ESG in HR - a guide for HR departments
09/29/2025Reading time: 6 minutes
What do you find in this guide?
- What is ESG and why does HR have a key role in it?
- What are HR's responsibilities in ESG reporting (VSME and ESRS)?
- Simple checklists and examples of HR activities in the "S" and "G" areas
- How to start ESG in HR - step by step
1. What is ESG and what does HR have to do with it?
ESG stands for Environmental, Social, Governance (environment, social, counters). Many companies must or will have to report ESG - but it's not just an obligation, it's a competitive advantage.
The HR department is responsible for many of the so-called "S" areas and some of the "G" areas:
- employment structure,
- diversity and inclusiveness,
- mental health and wellbeing,
- training and development,
- pay transparency,
- anti-discrimination policies,
- ethics and labor law compliance.
2. What regulations do you need to know? (VSME and ESRS)
- VSME is a simplified ESG standard for smaller companies - voluntary, but increasingly required by contractors.
- ESRS is a mandatory ESG standard for companies covered by the CSRD.
Comparison:
| Standard | For whom | "S" and "G" range |
| VSME | Micro, small and medium-sized companies | Simple, general (e.g., number of employees, diversity, salaries) |
| ESRS | Large companies (or groups of companies) | Detailed, broken down into: employment, values, policies, management |
3. Simple checklist: ESG in HR
DIVERSITY AND INCLUSION - CHECKLIST FOR HR
- Check employment structure (gender, age, disability, nationality - if possible)
- Introduce a D&I (diversity & inclusion) policy, in line with ESG and regulations
- Conduct an equal pay audit (gender pay gap, medians, quartiles)
- Ensure inclusive language in HR documents, announcements and policies
- Introduce mandatory anti-discrimination training for all (not just leaders)
- Create or support ERGs (Employee Resource Groups), e.g. for women, neuroatypical people, parents
- Implement cross-group mentoring, e.g. between generations, genders, different departments
- Collect feedback on D&I experiences, e.g., in engagement surveys or separate surveys
- Monitor reports of discrimination or bias - and report aggregate data as part of ESG
- Include D&I goals in HR strategic objectives (e.g., % of women in leadership positions)
PAY TRANSPARENCY - CHECKLIST FOR HR
- Conduct a wage gap analysis (gender pay gap, comparison of medians, quartiles, allowances)
- Develop job and comparison group matrices (to standardize salary data)
- Introduce wage spreads into recruitment advertisements (in accordance with the planned law)
- Establish rules for salary communication within the company (e.g., availability of salary ranges)
- Prohibit questions about candidates' previous salaries (in line with EU requirements)
- Set rules for salary adjustments when injustice is detected
- Include an ESG component in bonus policies (e.g., for diversity, wellbeing goals)
- Report salary data to ESG (VSME/ESRS) - e.g. median, gender gap
- Train leaders on how to have conversations about pay and transparency principles
- Communicate approach to transparency as part of organizational culture
WELLBEING - CHECKLIST FOR HR
- Investigate absenteeism levels (average number of sick days, causes, trends)
- Offer access to psychological support (internal or external)
- Introduce a work-life balance program (e.g., flexitime, hybrid, well-being days)
- Collect feedback on stress and burnout levels (e.g., in pulse surveys)
- Organize periodic health-promoting activities (e.g., webinars, health days, mindfulness workshops)
- Take care of ergonomics and physical health (job evaluations, remote work support)
- Incorporate wellbeing indicators into ESG reporting (e.g., absenteeism levels, number of people supported)
- Include wellbeing in HR policies and ESG strategy (e.g., as part of goals for leaders)
- Ensure a culture of support and openness (e.g., training for managers on recognizing burnout signals)
- Communicate wellbeing programs clearly and regularly (e.g. newsletter, intranet, onboarding)
TRAINING AND ESG CULTURE - CHECKLIST FOR HR
- ESG training
- Introduce mandatory ESG training for all employees (online or classroom)
- Train leaders on their role in ESG transformation (change leaders, organizational culture, ethics)
- Organize training on D&I, wellbeing and work ethics (part of "S" and "G" standards)
- Include ESG in onboarding of new employees
- Record and report the number of ESG/D&I training hours (for ESG report)
- Collect feedback after training and update programs
- ESG culture
- Define and communicate ESG values in the organization (e.g., in mission, code of ethics, onboarding)
- Create feedback and participation mechanisms (e.g., anonymous surveys, working groups)
- Introduce ESG storytelling - showcase good practices and employee successes
- Incorporate ESG goals into cyclical assessments and development conversations
- Encourage ESG initiatives from the bottom up by teams (e.g., volunteering, pro-environmental actions)
- Support leaders as ESG ambassadors - give them tools, materials, space
LINK ESG TO EXISTING HR TOOLS
Satisfaction, engagement and culture surveys
What they are useful for:
- Identifying weaknesses in ESG areas: D&I, wellbeing, feedback culture
- Measuring the effects of ESG activities (e.g., after implementation of training, ERG, health promotion activities)
What to measure in the context of ESG:
- Do employees feel they are treated equally and fairly?
