We’re all doing our part to be more eco-friendly, but let’s not beat around the bush: At the end of the day, even saving the environment needs to have an ROI. The primary function of a business is to generate revenue, after all; if your company doesn’t have revenue, your Green initiatives are kind of a moot point.
Corporate sustainability is not a new idea. While the term “greenwashing” didn’t come into use until the ’80s, and “business sustainability” until John Elkington’s 1994 paper for California Management Review, the concept behind both dates all the way back to the ’60s and Westinghouse’s “clean and safe” nuclear power plants.
It’s been around a while, in other words, so let’s look at some recent numbers.
85% of S&P 500 index file regular sustainability reports. Over 80% of investors factor ESG (environment, social, and governance) data into their decision-making. At the start of 2016, $22.89 trillion in assets (26% of all managed assets) were the result of sustainable investments – a nearly 5% increase since 2012. By 2020, sustainable assets under management $35.3 trillion (36% of managed assets).
“Going Green” isn’t just about paperless memos and reduced carbon footprints, though. It’s only through the commitment, performance, and efforts of your employees that you can effectively adopt environmentally aware practices. This requires a complete shift in your business’s values and cultures – a shift that is only possible if backed by your employees.
For your employees to adopt pro-environmental behaviors (PEB), you need to have established human resource practices that encourage them. You need, in other words, to “Green” your HR management, or as it has been creatively termed, Green HR management (GHRM).
As I’ll show you in this Process Street post, not only does GHRM create more environmentally aware employees, but environmentally aware employees are more engaged at work and have higher job satisfaction.
Here’s the rundown:
Let’s get started!