S60
Sustainability: Workplace
June 2010
PwC
Two objectives today…
• The case for change
• Why does sustainability matter from an
employee’s perspective?
• A framework for embedding change
• How can we embed sustainability into business as
usual?
Some numbers….
75%
of employees would recommend their company if they feel it is
environmentally responsible v fewer than 50% if it is not 1
86%
of ‘millennials’ would consider leaving an employer whose
corporate responsibility behaviour no longer meets their
expectations 2
75%
of employees who consider their employers to be paying
enough attention to environmental protection and sustainable
development exhibit high levels of commitment 1
87%
74%
Employees most committed to their employer perform 20%
better and are 87% less likely to leave the organisation 3
of CEOs recognise their organisations’ responsibility to create
management structures that reward long-term thinking as a
critical or important element of a solution to climate change 4
Sustainability: Workplace
PricewaterhouseCoopers
1 Engaging employees through corporate responsibility, Ipsos MORI Employee Relationship Management, Nov 2006
2 PwC Managing Tomorrows People December 2008: pwc.com/managingpeople 2020
3 Driving Performance and Retention Through Employee Engagement, (2004), Corporate Leadership Council
4 PwC 12th Annual CEO survey 2009: pwc.com/ceosurvey
June 2010
Slide 3
So, does it matter if employees are engaged with your
sustainability strategy?
What is on the mind of CEO’s?
62% of CEOs agreed that climate change initiatives, would above all other benefits,
provide a reputational advantage with key stakeholders including employees1
Why
74% of the public agree that they would
believe the word of an employee over that of a
company advert regarding a company's
contribution to society and the environment.2
More engaged
colleagues
More engaged
customers
75% of highly engaged employees believe
they can impact cost, quality and customer
service, verses 25% of disengaged
employees.3
Essentially, engaged employees provide better customer service which translates
to increased financial performance because they understand how their work can
help the company achieve its’ strategy and objectives and their loyalty to the
company motivates them to release discretionary effort.
Sustainability: Workplace
PricewaterhouseCoopers
1 PwC 13th Annual Global CEO survey 2010
2 Engaging employees through corporate responsibility, Ipsos MORI Employee Relationship Management, Nov 2006
3 Towers Perrin-ISR (2006) The ISR Employee Engagement Report
June 2010
Slide 4
And as the “War for Talent” starts again….
Sustainability: Workplace
PricewaterhouseCoopers
June 2010
Slide 5
Two key messages…
1. Sustainability is no different from any other business
change initiative
2. Embedding sustainability into the business is no
different from embedding any other changes into a
business
Sustainability: Workplace
PricewaterhouseCoopers
June 2010
Slide 6
HR plays an important role in embedding sustainability
• Not the sole accountability of an CSR Manager
• HR owns employee engagement. Sustainability, CSR, whatever
you call it is a key driver of engagement.
CSR – HR = PR
- If employees are not engaged, CSR / Sustainability
becomes an exercise in public relations.
- The credibility of an organisation will become damaged
when it becomes evident that a company is not
‘walking the talk’.”
Sustainability: Workplace
PricewaterhouseCoopers
June 2010
Slide 7
A framework for embedding change
Change Strategy
l Assess change readiness
l Select best change configuration
l Establish change governance
Leadership
l Create leadership resolve
l Enhance leadership teamworking
l Build leadership change skills
Change Vision
l Understand strategic vision & make
comprehensive & operational
l Create compelling change story
Define change
strategy
Develop
Deliver
Business
Benefits
Organisation Design:
l Reporting structure
l Roles & Performance measures
l Workgroups
l Integrating mechanisms
Culture
Develop: Values; Behaviours;
l Mindset
Sustainability: Workplace
PricewaterhouseCoopers
Leadership
Develop culture
Commitment
l Build teams
l Manage stakeholders & communicate
l Transfer knowledge and skills
l Manage resistance
People Performance
Integrate:
l Performance management
l People practices
Benefits
l Build business case
l Quantify benefits
l Sustain benefits
June 2010
Slide 8
Adapting it to embed sustainability
• Create a vision of sustainability for your
company (what does sustainability look like?)
