The Role of the CHRO in ESG: 4 Resources for HR Leaders to Leverage

HR Effectiveness

Environmental, social and governance (ESG) is a growing priority for many organizations. According to PwC’s 2021 Annual Corporate Directors Survey, ESG is the number one topic investors want to discuss with board members during shareholder meetings. As Chief Human Resources Officers (CHROs) take a more active role in helping to shape their organizations’ ESG strategy and initiatives, four resources to stimulate their thinking include: 1) ESG and the Role of the Chief Human Resources Officer: A Best Practices Study | The HR Policy Association. A 39-page report which includes ESG best practices from CHROs at companies such as CVS Health, Dick’s Sporting Goods, General Mills, HP, Johnson & Johnson, and The Procter & Gamble Company, to name a few. 2) Toward Common Metrics and Consistent Reporting of Sustainable Value Creation | World Economic ForumPages 20-21 include a set of people-based metrics related to ESG3) Navigating ESG: A Practical Guide for Human Resources | AON. Includes eight questions HR should consider as it integrates ESG into a people strategy. 4) The Evolving Role of ESG Metrics in Executive Compensation Plans | Harvard Law School Forum on Corporate Governance. Shares ideas on the types of ESG metrics that can be incorporated into compensation plans and outlines risks associated with those changes.  Although ESG is an expansive area, these four resources can help CHROs shape the organization’s voice on ESG and its related topics.