Green HRM for Enhanced Environmental Performance: A Circular Economy Perspective Aligned with SDGs

Abstract

This empirical inquiry explores the use of Green HRM as a strategic tool to improve environmental performance within the context of a circular economy. We chose 200 employees from the Pakistan Stock Exchange (PSX) based on data from the Corporate Social Responsibility (CSR) index. The study employs Structural Equation Modeling-Partial Least Squares (SEM-PLS 4) to examine the relationship between organizational policies and the implementation of circular economy principles within the framework of Green HRM practices. This research is supported by the circular economy, which is defined as a fundamental change in thinking that promotes the reuse of resources, reduction of waste, and efficient use of resources. The SEM-PLS 4 approach is used to validate the theoretical framework that proposes that Green HRM practices provide a significant contribution to the promotion of circular economy initiatives, which in turn lead to considerable gains in environmental performance metrics. Moreover, this method is employed to evaluate the complex causal links in action. Policymakers and business leaders may facilitate the integration of Green HRM into sustainability programs by utilizing the study's findings. It is expected that human capital management will play a crucial role in achieving the circular economy paradigm. This research not only improves our understanding of how Green HRM affects sustainability, but also provides firms with a strategic roadmap for implementing circular economy models.