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NVIRONME
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Making
Environmental
Employee
Engagement
Happen: Results
of a Global
Survey
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Contents
About the Project 2
Foreword 3
Executive Summary 4
Introduction 6
Survey Findings 7
The Uptake of EEE in Financial Institutions 7
Drivers of Environmental Employee Engagement 8
Common Approaches 10
Managing EEE 12
Responsibility over EEE Initiatives 12
Targeting EEE 14
Employee Involvement in the Development of EEE Approaches 15
Measuring Success 16
Main Challenges and Needs 17
Conclusions and Observations 19
References 20
Survey Respondents 21
If you ask us...2
About the Project
T
his project was undertaken as part of the 2011 work programme of the North American Task Force
of the United Nations Environment Programme. This briefing is a follow up study to the If You Ask
Us... Making Environmental Employee Engagement Happen report which had a North American focus.
Project Team
Kim Brand, Director, Environmental Affairs, Scotiabank (NATF Co-Chair)
Barbara Turley-McIntyre, Director, Sustainability and Corporate Citizenship,
The Co-operators Group Ltd. (NATF Co-Chair)
Valerie C. Smith, Director, Corporate Sustainability, Citi
Andrew Craig, Senior Manager Environmental Initiatives, Royal Bank of Canada
Kim Jardine, Sustainability Manager, Standard Chartered Bank
Peter DeBruin, Vice President, Office of Environmental Sustainability,
State Street Corporation
Sue Miller, Senior Vice President, Environmental Stewardship Department, Union Bank N.A.,
wholly owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd.
UNEP FI Secretariat
Jacinto Coello, Project Lead
Graham Dickson, Project Assistant
Acknowledgements
The Project Team would like to acknowledge Amy Wilson and Michael Gentry from Global Action Plan
for their help in completing and reviewing this briefing.
Making Environmental Employee Engagement Happen: Results of a Global Survey 3
Foreword
Sustainability is increasingly becoming an integral part of the business landscape. A genuine trend has
come to take shape for integrating sustainability into business decision-making through concrete actions,
such as the development of corporate environmental policies and the implementation of environmental
management systems. Yet, without the necessary buy-in from employees, these efforts cannot on their own
guarantee sound environmental performance. Ultimately, employee support is a key driver of sustainability
within the business. Employees are responsible for an organisation’s processes and operations and are,
therefore, crucial players in greening such processes and in transforming corporate culture to integrate
sustainability.
Making Environmental Employee Engagement Happen: Results of a Global Survey presents the outcomes
of a survey circulated amongst all signatories of the United Nations Environment Programme Finance Initiative
(UNEP FI). The briefing is a follow up study to a previous report: If You Ask Us… Making Environmental
Employee Engagement Happen by the UNEP FI’s North American Task Force, which explored the state
of environmental employee engagement in North America. As with all UNEP FI research, this document
has stemmed from the interest of its members in shining a light on issues that speak to them. In this case,
the research explores the gains that can be realised through an engaged workforce around environmental
issues. Building on the answers of the survey, this briefing aims to help advance the financial industry’s
understanding of the field of employee engagement as it relates to sustainability by providing an overview of
engagement activities undertaken by member banks, asset managers and insurers from around the world.
We hope that this will become a useful document for practitioners from which to draw best practices and
other strategies that have been effective in engaging employees around environmental issues.
Kim Brand Barbara Turley McIntyre
Director, Environmental Affairs Director, Sustainability & Corporate Citizenship
Scotiabank The Co-operators Group Ltd.
Co-Chair, UNEP FI North American Task Force Co-Chair, UNEP FI North American Task Force
If you ask us...4
Executive Summary
n Most financial institutions participating in this survey are promoting Environmental Employee Engagement
(EEE) within their institutions. This suggests that EEE is now becoming an integral part of corporate
sustainability strategies.
n Most EEE activities and approaches focus on internal environmental management. A strategic approach
to EEE remains relatively unexplored.
n There are three main factors driving the development of EEE programmes and approaches across the
financial institutions surveyed. They are:
n Efforts aimed at improving the environmental performance of the organisation;
n Implementation of corporate environmental policies;
n Efforts to build corporate culture around sustainability.
n While the three main drivers are consistent across regions, there are also other important drivers of EEE
particular to each region. For instance, efforts to attract and retain talent are particularly relevant in North
America and Europe while efforts to reduce costs are particularly relevant in Asia-Pacific.
n The survey results reveal that financial institutions across different regions are using similar approaches
to engage employees on environmental issues. These approaches include:
n Awareness-raising activities;
n Creation of dedicated teams;
n Training;
n Contests and challenges;
n Providing of enabling conditions and effort recognition schemes.
n The majority of the surveyed financial institutions are also involving their employees during the development
of EEE programmes and approaches. Common methods include: surveys; dedicated teams; dedicated
platforms; and ideas contests.
n While the approaches used by financial institutions are similar across regions, there are some variations as
to how programmes are managed and implemented as well as to the challenges organisations face during
implementation.
n The majority of financial institutions surveyed are also involving their employees during the development
of EEE programmes and approaches. Common methods include:
n Surveys;
n Dedicated teams;
n Dedicated platforms and ideas contests.
Making Environmental Employee Engagement Happen: Results of a Global Survey 5
n There remain challenges for more effective implementation of EEE initiatives. These include:
n Reaching the employee base effectively;
n Keeping the issue relevant over time amongst employees;
n Lack of adequate resources.
n The high-level of uptake of EEE across the financial institutions surveyed suggests that the question is no longer whether
or not EEE is important for realising the environmental objectives of the organisation, but how organisations are seeking
to engage employees on environmental issues.
5 Success Factors
1
Effective EEE
initiatives require
backing and support
from top management
as this signals strong
commitment within
the organisation,
which can contribute
to higher levels
of employee
participation.
2
The effectiveness of
EEE initiatives can be
enhanced when there
is a clear link between
the proposed activity
and the day-to-day job
of the employee.
