This article is part of a recurring series highlighting recent talent mobility industry reports. If you would like the WERC editorial team to consider covering a specific industry report, email mobility@worldwideerc.org.
Global talent mobility, a key driver of economic growth responsible for relocating hundreds of thousands of individuals annually, is expected to hit a market value of $28 billion by 2030. As the industry continues in this direction, it calls into question how the talent mobility industry will reduce its carbon footprint and make strides toward a more sustainable future.
ExpatRide International’s report, “Driving Sustainability: The Case for Eco-Friendly Assignment in Global Mobility,” delves into the environmental impact of corporate relocation beyond the logistical process of moving.
While the relocation process only lasts for a few weeks or months, the assignment for the individual lasts years. ExpatRide sought to uncover the potential for reducing CO2 footprints throughout the entire assignment life cycle, specifically in international relocations, focusing on a holistic approach that identifies opportunities for companies to align their relocation policies to global sustainability objectives.
The Full Assignment Life Cycle Approach
Acknowledging its role in emitting several million metric tons of CO2 annually, ExpatRide offers a new approach that challenges the traditional view of relocations, which often only focuses on the logistics of moving. When looking at the reporting done by Greenhouse Gas Protocol, this translates into only considering Scope 1, which covers direct emissions, such as on-site energy consumption and company-owned vehicle fuel, and Scope 2, which encompasses indirect emissions from purchased electricity, steam, heat, or cooling.
Referred to as the “full assignment life cycle approach,” this calls into consideration Scope 3, which represents the emissions beyond the reporting company’s boundaries, involving the entire supply chain. This holistic approach focuses on the choices made throughout an assignment’s duration, such as an employee’s transportation and housing.
By empowering assignees for environmental impact, companies can help them develop long-term sustainable habits that extend beyond the assignment period. The report provides three initiatives for individual impact:
- Waste Reduction and Recycling: This is a simple and tangible opportunity for sustainability. By providing recycling options, assignees can make a significant difference in minimizing their environmental impact.
- Sustainable Property: More management companies are offering eco-conscious accommodations, with energy-efficient applications like LED lighting and better-insulated properties allowing housing units to save 10%-30% of energy per year.
- Eco-Friendly Transportation: The adoption of electric vehicles, hybrids, or other low-emission modes of transportation can significantly reduce the carbon footprint.
The report emphasizes that adopting this holistic perspective empowers companies to identify and implement sustainable practices at every stage of the relocation process.
The New Generation’s Expectations
The report also highlights the growing influence of younger generations who are entering the workforce and are looking to their employers to incorporate sustainability strategies. According to ExpatRide’s data, people aged 25-44 who are open to relocating for work consider sustainability a major factor in deciding where to move.
The changing values of the younger workforce showcases that embracing sustainability is not simply a want, but a need. Citing a Deloitte survey, the white paper points out that 40% of Gen Z and millennials say they would change jobs due to climate concerns.
As more Gen Z and millennials have entered the workforce, their concerns about climate change are driving companies to adopt greener practices, including those related to relocation. Thus, embracing sustainability is not just an ethical imperative, but also a strategic necessity to attract and retain top talent.
Technology and Legislation as Enablers
While reducing the carbon footprint of transportation via planes and other large vessels remains a challenge, the opportunity to mitigate emissions through select sustainable transportation items is still achievable. Technology and legislation play a crucial role in facilitating greener global mobility and can incentivize communal environmental responsibility.
In cities such as Brussels, Madrid, and Singapore, there are environmental measures like congestion charges and restricted traffic zones that urge individuals to utilize eco-friendly alternatives like public transportation.
The use of electric vehicles is also on the rise, with countries like Austria, Belgium, and Finland even incentivizing their adoption through tax benefits, financial grants, and subsidies. This new technology, alongside other renewable energy sources, enables companies to make eco-conscious choices.
The report also debunks myths about electric vehicles and dives into the types—from hybrids and plug-ins to fuel cell electric vehicles—and showcases the various technologies available. Bringing the idea to life, the report showcases a hypothetical case study about a two-year international assignment, where “John Smith” decides to drive an electric vehicle instead of a conventional car during his relocation, and ultimately saves up to 5.8t of CO2 emissions.
The Power of Individual Action
Ultimately, a truly sustainable future can only be shaped by educating individuals about sustainability within schools, the public sector, and the commercial sector, the white paper states. By empowering assignees to make sustainable decisions during their relocation and throughout their assignments, companies can further reduce their environmental footprint.
The report outlines how awareness training can help individuals understand their new environments, deepen their cross-cultural understanding, and take proactive steps to minimize their footprint during relocation. These steps include:
- Company Sustainability Initiatives: Companies should educate assignees about their sustainability goals and initiatives to foster a sense of responsibility. This will help align employee actions with organizational values.
- Personal Carbon Footprint: Whether it’s using public transportation or reducing energy consumption options, assignees should be mindful of their carbon footprint and encouraged to minimize it during their assignments.
- Local Sustainability Practices: Companies should provide information and resources on the host’s recycling, water conservation, and renewable energy efforts, empowering the assignee to uphold applicable standards and practices.
- Geographical Impacts: Assignees should have resources on the impacts of industry and climate change in their new location, including deforestation, pollution, and so on. By understanding these issues, they have a more holistic view of their actions.
- Cultural Sensitivity: Being aware of the cultural significance of environmental practices is vital for assignees to fully integrate and gain appreciation and understanding of their new home. By raising awareness of local customs and traditions, assignees can build meaningful relationships.
The Journey Ahead
ExpatRide’s white paper aims to be a resource for companies seeking to reduce their carbon footprint and contribute to a greener future. “In our pursuit of sustainable global mobility, collective effort is paramount. This requires active engagement from relocation service providers, HR departments, the broader corporate community, and individual employees on assignment. Success hinges on strategic planning, swift adaptation to policy guidelines, and promoting sustainable practices across the supply chain,” the report states.