A post from our ESG committee working to support sustainable talent mobility.
Relocating to a new home in a new country is no small feat, and when sustainability is a priority, the task becomes even more complex. Interest in corporate sustainability is rising as companies aim to reduce carbon footprints across operations. A recent Mercer Worldwide Survey of International Assignment Policies and Practices revealed that 45% of companies surveyed expect to see an increase in long-term assignments again. According to McKinsey, ESG scrutiny will only increase as companies seek to reduce their carbon footprint across their supply chains. For corporations evaluating relocation management partners, sustainability is an increasingly important selection criterion to meet growing demands from customers, employees and investors. RMCs and DSPs must identify and communicate their ESG initiatives to compete for new business as the industry evolves.
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From packing materials to transportation choices, a move involves countless decisions that can either limit or increase environmental impact. Even the most conscious companies may miss major opportunities for greener moves when the pressure is on. However, one tool is often overlooked – the streamlining of communication and coordination between all stakeholders involved. The Global Reporting Initiative (GRI) underscores the benefits of communicating with stakeholders as clear communication of sustainability practices boosts reputation and builds stakeholder trust. But how can we foster communication for better sustainability within the relocation industry?
Exchanging information sounds straightforward, but things easily fall through the cracks without established processes in place and with multiple vendors involved. The first and crucial communication is with the client to understand their needs and ensure that the sustainability initiatives that the RMC/suppliers are driving align with their overall company benefits. In this part of the process, assignees would ideally engage their relocation manager/single point of contact (SPOC), to ensure the safest, most sustainable, and cost-efficient relocation process for all parties involved.
Later in the relocation process, communication becomes critical again. For example, waste soars when trucks make repeated trips due to poor scheduling. Carbon emissions spike when service activations are misaligned. Plastic and paper household goods wrapping can easily be wasted and go to landfill. Essential details can easily get lost due to the number of parties involved.
Recognizing these pitfalls, the importance of a streamlined communication process between industry players becomes evident. Building on the importance of transparent communication as emphasized by the GRI, the relocation sector faces specific challenges due to the number of vendors, time zones and logistics involved. To execute moves more sustainably, many DSPs, RMCs and their other suppliers are already adopting more sustainable practices. TRC highlights some key initiatives, including the use of hybrid vehicles or EVs to transport household goods, the use of energy-efficient warehouses for storage and virtual property tours, for example.
By implementing changes across transportation, housing, technology, and materials reuse, the relocation industry can collectively take measures to reduce its environmental footprint. Communication and coordination underpin these efforts to ensure sustainability practices are aligned across all partners in the supply chain. But there are nuances to every move, and where can further improvements be made?
An added layer of complexity is that sustainability encompasses more than just environmental conservation - social and governance factors are also areas that relocation partners must align on and communicate shared values. By prioritizing structured communication channels and proactive coordination, relocation specialists can coordinate moves with even more efficiency. Some key strategies include:
• Guiding assignees and sharing sustainable relocation options where they exist, enabling assignees to make informed relocation decisions that minimize environmental impact. This may include presenting less harmful alternatives, when available, to empower assignees to reduce their carbon footprint.
• Considering all move aspects and centralizing contact points between assignees, landlords, utility companies, schools and other entities.
• Eliminate confusion on who needs what information and when.
• Align property check-in requirements and status to eliminate the need for multiple visits by property agents, cleaners and repairmen.
• Providing clear guidelines and checklists for sustainable packing, cleaning, maintenance requests, etc. Set clear expectations.
• Collecting feedback during and after the relocation to uncover gaps and lessons learned.
• Continuously improve processes and share best practices with internal teams and industry peers.
• Share curated information with assignees on sustainable practices before, during and after the move to their new location.
• Continue to identify how relocation and assignment management tools such as Relocation Online and Assignment Pro can streamline processes and reduce the carbon footprint of emails and communications.
With today's abundant technologies, there are more options than ever to connect teams across geographies and time zones. The expertise of relocation professionals is needed not just in arranging the physical aspects of the move but also in managing the communication and relationships that tie it all together. As the Mercer Worldwide Survey of International Assignment Policies and Practices showed, more than one-third of North American companies rank improving technology to manage mobility as a high priority (rated 4 on a scale from 1 to 4), compared to a quarter in Europe and 17% in APAC, so there is room for improvement. However, it must be noted that not all practices, for example, enabling self-moves, may be in line with the client's program goals. Many companies are currently looking to reduce costs whilst some sustainable practices may involve increasing costs, for example utilizing sustainable packaging.
Fully embracing sustainability requires both operational streamlining and transparent communication. By clearly conveying sustainable practices and ensuring each step of the move is well coordinated, RMCs and DSPs can strengthen partnerships, add value, and differentiate themselves. The role of efficient communication in executing sustainable moves at scale is now critical. It may not be an obvious sustainability tool, but communication can yield significant ESG and cost benefits.