3
Employee
involvement during
the development
of EEE approaches
can create a sense of
employee ownership
over initiatives, raising
levels of participation
during their
implementation.
4
Organising challenges
and contests is a low-
cost way to incentivise
employee participation
in EEE initiatives
and can contribute
to the improvement
of an organisation’s
environmental
performance.
5
Awareness-raising
activities that
outline what the
organisation is doing
to address different
environmental issues,
accompanied by
activities aimed at
empowering employees
to contribute to those
initiatives, can help
the organisation carry
out improvements
in its environmental
performance.
If you ask us...6
Introduction
E
nvironmental policies and strategies are rapidly becoming a common feature
of the corporate landscape, as firms, including financial institutions, have
recognised that there are substantial gains to be realised from integrating sustainability
into their business operations. Sound environmental strategies and policies, however,
are not enough for effectively mainstreaming sustainability. A cultural shift is also
required – one that is inclusive of everyone in the organisation and not only of those
dedicated professionally to sustainability within these organisations.
2
In efforts to attain
wider integration of stakeholders, EEE initiatives are gradually becoming part of these
strategies and recent evidence suggests that they are also a driving factor in their success.
3
The increased uptake of EEE initiatives as part of corporate environmental strategies
in different industries has been captured in various studies. A survey amongst 200 of
the largest corporations in the United States shows that 69% of respondents had EEE
initiatives in place as part of their overall sustainability programmes.
4
In the same
manner, a survey of the attitudes towards sustainability of a pool of Chief Executive Officers
(CEOs) suggests that over 31% of the CEOs surveyed consider employee engagement
to be an important driver of their overall sustainability efforts.
5
In addition, a separate
survey of more than 200 executives across different industries shows that 32% of their
firms are providing sustainability education programmes for their employees and
that 30% have engagement programmes with initiatives that are more extensive than
employee education and training on sustainability issues.
6
There remains, however, a
need for insights and cases that are specific to the financial services sector.
It was for this reason that the North American Task Force (NATF) of the United Nations
Environment Programme Finance Initiative (UNEP FI) decided in 2010 to undertake a
study on the state of employee engagement in North America.
7
This briefing is a follow-
up to that study and aims to examine the field of EEE amongst UNEP FI signatories
around the globe. In order to do so, a survey was circulated amongst all signatories
of UNEP FI and a Project Team was formed from representatives of seven financial
institutions to analyse the results of the survey. A total of 73 responses were received from
financial institutions in Africa, Asia-Pacific, Europe, Latin America and North America.
This briefing presents the results of the survey and takes stock of the different employee
engagement initiatives across UNEP FI Signatories. It identifies the drivers of EEE and
the challenges hampering further implementation, as well as aspects related to the
management of these activities. Through the use of case studies, it highlights global and
regional best practices in the field. This briefing also benchmarks the findings of the survey
against recent academic and practitioner literature on EEE and incorporates the main
outcomes from an expert workshop of the North American Task Force of UNEP FI held in
Toronto, Canada in March 2011, where discussions were centred around the challenges
different firms face for effectively engaging their employees on sustainability-related issues.
What is
Environmental
Employee
Engagement?
For the purpose of this study, EEE is defined as
an employee’s active participation in setting
and accomplishing the environmental
policies and objectives of the organisation
he or she works in.
Usually, EEE ranges from top management
to the general workforce and it may or may
not include sub-contractors. This definition
is consistent with that used by other studies.
1
When is EEE
successful?
Success is defined as employees who are
aware of the environmental objectives
and targets of the organisation; who are
motivated to participate in achieving such
objectives; and who contribute to further
innovation. Disengaged employees are said
to be unaware of the organisation’s efforts
to develop environmental best practices and
may, on occasion, actively resist change.
What is a strategic
approach to EEE?
A strategic approach to EEE entails the
creation of a platform to support the
integration of sustainability within the
corporate culture of the organisation. This
includes the integration of sustainability
criteria as part of the business strategy, as
well as the development of goals, targets and
performance metrics specific to EEE efforts.
1 For example, World Business Council for Sustainable Development, People Matter: Engage, 7.
2 National Environmental Education Foundation, The Engaged Organization: Corporate Employee Environmental Education Survey and Case Study Findings, vii.
3 Bertels, Papania, and Papania, Embedding Sustainability in Organizational Culture: A systematic Review of the Body of Knowledge, 19–23.
4 McGraw-Hill Construction, 2009 Greening of Corporate America: The Pathway to Sustainability- From Strategy to Action, 28.
5 Lacy et al., A New Era of Sustainability: CEO reflections on progress to date, challenges ahead and the impact of the journey toward a sustainable economy., 20.
6 Economist Intelligence Unit, Managing for sustainability, 3.
7 UNEP Finance Initiative, If You Ask Us... Making Environmental Employee Engagement Happen.
Making Environmental Employee Engagement Happen: Results of a Global Survey 7
Survey Findings
The graphics below show some noteworthy characteristics of the financial institutions surveyed:
This section of the briefing examines the results of the survey as they relate to the following factors:
n Uptake of EEE in Financial Institutions n Managing of EEE
n Drivers of EEE n Measuring Success
n Common Approaches n Main Challenges and Needs
The Uptake of EEE in Financial Institutions
The results reveal that the majority of respondents have started to actively promote environmental employee
engagement within their institutions. This suggests that the surveyed financial institutions have recognised
that effective EEE initiatives can contribute to the overall realisation of the environmental objectives of
the organisation.
“We believe that it is highly important that all employees within a
company understand the environmental impact of their actions. Better
understanding would allow banks to integrate environmental approaches
more easily into their activities and operations”
Corporate Social Responsibility Manager, Banco Galicia
<1,000
18%
<10,000
49%
Size of Organisations
by Number of Employees
1,000-4,999
22%
5,000-9,999
11%
Latin America
32%
North America
28%
Asia Pacific
18%
Europe
16%
Africa
6%
Geographical
Representation
Does your
institution actively
promote employee
engagement on
environmental
issues?