• Demonstrate c-suite support (what steps will
management take?)
• Explain why sustainability is important to your
business in particular (what benefits will be
gained? Cost-savings, improved image in the
community, etc)
Define change
• Share the broader context – from both a
strategy
business and personal perspective
(answer the question, “what’s in it for
Develop
me?”)
• Begin with some company mandates
Deliver
(set all printers to double-sided printing,
Business
adjust thermostats)
Benefits
• Provide examples of how one employee
can make a real difference (removing a
Leadership
single light bulb from every vending
machine at all walmart locations saved
Develop culture
$1 million)
• Identify and allocate resources (budget time
and money)
• Put infrastructure in place to generate ideas
• Identify what you are currently doing well and
why
Sustainability: Workplace
PricewaterhouseCoopers
• Provide opportunity for employees to generate ideas
(green teams)
• Provide a format for sharing ideas across departments,
locations, and countries (intranet, electronic newsletters)
• Start with initiatives that everyone can participate in
(establish recycling programs, remove all styrofoam
products from cafeteria)
• Develop ongoing training programs (videos, podcasts,
lunch & learns)
• Leverage the diversity of your company – allow for
different ways to engage in sustainability initiatives
(recycling, volunteering, leading a team)
• Communicate early and often and in different
formats (signs, newsletters, conference calls,
meetings, pod-casts, tweets)
• Make sustainability part of every employee’s job
description
• Develop metrics by company, by department, and
by individual and report out progress (track effect of
recycling program – reduction in waste, reduction in
trash removal)
• Tie variable compensation to progress on sustainability
initiatives (in manufacturing plant, part of manager’s bonus is
tied to drop in energy usage)
• Sponsor competitions (most ideas, most cost savings,
greatest effect on community)
• Make new behaviour easy and old behaviour difficult (provide
ceramic coffee mugs next to the coffee machine and move
the paper coffee cups to the far end of the cafeteria)June 2010
Slide 9
Making it part of the DNA…
A recent Canadian study1 found that the top three best practices to help
create a sustainable culture were:
• Collaborate with other organisations. Find NGOs and other
businesses who value sustainability and work with them to implement
environmental and social programs.
• Create a safe place for bold ideas. Reframe business innovation
within the context of sustainability.
• Tap into grassroots employee energy. Empower employees to be
sustainability champions within the organisation and encourage them to
set their own sustainability targets for performance reviews.
Sustainability: Workplace
PricewaterhouseCoopers
1 Network for Business Sustainability and Canadian Business for Social Responsibility: Embedding Sustainability in Organizational
Culture
June 2010
Slide 10
Example: Embedding sustainability into the workplace - PwC UK
Issue: Staff were making changes at home to reduce their environmental
impact but were not carrying these behaviours into the workplace
Challenge: How could we link the employee engagement agenda to the firm’s
targets around reducing carbon and working in our communities
Solution: Introduced sustainability + schools programme.
- Focus on adopting sustainable behaviours (reducing energy and
resource use, reusing materials, recycling waste).
- Measure savings and contribute to trust fund for local schools (used to
teach children how to lead more sustainable lives and their impact on
the planet)
Result: GBP100,000 financial savings (6 months) and increase in
employment engagement survey scores
Sustainability: Workplace
PricewaterhouseCoopers
June 2010
Slide 11
$
$
Business
$
Sustainability: Workplace
PricewaterhouseCoopers
June 2010
Slide 12
Linking it all together…
Sustainability
Programme
Drives
employee
emotional
commitment via
organisational
levers
Increases
employee
discretionary
effort, ie
going the
extra mile for
the company
Increases
customer
satisfaction
and customer
loyalty
Improves
revenue
growth and
profitability
…the Sustainability value chain
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