Sustainability: Time for Chief People Officers to Lead

Committing to a purpose that helps businesses create positive value for people and the planet isn’t simple but is essential to delivering results to shareholders and private investors. It’s the ‘S’ in ESG: Sustainability.

Shaping an organisation’s sustainability practices and policies is a significant opportunity for Australia’s Chief People Officers. Defining what it means for an organisation, its executives and its people is not easy.

Last week, Williams Hall hosted a round table for Chief People Officers from the public and private sectors to share how they have approached sustainability. With attendees from many industries, the discussion was wide-ranging, and it was agreed there is no one-size-fits-all method.

Sustainable business practices encompass a range of activities that do good for people and the planet. Issues from modern slavery and carbon emissions to the circular economy and ethical practices all sit under the umbrella of sustainability, along with dozens of others.

Our attendees agreed sustainability was a differentiator that had many upsides for their companies, including creating business value, attracting talent and doing good for the world. But working with an executive or board that doesn’t prioritise sustainability makes the people agenda particularly challenging for CPOs. Graduates expect employers to be thoughtful about the future of the planet.

Just as ensuring diversity became part of the workplace DNA, sustainability represents a significant cultural shift for Australian businesses and is one for CPOs to lead. It means different things for every organisation but can’t be ignored: aspects of the law now require sustainable practices.

For instance, the recent Royal Commissions into aged care and financial services revealed some unethical practices. The carbon reduction target is now legislated in Australia, meaning all businesses need achievable goals with suitable compliance frameworks.

With this context, the CPOs in attendance agreed that defining a sustainability North Star and a supporting strategy was critical. That defines a roadmap and shows people across the organisation, its customers, and suppliers how they fit into those goals.

And the first step in finding that North Star is for CPOs and their executive peers is to ask this question: What does Sustainability mean for you?