No
6%
Yes
94%
UNEP FI
Membership
Middle East
<1%
Asia Pacific
28%
North America
13%
Latin America
9%
Africa
7%
Europe
43%
If you ask us...8
Drivers of Environmental Employee Engagement
Three main factors are driving the development and adoption of EEE initiatives
across the financial institutions surveyed. The collective efforts aimed at
improving the environmental performance of the organisation are the most
important factor behind firms’ resolve to engage employees on sustainability-
related issues. Waste reduction and energy efficiency remain the top priorities
for businesses that are embracing sustainability initiatives,
8
and the results of
this briefing suggest that employee participation and engagement are believed to
be critical for making such improvements. The second most important driver of
EEE is the implementation of corporate environmental policies, as these usually
seek to engage employees in environmental initiatives. Last, several financial
institutions are also undertaking EEE as part of their efforts to build corporate
culture around sustainability. Qualitative responses to the survey suggest that
building corporate culture around sustainability issues can ensure a high-level
of environmental awareness amongst the employee base across the organisation
which can contribute to improved implementation of environmental policies.
While the three main drivers are consistent across regions, regional comparisons
reveal differing importance given to other drivers of EEE. For instance, efforts to attract and retain talent
are important drivers of EEE for European and North American financial institutions, as it is argued that
environmental and sustainability credentials increasingly influence job-seeker decisions.
9
The human
resources (HR) element as a driver of EEE and other sustainability activities has been captured in various
reports.
10
Some financial institutions in Europe and North America are starting to address this trend by
incorporating sustainability-related information in recruitment packages with the objective of attracting
environmentally-conscious candidates.
11
Why does your
institution actively
promote employee
engagement on
environmental
issues?*
69
66
53
53
42
37
34
34
31
25
63
6
53
42
31
63
Part of business mission
*Respondents were able to select more than one answer.
Differentiating from competitors
Employee interest
Attract and retain talent
Employee motivation
Foster Innovation
Connecting issue to business
Building corporate culture
Part of corporate environmental policy
Improving environmental performance
Reduce costs
At a Glance:
Why does your
institution actively
promote employee
engagement on
environmental issues?
Africa, Asia Pacific, Europe and
Latin America
n EEE driven by efforts to improve the
environmental performance of the
organisation
North America
n EEE driven by the implementation of
corporate environmental policies
8 Haanaes et al., Sustainability: The “Embracers” Seize Advantage, 8.
9 Ibid., 17.
10 McGraw-Hill Construction, 2009 Greening of Corporate America: The Pathway to Sustainability- From Strategy to Action, 20; World Business Council for Sustainable
Development, People Matter: Engage, 5; Abacus Data, Canadians and Corporate and Community Social Responsibility, 2; Bhattacharya, Sen, and Korschun, “Using
corporate social responsibility to win the war for talent,” 37.
11 Gross, Corporate Social Responsibility and Employee Engagement: Making the Connection, 8; UNEP Finance Initiative, If You Ask Us... Making Environmental
Employee Engagement Happen.
Making Environmental Employee Engagement Happen: Results of a Global Survey 9
An HR perspective, however, is absent from other regions, particularly from Latin America where it is
considered one of the least important drivers of EEE. Qualitative responses to the survey suggest that this
might be to due to lower levels of environmental awareness amongst the general public in some countries
of the region. This finding seems to contradict the results of a PricewaterhouseCoopers (PwC) report,
which suggests that job seekers in Latin America are influenced by whether or not a potential employer
has a climate change policy in place.
12
Interestingly, efforts to connect sustainability issues to core business
practices in order to create an internal business case for environmental issues were considered amongst
the most important drivers of EEE for Latin American financial institutions.
In Asia-Pacific, the vast majority of participants cite efforts to reduce costs as one of the main factors
behind their EEE activities. Further recent anecdotal evidence shows that effective EEE initiatives can
contribute to the identification and realisation of cost-cutting opportunities that entail a more efficient
use of resources.
13
Several studies also link effective employee engagement around sustainability issues
to lower costs incurred as a result of lower employee absenteeism and turnover,
14
as well as to increased
long-term employee productivity.
15
12 Pricewaterhouse Coopers, Managing Tomorrow’s People: Milennials at work, perspectives from a new generation, 9.
13 World Business Council for Sustainable Development, People Matter: Engage, 5.
14 Bhattacharya, Sen, and Korschun, “Using corporate social responsibility to win the war for talent,” 42; Strandberg Consulting, The role of human resource management
in Corporate Social Responsibility: Issue brief and roadmap, 8–9.
15 Deloitte, Crossing the Green Divide: Ways to channel your team’s passion for greening into actions for your bottom line, 2; Strandberg Consulting, The role of human
resource management in Corporate Social Responsibility: Issue brief and roadmap, 8; Haanaes et al., Sustainability: The “Embracers” Seize Advantage, 20.
Box 1- State Street: employee engagement through community outreach
State Street’s overarching Environmental Sustainability strategy seeks to engage employees on
environmental issues that pertain not only to the company but also to the communities in which
employees live and work. In order to improve its environmental performance the firm has set local
Eco-Advisory Councils in its main offices. Comprised of volunteers, these councils make decisions
about the environmental activities to be undertaken at their office with guidance and input provided
by headquarters. Examples of activities organised by the councils include film screenings, speaker
series and Sustainability Weeks all aimed at raising employee awareness on issues like greenhouse gas
emissions, waste and recycling, and water conservation.
The office of Environmental Sustainability, as part of State Street’s Global Outreach employee volunteer
programme, also allows employees to source and coordinate projects that are meaningful to them but
which also contribute to improving the environment of the community in which they reside. Employees
are given two pay days per year to pursue these projects. Examples of recent projects include employee
participation in a clean-up of a sensitive mangrove area in Lim Chu Kang Singapore as well as employees
helping to develop and implement school recycling programmes in London and Edinburgh in the
United Kingdom. Through these activities engaged employees can contribute to both ‘greening’ their
company as well as their community.
