By Dr. Nawaf Alhusseini

In different capaci-es, Saudi companies have embraced green ini-a-ves to support environmental protec-on. Examples abound of manufacturing companies using emission control technologies, banks providing favorable terms for green loans, and businesses using energy more efficiently, reducing printed material, and managing waste more effec-vely. And there is a surge in sustainability repor-ng among the larger companies in response to the Capital Market Authority 2021 guidelines to promote ESG repor-ng (Environmental, Social and Governance), and ESG commiJees are being formed. With all such efforts it can be said that the Saudi corporate landscape has responded well to Vision 2023’s call for going green.

Acknowledging these developments, one may ask if more can be done. Perhaps yes, by engaging the corporate workforce more broadly, and reflec-ng the green momentum in HR policies. There is no evidence that Saudi companies have updated their HR policies to reflect their green drive and ESG programs, and as such they may be losing more opportuni-es to advance the green agenda.

Are all employees aware of how they can contribute to environmental protec-on through their jobs? And once aware do they have incen-ves to do so? Obviously, there is a segment of employees who are directly involved in environment-related objec-ves, such as industrial engineers, as well as those involved in ESG ini-a-ves. But those comprise a small segment of the workforce.

By upda-ng HR policies with the green drive, more engagement of the workforce can be aJained, and small ideas here and there may grow larger and spread from one company to another. Upda-ng HR policies are more significant than introducing stand-alone programs, as they signal to managers and employees that the green drive is formally ins-tu-onalized. In other words, policy update will ensure sustainability of the green drive.

But what does upda-ng HR policies with the green drive mean exactly. Here are a few examples, no-ng that documenta-on of such update requires only adding a few statements to exis-ng policy, and does not need a whole rewri-ng of the HR policy document:

Training policy: Add environmental awareness to annual training plans. Some companies are already offering this training, but it is not clear if this is a maJer of HR policy or a stand-alone, one-off ESG program. Such training should include dialogues and workshops on how employees can contribute through their jobs, and more generally as members of the organiza-onal community.

Performance management policy: Add green objec-ves for each employee. This can be mandatory or op-onal, depending on the job, but in all cases, it should be counted in the performance reviews and ra-ngs. For example, if green objec-ves are op-onal for certain jobs, individual green achievements can be counted as an extra effort that can contribute to the overall performance ra-ng.

Recogni-on program policy: Include green achievements, both at the individual and team levels. A policy update will ensure that future recogni-on programs are inclusive of green achievements.

Job descrip-on policy: Add “green mindset” as part of the requirements for all jobs. This is important as the job descrip-on is the basis of most HR programs.

Recruitment policy: Include environmental protec-on in the new hires orienta-on programs. This should signal to the employee early on that a green mindset will be beneficial to their career within the company.

Employee engagement survey policy: Add percep-ons on the green drive and obstacles faced. This would allow tracking progress over -me.

Volunteering policy: Include par-cipa-on in state-sponsored and other na-onal and local green ini-a-ves.

The “greening” of HR policies will be more effec-ve if it is done with a posi-ve spirit, highligh-ng the benefits for the quality of life now and for future genera-ons. The language used in the policy document and in communica-on maJers, in my opinion. It is beJer to avoid posi-oning the green HR as a compliance requirement, with terms such as “mandatory” and “must” to be avoided. Viewed as another compliance requirement imposed from the top amid heavy workloads might lead to crea-ve means to go around it, rather than advance it. The objec-ve is not to have employees and managers aim towards minimum effort to check the box, but rather to have a great sense of purpose in embracing the green agenda.

Engaging the workforce more broadly in the green drive through HR policy updates will beJer ins-tu-onalize it in all facets of the organiza-on. As of now, ESG seems to be an isolated mandate under the preview of the top managerial tear and applicable to only certain segments of the business. Furthermore, ESG is not only about the environment, and corporate efforts may focus more on the “S” and “G” rather than on the “E”.

What would also help in this regard is research to assess the extent to which corporate-wide green programs are implemented and HR policies updated. There is limited academic research on green human resource management among Saudi companies, and none has addressed the impact on HR policies (for example, Nadia Abdulghaffar 2017, Mohammed Alharbi 2020, Sasha Faisal & Mohammad Naushad 2020, Nuha Alhashash 2022).