HR and Sustainability: A Value-Generating Combination

Ar19
Jan 28
6 min read

Updated: 2 days ago

Sustainability is a crucial issue for modern businesses, but its success depends largely on people. Human Resources plays a key role in promoting sustainable practices, improving organizational culture, and ensuring a positive impact on employee well-being. In this article, we explore how HRs can guide the adoption of sustainable models, with practical cases, data, and operational strategies.

Why is the Role of HR Central to Sustainability?

Corporate sustainability is not limited to reducing environmental impact. It is a balance between economic, social and environmental objectives that requires an integrated approach. This is where Human Resources comes in: by managing human capital, they can foster responsible practices and build a corporate culture geared toward sustainability.

DEI&B (Diversity, Equity, Inclusion, and Belonging) initiatives are an essential pillar of ESG strategies. Not only do they enhance corporate reputation, but they help create a fair and inclusive work environment. This is especially important in an age when talent is looking for companies with clear values and concrete commitments. Creating a diverse workforce and fostering a sense of belonging within the organization is not only an ethical issue, but also a strategic factor in attracting and retaining top professionals.

A human approach to sustainability

Engaging Employees with Strategy

Change always starts with people. Creating awareness and engaging employees in sustainable initiatives can transform corporate culture. Human Resources can implement awareness-raising campaigns, organize thematic workshops and provide training on best sustainability practices.

A McKinsey study showed that companies that integrate sustainable practices experience a 30% increase in employee satisfaction and a 20% reduction in operating costs. This data highlights how staff well-being and sustainability are closely linked.

Leadership: The Engine of Change

Business leaders are the go-to person for the entire organization. HRs can develop sustainable leadership programs, training managers who can integrate social responsibility principles into business strategies. A good leader not only motivates the team, but inspires them to contribute to the collective well-being

A key element within the organization is the creation and development of a leadership model that is sustainable over time and closely linked to the company's vision and mission: Human Resources can accompany management on this journey.

A winning model is to encourage sustainable behavior through recognition and awards, such as the “Safety Trophy”, one of the initiatives adopted by Italian companies to encourage virtuous behavior in the safety field, involving employees through awards and recognitions to promote a culture of safety and health at work (HSE).

Well-being as a pillar of sustainability

Employee well-being is one of the main priorities of social sustainability. Offering corporate welfare programs, such as mental health support or extended parental leave, not only improves workers' quality of life but creates a more inclusive and productive environment. Furthermore, initiatives such as flexible working hours or the ability to work remotely demonstrate a concrete commitment to addressing individual needs, improving the balance between professional and personal life. Companies that put well-being at the center of their policies see a significant increase in employee retention and satisfaction, contributing to a more stable and collaborative corporate culture.

European Regulations: A Guide for the Future

In Europe, sustainability is no longer a choice, but a real necessity. Companies are increasingly obliged to report transparently on their ESG (Environmental, Social, Governance) initiatives, thanks to regulations such as the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). These regulatory tools represent a sea change, pushing organizations to integrate sustainability into their daily strategies and operations.

One of the central aspects of these regulations is the focus on the social dimension. Companies are required to ensure safe and inclusive working conditions, promote equal opportunities for all workers, and respect the fundamental rights of staff. In addition, enterprises need to set clear sustainability targets with well-defined time frames to demonstrate their commitment to a more responsible future.

This regulatory evolution not only fosters transparency, but also transforms the role of Human Resources, making them key players in driving change. HRs no longer simply manage human capital, but become promoters of sustainable practices, creating value for both employees and the entire organization. European regulation, therefore, represents not only a challenge, but also an opportunity to redefine the very concept of corporate sustainability.

Change starts with numbers: measuring social sustainability

The adoption of key performance indicators (KPIs) is essential for monitoring progress in social sustainability initiatives, with a particular focus on Diversity, Equity, Inclusion and Belonging (DEI&B) policies. These KPIs are a compass for measuring the impact of initiatives and identifying areas for improvement.