If you ask us...10
16 National Environmental Education Foundation, The Business Case for Environmental and Sustainability Employee Education, 10.
Common Approaches
Financial institutions employ various common approaches to engage employees in environmental
initiatives. These include:
n Raising Awareness
Organisations provide formal and informal education to raise awareness as to what the most pressing
environmental issues are for the organisation and about the initiatives the organisation undertakes to address
them. One of the more common awareness-raising activities is direct communication with employees via
company intranets and newsletters. Another method increasingly used by financial institutions is organising
environmental workshops and environmental-themed events such as Earth Day, Earth Hour, World Water
Day and World Environment Day. As an example, as part of its efforts to raise awareness about particular
environmental issues, Union Bank organises give-aways such as reusable drinkware and tote bags aligned
with particular initiatives as these also facilitate raising employee awareness of specific environmental
issues. The Royal Bank of Canada delivers presentations to employees which include an overview of the
environmental policies, issues, objectives and commitments of the bank and emphasise opportunities for
employee involvement.
n Creation of dedicated teams
Organisations are creating formal and informal teams (or allowing informal and grassroots teams to
organise activities) to drive environmental organisational change, as well as employee engagement initiatives.
These teams perform the tasks of ‘environmental ambassadors’ or ‘environmental champions’ helping
develop new ideas, and driving activities within the organisation. For instance, the Bank of Montreal has
a team of employee volunteers, referred to as ‘environmental ambassadors’, which provide support to the
Environmental Sustainability Office when rolling out initiatives across the company. In a similar manner,
Banque Marocaine du Commerce Extérieur (BMCE) created ten dedicated teams with the responsibility of
implementing pilot programmes to reduce the environmental impact of the organisation.
n Training
Increasingly, financial institutions offer training courses for their employees on how to deal with particular
environmental issues that pertain to the organisation, as well as on the implementation of their environmental
policies and management systems. In more nuanced cases, organisations provide training that outlines the
implications of a particular environmental problem for a specific job role within the organisation. Training
activities can also contribute to increase employee loyalty, morale and pride in the organisation.
16
As an
example of training courses developed by financial institutions, the Canadian insurance company, The
Co-operators, produced for its employees, an e-Course about the fundamentals of sustainability entitled
‘Sustainability 101’ with customised examples on how sustainability impacts the insurance industry. Tokio
Marine also provides an e-learning training course for its employees that provides an overview of different
environmental issues as they relate to the organisation and what employees can do as part of their daily
jobs to address them.
n Contests and Challenges
Financial institutions organise environmental contests both between individuals, as well as amongst
business units or branches. A number of these firms have obtained above-expected improvements in their
environmental performance by introducing a competitive edge into their environmental engagement with
employees. Contests and challenges are considered low-cost activities that can help incentivise employee
participation in EEE approaches and assist with long-term success. For example, Mutualista Pichincha
organises a social responsibility marathon with different contests aimed at reducing the environmental
Making Environmental Employee Engagement Happen: Results of a Global Survey 11
impact of the organisation by reducing resource consumption and increasing recycling rates. Scotiabank
also has an annual contest, EcoTales, where individuals and groups may submit entries on how they are
making their organisation a greener place to work. The contest is promoted on the bank’s green intranet
site and environmentally friendly prizes are awarded to winning submissions.
n Providing Enabling Conditions
A common response found in the survey was that firms are focusing efforts on providing the necessary
infrastructure to make it simpler for employees to make environmentally friendly choices in the workplace.
Examples of this include the introduction of recycling bins around offices, firm-backed ride sharing
schemes and the incentivising of the use of public transportation to commute to work. As an example,
Calvert Investments pays for employees to use public transportation at 100% and pays up to $500 for a bike
for those employees who wish to cycle to work.
n Recognising Efforts
Financial institutions are also putting in place employee recognition programmes focused on sustainability-
related issues. Ensuring that employees feel that their behavioural changes are meaningful, can contribute
to the longevity of EEE initiatives. Usually, employees receive recognition of their efforts in the firm’s
newsletter or Intranet. As an example of this, State Street introduced the ‘Environmental Sustainability
Champion’ Award to recognise outstanding commitment and achievement in sustainability pursuits as
part of its volunteer recognition scheme. The winner receives a grant of $5,000 to contribute to a non-profit
organisation of their choice.
Despite commonalities in approaches as seen by some of the illustrations above, there are several regional
variations in what is considered to be the best practice in the management of EEE approaches, as well as
in the challenges faced during their implementation.
Box 2- Standard Chartered Bank: coordinating EEE across different markets
In order to effectively coordinate EEE activities across markets, Standard Chartered has designated
country environment coordinators who are responsible for organising local initiatives, which range from
coordinating awareness raising activities, such as World Environment Day, to specific actions aimed at
improving the environmental performance of the organisation. Coordinators run the initiatives on a
voluntary basis and are encouraged by senior management and supported by the Group Sustainability
team, who provide toolkits and guidance on activities and monitor progress. The sustainability team
reports quarterly to the bank’s senior management highlighting the work happening on the ground.
To help monitor activities and report on change, the environmental coordinators are surveyed by the
bank twice a year. The survey assesses the activities initiated by each coordinator and the number of
participants. Through this regular survey, the bank is able to record changes and improvements in
employee engagement. It is also an opportunity for coordinators to share ideas. A summary of results of
the survey are placed on the bank’s intranet, where coordinators can learn from each other’s experience.
This cost effective approach enables the bank not only to measure the success of its initiatives, but share
best practice internally.
