Tackling the skills crisis for a sustainable future
The role of Talent Acquisition in closing the green skills gap
Foreword
As business sustainability management becomes increasingly important, the recruitment industry has a unique opportunity to help organizations adapt by fostering innovative hiring practices that prioritize sustainability and build long-term resilience. Challenges should be seen as opportunities, and resistance to change seen as a problem to be solved.
As a global leader in talent acquisition services, AMS is well positioned to help organizations investigate the challenges ahead and forge a path for success.
To learn more, AMS reached out to talent leaders across a range of industries to examine trends and challenges related to the topic of green skills. We sought to understand the technical skills, knowledge, behaviours, and capabilities required to support a sustainable society, and to measure the extent of the green skills gap. The global survey reveals just how challenging it is to attract talent with green skills today and explores the reasons why. Potential barriers to bridging the green skills gap are investigated in our study. We also uncover the optimism that exists amongst talent leaders regarding bridging the green skills gap and propose critical actions organizations can take to respond to the challenges identified.
David Ingleson
Sector Managing Director, Energy Engineering and Industrials, AMS
Part 1
The rise of green skills
Sustainability is arguably the world’s most pressing concern. Around 1 million plant and animal species are threatened with extinction, many within decades, due to human activities1. Global energy-related CO2 emissions grew by 1.1% in 2023, increasing 410 million tonnes (Mt) to reach a new record high of 37.4 billion tonnes (Gt)2. Forty percent of the world’s population lacks access to clean and safe drinking water3. And in the past 150 years, half of our planet’s agricultural topsoil has been lost4.
It’s not hard to see why, according to recent research conducted by the European Centre for the Development of Vocational Training5, working towards a more sustainable future is not only an opportunity for economic advancement, but in our best interests for the future of the planet.
To combat climate change, protect our limited resources, and build social inclusivity and equality, the world is turning its attention to the green economy. The green economy refers to a circular system that aims to bring about sustainable development by reducing environmental risks and ecological scarcities. The green economy encompasses various sectors and activities that promote low-carbon, resource-efficient, and inclusive practices.
If we want to address the green skills gap, we need to understand that all future job roles will require green skills.”
- Allen Blue
As the world focuses its efforts, important terms such as green talent, green jobs and green skills have emerged. These terms are often used interchangeably; however, they refer to distinct yet interconnected aspects of the transition to a sustainable economy.
Green jobs are jobs in various sectors that specifically contribute to preserving or restoring the environment6. These jobs aim to reduce the environmental impact of economic activities, enhance energy and resource efficiency, and promote sustainable practices. According to the International Labour Organization (ILO), green jobs are those that:
- Reduce consumption of energy and raw materials – these are jobs that focus on energy efficiency, renewable energy production, and sustainable resource management
- Limit greenhouse gas emissions – these are positions that involve activities aimed at reducing carbon footprints, such as those in the renewable energy sector
- Minimize waste and pollution – these are jobs in waste management, recycling, and pollution control
- Protect and restore ecosystems – these are roles in conservation, reforestation, and sustainable agriculture
Examples of green jobs could include renewable energy technicians who install and maintain solar panels or wind turbines, energy auditors who assess energy use in buildings, or environmental engineers, who develop systems and technologies to reduce pollution and manage waste.
While green jobs remain critically important, the term green skills has risen to prominence over the past few years. Green skills are the building blocks of the transition to a green economy, and refer to the broader set of technical skills, knowledge, behaviors, and capabilities required to tackle the environmental challenges we face7, whether in traditionally green jobs or not. Green skills include capabilities like environmental awareness, sustainability reporting, creativity and innovation, or environmental impact assessment.
Industry perspectives: the increasing importance of green skills
Green skills, unlike traditional green jobs, are now being found – and sought after – in nearly every industry. This shouldn’t come as a surprise, as according to Climate Impact Partners, two-thirds of the Fortune 500 companies now have at least one significant climate commitment to adhere to8.
In our research, we asked business and talent leaders to share their views on the prevalence of and need for green skills in their own industry, and across other sectors. What we found suggests a real shift in the long-held view that green skills are only vital in “green sectors”. The results indicate that leaders now agree that green skills are important or even crucial in the vast majority of industries, see Figure 1.
The original “green sectors” continue to top the list
Not surprisingly, the Energy sector is still deemed to be the sector in which it is most crucial to have green skills (even though the definition specifically stated ‘not renewables’), with nearly 90% of respondents marking it a crucial skillset. The Utilities sector held the second spot with 78% of respondents noting that green skills are crucial. And finally, around three quarters of talent leaders said both Industrials and Materials must have green skills to operate today.
