GUEST SUBMISSION: I was recently asked, “Which social topic would I consider the most material for organizations in 2024?” I paused for a long minute and said, “The most critical thing we need to do right now is strengthening our human sustainability muscle in organizations.”

Deloitte defines human sustainability as the “long-term, collective well-being of individuals, organizations, climate, and society”. Understanding human sustainability and workplace well-being helps sustainability professionals drive impactful change. When we are disconnected from ourselves, we are also disconnected from the ecosystem that nourishes us. 

What do organizations need to know about the current state of well-being?

In 2022, Microsoft surveyed 20,000 people across 11 countries, including broad representations from Australia, China, Japan, France, Canada and the United States. The survey found that almost 50 per cent of employees and 53 per cent of managers are already burned out. The study demonstrates that burnout is an international crisis that transcends borders. 

This year, Deloitte released its third Well-being at Work Survey, which showcased that despite human sustainability being a top priority for executives, employees are still struggling with low levels of well-being. Most employees stated that their well-being either worsened or remained the same.

While 83 per cent of the executives surveyed through this study believe their organization is advancing human sustainability in some capacity – only 56 per cent of employees agree. Long hours, a heavy workload and a lack of connection contribute to chronic exhaustion, and clearly, conducting mental health webinars or signing up for meditation apps at the workplace will not cut it. 

Reading these reports was eye-opening because I realized we face two existential crises – climate change and well-being. The health of the planet and the health of people are deeply connected. We cannot solve the climate crisis without prioritizing our well-being. 

The current gap in ESG reporting frameworks and well-being

According to Deloitte’s recently published 2024 Global Human Capital Trends research, only 19 per cent of leaders say they have very reliable metrics for measuring the social component of ESG. We are still at the early stages of understanding this concept since only 10 per cent of organizations surveyed by Deloitte state they are leading in advancing human sustainability.

This could be problematic as ESG-focused investors may not have comparable metrics to understand whether organizations are advancing on social factors. If people and talent are key drivers of the “S,” shouldn’t well-being be treated as the cornerstone of an ESG strategy rather than an afterthought?

Fortunately, my thoughts align with a few progressive leaders who have encouraged organizations to invest in human sustainability and expand their current definition of ESG.

In an article written for Thrive Global and co-authored by Jen Fisher, human sustainability leader at Deloitte and editor-at-large, human sustainability at Thrive Global and Alix Lebec, an entrepreneur and strategic adviser to the business, philanthropic and impact investing communities, the authors state “it’s not enough to know how much a company is investing in health and well-being—we should be looking at the outcomes of those investments. By creating new company structures and metrics that value (and incentivize) employee health and well-being, we can ensure that each of us bring our best creative and engaged selves to lead the sustainability movement and avoid a climate catastrophe.”

How do leaders build an inclusive culture of well-being?

Integrating well-being into the fabric of an organizational culture requires a holistic approach with three distinctive considerations:

How is work designed for employees?

In 2022, 61 companies across the U.K. participated in a pilot four-day work week program developed by the advocacy group 4 Day Week Global for six months. The results from the program were so successful that of the 61 companies, 56 will continue to offer a four-day workweek to their employees, and 18 are currently developing a policy to make permanent changes.

Employees reported improved sleep and well-being by participating in the program.

Interestingly, revenues of those companies that participated in the program “stayed broadly the same” during the six-month trial period but increased to 35 per cent on average from previous years. 

Earlier last year, Canadian e-commerce giant Shopify announced an organization-wide mandate to cancel all recurring meetings with more than two people and developed a policy that no meetings can be held on Wednesdays. Shopify has also encouraged employees to decline other meetings that may impact their productivity at work and asked employees only to hold meetings with more than 50 people limited to a set time on Thursdays. This immediately resulted in canceling 12,000 events and saving Shopify over 322,000 hours. 

Have organizations allocated resources and investments in well-being, and what are the outcomes of those investments? 

A study conducted by ESG Global Advisors in November 2022 surveyed 73 organizations in North America to understand the state of social issues in ESG. Survey participants strongly agreed that “flexible working hours is the top benefit employers offer to support mental health in the workplace.”

Eighty-five per cent of surveyed Canadian employees believe organizations should create programs that support their mental health and well-being. However, only 65 per cent of the participants think their organizations are allocating investments to these programs well. There is a disconnect between employees’ expectations of well-being and the investments made by the companies. 

If organizations have invested in well-being programs and offer benefits to employees that go beyond mental health insurance coverage or employee assistance programs, it would be helpful to assess data such as: Have the programs reduced attrition rates? Or have they closed any pay equity gaps? Leveraging such data would help organizations craft a more meaningful story about the social pillar of their ESG initiatives. 

Are physical spaces designed with a human-centric approach?

In a post-pandemic era, many organizations are focusing on flexibility and developing hybrid work modes. This means the future of the workplace needs to bring human experience, collaboration and technology to ensure inclusion. Integrating health and wellness, fresh air, natural light and access to outdoor spaces would be key differentiators in attracting talent to return to the office.

A human-centric designed place paired with smart technology can also help organizations understand how often people book spaces and if there is a need to create employee socialization hubs and quiet spaces. 

There isn't a one-size-fits-all approach to embracing human sustainability. To attract and retain engaged talent, organizations must be flexible, adaptive and customize programs that consider their needs and preferences. This requires a complete shift in our relationship with businesses, people and society.

Arianna Huffington once said, “Burned-out people will keep burning up the planet.” It’s time we prioritize putting people at the heart of the organization’s ESG strategy.