If you ask us...12
Managing EEE
The following section examines three findings of the survey related to the development and management
of EEE activities:
n Responsibility over EEE Initiatives
n Targeting EEE
n Employee Involvement in the Development of EEE Approaches
Responsibility over EEE Initiatives
According to respondents, the responsibility over EEE initiatives should be shared
between CSR/Sustainability departments and top management. Sustainability
and CSR departments are key to the uptake of EEE. These departments have
responsibility over the overall environmental policies of the organisation and
therefore tend to be the better-informed and most responsive by virtue of their
mandates on the needs of the organisation. Respondents also suggest that the role
of CSR/Sustainability departments is important in informing top management
on what the sustainability priorities of the organisation are, so that management
can then articulate credible messages to the employee base.
Top management is perceived to be capable of aligning sustainability-related
efforts with the overall strategy of the firm.
17
Their involvement is seen as
instrumental in ensuring the success of EEE initiatives and approaches, as it
signals strong commitment from leadership, thereby making initiatives likelier
to resonate amongst the wider employee base. Several qualitative responses
reinforced the notion of the need for top management support. The influence
of top management support has also been extensively analysed in third-party
research. A recent study shows that firms whose top management actively
participates in the advancement of sustainability within the organisation are more likely to have an effective
EEE programme than those firms in which sustainability directors are the main drivers of sustainability-
related initiatives.
18
In the same manner, a study conducted amongst European firms also illustrates the
importance of management support, by showing that employee participation in environmental initiatives
increased from 34% to 58% upon their involvement.
19
Who in your
opinion should
be responsible
for employee
engagement on
environmental
issues?*
*Respondents were able to select more than one answer.
Human Resources
Unit responsible for engagement
Corporate communications
Top management
Sustainability/CSR department
21
28
32
68
69
At a Glance:
Who in your opinion
should be responsible
for employee
engagement on
environmental issues?
Africa, Asia Pacific and North
America
n EEE activities are most effective when
managed by CSR/Sustainability
departments. as opposed to EEE most
effective
Europe and Latin America
n EEE activities are most effective when top
management has responsibility over them
17 Deloitte, Crossing the Green Divide: Ways to channel your team’s passion for greening into actions for your bottom line, 4.
18 Brighter Planet, Employee Engagement Survey: An Analysis of the Extent and Nature of Employee Sustainability Programs, 28.
19 Ramus and Steger, “The Roles of Supervisory Support Behaviors and Environmental Policy in Employee ‘Ecoinitiatives’ at Leading-Edge European Companies” in
Rakowski, Employees engage creatively in environmental initiatives in supportive organizations.
Making Environmental Employee Engagement Happen: Results of a Global Survey 13
Participation of corporate communications teams is also seen as relevant by various financial institutions.
The corporate communications department is seen as better equipped for effectively communicating the
different EEE initiatives amongst the employee base. A recent Deloitte study argues that the success of strategies
is often contingent upon how effectively such strategies are communicated to employees.
20
Additionally,
qualitative responses to the survey suggest that partnerships between corporate communications and CSR/
Sustainability departments can be crucial in the effective rolling-out of initiatives, creating momentum
by constantly communicating environmental-related messages and results. Additionally, a small group of
organisations report that corporate communications can provide employee feedback channels.
“What we need is targeted meaningful communication that stands out
above the ‘green bandwagon’ and positively influences the behaviour
of employees and sees them acting as environmental ambassadors.”
Sustainability Manager, NedBank
Participation of HR in EEE initiatives is seen as important in North American and Latin American financial
institutions. It is argued that HR managers have the tools to increase employee engagement in the firm’s
overall CSR strategy.
21
This notion was also captured in qualitative responses suggesting that these departments
are considered necessary for any initiatives that are aimed at the employee base, having more long-standing
experience in general employee engagement and more resources available for undertaking EEE initiatives.
An interesting finding related to the management of general sustainability initiatives within firms shows
that those companies with longer experience in sustainability issues had assigned managers to sustainability
roles while also relying on line leaders and non-leadership employees to drive initiatives within the firm.
22
Evidence gathered from the survey shows that this is already unfolding across a small number of financial
institutions that have designated non-leadership employees as the ‘environmental ambassadors’ within
their organisations.
20 Deloitte, Crossing the Green Divide: Ways to channel your team’s passion for greening into actions for your bottom line, 5.
21 Strandberg Consulting, The role of human resource management in Corporate Social Responsibility: Issue brief and roadmap, 2.
22 Haanaes et al., Sustainability: The “Embracers” Seize Advantage, 19.
Box 3- BNZ: embedding EEE across the organisation
In 2010 the Bank of New Zealand created the Sustainable Development Team, which was tasked with
developing the organisation’s sustainability strategy, with the full support of top management. In order
to integrate some of the employees’ key environmental concerns into the final strategy, a consultation
was held across the entire business and fed into a high level umbrella framework. This framework
serves as a ‘lens’ for the wider organisation to understand the sustainable development context of the
work employees do every day.
The Sustainable Development Team was created under a model of ‘internal consultancy’. This approach
was chosen to address the issue of sustainability being perceived as something ‘different’ or ‘additional’
that the sustainability teams do, often resulting in a lack of organisational engagement and significant
challenges in mainstreaming these programmes. This model enables the team to have complete
access and interaction with the bank’s many business units. Projects are undertaken in collaborative
partnership with different areas of the business allowing the Team to work on numerous projects at
the same time, as additional project team members are provided by the business units being partnered
with. This approach ensures that projects are embedded within the organisation and that buy-in is
achieved from inception. It also allows employees to understand how sustainability applies to their
areas of work, and empowers them to seek additional opportunities for themselves, with the sustainable
development team providing consultative support where required.
If you ask us...14
Targeting EEE
The majority of respondents consider that everyone within the organisation
should be targeted when implementing EEE activities. While most qualitative
responses in this sense suggest that engaging all employees is crucial for ensuring
the success of initiatives, responses from various Latin American financial
institutions stress that targeting all employees facilitates the integration of an
environmental dimension into the organisation’s corporate culture. A recent
study by the National Environmental Education Foundation supports this
notion by suggesting that a corporate cultural shift to integrate sustainability
must involve all employees and not only those working on sustainability-related
issues.
