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Sustainability is an indispensable part of a thriving Future of Work strategy, weaving together people, technology and physical workplace.
In brief
- Organizations are increasingly embracing sustainability as part of their strategy, setting ambitious goals for their business and the planet's wellbeing.
- To truly embrace sustainability, a profound cultural shift is essential, permeating every aspect of the organization's DNA.
- Successfully integrating sustainability into Future of Work strategies requires harmonizing across Bricks, Bytes and Behaviors.
Are your sustainability goals woven into the DNA of your Future of Work strategies? Do you see the blueprint for sustainable operations, touching every facet of technology, shaping employee behaviors and even molding the very essence of your physical workspaces?
Sustainability isn't a buzzword; it's an imperative that transcends profitability and extends into the areas of planetary responsibility and social welfare. Stakeholders now demand enterprises to thrive while upholding environmental sanctity and nurturing thriving communities, both within their workforce and along their value chains.
As we delve into the intricacies of a company's Future of Work strategy, which encompasses its culture, employee experiences and operational framework, the profound impact of sustainability becomes evident. It's not just a vehicle for a better strategy but also its very purpose. With sustainability taking center stage, this strategy must align with sustainability goals.
In this new landscape, investors are more than passive observers. They are ready to act decisively on sustainability metrics. For instance, EY research reveals a seismic shift, with 74% of institutional investors now willing to divest based on environmental, social, and governance (ESG) performance, triggered by the wake-up call of the COVID-19 pandemic.
The driving forces behind sustainability-driven Future of Work strategies
A company’s Future of Work strategy serves as a roadmap for companies as they navigate the evolving needs of the modern work environment, with a clear view of the technology, employee behaviors and physical workplaces. Several key factors are now propelling organizations to build a Future of Work strategy deeply rooted in sustainability:
Regulatory requirements: Regulatory requirements, such as the European Union's Corporate Sustainability Reporting Directive (CSRD), exemplify the increased focus on sustainability. The CSRD enforces detailed reporting on a company's environmental and social impacts, transforming sustainability efforts from voluntary to mandatory. This compels organizations to gain a deep understanding of their environmental effects and develop concrete plans to mitigate negative impacts while enhancing positive contributions.
The ‘S’ in ESG: Contemporary workplaces have evolved significantly, driven by generational shifts in values. Today, sustainability encompasses not only environmental aspects but also social dimensions, including human rights, value chains and a commitment to promoting diverse practices. The diversity and inclusion (D&I) agenda has evolved from being a moral imperative to becoming an essential element of meeting reporting requirements and fulfilling the expectations of both employees and stakeholders. These shifts are vital in adapting to the ever-increasing complexities and uncertainties of a volatile, uncertain, complex and ambiguous (VUCA) world. By embracing authenticity, sustainability, diversity and inclusivity, modern workplaces can attract and retain top talent while seizing the opportunities presented by the evolving global landscape.
Resource efficiency: Sustainability encompasses efficient resource utilization and an integrated approach to minimizing the environmental footprint. Companies are actively seeking to minimize electronic waste, lower energy consumption, curb CO2 emissions and implement effective water and waste management practices. This multifaceted commitment extends beyond the workplace and involves real estate and facilities management, suppliers, and procurement policies. It is equally important to equip employees with the knowledge and tools to act sustainably, which requires fostering a sustainable organizational culture and sustainable ways of working. Integrating sustainability and Future of Work strategies is an opportunity to address environmental concerns and the growing need for meaningful work experiences.
Data-driven insights: Beyond mere measurement, the key lies in developing comprehensive plans and strategies for understanding and leveraging qualitative data and processes for transparent sustainability reporting. In modern digital workplaces, copious amounts of data are generated, offering an opportunity not only to assess sustainability impact but also to use them to guide decision-making, and take action, while navigating the future of the work roadmap.
The need for a sustainability-driven Future of Work is clear, but are companies doing enough?
In the modern landscape, some companies have already embraced sustainability wholeheartedly, seamlessly weaving it into their daily operations and employee experiences. Yet, for others, this journey is still unfolding. As the pressure on companies increases, they must not only define their sustainability strategy but also communicate it effectively and ensure it aligns with their corporate culture and the experiences of their employees.
Amid a surge of ambition and goal setting in recent years, few have ventured into the stages of proper implementation and taking action on the insights. The rush to establish ambitions and goals has, in many cases, eclipsed the vital phase of practical execution.
Many employees may not fully comprehend the sustainability strategy, their role in it or how their daily tasks contribute to sustainability goals. To achieve true sustainability success, it is not enough to set ambitious goals. Companies must ensure that every employee understands their part in the journey and how their daily activities can contribute to these goals. This internal alignment is a challenge that many companies have yet to overcome. It requires aligning external and internal narratives to create a cohesive sustainability culture.
Organizations must blend their sustainability and Future of Work strategies to create a work environment where employees naturally become passionate champions of and contributors to your organization's green journey.
Integrating sustainability into the Future of Work strategy: the Bricks, Bytes and Behaviors way
Companies that successfully integrate sustainability into their Future of Work strategies stand to gain not only in terms of reduced environmental impact but also in attracting top talent, meeting regulatory demands and securing their reputation.
To create sustainable workplaces of the future, organizations must work across functional areas such as real estate and facilities management, human resources (HR) and information technology (IT). EY works with this from a holistic approach, and such is referred to as Bricks, Bytes and Behaviors.
Bricks: In the realm of the physical workspace, the need for a special focus on environmental impact and sustainability has grown, driven by climate and cost considerations. Besides reducing emissions and enhancing environmental friendliness, workplaces must also consider their role in promoting social sustainability. This includes factors like commute methods and accommodating diverse workstyles, especially with the rise of hybrid models. Ensuring that the office space is optimized, supports a business’ desired business outcomes, as well as aligns with employees' needs and purposes is vital.
Bytes: Technology is at the core of shaping Future of Work strategies with a strong focus on D&I, data transparency, compliance and sustainability engagement. It facilitates D&I through analytics, ensures transparent tracking of environmental and social impact, empowers employees to understand their role in sustainability, and supports flexible work arrangements, all converging to make technology a dynamic driver of sustainable work practices. This extends beyond mere demographics, incorporating factors such as accessibility for neurodivergent individuals, ensuring that the digital workplace accommodates diverse needs.
Behavior: Future of Work strategies hinge on behavioral shifts that bolster sustainability. It entails reshaping how employees think and act, fostering a purpose-driven mindset. This transformation includes adapting to new behaviors, unlearning old habits and aligning actions with sustainability objectives. To enable this, organizations must invest in learning and development, making sure employees have the skills and motivation to drive meaningful change in their behavior, impacting both the workplace and the broader world.
The way forward
As regulatory requirements intensify and stakeholder expectations grow, companies must evolve beyond surface-level sustainability efforts. The path forward involves embedding sustainability into the core of their Future of Work strategy — encapsulating culture, employee experiences and operations. This holistic approach is not just about being compliant; it is about shaping a Future of Work that creates a better world for everyone.
Contact us today to learn how you can successfully integrate sustainability into your Future of Work strategy.
Summary
In today's landscape, integrating sustainability into Future of Work strategies is a fundamental imperative. Regulatory requirements, along with evolving values and the push for resource efficiency, are driving this shift. While some companies have successfully embedded sustainability in their operations and employee experiences, others face challenges in aligning internal narratives with public commitments. The crucial approach involves harmonizing Bricks, Bytes and Behaviors. This comprehensive strategy ensures that every employee comprehends their vital role in achieving sustainability objectives. Beyond mere compliance, it is about reshaping the Future of Work for the betterment of all stakeholders.