For example, female representation in managerial roles, in some leading companies, has reached 100%. This data demonstrates how promoting gender equality can have a positive impact on business growth and innovation.

Another relevant KPI concerns well-being and work-life balance: l’87% of the companies analyzed actively promote policies that improve employees' quality of life. Such initiatives not only increase staff satisfaction but also help reduce turnover.

Wage parity, monitored by ’83 per cent of organizations, is an additional benchmark for assessing internal equity and the level of inclusiveness.

These findings underscore that a commitment to social sustainability is not just an ethical goal, but a strategic lever for generating real value, both for employees and for companies themselves. Regularly measuring these indicators is crucial to ensuring continued and tangible progress.

Examples of sustainable practices

Promoting sustainable mobility: HRs are playing a key role in promoting sustainability through green mobility initiatives. Programmes such as company car sharing or incentives for the use of public transport reduce the ecological footprint and demonstrate a concrete commitment to environmental sustainability, involving employees in positive change.
Continuing education for sustainability: Investing in employee training on environmental and social issues is essential to creating a more aware and responsible workforce. Many companies offer specific courses to teach how to reduce energy waste, manage waste responsibly, and adopt sustainable behaviors even in the daily work environment.
Diversity and inclusion as added value: Human Resources are at the heart of promoting diversity and inclusion policies, which represent fundamental pillars of social sustainability. Creating diverse teams fosters innovation, improves business performance, and strengthens internal cohesion, making the organization more resilient and competitive. A study conducted by McKinsey found that work teams where diversity is not only accepted,but valued, perform more than 35% better than teams where this is not the case. The union of different points of view, visions and perspectives within a team generates a plurality of ideas and visions, which are the prerequisite for innovation.

The Impact of Sustainable Practices on HR and Business Performance

Recent studies have shown that sustainable practices integrated into business strategies can have a direct impact on economic performance and employee engagement. According to the Sustainability Balance Sheet Observatory, companies investing in welfare, inclusiveness, and workplace safety policies experience increased productivity and decreased turnover, thus improving operating margins. This shows that sustainability initiatives, when well planned, are not only ethically sound, but also cost-effective.

Challenges and Opportunities on the Sustainability Side

Cultural change is a complex process that requires time and a strategic approach. Human Resources often faces internal resistance, which is why it's crucial to organize listening sessions and gradually involve employees in sustainability initiatives, making them an active part of the change. Another significant challenge is limited resources, as not all companies have large budgets to support ambitious programs. However, many companies are finding creative solutions to overcome the challenges of limited resources. Investing in digital tools to optimize processes and collaborate with sustainable suppliers are approaches that can reduce long-term costs. Additionally, leveraging government incentives or participating in sustainable business networks provides an opportunity to share expertise and access useful resources, while promoting positive change within the organization.

Operational strategies for innovative HR

To drive sustainable change, HRs must adopt effective and personalized operational strategies. One of the most powerful tools available is the use of key performance indicators (KPIs). These indicators make it possible to monitor progress and assess the impact of initiatives. Among the most useful KPIs are those related to emissions reduction, employee engagement, and promoting diversity within the company. Regularly measuring these metrics helps identify areas for improvement and celebrate successes achieved.

Furthermore, it is essential to develop personalized plans for each organization. Each company has unique needs and priorities, and HRs must work closely with different departments to design tailored strategies. This approach ensures that each initiative is relevant, effective and in line with business objectives. By customizing actions and maintaining a focus on measurable results, HRs can play a critical role in driving organizational sustainability.

Human Resources is the real heart of sustainable change in the company. By investing in employee well-being, promoting sustainable leadership, and stimulating the expression of each individual's uniqueness rather than homologation through the selection of individuals by implementing innovative policies, HR can transform sustainability into a competitive advantage.

Now is the time to act: the sustainable future of companies is being decided now.