New sector demands for green skills are emerging
While talent and business leaders were clear that green sectors will continue to need green talent, there was a clear indication that new industries are turning their attention to this requirement. More than half noted that the Education sector must have green skills. Likewise in Healthcare, with 47% of respondents marking this industry as having a crucial need. Our research showed that Consumer products, including discretionary products and staples, should be prioritizing this skillset as well, while 41% of respondents deemed that Real Estate must look for green skills to thrive in the future. The sectors deemed least likely to need green skills at this time included Tech, Communications and Financial Services.
These results showcase the rapidly increasing awareness that green skills are important or crucial for every sector of the economy. This is an important recognition of the need for all sectors to think about sustainability seriously, and to consider this through the lens of attracting green talent to build a workforce for the future. It’s a critical shift in the talent landscape with far-reaching implications for TA and HR leaders who are already having to rethink hiring strategies due to a global skills shortage amplified by declining birth rates.
The green skills gap: urgent need, short supply, unclear path
Unfortunately, while the appetite for green talent is in high demand, we found through our research that it remains in extremely limited supply. It is projected there will be a shortage of 7 million green energy workers by 20309. Likewise, LinkedIn recently found that growth in demand for green skills is outpacing the increase in supply10. Our research shows that organizations are keenly aware that current approaches will not close the urgent gap (see Figure 2).
When respondents were asked how quickly they felt the green skills gap needed to be bridged so that we can deliver on our stated targets (e.g., keeping global temperatures in line with the Paris Agreement), 84% felt this needed to be done in the next 5 years, whilst only 7% felt that this would be achieved in 5 years with the current policies and commitments by government and business.
84% of respondents said something needs to be done urgently to address the green skills gap, but only 7% think something will
Barriers to closing the green skills gap
Given this disconnect, it’s vital to understand the barriers to bridging the gap. We asked our respondents which of several factors they believe most hinders the widespread adoption of green skills in the global workforce. Talent leaders were widely split in their responses (see Figure 3).
Insufficient partnerships, limited training opportunities, high investment costs, resistance to change, and a general lack of effective collaboration are all cited as potential barriers, with a nearly even split across each. With such a spread of issues at play, there clearly needs to be a multi-faceted approach to addressing the green skills gap. In the next section, we examine approaches that encapsulate holistic collaboration, a willingness to invest with a longer timeframe in mind for returns, more training and educational programmes linked to the development of green skills, more willingness to accept change, and policies and initiatives in government that directly address the problem at hand.
1 UN Report: Nature's Dangerous Decline 'Unprecedented'; Species Extinction Rates 'Accelerating' - United Nations Sustainable Development
2 CO2 Emissions in 2023 (iea.blob.core.windows.net)
3UN Report: Nature's Dangerous Decline 'Unprecedented'; Species Extinction Rates 'Accelerating' - United Nations Sustainable Development
4Impact of Sustainable Agriculture and Farming Practices (worldwildlife.org)
5Cedefop; OECD (2015). Green skills and innovation for inclusive growth. Luxembourg: Publications Office of the European Union.
6What is a green job ? | International Labour Organization (ilo.org)
7IEMA - IEMA - Defining Green Skills
8Fortune Global 500 Climate Commitments | Climate Impact Partners
9Will a Green Skills Gap Put Climate Goals at Risk? | BCG
10Global Green Skills Report 2023 | LinkedIn
Part 2
Building green skills momentum
With the scale, complexity and scope of the challenge abundantly clear, our research turns to the opportunities and strategies that can help address the gap. Our findings are clear: there will not be a one-size-fits all solution for a global workforce to solve a global issue. Instead, there are multiple paths that leading companies are forging to build a foundation of green skills.
This section explores three key themes that emerged from our respondents – these are the activities that are gaining momentum among organizations and across industries. Our research uncovers the effectiveness of each today and presents several prospective opportunities to take the work further.
I. Promoting collaboration
Collaboration is essential to bridge the green skills gap. Moreover, effective collaboration needs to happen not only between government, business and the education sector but also with society at large (including the public and the media). Simply put, without holistic collaboration across all parties we will not solve the problem of the green skills gap and therefore climate change.
