People, Planet, Progress: How CHROs Drive Sustainability Deep in an Organization

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People, Planet, Progress: How CHROs Drive Sustainability Deep in an Organization

17 January 2025 / Report

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Leveraging their expertise in change management and organizational dynamics, chief human resource officers (CHROs) can strengthen internal collaboration, accountability, and buy in to drive sustainability deep into the organization and reinforce it as a core element of strategy and culture. This report is based on a survey of 38 human capital and sustainability executives, and six follow-up interviews with individuals in Europe-based multinationals conducted at the end of 2024.

Key Insights

CHROs should act as a catalyst for transformational change in any effort to embed an organization’s sustainability strategy deeper into its operations and culture.
To assume a more proactive, strategic, and impactful role in sustainable transformation, human resources (HR) must shift away from a compliance-focused mindset. HR leaders need to recognize that their responsibilities extend beyond just reporting on and addressing the social aspects of environmental, social & governance (ESG) regulations. They have a clear role to play in enhancing organizational capability around ESG by monitoring and accelerating tangible actions by creating relevant key performance indicators (KPIs) and embedding ESG metrics into performance and reward decisions.
CHROs play an important role in accelerating the adoption of a sustainability strategy by ensuring the organization’s design and governance structures clarify accountability and responsibility for action. This, in turn, will lead to greater internal alignment by strengthening collaboration and overcoming any internal tensions.
CHROs must prioritize internal capability building within HR functions, sustainability teams, and the wider organization by proactively improving ESG knowledge and proficiency throughout the organization and ensuring the business has the “green” skills and expertise needed to succeed.
With reporting requirements likely to increase, HR teams need to improve data quality on a global scale. The more rigorous reporting regulations, while presenting challenges, are an opportunity for CHROs to position themselves as leaders in ESG initiatives, contribute to cross-functional data alignment, and monitor a sustainability strategy’s impact on issues such as training requirements and employee engagement.

Leveraging their expertise in change management and organizational dynamics, chief human resource officers (CHROs) can strengthen internal collaboration, accountability, and buy in to drive sustainability deep into the organization and reinforce it as a core element of strategy and culture. This report is based on a survey of 38 human capital and sustainability executives, and six follow-up interviews with individuals in Europe-based multinationals conducted at the end of 2024.

Key Insights

CHROs should act as a catalyst for transformational change in any effort to embed an organization’s sustainability strategy deeper into its operations and culture.
To assume a more proactive, strategic, and impactful role in sustainable transformation, human resources (HR) must shift away from a compliance-focused mindset. HR leaders need to recognize that their responsibilities extend beyond just reporting on and addressing the social aspects of environmental, social & governance (ESG) regulations. They have a clear role to play in enhancing organizational capability around ESG by monitoring and accelerating tangible actions by creating relevant key performance indicators (KPIs) and embedding ESG metrics into performance and reward decisions.
CHROs play an important role in accelerating the adoption of a sustainability strategy by ensuring the organization’s design and governance structures clarify accountability and responsibility for action. This, in turn, will lead to greater internal alignment by strengthening collaboration and overcoming any internal tensions.
CHROs must prioritize internal capability building within HR functions, sustainability teams, and the wider organization by proactively improving ESG knowledge and proficiency throughout the organization and ensuring the business has the “green” skills and expertise needed to succeed.
With reporting requirements likely to increase, HR teams need to improve data quality on a global scale. The more rigorous reporting regulations, while presenting challenges, are an opportunity for CHROs to position themselves as leaders in ESG initiatives, contribute to cross-functional data alignment, and monitor a sustainability strategy’s impact on issues such as training requirements and employee engagement.

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Authors

Katie Jacobs

Business Journalist, Editor

Marion Devine

Principal Researcher, Human Capital, Europe
The Conference Board

Jean-Marc Verbist

Jean-Marc Verbist

Center Leader, Human Capital, Europe
The Conference Board

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