What employers need to do to help fight climate change

Climate change is already having a significant impact on workers, although some companies may not realise it.

For example, studies conducted by the Medical Society Consortium on Climate & Health, Wisconsin Health Professionals for Climate Action, and the Natural Resources Defense Council have shown that symptoms climate changelike air pollution from fossil fuels, are responsible for $820 billion in health care costs each year. This includes conditions such as respiratory and heart diseasesfood-related diseases, diseases caused by pests, as well as potential injuries caused by natural disasters such as floods or forest fires.

This in turn affects employers as providers of health plans. For this reason, companies need to start assessing the environmental risks their employees face at home and at work, using this data to create better employee health policies and plans. This can be part of a larger ESG tool called a materiality score, which identifies the social and environmental factors that are most important to a company’s investors and stakeholders, as well as employees.

“The truth is that climate change is affecting people’s health right now,” says Baylis Beard, director of sustainability at Blue Shield of California. “There are health impacts ranging from asthma to preterm birth due to high temperatures to disruptions in care, such as giving birth on the side of the road due to flooding. Environmental sustainability and health care are deeply intertwined.”

Read more: Climate change is already worsening employee health. Are employers prepared?

But workers believe their employers should be doing more to address these issues. According to research from recruitment firm Robert Walters, only 15% of workers believe their employer is doing enough to combat climate change, while fewer than one in five believe that their workplace is sustainableAdditionally, 71% of respondents believe their organization does not have a progressive plan to address these issues.

“It’s something that employees are clearly thinking about, and if companies haven’t caught that or aren’t doing anything about it, it’s going to end up being a disconnect,” says Sean Puddle, managing director of Robert Walters’ New York offices. “You’re going to drive a wedge between the company and the people, and you’re going to have problems with the attractiveness and reputation of the company.”

Read more: A Sustainability Toolkit for Your Workplace

Hiring a chief sustainability officer can be a way for employers to implement real internal change.

Only 17% of companies have a formal CSO, a position focused on managing the organization. environmental impactaccording to a 2023 study by executive search firm Boyden Global. However, that number could start to rise as the area becomes more critical. For example, one-third of businesses say sustainability is in the top three areas where organisations need to strengthen their management team.

“The era of the chief sustainability officer focused primarily on well-being initiatives like corporate social responsibility is over,” says Surinder Sond, former chief sustainability officer and current vice president of sustainability at software company Sage. “Today, chief sustainability officers must address significant, urgent issues to have real impact and influence, and many chief sustainability officers now report directly to the board or CEO.”

Read more: What It Means to Be a Chief Sustainability Officer

Finally, employers need to ensure that they effectively communicate any changes they make to their commitment to sustainability and environmental, social and governance initiatives to their employees. Failure to do so can leave employees feeling unheard and likely to seek alternative employment. About 20% of employees have changed jobs or industries to better align with their environmental values, and another 25% plan to do so in the future, according to the Deloitte study.

Paycor, a human capital management platform, is one example of a company that has focused on sustainability practices. These initiatives are embedded in the company’s benefits, policies and programs, making them a visible part of its core values ​​and helping to retain employees.

“You want to work for a company where you feel like you understand what the goals are and you know when things are going well and when there are areas for improvement,” says Paaras Parker, CHRO at Paycor. “As companies invest in things that are really important to our employees, it allows us to diversify and also helps people see all the different ways they can give back.”

Read more: Communication is essential for ESG to have an impact