Climate Change: A New Business Risk Sweeping Corporate Offices in 2023
Global corporations want climate literacy training for employees. Following lengthy sessions on post-pandemic wellness, multinational businesses are increasingly focusing on educating staff members about climate literacy.
Companies have recognized that such information sessions and training may make employees aware of environmental problems, and the notion is that climate learning can produce a better workforce for a smooth transition to a greener economy.
With 17 SDG communities and a worldwide network of employee-run global delivery centres for the UN’s sustainable development objectives, Fujitsu, a Japanese company, is a global information and communication technology leader.
Employees are evaluated based on their participation in one of the 17 SDG communities, each focusing on different objectives, including ending poverty and hunger, reducing inequality, promoting responsible consumption and production, etc.
The “Eco Action” campaign of Accenture in India aims to raise awareness for participating in volunteer initiatives, environmental assessments, and training courses.
The company organized teams of more than 8,400 volunteers to participate in the “Empower Run 2022” green edition. Accenture planted a mangrove tree for every 40,000 steps each team took, for 31,700 trees planted in the Sundarbans region.
HCLTech, a multinational technology business, has introduced the HCLTech Sustainability School and its first extensive learning programme on climate literacy, created by Axa Climate. It is intended to increase awareness of the effects of climate change among the more than 220,000 workers of HCLTech. The course addresses issues including challenges to biodiversity, resource exploitation, lowering carbon footprints, and green software. More than 10,500 hours of sustainability training have been completed by HCLTech workers so far. According to Santhosh Jayaram, HCLTech’s global head of sustainability, the school will equip their employees with valuable tools to become change agents for sustainability.
Through the Schneider Sustainability School, which offers three-level certification to all workers, Schneider Electric began teaching staff members about climate issues. The course includes chapters covering essential aspects like the fundamentals of ESG, circular economy, renewable energy, energy efficiency, and sustainable transportation. It is designed as a free-to-access digital platform to familiarise employees with knowledge, skills, and jargon to innovate and develop climate-positive solutions.
Future leaders must be given the training they need to succeed in a world where attaining sustainable development is essential. Our courses aim to develop the workforce of the future, according to Binu Philip, Schneider Electric’s chief human resources officer for the greater India region.
Every two weeks, we host webinars on various subjects, including soil erosion, fast fashion’s negative consequences, and adopting sustainable lifestyles. Our environmental e-learning courses support the development of fundamental knowledge of environmental management. According to Manoj Nair, head of Fujitsu’s India global delivery centre, these range from general awareness to focused seminars where staff members may audit internal practices like waste management.
Monthly guided tours are offered by SAP Labs India, the company’s largest R&D facility outside of Germany, to workers so they may witness firsthand the sustainable solutions on the property. Employees show their dedication to sustainability by participating in tree and vegetable planting campaigns and attending interesting lectures by environmental specialists. As a result of the commitment to green energy, 97.5% of operations are now fueled by renewable energy.
According to Sindhu Gangadharan, SVP & MD, SAP Labs India and head of SAP User Enablement, the company has seen significant changes in employee consensus thanks to a strong EV charging infrastructure, water recycling activities, and a campus devoid of single-use plastics. “Our people practise green mobility, with 70% of all transportation being electric vehicles,” she continued. They are moving towards environmentally friendly solutions to lessen their carbon footprint and actively taking part in sustainability campaigns to encourage their coworkers to support a greener future.
In addition to training, other methods significantly raise employee understanding of environmental issues, such as awareness mailers, offering advice on conserving energy, water, paper, and ecological quizzes. “Beyond individual action, it encourages collective responsibility to ensure continuous improvement on the sustainability imperative,” said R Swaminathan, chief people officer of WNS, a business process management firm.
Life 360, the new environmental performance roadmap for the French multinational LVMH Group for 2023, 2026, and 2030 focuses on environmental education, biodiversity preservation, combating climate change, recycling unsold goods, upcycling by making clothes from existing stock or identifying alternative materials. The group’s internal environment academy has been developing training programmes since 2016, utilizing various educational resources, including in-person training sessions, online courses, and virtual classes.
LinkedIn, a business networking site, provides its users (workers) with various training on how to land a job in the climate industry. Since February 2022, the proportion of green talent has grown by 12% year over year, and LinkedIn has noticed continuous growth in India, where paid job posts that call for green skills have increased by 5% annually.
13.8% of all LinkedIn users in India as of February 2023 may be categorized as “green talent.” Construction (49.46%), farming, ranching, and forestry (53.29%) have experienced substantial green transformations and have India’s most significant growth rates for green talent.
In recent years, the reality of climate change has begun to hit home, not just for environmental activists and scientists but also for corporate giants. These impacts aren’t confined to those organizations directly connected to environmental concerns but are increasingly being felt across sectors and industries. Today, corporate offices worldwide are experiencing the implications of climate change in myriad ways, making it a pressing concern that reshapes business strategies, office infrastructures, and organizational culture.
Corporate offices are now grappling with the escalating financial implications of climate change. The risks of climate change, such as floods and rising sea levels, can damage company assets. As per the Global Risk Report by the World Economic Forum, environmental risks have climbed the agenda for corporate offices, with many now placing it among the most likely and most impactful risks they face.
Companies are starting to feel the brunt of climate change through higher operational costs, with increased insurance premiums and the need to retrofit office buildings to withstand harsh weather events. In addition, unpredictable weather patterns and natural disasters can disrupt supply chains. For example, a flood in a remote factory location could affect corporate office operations thousands of miles away.
As nations strive to meet their commitments under the Paris Agreement and other international treaties, regulations around carbon emissions and sustainability practices are becoming increasingly stringent. These regulatory changes mean corporate offices must adapt their practices or face substantial fines and reputational damage. Furthermore, businesses that fail to align with the evolving societal values regarding climate change may lose their customers to environmentally conscious competitors.
The impact of climate change on the corporate sector isn’t just about risks; it’s also about opportunities. Companies that adopt environmentally friendly practices can enhance their reputation and brand value. Corporate offices have a pivotal role to play here. They can initiate change within the organization, starting from simple steps like promoting recycling, reducing energy usage, and gradually implementing more complex solutions like net-zero energy building design.
Employee awareness and concern about climate change are also influencing corporate offices. Prospective employees, particularly millennials and Generation Z, prefer working for organizations that show commitment to environmental sustainability. Hence, corporations must demonstrate climate change strategies to attract and retain talent. This shift has started influencing HR policies, with companies increasingly focusing on sustainability in their recruitment, retention, and employee engagement strategies.
In 2023, we are witnessing a surge in ‘green investing’. Investors and shareholders are pushing companies to disclose their environmental, social, and governance (ESG) risks, including how they address climate change. In response, corporate offices are integrating climate risk into their financial planning and decision-making processes, making it a boardroom issue rather than just an operational one.
With climate change impacts becoming a present-day reality, the business world can no longer afford to view it as a distant problem. Corporate offices must both mitigate climate change risks and leverage opportunities. As we continue to experience these impacts, proactive and innovative approaches to sustainability could become a significant competitive advantage in the corporate world.
Climate change has indeed come knocking at the doors of corporate offices. It’s urging them to transform and adapt to a changing world, heralding a new era in which sustainability is not just a corporate social responsibility but a crucial element of strategic planning and business continuity. Through this transformation, businesses can play an essential role in our global effort to combat climate change, turning a global challenge into many opportunities for sustainable growth.
