Employers told to look at climate change beyond the ESG lens
Employers across Australia are advised to take a "more holistic approach to risk management" as the government designs a new national strategy aimed at addressing climate change as an "immediate" work health and safety (WHS) issue.
The upcoming national strategy aims to strengthen the research, evidence and data needed to inform policy and practice, as well as consider how the model WHS framework can continue to protect workers amid climate change.
Lynda Richards, the Principal of Health, Safety & Environment, APAC, at Avetta, said the announcement is the "perfect opportunity" for employers to look at climate change beyond environmental, social and governance (ESG) compliance.
"Climate change and its impacts now must permeate other areas of macro-organisational strategy, such as WHS and employee wellbeing," Richards told HRD.
Richards, who described the new national strategy as a "great step in the right direction," added that it will bring organisations closer to recognising how workplace readiness must evolve alongside challenging environmental conditions.
"One of the best ways organisations can prepare for this upcoming national strategy is to take a more holistic approach to risk management, ensuring climate-related hazards are baked into risk assessments across a range of functions, including contractor and supplier risk," she said.
"Being compliant to work is one thing, but being ready to work against the backdrop of a changing climate is quite another. As ESG, procurement, and WHS continue to converge under a climate change umbrella, we can clearly see how climate resilience will continue to grow as a whole-of-business risk and governance issue."
The development of the national strategy follows a recent review from Safe Work Australia, which found that climate change is intensifying existing workplace hazards.
It is also creating challenges for the country's WHS system, according to the report.
"Australia's uniqueness as a nation in terms of our exposure to the effects of climate change cannot be underestimated," Richards said.
"The realities of a changing climate have long been felt by workers subjected to extreme temperatures across the construction, mining, and manufacturing sectors. This summer will be no different."
The development of Australia's new national strategy also comes as employers face a "creidiblity challenge" when it comes to climate commitments.
A Curtin Centre for Applied Ethics report this year revealed that only 14% of employees believe their employers are making good progress on climate commitments, while 79% believe greenwashing is common.
"The challenge for employers is credibility. Workers want to see evidence of real progress, not simply commitments or communications campaigns," said Professor Anthony Langlois, CCAE director and co-author of the report, in a statement.
