Green HRM vis-à-vis Sustainability Finance
Globalization is the key trend of modern civilization. It is described as Interdependence of each world nations’ in economies, cultures and populations which brings cross-border trading of goods and services, technology, flow of investments, people and information, (PIIE 2022).
Environment issues are now commonly framed as dark side of the globalization. The environment factor has become a victim of present Neo-Liberal globalization.
Climate change is part of the environment issues presently the world experiencing with severe consequences as eco disasters are reporting worldwide in every second. Owing to the economic activities such as fossil fuel consumption and deforestation, have vastly effected to the climate change.
Ecological Globalization
Along with the climate change it was emerged a trend of Ecological Globalization, which refers to an ideology that “World” must be considered as one interconnected ecosystem.
It has emphasized that the all nations should work together to prevent ecological threats, arise from human activities especially in globalization context.
United States - has injected $369 billion to the economy to boost clean energy, clean infrastructure, and climate resilience over next 10 years period.
Australia - People elected a pro-climate-action government.
Brazil - The President Luiz Inácio Lula da Silva won his campaign towards halting and reversing Amazonian deforestation project.
COP 27 in Egypt - Participated countries agreed to develop fund raising, that can mobilize resources to help developing economies suffering directly from the impacts of climate change.
What is Sustainable Finance and Investments (SFI).
Modern world is facing social, environmental and economical challenges at large scale. Battle against climate change is one of the main conversations among leading nations and it is required massive financial resources and investments to overcome from this crisis.
Owing to the tremendous pressure from regulators, stakeholders even from customers, many financial institutes have already taken steps to recognize that there are sustainability risks prevailed and have commenced transformation to sustainable economy models in risk management and compliance framework blended with sustainability factors.
All players of the economy including companies, investors, financial institutes and governments are promoting Sustainable Finance and Investments initiative to prevent this sustainability challenges.
Main four pillars that can be identified in SFI ;
(Table 2)
SFI is key to fostering the sustainable global development. The growing awareness of this SFI has become a part of the global response to climate changes. Reactions been made at international platforms, few of them are;
1991: UNEP Finance Initiative launches
Parris Agreement on climate change
United Nations Sustainable Development Goals
Companies and individuals are investing on innovation of sustainable products to cater the sustainable markets, as many of them are proactively engaged in identifying and investing in sustainable sectors. Financial institutes are there to support such entities enabling them to expand their businesses towards the Sustainable Global.
Green Human Resource Management
HRM in a sustainability driven entity where eco-friendly personal management practices are being made can be described as Green HRM in sustainability context.
Many global financial institutes are now driving through an effective sustainability finance practices and being developed strategic goals. Hence it is pivotal to understand the organization goals towards achieving the numbers along with sustainability financing where Human Resource Manager has to play vital role in the organization.
In order to maintain an effective GHRM in the organization, the HR should have key important objectives in their Green HRM processes;
·
Maintaining employee health and safety.
·
Investing into the skills of the workforce on a
long-term basis by developing critical competencies and lifelong learning.
·
Supporting employees’ work-life-balance and
work-family-balance.
·
Managing aging workforce.
· Exhibit and foster social responsibility towards employees and the communities.
·
Maintaining a high quality of life for employees
and communities.
A few of Green HRM practices are;
Ø
Eco Friendly recruitment.
Ø
Green election.
Ø
Green training and development.
Ø
Green compensation and rewards.
Ø
Green performance evaluation.
Ø
Employee-level performance audits.
Ø Green employee relations and collective bargaining.
Key areas that HR manager in SFI institute could look at;
Skill Management – Identify the requirement of Sustainability Finance of the organization, existing skills available, analyze their capabilities, identify outside skilled resources are main responsibilities lies on HR manager.
Development of Staff on Sustainable Finance – Make sure that respective staff are participated in training programs, workshops, seminars, webinars, summits with regard to sustainability finance.
Initiate CSR Project on environment protection activities – In view of create the awareness of environment and importance of sustainability, to create spiritual gains or mental calmness of the staff, a CSR projects can be initiated by the HR Manager, that way he helps the organization to achieve the strategic goals whilst motivates the staff.
"When the last tree is cut and the last fish killed, the last river poisoned, then you will see that you can't eat money."
