ESG refers to three key groups of factors: Environmental, Social and Governance, which are taken into account when measuring the sustainability and impact of an organisation.
Today, ESG is on the agenda of many organisations, because just like HR, it focuses on goals and values, and requires businesses to integrate diverse stakeholder perspectives. Therefore, HR activities such as employer branding, hiring, remuneration, incentive schemes, management approach, work model, employee development or D&I should be carried out with the ESG perspective in mind.
We suggest that S (Social) could be addressed in the panel in two ways:
- cultural (the interests of employees, customers and local communities)
- regulatory (non-financial reporting in line with EU requirements)
The speed at which changes are implemented is important for the achievement of objectives, as we live in a rapidly evolving world. HR must be able to respond quickly to such changes.
This would be impossible without technologies and data. HR can take inspiration on how to do this from the business community, which is increasingly using technology and adapting to changing consumer needs. For HR, the customers are managers and employees as well as external stakeholders. HR Transformation responds to these challenges by proposing a revision of the HR function model so that it integrates technology and people, supporting innovation and sustainable development of businesses.