Effectiveness of partnerships today
Our research reveals that only 8% of organizations rate the collaboration between government, business and education as extremely effective today. On the flipside, nearly half of all respondents marked the current state of partnerships as only slightly effective, and a worrying 21% tell us it is not effective at all. See Figure 4.
What’s needed: Educational partnerships
Digging further, we asked organizations about the role that educational institutions play in today’s efforts to close the green skills gap. We specifically wanted to understand if tailored curricula could help strengthen the partnership model. A staggering 88% of talent leaders say this would be effective (see Figure 5). This is a significant call to action to all talent leaders to build strong connections with education providers and start influencing the content of curricula, so they align more closely to evolving industry needs.
What’s needed: Influence on policy
Similarly, we found that collaborating with government to influence the policy agenda is a key piece of the solution. 83% of talent leaders felt it would be effective to engage much more with government departments in an attempt to proactively shape the policies pertaining to the green skills agenda, rather than work in retrospect (see Figure 6). While it is not unusual to see large organizations influencing the policy agenda of government, talent leaders should think very carefully in terms of how they may be able to shape the green skills agenda, or at least encourage their executive committees to become involved.
II. Nurturing a green skills pipeline
Building green talent requires the training and development of green skills - the skills, knowledge, and competencies that enable individuals to contribute to sustainable development and environmental conservation. The concepts of green education and eco-schools have begun to take root around the world, with dedicated programming aimed at cultivating citizens and leaders who are equipped to make meaningful and sustainable shifts in their communities and countries.
Most of these initiatives incorporate a three-pillar approach, which focuses on a reduced environmental impact of the campus itself, increased health and wellbeing among the school and parent community and increased environmental literacy for students . Schools that are recognized for their innovative approaches include The Green School in Bali and the University of California in USA .
However, beyond these localized efforts, our research shows that a significant disparity still exists between the current state of broad green skills education and what is required for the future. Most existing educational programs fall short of equipping the population with the necessary knowledge and abilities.
Effectiveness of green education today
When it comes to the topic of how effective current educational programs are in equipping individuals with the green skills required for the labour market today, there seems to be a significant mismatch between what industry needs, and what educators are actually providing. We found that only 3% of talent leaders believe that mainstream educational programs are highly effective in preparing candidates for the green labour market. A staggering 59% of respondents gave a failing mark to current educational programs in their ability to prepare learners with adequate green skills. See Figure 7.
What’s needed: Green skills for everyone
Part of the challenge with green education today is its limited reach. As we noted above, there are several schools that embrace the principles of green education and provide high quality green skill building for their students. Our research clearly shows, however, that a much more global, democratized approach is vital. We asked respondents to tell us which demographic groups should be prioritized for green skills education, and the results are very clear: all groups need this training (see Figure 8).
While about 10% of our respondents argued that specific groups of learners would benefit most, nearly 60% agreed that green skills education is critical across all learner groups – from primary students in their earliest educational experiences through secondary students, college and university students, and through to current professionals.
With the short-term need increasing rapidly but with a long-term vision required, I don’t see any other choice than to tackle all demographics. All require attention.”
II. Nurturing a green skills pipeline
Building green talent requires the training and development of green skills - the skills, knowledge, and competencies that enable individuals to contribute to sustainable development and environmental conservation. The concepts of green education and eco-schools have begun to take root around the world, with dedicated programming aimed at cultivating citizens and leaders who are equipped to make meaningful and sustainable shifts in their communities and countries.
Most of these initiatives incorporate a three-pillar approach, which focuses on a reduced environmental impact of the campus itself, increased health and wellbeing among the school and parent community and increased environmental literacy for students . Schools that are recognized for their innovative approaches include The Green School in Bali and the University of California in USA .
However, beyond these localized efforts, our research shows that a significant disparity still exists between the current state of broad green skills education and what is required for the future. Most existing educational programs fall short of equipping the population with the necessary knowledge and abilities.
Effectiveness of green education today
When it comes to the topic of how effective current educational programs are in equipping individuals with the green skills required for the labour market today, there seems to be a significant mismatch between what industry needs, and what educators are actually providing. We found that only 3% of talent leaders believe that mainstream educational programs are highly effective in preparing candidates for the green labour market. A staggering 59% of respondents gave a failing mark to current educational programs in their ability to prepare learners with adequate green skills. See Figure 7.