-- John May --
REFERNCES
(1). Aralovna, O G. Nurillaevich, O B. Ayonovna, A S. Manzarov, Y K (2023)’Ecological Globalization and Its Social place in the globalization system of Processes. Journal of survey in Fisheries Sciances 10(IS) 5000-5006. Avaliable at https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=ecological+globalization&oq=ecological+glo (Accessed:06 August 2023)
(2). Alexander S.K. and Fisher P., 2018, Banking regulation and sustainability. Available at SSRN: https://ssrn.com/abstract=3299351 or http://dx.doi.org/10.2139/ssrn. 3299351, p. 2 (Accessed:06 August 2023)
(3). Coleton, A., Font Brucart, M., Gutierrez, P., Le Tennier, F. and Moor, C., 2020. Sustainable Finance: market practices. European Banking Authority Research Paper, (6). Available at https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=sustainable+finance+and+banking&oq=sustainable+finance (Accessed:06 August 2023)
(4). Cunha, F.A.F.D.S., Meira, E. and Orsato, R.J., 2021. Sustainable finance and investment: Review and research agenda. Business Strategy and the Environment, 30(8), pp.3821-3838.Avilable at https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=sustainable+finance+and+investment&oq=sustainable+finance (Accessed:06 August 2023)
(5). Drew, C. (2023) ‘8 Types of Globalization’. Available at https://helpfulprofessor.com/types-of-globalization/ (Accessed:06 August 2023)
(6). Ehnert, I., Harry, W. and Zink, K.J., 2013. Sustainability and HRM: An introduction to the field. In Sustainability and human resource management: Developing sustainable business organizations (pp. 3-32). Berlin, Heidelberg: Springer Berlin Heidelberg. Available at https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=HRM+in+sustainable+finance&btnG= (Accessed:07 August 2023)
(7). Fig 1: England, J. (2023) ‘ Timeline: the future of sustainable finance’ Fintech. Available at https://fintechmagazine.com/articles/timeline-the-future-of-sustainable-finance (Accessed:06 August 2023)
(11). Fig 5: https://www.google.com/search?hl=en&sxsrf=AB5stBiqTyxFlJ9CbKusGqPvxBoVCECvjA:1691341254739&q=environment+icon&tbm=isch&source=lnms&sa=X&ved=2ahUKEwjV27qVwciAAxV1mVYBHXf6AakQ0pQJegQICRAB&biw=900&bih=369&dpr=1.5#imgrc=6M1fi7KsyNfMPM&imgdii=KohKVEPldlZUbM (Accessed:06 August 2023)
(15). Marditama, T., Yusliza, M.Y., Ghani, L.A., Saputra, J., Muhammad, Z. and Bon, A.T., 2021, March. Green human resource management and sustainable organization literature: A mini-review approach. In Proceedings of the International Conference on Industrial Engineering and Operations Management (pp. 3964-3979). Available at https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=HRM+in+sustainable+finance&btnG= (Accessed: 07 August 2023)
(16). Mariappanadar, S., 2020. Characteristics of sustainable HRM system and practices for implementing corporate sustainability. Sustainable Human Resource Management: Transforming Organizations, Societies and Environment, pp.9-35. Available at https://scholar.google.com/scholar?start=10&q=HRM+in+sustainable+finance&hl=en&as_sdt=0,5 (Accessed: 07 August 2023)
(18). Peterson Institute for International Economics , PIIE (2022) ‘What is Globalization? And how has the global economy shaped the United states?’ (24 October). Available at https://www.piie.com/microsites/globalization/what-is-globalization (Accessed:06 August 2023)
(19). Strandberg, C., 2005. Best practices in sustainable finance. Strandberg Consulting. Available at https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=HR+role+in+sustainable+finance&btnG= (Accessed:06 August 2023)
(20). Table 2 : Main four pillars in Sustainability Finance & Investments ( Source : Rinosh Dilshan Samat)
(21). United Nations Foundation climate and environment experts. Tannis, S (2022),’Climate issues to watch in 2023:Toward COP 28 and faster, more urgent climate action , Climate, Energy, and Environment blog, 12 December. Available at https://unfoundation.org/blog/post/climate-issues-to-watch-in-2023-toward-cop-28-and-faster-more-urgent-climate-action/?gclid=Cj0KCQjwib2mBhDWARIsAPZUn_m9_9AIGjm0E1xYC7wisQqC3oPZtyzuqsDP_f1yL00JPh50OsrGyHwaAtchEALw_wcB (Accessed:06 August 2023)
A very relevant topic today. There is content here that has the world paying attention. The content is very rich. well done rinosh.
ReplyDeleteThis is Great, Green HRM plays a pivotal role in aligning human resource practices with sustainable financial strategies, driving eco-friendly business operations, and fostering employee engagement in sustainable initiatives. It ensures a harmonious integration of environmental and financial objectives, contributing to long-term organizational resilience and responsible growth.
ReplyDeleteGreat work Rinosh, green HRM is new and important step towards protecting environment.
ReplyDeleteThis is an important article which elaborates the significance of GHRM of SFI institutions.
ReplyDeleteEnvironment is one of the main pillars of corporate social responsibility in creating a sustainable business in the modern world. Your article leads to positive outcomes. Well done.
ReplyDeleteTimely relevant content. Formulating HR policies and practices, training people to increase awareness about the environment, and implementing laws related to environmental protection within the organizations will be a critical fact to be sustainable in the business.
ReplyDeleteThe concept of Sustainable Finance and Investments (SFI) is explained as a crucial response to environmental and economic challenges, with a focus on four key pillars.
ReplyDeleteThe term Green HRM has become the buzz word within the business field at present and its significance is increasing manifold with the passage of time. well done Rinosh,,,,,,,,,,,,,,,,,
ReplyDeleteCompanies have to consider not only making profits but also taking care of the environment to create a better future for everyone.
ReplyDeleteGreen HRM, focusing on environmentally friendly practices, aligns with sustainability finance by ensuring that an organization's human resources contribute to its overall eco-friendly and socially responsible goals.
ReplyDelete