Future Of Recruiting Hinges On Environmental Sustainability

As the world enters the third decade of the 21st century, there is widespread alarm about the state of the planet. Droughts in Africa, forest fires in California, cyclones, and floods in South East Asia – all point to signs of accelerating climate change.

Sustainability has become a pressing issue – at international summits like COP27, in the street protests by young climate activists, and even in the lives of ordinary consumers. In the last two decades, eco-conscious consumers and socially responsible investors were primarily responsible for giving businesses a compelling reason to go green.

These days, the benefits of eco-friendly business practices extend beyond consumer loyalty to compliance, and even to the realm of recruiting. This article will explore the significance of corporate environmental sustainability for recruiters, particularly in the Indian context.

What is corporate sustainability strategy?

Sustainability is based on the understanding that many of our planet's natural resources are finite. It is a drive towards economic growth and development while protecting the earth's fragile ecosystem and resources for future generations.

The three stated pillars of sustainability are environmental protection, social development, and economic development. The UN’s Sustainable Development Goals provide a shared blueprint for all nations, societies, and organisations.

In the business context, sustainability is a strategy that falls under the wide umbrella of ESG – Environmental, Social and Governance practices. At the core is a triple-bottom-line approach with 3Ps – Planet, People, and Profit. 

Under an environmental sustainability strategy, a company will try to adopt business practices which targets growth while reducing the consumption of energy, and resources, and limiting the impact on the environment.

How does corporate sustainability impact recruiting?

The global workforce is constantly undergoing a generational shift. Right now, the workforce is increasingly dominated by Millennials, or Gen Y as they are also known. More than any other generation, Millennials care about diversity, inclusion, transparency, authenticity, and sustainability above all.

According to recent Nielsen surveys, 75% of this generation were concerned about the environmental impact on their lifestyle choices and actions, compared to just 35% of their grandparents (the Baby Boomers).

Recruiters from businesses with authentically green practices and policies have a massive advantage in attracting talented candidates from Millennials. A 2019 study revealed that nearly 40% of Millennials were willing to take a pay cut if it gave them a chance to work for a more sustainable company. And a predictable 70% would prefer working at organisations with a strong environmental agenda.

How Indians view sustainability and the environment?

Surveys on the topic indicate mixed results. According to a CNBC report from 2021, 48% of Indians were concerned about the growing impact of climate change around the globe, while only 45% believed that the country is suffering due to climate change.

However, the same study in 2022 revealed increasing consumer awareness about sustainability. Air quality was a major concern for Indians, which is not surprising given the fact that 35 of the top 50 worst-polluted cities in the world are in India.

Even more telling are the results of an IBM Institute of Business Value Survey during the 2021 COVID lockdowns. Along with Indian consumers, employees also considered environmental sustainability as a desirable trait in their employers (85%).

A full 95% were looking for using more eco-friendly modes of transportation, while 78% were willing to change consumer habits to reduce the impact on the environment. These numbers draw a picture that HR managers cannot afford to ignore.

The road ahead for businesses, recruiters, and HR managers

It does not matter if you are a recruitment manager in the United States, France, Singapore, or India – sustainability and conservation will affect your work anywhere around the globe. The climate crisis does not have any geographical boundaries.

And it is the younger generations that are raising their voice against the status quo, be it the Millennials voting through their wallets, or the Gen Z school going children protesting on the streets in countries around the world. CompaniesFirms can no longer afford to hide behind the excuse of profit margins.

If you are in Human Resource Management, hiring will become increasingly difficult if your organisation has a negative ESG reputation and rating. Such organisations will also have to deal with increasing levels of attrition. But all is not lost – you can still take proactive steps to improve your ecological impact and repair any reputational damage.

Concrete steps in the right direction include:

• Bringing the C-Suite on board with compelling economic arguments for a corporate sustainability program
• Involving employees, NGOs, and volunteers in concrete initiatives to improve local communities and ecological systems
• Encouraging the 3R's – Reusing, Reducing, and Recycling in office premises for hardware, e-waste, and other electronics
• Investing in energy-efficient office buildings and encouraging low-carbon-footprint transportation methods among employees
• Nurturing sustainability leaders among the workforce – identifying individuals who are passionate about ESG activities and giving them more initiatives
• Incorporating sustainability as a core business identity in all recruiting initiatives, and looking for candidates who share the same values

In an interesting HBR piece, authors Ioannis Ioannou and George Serafeim explored the viability of sustainability as a business strategy. Their verdict, based on global ESG ratings – adoption of strategic sustainability practices is linked to better ROI and market valuation multiples. It is no longer a question of if, but when – companies that fail to embrace sustainability may run the risk of being at a competitive disadvantage shortly.