Yet … half of UK firms neglect to involve HR!
The development of clear company climate strategies is becoming increasingly prevalent, according to research by Willis Towers Watson. While four-in-five (79%) UK organisations surveyed are developing, or have developed, a climate strategy, only a small proportion have aligned it effectively with employees.
Willis Towers Watson’s HR and climate change study shows that almost all companies (97%) agree that employees have an important role to play in the delivery of their climate strategy, and 92% felt that it was important to have a clear statement included in their employee value proposition (EVP).
Despite this recognition that employee awareness and involvement is key to the success of their climate strategy, only half of the firms surveyed had involved HR in its delivery, while 40% have no intention of including HR in the future either.
Furthermore only 13% of UK organisations have a written climate statement included in their EVP, and only a fifth (20%) currently communicate their climate strategy, targets and progress to employees.
Amanda Scott, GB Head of Talent & Rewards at Willis Towers Watson said: “There is broad agreement at board level that having a climate strategy is an increasingly important part of effective corporate governance and that employees have a significant role to play in its delivery and success. So it’s critical for HR to play an important role in the climate change agenda, yet this has remained undefined in so many companies.
“From embedding climate strategies into EVP, to designing measurable objectives and links to performance-based pay, HR is an area that can make or break the success of a company’s climate strategy.”
However, the study found that progress on climate issues is being made in other areas, with a quarter of organisations having formed dedicated climate teams with climate-related roles, and the same proportion having appointed a Chief Sustainability Officer to the Executive Board. Climate-related pay incentives have been put in place by a quarter of firms, although currently they are focused on executive incentives only.
“Investors, employees and potential new hires are all looking at how companies are responding to the climate crisis,” said Scott. “HR professionals must convert their organisation’s climate strategy into an engaging ambition that colleagues choose to support and they will be measured on how well they enable and motivate employees to contribute to the transition to net zero.”
About the survey
Willis Towers Watson surveyed 121 UK based companies of varying sizes and sectors in May 2021. Respondents were primarily represented by HR.
Willis Towers Watson’s Making an Impact Guide – Climate Change is available to download now.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