23
Corporate cultural shifts, as evidenced by a recent Accenture report, are
further enhanced when a maximum number of employees feel that that their
actions are effective.
24
Ensuring participation of employees involved in decision-making areas with
high environmental impacts is also seen as important by several financial
institutions. The rationale is that it can act as a cost-effective mechanism to
improve environmental performance when resources are limited.
Close to 30% of the respondents also consider that efforts should be directed
towards engaging executives on environment-related issues. Top management
is crucial as it provides the resources and the integration into the overall strategy
of the organisation. As suggested by various respondents, it is unlikely that EEE initiatives are successful if
they lack the support of top management. Interestingly, several qualitative responses suggest that while top
management participation is crucial, targeting efforts should also be directed towards middle management,
as they can replicate the message across the organisation and also influence participation of the general
employee base.
Which employees
should be targeted
as a priority?*
*Respondents were able to select more than one answer.
Interested employees
Client-facing employees
Middle management
Employees with direct responsibility over environmental initiatives
Top management
Staff involvement in decision making in high impact areas
All/None in Particular
49
37
37
31
26
21
21
At a Glance:
Which employees
should be targeted as
a priority?
Africa and Asia Pacific
n Engagement with top management is key
for better environmental results
Europe
n Decision-makers in high environmental
impact areas can improve the
environmental performance of the
organisation
Latin America and North
America
n All employees should be engaged in
environmental initiatives in order to
create change
23 National Environmental Education Foundation, The Business Case for Environmental and Sustainability Employee Education, 2.
24 Craig and DeSimone, What Executives Really Need to Know about Employee Engagement, 23.
Making Environmental Employee Engagement Happen: Results of a Global Survey 15
Employee Involvement in the Development of EEE Approaches
Over three quarters of financial institutions surveyed stated that they involve employees in the development
of their engagement strategies. Organisations tend to find that this approach instills a sense of ownership
over initiatives thereby increasing employee motivation and the likelihood of these policies being successful.
A number of studies suggest that employees are likelier to actively participate in the implementation of
initiatives if they were involved in the development of such initiatives.
25
“Our organization believes that by engaging employees in the planning
process there will be a better understanding of the environmental
initiatives and result in a strong buy-in. Many employees are implementing
environmental practices in their personal lives and are proud to work
for an organization that does the same in its business practices.”
Director, Sustainability & Corporate Citizenship, The Co-operators Group Ltd.
25 Strandberg Consulting, The role of human resource management in Corporate Social Responsibility: Issue brief and roadmap, 18.
Were employees
involved in
developing your
institution’s
engagement
strategies?
No
21%
Yes
79%
Box 4- How are financial institutions involving their employees in the
development of EEE approaches and programmes?
Organisations are using different methods for involving employees during the development of their
EEE approaches or initiatives. A few of the most common methods are:
n Surveys: various financial institutions are using surveys to identify what the different environmental
concerns of employees are so as to then tailor initiatives in accordance with employee preferences. On
occasions organisations offer employees the possibility to choose from a pre-determined set of potential
initiatives.
n Dedicated teams: organisations have seen the rise of formal and informal teams that are specifically
dedicated to sustainability and are tasked with identifying employee concerns as they relate to key
environmental issues for the organisation. More nuanced approaches entailed the creation of employee
focus groups from which sustainability professionals can receive feedback on their proposed activities.
n Dedicated platforms: A few financial institutions have created platforms where employees can provide
ideas and suggestions for future activities, as well as for environmental issues that the organisation
could address. Examples of this include issue specific mailboxes, as well as dedicated intranet sites.
n Ideas contests: Some organisations have developed internal contests for generating ideas about future
environmental-orientated activities and implementing the winning ideas.
If you ask us...16
Measuring Success
26
Financial institutions are using a number of direct and indirect mechanisms
to measure the success of their EEE initiatives. The main mechanism used
by respondents entails tracking the environmental performance of the
organisation against a set resource consumption baseline. By tracking the
performance against this baseline, organisations can quantify employee
participation in EEE initiatives. For instance, Scotiabank was able to
successfully track the participation of its employees by measuring the results
of a paper reduction use campaign. Organisations are also registering
employee participation at events, workshops and contests and using logs
as a mechanism to measure EEE. These two mechanisms have provided
organisations with quantifiable results that determine the number of
employees that have been engaged.
Employee feedback is also used as a proxy for measuring the success of initiatives.
Various financial institutions have created dedicated mailboxes to facilitate
and encourage employee feedback. Interestingly, a common mechanism for
measuring the success of initiatives amongst North American financial institutions
is the use of website hit counters on the sustainability-related resources on their
websites and intranet sites. It is considered that this low-cost approach allows
for measuring employee interest in environmental-related initiatives, by using
web traffic specifically as a proxy.
Increasingly, surveys are being used to measure the success of EEE approaches and initiatives. A few
organisations are experimenting with surveys that aim to measure employee behavioural change after the
implementation of sustainability-related initiatives. In this approach, a survey is undertaken before and
after implementation of an EEE initiative to measure its direct impact in terms of behavioural change.
With this approach organisations are able to measure changes in employee behaviour and attitude, as well
as the overall level of awareness of different environmental issues and of the actions that the organisation
is taking to address them. This change, it is argued, can be directly attributed to a specific EEE approach
or initiative and will ultimately lead to improvements in environmental performance. Such an approach
to measuring the success of EEE initiatives usually complements more traditional approaches such as
tracking the environmental performance of the firm through the use of resource use and waste baselines.
In addition, a small number of organisations use surveys during the implementation of EEE initiatives to
assess their effectiveness and identify potential changes that could enhance their impact.
“The business case for environmental issues is important to help drive
these initiatives forward, as well as good reporting to track progress
in a meaningful way for all employees within the company, so that they
can see the benefits of their local actions.”
