Exploring Green Human Resource Management and ESG in Malaysia
How Sustainability is Shaping the Future of HR Practices
Sustainability isn’t just about carbon footprints and recycling bins—it’s shaping how companies manage talent too. But where does HR fit into this shift?
We spoke with Dr. Serene Yong, a Senior Lecturer at the School of Management and Marketing, Taylor’s University, who dedicated to how HR practices can drive sustainability, the growing role of ESG, and what this means for businesses in Malaysia.
From hiring with environmental awareness to embedding sustainability into employee incentives, Dr. Serene shares insights on how organizations—big and small—can make meaningful progress.
Interviewer: Thank you for being with us today, Serene. To start, could you share a brief background about your specialization?
Serene: Certainly. I specialize in Human Resource Management, particularly in Green Human Resource Management. This concept is tied closely to addressing environmental challenges. During my PhD studies, I delved into this area, which was still in its infancy in Malaysia at the time. My research focused on how Green Human Resource Management contributes to the sustainable performance of organizations, specifically manufacturing firms.
Recently, I've expanded my interest to include Environmental, Social, and Governance (ESG) factors and the circular economy. These areas complement my work in sustainability and human resource practices.
Interviewer: Could you elaborate on what Green Human Resource Management entails?
Serene: Of course. Green Human Resource Management integrates environmental principles into traditional HR practices. For instance, in job analysis, aside from reviewing the typical job specifications, we also incorporate environmental considerations. A job description might prefer candidates with environmental knowledge or experience.
This integration spans across various HR practices—from recruitment and selection to training, performance evaluation, and compensation. For example, rewarding employees for initiatives that promote sustainability within the organization can be part of green HR practices.
"Hiring candidates with environmental expertise is only the first step—how do we evaluate and reward them sustainably?" - Dr. Serene Yong
Interviewer: That’s fascinating. Sustainability in HR often aligns with the social aspect of ESG. How does Green HR differ from that?
Serene: ESG has a broader focus that encompasses environmental, social, and governance aspects. Green HR, however, emphasizes the environmental dimension specifically. For example, reducing paper usage or adopting energy-efficient appliances are initiatives that align with green HR practices. While these efforts are common in organizations, they are not always recognized as part of HR strategies.
In practice, organizations might focus more on the social aspect of ESG, like retirement planning or employee wellbeing. In research, we explore ways to embed environmental considerations into HR processes systematically.
Interviewer: You mentioned Green HR is still at an early stage in Malaysia. Where do you see it now?
Serene: Over the past decade, Malaysia has progressed significantly in sustainability efforts. The government has placed more emphasis on the sustainable economy and ESG initiatives, which has helped Green Human Resource Management gain traction.
When I conducted interviews with HR directors and managers in manufacturing firms during my PhD research, I found many were implementing green initiatives—like reducing paper usage or using energy-efficient appliances—but didn’t associate these efforts with HR practices. Today, both large enterprises and small-to-medium enterprises (SMEs) are beginning to adopt measures such as environmental training for employees.
Interviewer: What challenges do organizations face when adopting Green HR practices?
Serene: Financial constraints are a common barrier. For example, switching to energy-efficient appliances can be costly initially—like replacing air conditioners or installing LED lights—but organizations eventually see cost savings over time.
Another challenge is the lack of expertise and awareness. While many HR professionals recognize the importance of green practices, they may struggle to integrate sustainability into specific HR functions like recruitment or performance evaluation. Measuring the effectiveness of green initiatives is another area that requires development.
Interviewer: How do you view government initiatives such as green financing and transition incentives?
Serene: These initiatives are critical. They encourage organizations to adopt sustainable practices either through mandatory policies or incentives. Providing green financing or transition credits is an effective way to reduce financial constraints and motivate companies to implement green strategies.
Interviewer: Beyond finances, are there other barriers to adoption?
Serene: Yes, expertise and awareness remain significant hurdles. Many organizations lack a clear understanding of how to link sustainability with HR practices systematically. They might hire candidates with environmental knowledge but struggle to evaluate their performance or reward them accordingly. Additionally, we lack standardized measurements for assessing the impact of these green initiatives.
Interviewer: Are there any advice you’d offer to HR professionals looking to incorporate sustainability into their practices?
Serene: My advice would be to integrate sustainability elements into existing HR practices rather than starting entirely new initiatives. For example, diversity and inclusion are already emphasized in recruitment processes. Organizations can go further by hiring candidates from diverse backgrounds who also bring complementary skills like environmental knowledge or AI expertise.
This approach fosters innovation within teams while addressing sustainability goals simultaneously.
Interviewer: Looking ahead to the next three to five years, how do you see sustainability evolving in HR practices?
Serene: With mandatory ESG disclosures gaining momentum, I believe Malaysia will see more emphasis on compliance with sustainability standards. Large enterprises are already incorporating diversity, inclusion, and wellbeing into their strategies, which are integral parts of ESG. The future looks promising for Malaysia as organizations increasingly adopt these sustainability elements.
Interviewer: Thank you so much for your insightful thoughts and time today, Serene.
Serene: Thank you! It was my pleasure to share my experiences and observations.
Key Takeaways from Dr. Serene Yong’s Insights:
Green HRM is evolving – Once in its infancy, sustainability in HR is now gaining traction in Malaysia, especially with growing ESG initiatives.
Integration over reinvention – Instead of creating entirely new processes, HR professionals can embed sustainability into existing recruitment, training, and performance management practices.
Challenges remain – Financial constraints, lack of expertise, and standardized measurement frameworks continue to hinder widespread adoption.
The future is promising – As ESG disclosures become mandatory, more organizations will prioritize sustainability in their HR strategies.
Sustainability isn’t just about policies—it’s about people. If you’ve come across innovative HR sustainability practices, we’d love to hear about them!
About Dr. Serene Yong
Dr. Yong Jing Yi (Serene) is a Senior Lecturer at the School of Management and Marketing, Taylor’s University, and an esteemed member of the ESG Committee for Taylor's Education Group. As a GRI Certified Sustainability Professional and HRD-Corp Accredited Trainer, she is dedicated to integrating sustainability into modern HR practices. Her expertise is reflected in her extensive publications in renowned journals such as the Journal of Cleaner Production and Business Strategy and the Environment, with research interests spanning green HRM, intellectual capital, ESG, and corporate sustainability. Beyond academia, she actively contributes as a reviewer for international journals and conferences, reinforcing her role as a thought leader in sustainable business practices.