b'GUEST COLUMNTALENT MOBILITYS CRUCIAL ROLE IN THE ESG AGENDA By Dr. Tobias Preising & Tom Frense, KPMGW ith environmental, socialDirective (CSRD) and its correspondingand well-being of mobile employees and and governance (ESG)European Sustainability Reporting Stan- their families.increasingly commandingdards (ESRS).board-level attention, globalA strengthened governance and transpar-mobility teams are findingParticularly, the ESRSs part defining theency can be realized by embedding ESG ways to help their organizations becomeobligations to report on the organizationsconsiderations into mobility programs, more sustainable, diverse and equit- own workforce will play an importantmanaging tax and compliance risks, ableenterprises. role: Covering working conditions, equalaligning mobility objectives and incentives Customers, investors, regulators andtreatment and opportunities, and otherwith broader ESG goals and KPIs, and employees are demanding that companieswork-related rights, the ESRS S1 requirescollaborating with internal and external take responsibility for their impact on theinformation about several areas, like poli- stakeholders along the mobility supply planet and society, as well as their finan- cies (S1-1), processes to remediate negativechain to ensure ESG accountability cial performance. Given this increasingimpacts (S1-3), diversity metrics (S1-9)andperformance.importance of ESG to the business as aor adequate wages (S1-10). As a peoples whole, each department will ultimatelyfunction, global mobilitys contribution inHOW TO BEGINbe responsible for supporting and embed- this regard is not an optional one, but itsThere is no one-size-fits-all approach ding ESG goals into their own indi- inherent duty. to ESG integration in mobility, as each vidualactivities. Yet, current market insights show (KPMGorganization will have different priorities, survey during global webcast in Januaryneeds and capabilities. However, some In itself, the global mobility function,2024) that for a large part of companiesgeneral steps are recommended to all which manages the movement of talent(43%), there is no awareness of the currentmobility and HR leaders to get started.across borders, touches all pillars of ESG,status of ESG considerations in their for instance with regard to carbon emis- global mobility programs. Especially, aFirstly, its important to assess the current sions, diversity and inclusion of the mobilelot of global mobility and HR functionsstate of ESG maturity for the different employee population or tax compli- are not aware of the ESRS S1 reportingareas of all talent mobility activities and ancemanagement. obligations regarding their own workforceframeworks. This is done by conducting a and what it means for them. And while agap analysis, benchmarking against peers, WHY IT MATTERS few have already implemented measures,identifying strengths and weaknesses, and What sets global mobility apart is itsmany are not sure about where and howprioritizing actions.unique position in the wider organiza- to begin in a systematic way. At the sameSecondly, alignment with the overall ESG tion and its access to a broad range oftime, theres a clear ambition to takestrategy and goals of the organization data: Operating at the intersection ofaction (63%), with the main driver beingis key. Engaging with the business and multiple business and people functions, itemployer branding and talent attraction. C-suite and understanding the ESG vision has insights into HR, talent, technology,and expectations can not only define the payroll, and finance activities. As a result,WHAT CAN BE DONE role and value proposition of mobility, but it can directly contribute to reachingGlobal mobility teams can make a differ- also get it a seat at the table.various goals and tackling challenges likeence on ESG issues in two ways: by talent attraction, employee expectationsaligning their mobility programs with theirLastly, it is imperative to gather all neces-for new ways of working, pay equity,organizations ESG strategy and imple- sary data to meet the organizations environmental impact, reporting obliga- menting ESG initiatives within their ownreporting requirements regarding its own tions or operational efficiency. Hence, withfunction. And by driving data transpar- workforce. Experience has shown that ESG as a continuing hot topic, the role ofency and data collection to ensure thatorganizations frequently uncover substan-mobility has evolved beyond a cost centretheir organization will be able to meettial gaps in legal compliance or stake-coordinating cross-border employee move- workforce related reporting obligations. holder expectations during the process of ments and has now the potential to be adoing so, while the rectification of those strategic business partner and a significantThe environmental impact of cross-borderdiscrepancies to prevent any negative driver for their organizations overallassignments and business travel can beconsequences can be very time-consuming. ESGstrategy. reduced by optimizing mobility policies, processes and practices, leveraging tech- Hence, the immediate initiation of this If done right, ESG-conscious talentnology and data, and incentivizing low- step should be prioritized.mobility not only creates value andcarbon choices by mobile employees.competitive advantage for the organiza- Dr. Tobias Preisingis a global mobility services tion and its people. It is also crucial inIn order to enhance the social value ofpartner andTom Frenseis senior associate view of existing and future legislativetalent mobility, responsible teams shouldin Global Mobility Services at KPMG in requirements such as the EU Directive onfoster diversity, inclusion and socialGermany. This article first appeared on the Pay Transparency, the Corporate Sustain- mobility in the mobile workforce, ensureESG Today website and can be viewed here: ability Due Diligence Directive (CSDDD)compliance with local and regional labourhttps://www.esgtoday.com/guest-post-talent-or the Corporate Sustainability Reportingstandards, and support the duty of caremobilitys-crucial-role-in-the-esg-agenda/Fall 2024PERSPECTIVES17'