Decoding the trend: 'Green skills' for the 21st Century workforce

With companies around the world increasingly focusing on sustainability and net-zero, 'green skills' are the passport to remain relevant in the 21st Century job market.

Companies and their supply chain contribute about 60 per cent to the world's emissions. But companies in all but a few countries have any stated commitment towards net-zero. However, with increasing awareness about the impact of climate change, things are changing - albeit slowly.

At the forefront of this 21st Century revolution are workers possessing 'green skills', which the United Nations defines as technical knowledge and abilities that "enable the effective use of green technologies and processes in professional settings".

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In fact, the United Nations has recognised 'green skills' as one of the key elements for achieving the Sustainable Development Goals (SDGs) by 2030.

Manu Saigal, Director, Adecco India says that 'green skills' can contribute to a "just transition" to a low-carbon and circular economy, which can generate decent work and income for millions of people.

However, the 2023 edition of LinkedIn's Global Green Skills report leaves much to be desired. The report states that only one out of every eight worker has one or more 'green skills'.

Saffin Mathew, Program Director at 1M1B (One Million for One Billion), calls 'green skills' a linchpin in climate mitigation efforts. He adds: "By acquiring green skills, individuals can advocate for resource efficiency, economic growth, and environmental stewardship."

'Green skills': A demand-supply mismatch

At least three industries are likely to put a premium on 'green skills': energy production, transportation, and finance.

The first two sectors are among the top carbon emitters, while the finance industry can enable sustainable transformation of our planet, notes the report, which is based on the activity of more than 930 million LinkedIn users worldwide.

The number of people with 'green skills' in the global workforce has risen by an average of 12.3 per cent since 2022. On the other hand, jobs requiring at least one green skill doubled by over 22 per cent in the same period. These numbers are significant given that the global job market has largely remained weak.

But demand for 'green workers' far outstripping supply has been observed for the last few years. Between 2018 and 2023, workers with 'green skills' grew by 5.4 per cent each year. But, jobs needing at least one green skill grew by 9.2 per cent in the same period.

This supply-demand disconnect, the LinkedIn report argues, is likely to rise considerably without significant investments in building an effective 'green' workforce.

The outlook in key sectors

Since 2016, there has been a steady increase in the number of workers with 'green skills' in the oil and gas industry, the biggest subset of energy industry. The figure stands at 21 per cent in 2023, which lower than other resource-intensive sectors like farming and construction.

Since 2018, the share of auto workers with EV skills, subset of 'green skills', has risen by an average 61 per cent. But only 3.5 per cent of automobile workers possess any form of 'green skills'. Interestingly, India, where 5.1 per cent of auto workers have EV skills, has experienced the greatest five-year jump from 2018 to 2023 -- 140 per cent.

Only 6.8 per cent of the finance industry is equipped with 'green skills'. This places finance behind industries ranging from energy and mining to

agriculture and manufacturing. However, the industry is seeing a 14.8 per cent year-over-year rise in its green talentpool.

Moreover, workers in the US and Europe are quickly acquiring skill sets at the intersection of finance and sustainability. Skills like carbon accounting, emissions trading, impact assessment, and sustainability reporting are among the top skils being picked up by finance professionals.

"Increasingly, lenders are offering attractive green rates to organisations that are able to meet sustainability requirements. Green bonds and sustainability-linked loans would help in reaching net-zero by 2050," says Mathew, while stressing on the need for more 'green' finance professionals.

Green skills: The key to renewables sector

If there's one sector where workers with 'green skills' will play a leading role, it is the booming renewables sector. From 2015 to 2023, the 'sunrise' sector attracted 120 new workers for every 100 workers who left.

Data from the International Labour Organisation too highlights the exponential growth being seen in the renewables sector, especially in solar photovoltaic (PV), bioenergy, hydropower and wind power.

The global renewable energy sector employed 13.7 million people directly as well as indirectly last year. A decade ago, this number stood at 7.3 million.

"When hiring and job postings in renewable energy increase, the industry gains the capacity that is needed to produce clean energy," the report says, indicating the pivotal role of 'green skills' plays in the world's energy transition.

The renewable energy, as opposed to fossil fuels, is likely to accelerate the push towards a greener earth. Renewable energy can help meet increased energy demand while limiting the increase in average global temperatures, provided there is a massive infusion of green skills in the sector.

Training for 'green jobs'

Increasing focus on 'green skills' training is the need of the hour. According to Saigal, 'green skills' can be incorporated in a curriculum in various ways and at any age, depending on the subject, level and, context of the education. "Green skills training should be an integral part of the curriculum from preschool to higher education and beyond," she adds.

Sustainability expert Ashwin Kak believes that the 'green skills' are very multi-dimensional, which means that they incorporate skill-sets from across social studies, technical studies and policy-making.

He explains the inter-disciplinary aspect of 'green skills' in the following manner: "Engineers going through a mix of solar and wind energy in their learning setup, or a liberal arts students learning more about the aspects of human rights and land rights that go into the process of putting up large wind farms."

Mathew, Saigal and Kak believe that the private sector as well as the government need to work in tandem to push for a greener economic future. This is likely to be a win-win for both. Developing a 'green' workforce will not only help governments reach their net-zero targets but also accelerate private sector's push towards sustainability.

Talking specifically about India: In 2015, the government in partnership with the private sector launched the Skill Council for Green Jobs, which aims to accredit 60 training organisations, train 1,490 trainers and certify more than a million learners by 2025.

"The government's strength lies in providing a central platform or available infrastructure, while corporates can be in with vital quality content, delivery mechanisms and trainings modules," says Kak.