Susan Kelly, Partner, explains why CHROs have become the main custodians of sustainability and discusses the benefits of HR-driven initiatives focused on environmental responsibility
Job seekers and employees are increasingly values-oriented in their career choices. According to Randstad’s 2024 Workforce Monitor, nearly 40% wouldn’t accept a job if they did not agree with the views of the organisation’s leadership. While Deloitte’s 2024 Millennial and Gen Z Survey shows 48% of both generations have already changed or plan to change jobs due to climate concerns.
The direction of travel is clear. Job seekers and employees are aligning employment decision with their values, with climate action and sustainability emerging as essential commitments. CHROs are at the forefront of this change, acting as custodians and drivers of corporate sustainability.
As this shift continues, HR leaders report that they are responsible for adapting strategies to meet the demands of a climate-conscious workforce. Positioned at the intersection of people and strategy, they are now embedding sustainability into corporate culture, recruitment, and talent management. This is how CHROs are making an impact:
Fostering sustainability through mobilisation
Effective CHROs focus on orchestrating and liaising teams, encouraging and empowering them to actively engage with sustainability. They are mobilisers of the organisation, creating active participation from leaders and managers by linking their rewards to sustainability metrics. Typically, this requires collaboration with other departments to develop reward and recognition programmes that encourage meeting sustainability goals.
Developing sustainability-oriented leaders
CHROs bringing about real change view sustainability over the long term, and do so by cultivating leaders who prioritise sustainability commitments. These CHROs integrate sustainability principles into the organisation’s leadership development programmes, building a pipeline of successors who can lead sustainability across various departments. This embeds sustainability from the top down, ensuring it is always considered in strategic decisions.
Weaving sustainability into recruitment
In an environment where talent increasingly prioritises sustainability-committed organisations, CHROs are weaving sustainability into hiring practices. This includes incorporating sustainability-focused criteria into job descriptions, interview processes, and candidate assessments. Not only does this help attract employees who will themselves contribute to sustainable business practices, but it also increases word-of-mouth endorsement from interview candidates.
Making sustainability accessible
CHROs that successfully drive through sustainability initiatives do so by bringing a human element to the change process. They translate complex regulations and standards into relatable, everyday practices and values that resonate with employees. By communicating sustainability goals, and turning progress into a story about the journey, they make sustainability clear, engaging and relevant to individuals across the organisation. This also enhances the organisation's appeal to prospective employees who value transparent and meaningful sustainability efforts, thereby attracting like-minded, purpose-driven talent.
Fostering trust through skills development
With the rise in greenwashing, employees and job seekers are often sceptical of a company’s sustainability claims. However, CHROs can mitigate this distrust through sustainability skills development. This demonstrates a genuine investment in employee education and empowerment around environmental and climate issues. It is a proactive step showing the company values sustainable practices, not just in policy but in action, resulting credibility and trust among employees, stakeholders, and the broader community.
The benefits of HR-driven corporate sustainability
Corporate sustainability commitments driven by HR emphasise the organisation’s people, greatly benefiting talent attraction, retention, and management.
Nearly 90% of Millennials and Gen Z prioritise having a purpose in their work, which sustainability commitments provide, boosting job satisfaction and well-being. So much so, that employees in companies with a strong sustainability commitment are twice as likely to stay in their roles, 1.5 times likelier to feel a sense of accomplishment, and three times more likely to feel inspired at work compared to peers.
Sustainability skills development also has a significant impact on talent. 94% of workers say training in sustainability-related skills would build trust in a company’s sustainability commitments. This strengthens the company's reputation and helps attract individuals passionate about sustainability, creating a cycle where sustainability values are deeply embedded in the organisational culture.
At Odgers Berndtson we have a network of high-performing CHROs experienced in developing and implementing sustainability strategies. As a local executive search firm with offices in over 30 countries, we can identify, assess, and appoint HR leaders from a global selection of candidates who are at the top of their game and excel in corporate sustainability.
For more information or help with your next HR leadership appointment, get in touch: mark.odonnell@odgersberndtson.com