Environmental Project Manager, AXA
How have
you measured
success?*
*Respondents were able to select more than one answer.
No measurement
Website hits
Survey
Employee feedback
Participation in events, training, contests
Environmental performance tracking
50
46
46
35
34
10
At a Glance:
How have you
measured success?
Africa and Europe
n Measuring success through direct
employee feedback
Asia Pacific
n Success is measured by tracking the
environmental performance of the
organisation
Latin America
n Success is measured through the number
of employees participating in events,
training courses and contests
North America
n Success is measured indirectly through
website hits
26 We wish to thank Global Action Plan for their contribution for completing this section.
Making Environmental Employee Engagement Happen: Results of a Global Survey 17
Main Challenges and Needs
The survey shows that the main challenge faced by financial institutions during
the implementation of their EEE initiatives was the inability to reach the employee
base effectively due to the large size and reach of their organisations. This is
particularly problematic for organisations with international operations in which
there are different understandings of what the main environmental issues to
be addressed should be or where priorities are determined by regional contexts.
Some respondents noted that large organisations can encounter difficulties
when trying to get the message across as, on occasion, employees of certain
business lines or in certain countries lack access to engagement platforms, such
as corporate intranet services. Moreover, company size tends to have a bearing
over the mechanisms and channels that the organisation chooses for their EEE
initiatives, with smaller organisations being able to rely on more ‘personal’
means for communicating their initiatives and programmes.
27
Keeping the issue relevant amongst the employee base over time is also challenging
for organisations surveyed especially for those in Latin America and Asia-Pacific.
It is also an important factor hampering the implementation of EEE initiatives.
It is difficult to maintain interest in initiatives in a context of competing
priorities, information overload and where sustainability criteria are not part of
the employee’s performance management system. Similarly, organisations are
facing challenges when trying to convey the topics to employees, especially with
those that are not already concerned about environmental issues. Responses
suggest that this problem can be amplified when employees perceive that there
is little connection between the different environmental issues and core business
practices or when initiatives require significant behavioural change.
The third challenge encountered by financial institutions during the
implementation of their EEE initiatives is the lack of adequate resources
(people, time, and budget) that are assigned to them. Other studies have also
found that a lack of adequate resources is amongst the main challenges for effective EEE.
28
Responses to the
survey reveal that inadequate resources have prevented organisations from articulating a comprehensive
strategy and from carrying out initiatives in a systematic manner. The low level of resources assigned to
these activities also suggests that they are still considered as a relatively low priority.
Which were the
main challenges
and barriers
you faced in
implementing the
strategies?*
*Respondents were able to select more than one answer.
Identifying interested parties
Employee support/volunteers
Measuring success
Information overload
Inconsistent management support
Relating topic to staff
Insufficient resources
Keeping issue relevant
Size and reach of the organization
41
41
35
29
26
25
24
22
4
At a Glance:
Which were the
main challenges and
barriers you faced
in implementing the
strategies?
Africa
n Main challenge is to keep the issue
relevant over time
Asia Pacific
n Difficulty in reaching the entire employee
base effectively and efficiently due to the
size and reach of their organisations
Europe
n Inconsistent top management support
has prevented effective implementation of
EEE activities
Latin America
n Inability to convey the relevance of the
topic to employees
North America
n Insufficient resources have prevented
initiatives from being carried out
systematically
27 Brighter Planet, Employee Engagement Survey: An Analysis of the Extent and Nature of Employee Sustainability Programs, 21.
28 National Environmental Education Foundation, The Engaged Organization: Corporate Employee Environmental Education Survey and Case Study Findings, 11.
If you ask us...18
Interestingly, the ability to measure the success of initiatives is not considered amongst the main challenges
of implementing EEE, even though the issue has received substantial attention in the literature. As with
other sustainability initiatives, the lack of well-developed key performance indicators, as well as the difficulty
of measuring and monetising EEE initiatives, has hampered their deployment as it can be hard to create
a business case behind them due to the intangible nature of many of its benefits. Nonetheless, the need for
a sound measurement system was seen as critical by a small group of financial institutions. It is argued
that effective metrics could contribute to the identification of sound EEE approaches and enhance the
learning process. In addition, EEE initiatives are likelier to gain momentum if results are communicated
regularly to the employee base.
“The most important factor is the development of corporate culture. The
most critical part that affects the implementation of environmental policies
is execution. If there is no environmental culture and employees don’t
have environmental awareness, even good policies will be distorted when
executed and it will be difficult to raise employees’ real participation”
Green Finance Focal Point, China Merchants Bank
Making Environmental Employee Engagement Happen: Results of a Global Survey 19
Conclusions and Observations
The results of this briefing have shown that the uptake of EEE initiatives across the financial institutions
surveyed is high and that the majority of organisations have started to actively promote EEE within their
institutions. The bulk of EEE initiatives focus on raising environmental awareness and on involving
employees on internal environmental management with the objective of improving the environmental
performance of the organisation. These results are consistent with those of existing studies on EEE in the
finance sector
29
and are also reflective of the findings of a recent report that suggests that issues related
to resource efficiency remain as the main driver of sustainability initiatives in the private sector.
30
Only a
small number of organisations appear to have explored a more strategic approach to EEE with the aim of
creating a platform supporting the integration of sustainability in corporate culture.
The results also reveal that while different factors may be driving their EEE
efforts across regions, financial institutions are using fairly similar approaches
for engaging their employees around sustainability issues. Whether looking to
improve the environmental performance of the organisation, to attract and retain
top talent, or to build corporate culture around sustainability issues, financial
institutions are usually undertaking a host of different activities. These include:
formal and informal education, communications through intranet services, the
creation of teams, and training.
