Why businesses must focus on upskilling employees on climate and sustainability
Businesses that recognise the importance of upskilling are increasing their L&D budgets to build on the skills they’ll need for success.
Since Jim Chalmers unveiled his crackdown on corporate greenwashing, the focus on sustainability has intensified.
Last month, this was underscored by Australia’s $19 billion solar power agreement with Singapore — the largest of its kind globally. It’s clear that climate is a top priority for the nation’s business agenda and our workforce will need to be equipped with relevant skills to deliver on this priority.
Yet while business leaders are urged to champion sustainability-focused upskilling, the sluggish economy is putting a strain on investment in learning and development (L&D). Market forces are squeezing the bottom line, leading to a stark reality: one in eight Australian businesses plans to cut their spending on L&D by around 50% this year. This equates to a loss of approximately $2 billion in valuable skills, or $5.6 million each day.
We’re faced with a troubling disconnect. Businesses are being urged to develop a new generation of green jobs, but financial constraints and tight budgets are hampering investment in necessary upskilling. So, what’s the solution?
Factors driving demand
In 2023, it was estimated 60,000 green jobs would emerge by next year. The growing demand for climate and sustainability skills stems from increasing awareness of climate change impact, government commitments to net-zero emissions and a shift towards sustainable practices across various sectors. The current landscape means we have a unique opportunity to get ahead of the climate skills gap before we as a nation get left behind.
The new International Financial Reporting Standards (IFRS) and the Australian Sustainability Reporting Standards (ASRS) mandate new approaches to sustainability and climate-related reporting and disclosure. Simply put, the new standards require large businesses to explicitly evaluate their climate performance in financial reporting and forecasts for the first time. It’s a move that will initially impact large enterprises before eventually being required by all Australian businesses.
The disclosure obligations usher in a new era of sustainability and transparency around the globe. Encompassing governance, strategy, risk management, metrics and targets, organisations will need to update more than their financial reporting, there’s a whole new skill set that’s required across key sections of the workforce. There’s no doubt that we’re moving towards a future where sustainability and climate standards are mandated across all industries and all functions within a business.
Opportunities for upskilling
The new standards present a broad upskilling opportunity not only to drive compliance, but to leverage the standards to drive strategies for sustainable growth.
Australian businesses have a strategic opportunity to evaluate workforce proficiencies and gaps, and to develop learning and development frameworks that fortify teams for the future. If businesses are to maximise their return on investment, they must get their priorities articulated to develop capabilities in the areas the workforce most needs.
Accountability and expertise on these matters can no longer be limited to an organisation’s sustainability function. Cross-functional teams must be able to outline the actions required to meet climate-related standards and have the skills to evaluate material ESG and climate-related risks and opportunities. Collaboration is required across each business to determine processes and key inputs to the organisation’s climate transition plan, incorporating resilience targets and decarbonisation targets – and strategies to meet them.
Many organisations are investing in targeted upskilling for in-demand areas like climate and sustainability proficiencies, enabling the workforce to quickly gain relevant skills. And the rise in online learning platforms means that individuals can access courses from anywhere — including at their desks — making it easier to upskill while balancing work and personal life.
To help fill this gap, we at RMIT Online have co-created and are co-delivering a short course with Deloitte on sustainability and climate-related financial reporting. It’s designed to help professionals understand how to develop strategies and action plans in light of the newly mandated climate and sustainability-related reporting standards. Both ANZ and Transurban have put staff through the first intake to help future-proof their businesses.
Applying an interdisciplinary approach will also help to get ahead of the skills gap. Professionals from diverse fields — whether it’s marketing, engineering or product development — can benefit from upskilling in sustainability and climate-related programs or micro-courses. Not only will it boost their qualifications, but it’ll also enhance the resilience of their organisations’ strategies along the way.
It’s important that organisations considering cuts to learning budgets understand the potential long-term impact — especially when it comes to emerging regulations and protocols within the sustainability and climate space. On a positive note, we’re seeing that those businesses which recognise the importance of upskilling are increasing their L&D budgets to build on the skills they’ll need for success.
However, the question remains as to whether this will be enough to meet the rapidly evolving nature of work.
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