Sustainability was originally a concept restricted to activist and scientific circles. But these days, with the accelerating effects of climate change and growing socio-economic inequalities, it has emerged into the mainstream discourse.

For businesses, now sustainability is a critical factor that must be addressed at the boarder level. It has growing implications for  profitability, compliance, marketing and even in matters like ensuring employee satisfaction for recruiting top talents. 

In this article, we will look at sustainability from the perspective of an HR/recruitment. Why is sustainability in business important for recruiting? How can a business use environmental sustainability indicators effectively in the realm of HR? These are a few of the questions that we will answer.

What Is Sustainability In Business

The ultimate aim of any business organisation is to create profit. The operations and processes an organisation undertakes to achieve this goal will have some impact on its surroundings. It could be social and economic – providing employment and ushering development in local communities.

The impact can also be environmental, through extraction of finite resources, accumulation of waste, and so on. Sustainability in business involves opting for processes, technologies and policies with the following goals:

  • Minimising the negative impact on the environment
  • Maximising the positive impact on the community/society

Examples of sustainable business practices include recycling, switching to renewable energy sources, reducing greenhouse gas emissions by optimising supply chains, promoting diversity and inclusion and so on.

Importance Of Sustainability For HR & Recruitment In India

India was one of the earliest nations to make sustainability initiatives a legal requirement for businesses, under the CSR provisions of the Companies Act, added in 2013. And according to a study by Oxford Economics and SAP, this regulatory compulsion is the key driver for sustainability initiatives at 60 per cent of Indian companies.

But there are other critical factors beyond mere regulatory fines that need to be taken into account. According to Lancet studies, in India, climate change may account for 7.5 lakh additional deaths. And that is on top of the estimated 23 lakh deaths associated to air and water pollution. 

Understandably, there is a rising tide of public opinion in favour of making sustainability a core focus for businesses, both in India and the rest of the world.

According to a recent global study on consumer behaviour by Simon Kucher & Partners a whopping 85 per cent of consumers have changed their purchase habits based on the sustainability credentials of brands in the last five years. In India, 60 per cent of consumers are willing to pay more for sustainable products.

Among Indian employees, the numbers from a JLL survey are similarly compelling – 85 per cent believe that sustainability efforts are must-haves for businesses, and 84 per cent of employees aged 21 to 30 would prefer working with a sustainability leader in future.

Sustainability credentials as a hiring advantage

Jobseekers have become more discerning and less inclined to chase a higher pay package. As early as 2019, Harvard Business Review was reporting how 9 out of 10 people were willing to earn less if that meant they could do more ‘meaningful work’.

Those feelings have only been amplified by the COVID-19 pandemic and recent trend of the ‘Great Resignation’. Along with better career prospects and workplace culture, candidates are looking at sustainability as a decisive factor when choosing their next employer.

According to HSBC Future of Work surveys, seven out of ten businesses considered environmental, social, and governance (ESG) credentials as major factors to attract the best talent. For many employees in IT, it was almost as important as flexible work conditions and sick pay.

How A Business Can Use Environmental Sustainability Indicators


The evidence is quite clear – if your organisation has a good track record in environmental sustainability, you can use it to boost your brand and attract talented candidates. But to become more sustainable, you need to measure your current performance in a wide array of fields.

This is where sustainability indicators enter in the picture – these are various metrics that measure your organisation’s impact on local environment, resources, and the society. According to the Columbia University, there are over 557 unique indicators that you can use for this purpose.

According to the Harvard Business Review, deciding the optimal mix of indicators for your organisation’s CSR and sustainability reporting needs is not easy. The ideal mix can vary depending on the type of your business, sustainability goals, as well as your target audience.

Speaking from an HR perspective, employees want to work for businesses that make tangible impact on local communities and the environment. They are more likely to be swayed by the following environmental indicators:

  • Energy Efficiency – electricity usage and fuel consumption are popular metrics that help you to become more sustainable. Switching to renewable energy sources and less energy-intensive equipment can make a tangible impact.
  • Emissions – net-zero commitments are vital in our battle against climate change. Many consumers look at an organisation’s carbon footprint and CO2 emissions to assess their sustainability credentials.
  • Waste Management – the actual metrics used will vary drastically, depending on whether your company has manufacturing processes or not. Pollution, waste disposal and recycling rates are all critical metrics worth tracking.
  • Corporate Governance – according to Corporate Knights, companies with the best sustainability performance also tend to have better, more equitable pay ratios, higher participation of women in senior roles and overall superior corporate governance.

Hiring For Sustainability Is Also Important

Once you have selected the relevant metrics, the next step is to track your organisations performance using the appropriate KPIs. Include the results into your wider employer branding strategy as a key differentiator.

You can use sustainability to attract top talents, in the same way your organisation can also improve its sustainability credentials by hiring candidates who are passionate about the issue and have relevant expertise in improving corporate sustainability performance.