- Do they know and understand the organization's ESG values?
- Do they feel listened to and engaged?
- How do they evaluate ESG communication and the role of leaders?
How to report:
- Employee NPS indicators, eNPS, level of identification with company values, level of trust in leaders
- Quantitative and qualitative data - quotes, number of responses, year-on-year trends
Exit interview
What they are useful for:
- Learning the real reasons for ESG-related departures (e.g., stress, lack of pay transparency, exclusion)
- The rate of talent loss for cultural reasons
How to use in ESG:
- Collect information about problems in the atmosphere, inequality, lack of development
- Aggregate data and conclusions - not just individual comments
Periodic evaluations and development interviews
What they are useful for:
- Ability to add ESG goals to individual and team objectives
- Monitoring ESG competencies of leaders and employees (e.g. ethics, diversity, collaboration, wellbeing)
What to measure:
- Does the employee support a culture of diversity and respect?
- Does the leader incorporate wellbeing into team management?
- Are ESG tasks assigned to roles being implemented?
Feedback / internal / informal
What it is used for:
- Reveals informal barriers (e.g., bullying, micro inequalities)
- Shows employees' real-world perceptions of ESG values
How to weave ESG in:
- Add questions about values, inclusion, collaboration, transparency
- Analyze data from a gender, departmental, seniority perspective
Remuneration and bonus system
What it is used for:
- Motivates leaders and teams to support ESG goals
- Supports pay transparency and fairness
How to connect with ESG:
- Include ESG goals as part of bonus criteria
- Link bonuses to D&I, wellbeing, retention results
- Ensure disclosure of bonus and compensation rules
4. How do you get started with ESG in HR? (5 steps)
- Start with an audit - what do you already have, what is missing?
- Choose priorities - e.g. wage gap, wellbeing, D&I.
- Set KPIs - e.g. % of women in leadership positions.
- Pilot - select one team, test e.g. pay transparency.
- Communicate and teach - engage leaders and regularly take stock of progress.
5. Summary
ESG is not just a new legal obligation. It's a real change in how we manage people, culture and values. HR can be at the forefront of this change - as long as it starts now. If you'd like to learn how to implement ESG in HR step by step, come to Excellence in ESG™ Strategy and ESG for HR training. https://www.heuresis.pl/pl/szkolenia-i-certyfikacja/szkolenia-otwarte-z-zarzadzania-i-hr/excellence-esgcsm-strategia-i-0
FAQs on HR's role in ESG
1.What exactly is ESG and why is HR so important here?
ESG (Environmental, Social, Governance) is a set of standards for assessing a company's environmental, social and corporate governance impacts. HR is specifically responsible for the "S" areas and the "G" part - diversity and inclusiveness, wellbeing, compensation transparency, ethics and labor law compliance. Therefore, the HR department has a key role in ESG reporting and implementation.
2. What ESG regulations should the HR department be aware of (VSME and ESRS)?
- VSME - simplified ESG standard for smaller companies, voluntary but often required by business partners.
- ESRS - detailed ESG standards mandatory for large companies under the CSRD.
They differ in the scope of reporting: VSME gives general indicators (e.g., employment structure), while ESRS requires detailed data and HR policies.
3.What HR activities are most commonly reported under ESG?
The most important include:
- employment structure and diversity,
- equal pay audit and pay transparency,
- wellbeing and mental health,
- eSG, ethics and D&I training,
- whistleblowing mechanisms and feedback culture,
- linking bonus policies to ESG goals.
4.Where to start implementing ESG in HR?
It is best to approach the topic in stages:
- Audit current practices,
- Setting priorities (e.g., wage gap, wellbeing),
- Establishing KPIs (e.g. % of women in management positions),
- Piloting in a selected team,
- Regular communication and education of leaders and employees.
5.How to measure ESG effects in HR?
HR can use:
- satisfaction and engagement surveys,
- periodic evaluations and development interviews,
- exit interview data,
- absenteeism and turnover monitoring,
- pay equity indicators.
This makes ESG in HR measurable and not just declarative.
6.Is ESG in HR an obligation or an opportunity?
It's both: for many companies, ESG reporting is a legal obligation (CSRD/ESRS), but for all, it can be a source of competitive advantage - it shows the maturity of the organization, attracts talent and reinforces a culture of responsibility