What are the main ESG matters for employers and HR?

Employment lawyers and HR professionals are most likely to be interested in the “S” (social) and “G” (governance) aspects of ESG, although the “E” (environmental) may also be involved to some extent.

Matters in a workplace context relevant to ESG include the following:

Diversity, Equity & Inclusion: This involves having policies and practices in place which foster a diverse workforce (at all levels), ensuring equity in recruitment and progression and valuing, involving and respecting differences among staff.
Workplace culture: What measures does the company have in place to foster a positive, open and collegiate culture? This includes, for example, having effective policies in place to tackle inappropriate behaviour and policies encouraging people to come forward and report wrongdoing (effective whistleblowing / ”speak-up” policies).
Recruitment, retention and training: What internal policies, procedures and practices does the company have in place to ensure it is able to attract and retain talent? Does it adequately invest in its people by offering or providing access to training and development opportunities?
Health and safety and employee wellbeing: How does the company seek to protect both the physical and mental wellbeing of its staff and what support does it offer in this regard? For example, many employers offer enhanced sick pay entitlements and an increasing number now offer their staff access to wellbeing programmes. Flexible working and family-friendly leave policies are also important in supporting staff in balancing the responsibilities they have in their work and personal life.
Pay and pay equity: How transparent is the company in its pay structure and pay reviews? Measuring pay against industry standards, conducting audits to identify and address and gaps in pay (e.g. gender pay gap) and considerations around executive pay (whether it is in line with good corporate governance and societal expectations) are all relevant here.
Climate-conscious policies: What policies, benefits and practices does the company have in place to raise awareness of climate change and encourage sustainable practices? For example, training on environment/climate change and sustainability, putting in place cycle to work schemes, e-vehicle schemes, provision of workplace charging points and implementing business travel policies and practices aimed at reducing/minimising the company’s carbon footprint.
Human Rights and modern slavery: Although certain organisations are required to publish a modern slavery statement, it is also advisable for those who do not to carry out due diligence into their business and supply chains to look into such matters and put in place measures to prevent, identify and address any issues. Investors, business partners and employees would not want to be associated with or seen to be benefiting from a company that engages in or turns a blind eye to the exploitation of workers.
Top tips for employers

Practical tips for employers in addressing employment-related ESG matters include:

Ensure compliance with employment law and best practice. Not only is this an essential element of treating one’s workforce fairly, it also reduces the risk of legal claims, financial loss and the damage to reputation those can lead to.
Carry out regular policy reviews and updates and provide regular and targeted training to staff and managers, particularly on equity, diversity and inclusion.
Carry out a culture survey/review to find out how staff feel about the company’s culture, its values and how it is doing on diversity, equity and inclusion matters. Identify and act on any areas of concern.
Consider collecting and reporting on diversity data. Consider whether it would be appropriate to set diversity targets, but ensure that any such targets are realistic and that management is accountable for meeting them.
Review recruitment and promotion practices to ensure that they are fair. On recruitment, consider diversifying where the company advertises its roles and where candidates are pooled from. On promotion, a review of the company’s promotion record can flag up areas where workers may be getting stuck on the ladder and if any groups appear to be disproportionately disadvantaged.

The post ESG for Employers first appeared on ESG Foundation.

The post ESG for Employers appeared first on ESG Foundation.