Environmental, social and governance (ESG) principles have evolved from a peripheral concern into a core component of business and investment strategy. Njabulo Mashigo, HR director for Vodacom, shares why ESG isn’t just about risk mitigation or investor relations – it’s a key driver of talent attraction and retention.
According to PwC’s 2024 Global Workforce Sustainability Study, 75 percent of participants viewed a company’s overall societal impact as important when choosing an employer, with 68.6 percent feeling the same about environmental policies. Today’s workforce is values driven. People want to work for organisations that authentically commit sustainability, social responsibility and ethical governance.
That’s why HR leaders must not only support ESG efforts – they must be central to them. ESG in the HR space is about creating long-term, responsible and ethical workforce management practices that benefit employees, the company and society. Vodacom has integrated ESG principles into our HR strategies to ensure employee wellbeing, business continuity and corporate responsibility. In doing so, we ensure that our employees also support and drive sustainable business goals while fostering a culture of responsibility and impact.
To foster this workplace culture, employees need to actively engage in ESG efforts and understand how their role impacts environmental and social outcomes. For example, Vodacom has appointed cross-functional sustainability champions to create employee-led committees that drive green initiatives and recruit employees to participate in ESG-related volunteer programmes. These efforts are tied to our company’s purpose pillars of empowering people and protecting the planet.
Additionally, the Green Building Council of South Africa (GBCSA) has accredited two buildings at Vodacom South Africa’s headquarters (HQ) in Midrand, Johannesburg, each with a 5-Star Existing Building Performance (EPB) certification. This can be attributed to resource efficiency, especially in respect to energy, water and waste management, which are some of the important features that the GBCSA interrogates when awarding the certification. The headquarters in Midrand are solar-powered, consisting of an electric car charging station and a recycling pod for waste collection, encouraging staff and customers to drop off their recyclable items.
It is clear then that HR can play a role in assisting businesses with applying ESG principles to their own operations. From implementing green workplace policies to driving diversity and inclusion, HR can help embed ESG principles into company culture. Vodacom has introduced gender empowerment programmes to ensure diversity and inclusion at our workplace and drive change in our broader community. Our Women’s Network Forum, which includes a mentorship programme, is a vital platform for women at Vodacom to champion the gender equality agenda. Our recently enhanced employee value proposition entails supportive leave policies for women at all stages of life. Not only do we address gender-based violence affecting our employees but continuously raise awareness about fighting this societal ill outside of work.
Future-proofing businesses
Weaving ESG metrics into performance evaluations, leadership development, and compensation structures can strengthen a company’s overall ESG strategy. Furthermore, this data capability positions HR not just as an implementer of ESG policy but as a strategic driver. When HR leaders can demonstrate precisely how improving employee wellbeing translates to reduced turnover costs or how investing in green workplace initiatives impacts recruitment success rates, they elevate both HR and ESG to value creators.
Several years ago, Vodacom redesigned key elements of our reward programme to include ESG measures and to incentivise executives to roll out projects that align with our purpose-driven strategy. In addition, our annual ESG report details progress on initiatives linked to HR metrics, including employee wellness, health and safety, diversity and inclusion, as well as wins on ESG targets related to HR and labour rights.
Companies that integrate ESG principles into HR strategy are not only responding to employee expectations but also future-proofing their businesses. ESG requirements have been built into the Top Employer evaluation criteria, which has resulted in Vodacom’s ranking as the Top Employer in Africa. Regulatory bodies worldwide are increasingly holding corporations accountable for ESG performance. Investors are also scrutinising ESG metrics when making decisions. HR’s role in demonstrating ESG leadership will only grow in importance as businesses that embrace ESG proactively will gain a competitive edge, while those that lag risk reputational and financial consequences.
To make ESG meaningful in HR, we must go beyond statements. That means embedding ESG into every part of the employee lifecycle – from recruitment and onboarding to performance and leadership. HR leaders should champion policies that align with sustainability goals, ensure that social responsibility efforts are supported by concrete actions, and reinforce ethical governance at every level of the organisation. By doing so, we create workplaces where purpose and profit go hand in hand – attracting the best talent, delivering long-term value, and contributing meaningfully to the world we share.