The survey also allowed for the identification of factors that can contribute to
the success of EEE initiatives. Top management support is crucial during the
implementation of EEE activities as their involvement raises the priority of such
activities amongst the employee base. Connecting environmental issues to core
business and job roles is also relevant for enhancing employee participation in
initiatives and preventing that interest in initiatives to be lost over time. Along
similar lines, involving employees during the development of EEE initiatives
can create a sense of ownership over the respective initiatives and increase
participation during their implementation. Last, effective communication with
employees is crucial for understanding what their concerns are regarding the
organisation’s EEE strategy and how this can be enhanced.
The results also show that there remain various challenges hampering the
effective implementation of EEE initiatives. The ability to keep the issue relevant
in a context in which employees are constantly faced with competing priorities,
has proven difficult for various financial institutions. In the same manner, large
organisations with international operations are still finding difficulties in identifying mechanisms for
communicating effectively to the employee base. Another significant challenge to the effective implementation
of EEE initiatives is posed by the lack of adequate resources assigned to them. Inadequate resources prevent
efforts from being carried out systematically, which can contribute to employees losing interest in such
initiatives. Despite these challenges, the high level of uptake would suggest that the question now how has
moved from whether or not financial institutions see EEE as important for realising their environmental
objectives, to how organisations are seeking to engage their employees on environmental issues.
29 Strandberg Consulting, International Scan of Sustainability Practices of Insurance and Non-Insurance Companies, 6,17.
30 Haanaes et al., Sustainability: The “Embracers” Seize Advantage, 8.
Taking things further:
n EEE can go beyond internal
sustainability disclosure and raising
employees’ environmental awareness,
EEE should be about creating a platform
for ultimately embedding sustainability
in corporate culture;
n As EEE initiatives start being conducted
in a more systematic manner, it will be
necessary to ensure their design includes
the setting of specific targets and the
creation of sound metrics. This would
allow for effectively tracking performance
and can be useful for the future
improvement of design;
n As EEE becomes part of medium- and
long-term corporate sustainability
strategies, on-going employee
participation could be secured by
including sustainability criteria within
performance management systems.
If you ask us...20
References
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Brighter Planet. Employee Engagement Survey: An Analysis of the Extent and Nature of Employee
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Craig, Elizabeth, and Lauren DeSimone. What Executives Really Need to Know about Employee Engagement.
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bottom line, 2008.
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Hopkins, and Nina Kruschwitz. Sustainability: The “Embracers” Seize Advantage. MIT Sloan, 2011.
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Nations Global Compact and Accenture, 2010.
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Strategy to Action, 2009.
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Employee Education, 2010.
———. The Engaged Organization: Corporate Employee Environmental Education Survey and Case
Study Findings, 2009.
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generation, 2008.
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Alcyone Finance
Argo International Corporation
The AXA Group
Banamex Financial Group
Banco Galicia
Banco General
Banco Votorantim
Bancolombia
Banco Bilbao Vizcaya Argentaria (BBVA)
BBVA Bancomer
British Columbia Investment Management
Corporation (bcIMC)
Banque Marocaine du Commerce Extérieur (BMCE)
Bank of Montreal (BMO)
Banco Nacional de Desenvolvimento Econômico
e Social (BNDES)
Bank of New Zealand (BNZ)
Bank of America Merrill Lynch (BoAML)
Bank of Tokyo-Mitsubishi UFJ,Ltd (BTMU)
Bentall Kennedy
The California Public Employees’ Retirement System
(CalPERS)
Calvert Investments (Calvert Group, Ltd)
Canadian Imperial Bank of Commerce (CIBC)
Citigroup Inc.
Citibank Brasil
ClearBridge Advisors
China Merchants Bank
Corporacion Financiera de Desarrollo SA
Credit Suisse
Development Bank of the Philippines (DBP)
Export Development Canada
The Export-Import Bank of Korea
Fideicomisos Instituidos en Relacion con la
Agricultura (BLP FIRA- Banco de Mexico)
First Rand Ltd.
Fundacion Social
Global Currents Investment Management
Croatian Bank for Reconstruction and Development
(HBOR)
Helm Bank S.A.
HSBC Argentina
Hyundai Merchant Marine Co. Ltd
Insurance Australia Group Ltd (IAG)
Landesbank Baden-Wurttemberg (LBBW)
Manulife Financial Corporation
Mizuho Bank Ltd
Mutualista Pichincha
NedBank Group Limited
Nipponkoa Insurance Co. Ltd
Northern Trust Corporation
NRW Bank
Nuevo Banco Comercial S.A
Pax World Management Corp.
Piraeus Bank Group
Coöperatieve Centrale Raiffeisen-Boerenleenbank
B.A.(Rabobank Cooperative)
Royal Bank of Canada (RBC)
RBS Mexico
Samsung Fire and Marine Insurance
Santam Insurance
Santander Group
Scotiabank
Scotiabank Chile
Scotiabank Mexico
Skandinaviska Enskilda Banken (SEB)
Société Générale Group
Standard Bank Argentina SA
Standard Chartered Bank
State Street Corporation
Storebrand
Sumitomo Trust and Banking Co., Ltd
Swiss Reinsurance Company Ltd (SwissRe)
The Co-operators Group Ltd.
Toronto-Dominion Bank (TD)
Tokio Marine Holdings, Inc
The Bank of Tokyo-Mitsubishi UFJ
UBS AG
Survey Respondents
We wish to thank the following participants:
For more information: www.unepfi.org
Email: na@unepfi.org
www.unep.org
United Nations Environment Programme
P. O. Box 30552 Nairobi, Kenya
Tel.: 254 20 62 1234
Fax: 254 20 62 3927
E-mail: cpiinfo@unep.org
About the UNEP Finance Initiative
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sector. UNEP FI works closely with
over 200 financial institutions that are
Signatories to the UNEP FI Statements,
and a range of partner organisations, to
develop and promote linkages between
the environment, sustainability and
financial performance.
Through a comprehensive work
programme, regional activities, training
and research, UNEP FI carries out its
mission to identify, promote and realise
the adoption of best environmental and
sustainability practice at all levels of
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