Green HRM and Sustainable Finance: Aligning HR Practices with ESG Goals

Abstract

In the wake of increasing environmental concerns and the global shift toward sustainability, organizations are integrating Environmental, Social, and Governance (ESG) principles into their strategic frameworks. Green Human Resource Management (Green HRM) has emerged as a pivotal approach to fostering sustainability by embedding eco-friendly practices in workforce management. This paper explores the intersection of Green HRM and Sustainable Finance, emphasizing the alignment of HR strategies with ESG objectives. It investigates how Green HRM practices—such as green recruitment, employee training, performance management, and workplace sustainability initiatives—contribute to sustainable corporate governance and financial resilience.

The study highlights how organizations leveraging Green HRM can enhance employee engagement, reduce environmental impact, and achieve long-term financial stability. Moreover, it examines the role of HR professionals in cultivating a sustainability-oriented culture, ensuring compliance with ESG regulations, and driving corporate social responsibility (CSR) initiatives. Additionally, the paper delves into the financial implications of sustainable HR practices, demonstrating how they contribute to investor confidence, risk mitigation, and value creation in the financial sector.

By synthesizing existing literature, this review underscores the importance of integrating Green HRM within corporate ESG strategies to achieve holistic sustainability. It also identifies challenges such as resistance to change, measurement complexities, and regulatory constraints that organizations face in implementing Green HRM. The paper concludes by suggesting policy recommendations and future research directions to bridge the gap between sustainable HRM and financial sustainability. Ultimately, this study reinforces the role of Green HRM as a strategic enabler of ESG compliance, ensuring that human capital management aligns with broader environmental and financial sustainability goals.