- Latest Mercer research indicates that ESG is a top HR priority
- Mercer launches diagnostic tool to help HR leaders assess their ESG priorities
A recent Mercer report on ‘people sustainability’ in organisations has revealed that Human Resource Directors have a golden opportunity to lead their organisation’s strategic focus in the context of social sustainability.
‘People sustainability’ includes the internal focus on raised employment standards in the organisation and its supply chain, as well as the ability to influence external factors by enabling the workforce. Mercer’s recent HR in ESG Survey indicates that four fifths of organisations surveyed state that ESG is a top priority for themand that their ESG goals are connected to their corporate purpose.
“While ESG may be on the agenda for many executive boards, identifying appropriate leaders within organisations for specific operational elements can be a challenge,” said David Wreford, a Partner at Mercer. “There can be many internal and external ESG touchpoints across an organisation and recognising where particular elements have a natural ‘home’ can often be a struggle.
“This can result in ESG inertia, where an organisation is unable to identify and fully commit leaders to achieve its ESG goals. Mercer’s research shows that there is a natural home for people sustainability within HR leadership.”
The Mercer study suggests organisational ESG goals are powered by employee activism with 86 per cent of respondents considering the largest stakeholder group to influence ESG activities within their company as its employees, closely followed by its customers at 83 per cent. But to what extent has HR already recognised sustainability as a strategic focus? And what is the degree of maturity of its implementation?
To help HR leaders improve sustainability through their people, Mercer recently launched a free diagnostic tool that helps HR leaders examine how well their company is organised to deliver on its ESG objectives, whilst identifying the HR levers that can accelerate their achievement of these objectives.
“Mercer’s HR & Sustainability Alignment Diagnostic covers 38 key HR considerations, from fostering an inclusive culture to providing retirement support,” said Mr Wreford. “HR plays a critical role and it is important for leaders to be able to break down sustainability into manageable individual elements to improve the employee experience. In addition, people sustainability must be thought of holistically beyond the company‘s own employees and be anchored in the company‘s everyday life.
“In view of increasing corporate transparency, the diagnostic supports in directing HR leaders on what levers to operate and understand how to address ESG commitments, ensuring employees do not see ESG as a ‘bored’ agenda.”
To learn more about the HR & Sustainability Alignment Diagnostic please visit: www.uk.mercer.com/our-thinking/environmental-social-governance/improving-sustainability-through-your-people.html
About Mercer
Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 83,000 colleagues and annual revenue of nearly $20 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit mercer.com. Follow Mercer on LinkedIn and Twitter. In the UK, Mercer Limited is authorised and regulated by the Financial Conduct Authority.