Why ESG must move to the top of every CHRO's agenda

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CHRO and ESG lead at Vector Logistics Annelie Govender is among the HR leaders integrating environmental, social, and governance (ESG) priorities into the DNA of their organisations. She highlights why embedding ESG is more important now than ever.

Q: Why should ESG start becoming a critical priority for organisations? What is its current importance?

A: The world is no longer asking whether ESG matters, it’s asking how seriously organisations are taking it. ESG is the lens through which modern businesses are judged, not only by investors and regulators, but by employees, customers, and communities. Its importance lies in its ability to future-proof a business. 

ESG prioritisation leads to sustainable growth, risk mitigation, and social licence to operate. It’s a catalyst for innovation, cultural evolution, and business resilience. Especially in a South African context, where socio-economic inequality is stark, businesses have both the responsibility and opportunity to be part of the solution. 

Q: What are some tangible ways to integrate ESG into talent management, recruitment, and performance evaluations? 

A: There are several powerful ways to bring ESG to life across the talent lifecycle.

Recruitment: Include ESG values and initiatives in your employer brand. Attract candidates who care about purpose. Ask value-based questions during interviews to assess cultural alignment. 

Onboarding: Introduce new employees to the company’s ESG commitments from Day 1, positioning them as shared responsibilities. 

Talent management: Offer development opportunities that upskill employees in ESG topics like sustainability literacy, ethical leadership, or social impact. 

Performance evaluations: Include ESG-aligned KPIs, such as participation in community initiatives, contributions to diversity goals, or ethical compliance metrics. 

Leadership development: Empower leaders to model ESG values and drive accountability within their teams. 

Q: How do you incorporate ESG into your people strategy, and what results have you seen?

A: At Vector Logistics, ESG is not a standalone initiative, it’s embedded in the DNA of our people strategy. As both the CHRO and ESG Lead, I view our responsibility as twofold: enabling a high-performing, values-driven culture internally, while also contributing meaningfully to the world around us. 

We’ve aligned our people practices with our ESG ambitions by focusing on three core areas: inclusion, impact, and integrity. This includes offering CSI leave days for employees to engage in community upliftment through initiatives like SA Harvest and working with Partners for Possibility to equip youth near our major hubs with skills and job pathways. 

The results speak volumes: we’ve seen stronger employee engagement, improved retention, especially among purpose-driven talent, and enhanced employer branding. Our people want to work for a company that aligns with their values and makes a difference.

Our ESG journey is ongoing, but we’re proud of the strides we’ve made by aligning purpose with performance. When people feel they are part of something bigger than themselves, that’s when culture thrives and impact multiplies.

Q: What advice would you give to CHROs looking to start or strengthen their company’s ESG culture?

A: Start by anchoring ESG in your organisation’s purpose and values – it must feel authentic, not imposed. Then build a coalition of internal champions: HR, sustainability, operations, and even frontline employees who are passionate about making a difference. From there, integrate ESG into your people’s policies, not as a checklist, but as a lens for decision-making. Communicate consistently, celebrate small wins, and track your impact. Most importantly, lead by example, because ESG culture is felt through what leaders do, not just what they say.

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