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What is HR’s role in handling ESG-related whistleblowing?


www.personneltoday.com | Michelle Chance and Lydia Cammiade

As employees become more concerned about the climate emergency, employers must ensure their ESG strategies stand up to scrutiny. If they face allegations of ‘greenwashing’ via their whistleblowing processes, there are several things that HR must do, write Michelle Chance and Lydia Cammiade.

Environmental, Social and Governance issues have rarely been off boardroom agendas in the last decade, and as the UK transitions to net zero by 2050, the regulatory and reporting burden on companies concerning their ESG credentials will only increase further.

In tandem, employees’ awareness of the climate emergency is rising, particularly in the wake of COP28. Scrutiny of an employer’s ESG strategies will therefore not only come from investors and regulators but also from staff and potential recruits. This means that ESG performance is not just critical in the war for talent, but also for retention.

Against this backdrop, ESG-related whistleblowing complaints will increase, and it is crucial that HR is equipped to respond to them.

Regulatory and disclosure requirements on companies are increasing rapidly. The EU leads the charge in this area with the Corporate Sustainability Due Diligence Directive, which will require businesses above a certain size to audit their value chain with respect to human rights and the environment.  Meanwhile, in the UK, the government plans to introduce mandatory requirements for financial institutions and listed companies to publish net zero…


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