What’s needed: Green skills for everyone
Part of the challenge with green education today is its limited reach. As we noted above, there are several schools that embrace the principles of green education and provide high quality green skill building for their students. Our research clearly shows, however, that a much more global, democratized approach is vital. We asked respondents to tell us which demographic groups should be prioritized for green skills education, and the results are very clear: all groups need this training (see Figure 8).
While about 10% of our respondents argued that specific groups of learners would benefit most, nearly 60% agreed that green skills education is critical across all learner groups – from primary students in their earliest educational experiences through secondary students, college and university students, and through to current professionals.
With the short-term need increasing rapidly but with a long-term vision required, I don’t see any other choice than to tackle all demographics. All require attention.”
III. Finding (and keeping) green skills in your organization
There is no doubt that the green skills gap – similar in ways to the digital skills gap of the past few years - is here and will only continue to widen. According to the World Economic Forum, the global number of green roles has grown 8% per year for the last five years. However, LinkedIn’s most recent research shows that only 1 in 8 people on the platform currently have green skills listed in their profile . And the talent numbers aren’t picking up – over the last five years, while green jobs and roles with green skill requirements rose by 8%, the number of people listing green skills in their LinkedIn profiles only grew 6%.
As an example, a recent study by PwC shows that while the UK will need 400,000 jobs filled to help drive new energy sectors, estimates highlight a shortage of around 200,000 workers with the appropriate expertise and knowledge required .
With this gap ahead, organizations recognize that it will become increasingly difficult to attract, hire and retain green talent. In our study, more than three-quarters of our respondents say that it is already a challenge to bring in talent with green skills (see Figure 9).
More than ¾ of organizations say it’s a challenge to bring in talent with green skills.
Availability of green skills not the only problem
While the lack of available green skills in the market is a big part of the challenge, there appears to be more at play. Our analysis shows that beyond the primary reason of the shortage in supply of sufficiently skilled candidates (43% of talent leaders posited this as the primary reason), there are other factors to consider. See Figure 10.
The results indicate that the availability of development programs, strong competition from other industries, and lack of competitive remuneration and reward are less important for attracting talent with green skills. Many might find this encouraging right now, but it’s worth noting that the digital skills story started in a similar way, with companies outside the tech sector forced to catch up and salaries for digital skills skyrocketing as the war for digital talent heated up rapidly.
And perhaps most interesting is the finding that talent leaders believe much more could be done by their organizations from a branding perspective when attracting green candidates. In fact, nearly a third of talent leaders felt the primary reason for not finding green talent was because their organization was not sufficiently bringing to life some of the green initiatives and the sustainability agenda of their organizations.
82% of talent leaders feel that hiring talent with green skills in moderately or extremely challenging
What’s needed: Green EVP
Harnessing the power of employer branding should help alleviate some of the challenges. Take the energy sector as an example. Arguably the biggest impact an aspiring engineer who is keen to decarbonize the world can make right now would be to help a fossil fuel organization with their transition to renewable energy and to decarbonize their oil and gas operations, but it will require some compelling storytelling and employer branding to convince those people not to go straight into the renewable energy sector.
And as companies look to attract the next generations to the workforce, it’s worth remembering that Gen Z has been labelled the “sustainability generation”, building on a trend established by their Millennial peers. Research by Deloitte in 2023 revealed that half of all Millennial and Gen Z candidates scrutinize a company’s environmental practices before even applying, and 1 in 6 have recently moved jobs due to climate concerns.
11https://www.ecoschools.global/how-does-it-work
12https://sustainabilitymag.com/articles/top-10-most-sustainable-schools-in-the-world
13Global Green Skills Report 2023 (linkedin.com)
14https://www.pwc.co.uk/press-room/press-releases/Energy-transition-constrained-by-c200000-jobs-PwC-GJB.html#:~:text=New%20PwC%20analysis%20reveals%20a,meet%20its%20energy%20transition%20targets.
Part 3
Closing the gap:
strategies and
recommendations
To be sure, solving the green skills challenge will not be an easy task. It will require concerted effort and action from across an extended network of leaders from industry, education, public policy and economic development entities. However, organizations can and should take the lead, with innovative skilling, hiring, attraction and retention initiatives.
Our research has examined the challenge from multiple angles, and our analysis has revealed several opportunities for talent leaders to act. From this research, several key recommendations surface as critical to the green skills conversation. Organizations should consider how best to apply each of these actions within the context of the unique culture, workforce, leadership and business strategy of your company.
