Five ways to structure a sustainable rewards strategy

"Sustainability is not only important business, it’s good business".

Research and anecdotal evidence show that when investors embed Environmental, Social, and Governance (ESG) considerations into their strategies they achieve superior valuations. In fact, an analysis of the ASX200 by PWC Australia found that ESG leaders significantly outperformed their lower-ranked peers when it came to value-weighted total shareholder return. But when it comes to global reward strategies how do you balance the need for global efficiency and effectiveness with the broader, bigger need for a transition towards a more sustainable future? 

Here are five ways we’ve identified you can leverage your reward strategy to support your wider ESG goals.  

1. Recognise and reward sustainable choices

In organisations that are creating value through sustainability, 60% of employees say that sustainability is a part of the corporate culture. Drive change and build a sustainable culture within your organisation by recognising and rewarding employees making sustainable choices. Whether it’s cycle/walk to work schemes, car share networks or implementing local sustainability initiatives, encourage and reinforce positive behaviours through your reward and recognition programme.

2. Let employees donate their reward to causes

With cost of living pinching on employees’ disposable income, their own ability to donate and support causes of meaning to them may be limited. Allow them to use their recognition rewards to close the gap between their desires and abilities. In the past five years we’ve seen a year-on-year increase in the value of charitable donations through our Australia operated marketplace and, in 2022 alone, donations increased by over 400%, demonstrating a trend towards more altruistic redemption behaviour.   

In 2022 alone, donations increased by over 400%.

3. Digitise your selection

Whilst most reward and recognition schemes have gone digital, some reward options and processes may still feature paper or paper equivalents. Review voucher providers and push for digital solutions.   

4. Create sustainable catalogues

For many, there’s a desire to become more sustainable, but there’s also a knowledge gap as to how to make more sustainable choices. Nudge the journey by curating sustainable reward collections that allow employees to choose rewards with more sustainable credentials. 

5. Think shipping

It’s all well and good having a sustainable catalogue, but if the fulfilment solution means rewards are crossing borders you may be diluting the result. Seek to leverage a reward provider that can offer local coverage to your employees to minimise the impact of shipping costs. Better still, seek a provider that’s also asking sustainable practices of their supply chain, magnifying the impact from end-to-end.