Public Enterprises Urged to Adopt Green HRM as Environmental Pressures Intensify

As global environmental challenges continue to escalate, Nepal’s public enterprises are being pushed to rethink their management practices and integrate sustainability into their institutional core. Issues such as climate change, resource depletion and environmental pollution are now directly influencing economic stability, social wellbeing and institutional performance, creating an urgent need for reform within state-owned entities.

Sustainability at the Center of Public Sector Transformation

Public enterprises remain the backbone of Nepal’s economic infrastructure, producing essential goods and services, driving national development and safeguarding socio-economic equity. However, experts argue that operating with outdated administrative practices has caused weak performance, inefficient service delivery and rising environmental costs.

To address these structural gaps, specialists are increasingly recommending Green Human Resource Management (Green HRM) — an emerging management approach that aligns environmental responsibility with traditional HR functions such as recruitment, training, performance evaluation and reward systems.

Green HRM: A New Dimension in Institutional Governance

Green HRM aims to embed environmental values into the organization’s daily operations. Instead of treating environmental compliance as an isolated responsibility, the model encourages management to build environmental consciousness into job roles, employee training and organizational culture.

Recruitment, for instance, is expected to prioritize candidates with academic backgrounds or demonstrated interest in environmental sustainability. Similarly, periodic training on energy efficiency, waste management and environmental regulations can prepare staff to handle sustainability-related tasks more effectively.

Public enterprises like Nepal Oil Corporation and Nepal Electricity Authority have already experimented with such initiatives—training staff on fuel leak prevention or energy-saving practices—demonstrating how operational issues can be directly linked to environmental outcomes.

Towards a Performance-Based Environmental Culture

A core component of Green HRM is integrating environmental objectives into employee performance evaluations. Reward systems such as “Green Bonuses” for staff who reduce resource consumption or lead eco-friendly projects can motivate behavioral change across the workforce.

Institutions are also encouraged to form internal “green committees,” conduct awareness programs and promote responsible resource use. These steps help create a culture where environmental responsibility is not merely a policy requirement but a shared institutional value.

Why Nepal’s Public Enterprises Need Green HRM Now

Nepal currently has 44 public enterprises, out of which 42 are actively operating in sectors ranging from energy and telecommunications to manufacturing and agriculture. While these institutions hold strategic national importance, many struggle with declining productivity, lack of competitiveness, political interference and weak managerial autonomy.

Experts say that adopting Green HRM could support the government’s broader development strategies, including the national goal of promoting green, resilient and inclusive growth. By aligning HR practices with environmental policies such as the National Environment Policy 2076, public enterprises can reduce operational waste, cut energy costs and improve financial performance — especially important for loss-making institutions.

Rising Citizen Awareness and Reputational Pressures

An increasing number of Nepalis, especially youth, prefer to work with environmentally responsible institutions. In this context, Green HRM can help public enterprises attract and retain highly skilled talent while enhancing their public reputation.

Environmental responsibility is also becoming a major factor in public trust. With the government emphasizing sustainability in its national development plans, state-owned enterprises are under growing pressure to modernize their internal systems.

Implementation Challenges Remain Significant

Despite its benefits, adopting Green HRM across Nepal’s public enterprises is not straightforward. Political interference, limited budget allocation, weak leadership commitment and resistance to change among long-serving employees pose major obstacles.

Moreover, many institutions lack the mechanisms to measure environmental performance or link it to employee evaluation systems. Without a clear monitoring framework, sustainability efforts often remain symbolic rather than impactful.

Need for Policy-Level Commitment and Cross-Ministerial Coordination

Analysts suggest that the Public Enterprise Governance and Management Policy, 2082 should explicitly include Green HRM as a mandatory component. Strong coordination between the Ministry of Finance, Ministry of General Administration and the National Planning Commission is also essential to develop standardized training modules and build institutional capacity.

Public–private partnerships may also help public enterprises learn from global best practices and adopt modern technologies that support sustainable operations.

A Strategic Imperative for the Future

In a rapidly changing global environment, Green HRM is no longer optional — it is a strategic necessity for Nepal’s public enterprises. Integrating environmental values into human resource systems can improve efficiency, strengthen governance and support national sustainability goals.

If Nepal seeks to transform its public enterprises into competitive, resilient and environmentally responsible institutions, the shift from traditional HR methods to Green HRM must begin now. The country’s economic future, institutional credibility and environmental commitments depend on the decisions made today.