1. Embrace a long-term mindset. As a talent leader, educate yourself and your team about local and global issues. Encourage your organization to focus on critical planetary issues. Continuously listen to your workforce and the labour market to ensure deep visibility of essential green skills. Set up innovation hubs or labs to experiment with new technologies and approaches to sustainability, involving employees, partners, and stakeholders. Foster a culture of perpetual learning that rewards green skills development.
2. Champion collaboration. Work with government agencies to advocate for policies that support green skills education and workforce development. Work with schools, colleges, and universities to create programs and courses that focus on green skills and sustainability. Form partnerships with non-governmental organizations to support community-based sustainability initiatives and training programs. Inside the organization, establish cross-functional teams within the organization to work on sustainability projects and initiatives. Establish internship and apprenticeship programs that allow students to gain hands-on experience in green jobs.
3. Apply green skills with a fresh lens. Build clear, consistent awareness of what green skills mean in your organization. Identify the green skills that exist today in your workforce. Look at core and adjacent green skills, including capabilities like project management, data analysis, and communication that enhance green initiatives. Understand the size and scope of your green skills deficit. Examine opportunities to “re-badge” traditional non-green skills. Regularly review your green skills framework as these emerging skills are changing and shifting all the time. Look outside of typical “green jobs” to apply green skills across roles and work in your organization. Consider the transferability of green skills across technical and non-technical roles.
4. Let your green show. Align your core values with your sustainability efforts and commitments. Involve your employees in sustainability efforts by actively listening and engaging them to participate in local and global initiatives. Be transparent about your company’s sustainability goals, challenges, and achievements. Highlight your sustainability programs and achievements and publicize employee stories with an omni-channel approach. Showcase environmental and social responsibility in recruitment materials and employer branding to attract like-minded talent.
5. Prioritize specialized training and development. Ensure that your green skills strategy aligns with the overall sustainability objectives of your organization. Create a multi-modal development program for green skills. Partner with local or national educational institutions, environmental organizations, or third-party training providers to offer specialized courses and certifications in relevant green skills. Provide access to online courses and e-learning platforms that offer green skills training. Develop training that focuses on specific green skills required by your organization. Establish green skill mentorship programs so experienced employees can guide others in developing green skills. Offer gig or project opportunities where employees can apply green skills in real-world settings.
We need a collaborative approach to support closing the green skills gap.”
Conclusion
Bridging the green skills gap is of critical importance. While the task may seem daunting, HR and talent leaders are uniquely positioned to be a powerful force in closing the green skills gap and supporting sustainability efforts.
The results shared in this whitepaper show a clear indication that there is real concern amongst talent leaders that not enough is being done quickly enough. However, optimism remains. Our study shows that most leaders believe we still have time to bridge the green skills gap to hit our collective sustainability targets.
The challenges of a sustainable economy of course go beyond skills and talent, but it is our work and our people that will help us solve them. It is for this reason that talent leaders should lead from the front and champion collaboration to bridge the green skills gap.
The status quo is not an option – the time to act is now.
About AMS
We are a talent solutions business
Working with clients across the globe, we have learnt what it takes to build a high performing employer. It starts with talent; sourcing, selecting and keeping the right people in the right jobs.
To do this well, you need unmatched expertise in digital innovation, and a deep understanding of the complex needs of the talent you are seeking to engage – whether that talent is external to your business or already inside it. Taking a holistic approach to the HR value chain and to attracting and retaining a world class workforce enables business success.
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We are AMS. This is what we do.
Talent is our world.
We are AMS. This is what we do.
Talent is our world.
Our approach to sustainability
We are proud of the comprehensive approach we take to the environment, our impact on society, global corporate citizenship, and governance. For us, these are not just some of the most pressing issues of the day. They are at the very heart of how we conduct business. They always have been – and they always will be.
Across AMS, we focus our activities on the six United Nations Sustainable Development Goals where we believe we can have most impact: gender equality; reduced inequalities; decent work and economic growth; good health and wellbeing; affordable and clean energy and climate action. For more information, please read our Corporate Report.
The Energy Engineering and Industrials Sector at AMS
The Energy, Engineering and Industrials (EE&I) Sector in AMS constitutes a significant part of AMS’ global business. We work with many of the world’s leading EE&I organizations providing services from global transformative RPO, through to talent consulting services and digital solutions. Our strategy focuses on supporting organizations that are responding to the megatrends at play in the sector such as the decarbonization of industry, the energy transition, digitalization, and electrification. We collaborate and innovate in true partnership with organizations that are working towards a sustainable future for us all.
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