ESG requires new skills from senior leadership
New areas and vice-presidencies are created to address environmental, social and governance
The Valor Econômico article, "ESG requires new skills from senior leadership," quoted Russell Reynolds Associates Consultant Mariane Montana on how some companies are creating a sustainability-focused role within the HR function. A translated excerpt of the article is below.
The pandemic and greater pressure from investors and society to position companies in relation to more sustainable products and services and social inclusion practices accelerated the evolution of the ESG agenda in Brazil in 2020. New areas and vice-presidencies to touch this agenda were created, which requires training of senior leadership.
A recent study of the Global Compact, with consultancy Russell Reynolds Associates, indicated the attributes of this mentality: systemic thinking, ability to include stakeholders in the process of transformation, ability to challenge conventional approaches and long-term thinking, with the courage to break the tradeoff between sustainability and profit.
[An HR] alliance is already taking place in some companies, according to Mariane Montana, a partner at Russell Reynolds and head of the ESG / sustainability practice. “There is a demand to bring a vice president to HR to think about how to integrate sustainability throughout the business, because it requires a cultural transformation. It is necessary to change the way in which leadership is developed and the indicators that remunerate executives. ”
Another movement that the consultancy sees is the search for a sustainability vice president with a more strategic profile. In the recent past, this search prioritized a more technical profile. "Now, we are looking for business executives who question the decisions made and articulate the new strategies with the CEO and the board."
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