HR Contribution to Education on sustainability in Finance & Brokerage industry

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Human Resources department holds a vital role in building employee awareness on Environmental, Social & Governance framework. The ESG framework help organizations to be sustainable. especially it assists to thrive dynamic industries such as brokerage & finance. 

Investing in environmentally friendly products is a trend that can be observed throughout the brokerage industry.  HR need to collaborate with various departments and educate employees on the Zero Carbon stocks in order to employees become competence on new trends in order to facilitate customer requirements. In addition to that HR need to emphasize how the brokerage firm drive towards zero Carbon emission category by enhancing the values. Refer below video from HSBC on how they have taken ESG factors to their money market products. 


Refer below points from CIPD on sustainable HR practices.

  • Long-term orientation: Workforce planning; assessing needs of future employees.
  • Care of employees: Health, safety, wellbeing management; work-life balance
  • Care of environment: Fostering 'eco-career'; rewarding against environmentally sustainable behaviour.
  • Profitability: Share programmes.
  • Employee participation and social dialogue: Different forms of employee voice and employee participation.
  • Employee development: Job rotation; training for skills development; employability.
  • External partnership: Cooperation with key stakeholders.
  • Flexibility: Flexible working arrangements; job rotation.
  • Compliance beyond labour regulations: Involve employee representatives in decision-making where participation is a statutory requirement; financial and non-financial support.
  • Employee cooperation: Teamwork; good relationships of managers and employees.
  • Fairness and equality: Fostering diversity; respectful relationships; fairness as regards as remuneration; career.
(Reference: CIPD, 29th Oct 2019)



(Reference: YouTube , 27th Aug 2021)



Refer below from industry leader Interactive Brokers on the Sustainability to understand the different viewpoints of it.



(Reference: interactivebrokers, 2022)

Another aspect that HR need to focus on is educate talent acquisition team on maintaining the diversity when recruiting the people. HR holds a responsibility to pass down the knowledge on employee discrimination. Refer below example from the industry to understand how HR has maintain Employee diversity.


  (Reference: interactivebrokers, 2022)


(Reference: interactivebrokers, 2022)




All of above facts emphasize that HR plays a vital role in many businesses specially in brokerage and financial industry to act in sustainable way. 




References.

 

“HSBC ESG Integration in Money Market Funds.” YouTube, 27 Aug. 2021, youtu.be/piE-Mn3Qv_s?si=HjwcqvQ9HNajnzi8.

“Sustainability at IBKR.” Sustainability at IBKR | Interactive Brokers LLC, www.interactivebrokers.com/en/general/about/sustainability.php. Accessed 19 Dec. 2023.

“Sustainable HR: A ‘green’ Fad, or a Realistic Model for Change?” CIPD, www.cipd.org/uk/views-and-insights/thought-leadership/the-world-of-work/sustainable-hr?_gl=1%2A1d8g4vp%2A_ga%2AMTA5NDMzODYxMy4xNzAwNzI0MjI1%2A_ga_D9HN5GYHYY%2AMTcwMjkzNDAwNi4xMy4xLjE3MDI5MzQyODQuNDUuMC4w. Accessed 19 Dec. 2023. 



Comments

  1. Lojanbabu NiroshanaDecember 19, 2023 at 7:15 AM

    Your overview effectively underscores the multi-faceted responsibilities of HR in fostering ESG awareness and promoting sustainable practices. The incorporation of CIPD's sustainable HR practices provides a practical framework for organizations aiming to align their strategies with environmental and social considerations. Well-rounded and insightful!

    ReplyDelete
    Replies
    1. Hashanka Gunasekara - HR360December 19, 2023 at 1:13 PM

      thank you Niroshana, hope you had a valuable red and appreciate your thoughts on the topics.

      Delete
  2. ShankaviDecember 19, 2023 at 7:49 AM

    I agreed with your point and example of CIPD on sustainable HR practice ,Because the significance of Environmental, Social, and Governance (ESG) practices in the quickly changing corporate world of today cannot be emphasized. They now serve as a compass that directs businesses towards sustainable and ethical practices, going beyond simple compliance. Human Resources is a key department in this transformational path that shapes employee understanding and participation with the ESG framework.

    There is more to Human Resources than just selecting and supervising employees. It connects the workers to the company's basic goals and values, acting as the beating heart of the enterprise. HR plays an even more important role in the context of ESG since it is the channel via which knowledge is shared, awareness is raised, and significant change is sparked at all levels.

    ReplyDelete
    Replies
    1. Hashanka Gunasekara - HR360December 20, 2023 at 4:18 AM

      Thanks, Shankavi! correct what you have mentioned in the comment section, I have come across some financial service providers like Bloomberg providing ESG information on their portal so that potential investors be aware on it. This indicates the importance of the ESG.

      Delete
  3. Chanelle R De NieseDecember 20, 2023 at 10:01 AM

    I agree with your example given; however, speaking from a practical point of view, what would be the scale/number of employees who participate in the mentioned initiatives? and what steps does HR follow to ensure the maximum participation is gained on such initiatives?

    ReplyDelete
    Replies
    1. Hashanka Gunasekara - HR360December 20, 2023 at 10:11 AM

      Thanks for your concern, Chanelle! Agreed on the fact that you raised. It will be definitely challenging for organizations to take high percentage of participation. However, HR can educate employees on the importance of ESG matrix & benefit for the employees. Further, I have observed in the brokerage industry take employee suggestions for their ESG matrix to improve the participation and reduce the reduction. Hope I have answered your question.

      Delete

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