also minimising their impact on the environment. As an approach, it is rapidly gaining prominence in aiding organizations to achieve sustainability by integrating sustainable practices into their HR policies. 

Organizations across the world have been successfully implementing green HRM initiatives. These include the following:

Paperless Office

Replacing traditional paperwork with digital platforms for recruitment, onboarding, performance reviews, and payroll. Companies use cloud-based systems for document storage and communication, drastically reducing paper usage.

Use-case: Deloitte implemented a paperless billing and digital documentation system, cutting paper waste significantly and promoting digital HR processes.

Green Recruitment

Conducting job interviews via video conferencing instead of requiring candidates to travel, and using online application processes to minimize the environmental impact.

Use-case: Unilever uses AI-powered recruitment tools to conduct virtual interviews and assessments, reducing carbon emissions from travel while streamlining the hiring process.

Energy-Efficient Workplaces

Implementing energy-saving measures such as smart lighting, eco-friendly HVAC systems, and motion sensors to reduce energy consumption in the workplace.

Use-case: Google has designed its offices with energy-efficient technologies, reducing their energy consumption by 50%, promoting sustainability across the workplace.

Remote Work and Telecommuting

Offering employees the option to work from home, reducing commuting and the environmental impact associated with transportation.

Use-case: Salesforce has embraced a remote-first policy, allowing employees to work from home, significantly reducing the carbon footprint related to daily commuting.

Sustainable Employee Benefits

Providing benefits that encourage sustainable commuting, such as public transportation passes, bike-to-work schemes, or electric vehicle (EV) subsidies.

Use-case: PwC offers employees incentives to use public transportation and bike-sharing programs, reducing the environmental impact of their commuting practices.

Green Training Programs

Educating employees on sustainable practices, such as energy conservation, waste reduction, and eco-friendly behavior, through online training platforms to avoid the environmental costs of in-person sessions.

Use-case: Siemens offers sustainability training for all employees, focusing on energy efficiency, waste management, and reducing environmental impacts in everyday business operations.

Sustainable Performance Management

Including sustainability goals and eco-friendly initiatives in employee performance appraisals and rewarding employees who contribute to the company’s green objectives.

Use-case: Hewlett-Packard (HP) integrates environmental performance metrics into employee evaluations, incentivizing workers to take part in green initiatives within the company.

Green Payroll

Transitioning to electronic payslips and online payroll systems, reducing the need for physical printing and delivery of salary information.

Use-case: Adobe uses digital payroll systems for all employees, eliminating the need for paper-based payslips and reducing overall resource use.

These illustrations are but a few of the initiatives being taken by organizations across sectors and markets, to achieve sustainability by integrating sustainable practices into their HR policies. The use-cases also highlight how Green HR can help companies reduce their environmental impact while fostering an eco-conscious workplace culture.

In conclusion, the role of leadership in driving a sustainability culture cannot be overstated. Top management needs to communicate the purpose behind sustainability, and articulate how it is in the long-term economic and environmental interest of the organization, the industry, and the nation. 

Leaders then need to check for alignment – ensuring that the larger sustainability imperatives are understood by every stakeholder, and that business goals and success metrics too take into account sustainability practices and related leadership behaviors. 

The HR function then needs to play a critical role in stringing the golden thread between the stated vision, and predominant behaviors within the organization. Environment-conscious business goals need to be reiterated periodically. Influencing employee behavior in the right direction will drive unprecedented business success. Senior leaders will need to be pulled in as catalysts to harness the full potential of sustainability by shaping employee mindset and behavior.

Additionally, Green human resource management practices not only benefit the environment but also enhance an organization's image and brand value. These practices promote higher employee productivity and job satisfaction, cultivating a more cohesive and empathetic workforce. They also help maintain a dynamic and efficient workplace, improving employee retention rates. 

It is no longer a question of choice, but a matter of time in which organizations, irrespective of their size will need to adopt green HR initiatives and implement strong sustainability practices.