Malaysian FIs slow to adopt green HR management

Green HR Management

A new study launched today by the Asian Institute of Finance (AIF) reveals that, despite the perceived importance of Green Human Resource Management (GHRM), most human resources practitioners do not feel that their organisations are ready for GHRM.

The AIF study, entitled ‘Green Human Resource Management: An Organisational Strategy for Sustainability’, surveyed 542 stakeholders across the financial services industry (FSI) comprising employees, future employees, industrial partners and customers and aimed to measure the perceived importance and readiness of the FSI to adopt GHRM.


The findings reveal that 90% of respondents perceived GHRM as being important with green talent management and green performance management being viewed as most important. However, only just over a quarter (26%) of HR practitioners felt that their organisations are ready for GHRM stating that they are most ready to implement green employee engagement and green training and development. The findings suggest that GHRM in the FSI is still at an early stage with insurance/Takaful the most ready to adopt.

The findings reflect the relatively low uptake of green practices and thinking in Malaysia, which ranked 65 out of 80 countries in the 2016 Global Green Economy Index. This would also suggest that there is a significant gap between local and global green practices.

In GHRM, the HR department plays an active role in implementing sustainable practices which contribute towards the financial and social sustainability of an organisation by developing a workforce that understands, appreciates and practices green initiatives. Under GHRM green objectives are maintained throughout the human resource management processes, including recruiting, training, compensation and talent management.

Puan Nora Abd Manaf, Group Chief Human Capital Officer, Maybank commented, “Green Human Resource Management is a critical business imperative and there is a need to fully appreciate the magnitude of failure to adopt these practices earlier. It is not just a ‘nice to have’, it needs to be ‘a way of doing business and preserving life”.

Tn.Hj. Mohd Haliemy Sapari, Vice President, Organisational Development — Bank Raykat said, “The future of Green HRM relies on how leaders within the organisation approach Green HRM practices and that will be the key to a sustainable practice in the long run. The challenge would be to change the mind-set of the people who are used to the conventional and traditional ways”.