Sustainability has transformed from being a niche concern of activists to a widely accepted approach for organisations across various sectors. As businesses increasingly recognise the value of implementing sustainable practices, the demand for professionals with sustainability expertise has risen sharply.
While corporate social responsibility (CSR) was once the standard for many businesses, picture ESG as an expanded version of CSR. With that said, companies are going beyond CSR to adopt ESG principles, recognising the benefit for the environment and society and maximising long-term value to serve the interest of all stakeholders..
In 2022, McKinsey conducted a study that revealed a significant trend among companies in the S&P 500 and Russell 1000 indices. Over 90% of S&P 500 companies now publish ESG reports, while around 70% of Russell 1000 companies also follow suit. In addition, McKinsey's research showed that ESG principles are increasingly being taken into account in companies' decision-making processes around mergers, acquisitions, and divestitures. This trend has been linked to positive financial outcomes, according to the consulting company's podcast.
However, given its relative newness, businesses and industries are still figuring out the types of professionals required to effectively implement sustainable practices. This is particularly true for industries such as finance, which are increasingly recognising the need for a sustainability relook. With a level playing field and the surge in demand, individuals who are interested in transitioning into this industry have an opportunity to do so over the next decade.
As businesses face mounting pressure to operate in an environmentally and socially responsible way, they are actively seeking those who can drive change and help build a better future for our people and planet. Here are some of the key skills that you need to acquire to succeed in this exciting and rewarding field.
A Good Understanding and Overview of Sustainability Principles
It is worth noting that sustainability is not just a passing trend but a rapidly growing field that has already seen significant changes across various industries. As such, it's essential to keep up with the latest trends and developments in this field, such as climate change, biodiversity,pollution, as well as social issues such as poverty, inequality, and human rights.
For instance, the Sustainable City Development (SCD) project in Singapore is a prime example of how sustainability is becoming more important in urban planning and development. This project aims to create a sustainable city by integrating sustainable practices into various aspects of urban living, including transportation, housing, and waste management. Such projects require professionals with a deep understanding of sustainability principles and concepts and having the ability to apply them in practical situations.
Analytical Skills
To drive sustainability efforts in a company, professionals require analytical skills to assess and interpret data. Both management and employees must possess this skillset to take the company in a new direction. By collating and analysing data from multiple sources, sustainability professionals can identify areas for improvement and steer the organisation towards its sustainability goals.
For instance, a sustainability professional can reduce a company's carbon footprint by identifying energy-intensive processes or equipment and finding ways to optimise or replace them with energy-efficient alternatives. Since sustainability is a multifaceted field, encompassing environmental, social, and economic aspects, the ability to gather and analyse complex information is essential to achieving positive outcomes. By identifying existing gaps, organisations can then build sustainable frameworks and solutions.
Communication Skills
Incorporating sustainability standards into a business is not a task for a single individual. It requires a collaborative effort, which is why effective communication is essential for sustainability professionals. They need excellent communication skills to relay complex sustainability issues to various stakeholders. Sustainability professionals should also be able to navigate complex power dynamics and build trust with these stakeholders who may have different perspectives and priorities. They must not only relay topics laden with jargon but have to do so in an engaging way that adds value to the conversation. This will often involve different styles to suit a wide range of audiences, and the information must be reproduced on various platforms.
Leadership Skills
Leading the charge towards sustainability requires strong leadership skills to navigate the upheaval of traditional business practices, without causing business disruption. According to a report by Business in the Community, 90% of businesses recognise the need for leadership skills at all levels to transition to a sustainable economy. However, 70% also believe there is a gap in this area, highlighting the importance of sustainability professionals with strong leadership skills.
Effective leadership in sustainability requires the ability to inspire teams, conceive and implement initiatives while keeping business objectives on track. A skilled sustainability leader can engage stakeholders, leverage their team's strengths, and manage sustainability professionals across different departments and regions.
For instance, a sustainability leader might need to design a shared vision and set clear objectives to unify teams and provide guidance as projects grow. Ultimately, strong leadership skills are essential to navigate the complex challenges of integrating sustainable practices into business operations to achieve meaningful impact.
Project Management Skills
Many sustainability initiatives will require project management skills to come to fruition. The role will include the skills needed to plan and execute projects, manage timelines and budgets, as well as coordinate stakeholders during the process. In addition to defining objectives and delegating tasks, they must monitor progress and ensure timely delivery within the assigned budget.
If a sustainability professional were to work on constructing a green building company, for instance, they would have to coordinate with architects, engineers, contractors, and suppliers. But more importantly, because sustainability standards such as the ESG framework is still evolving, they need to monitor these moving guidelines to ensure compliance and work with inspectors to ensure the building meets existing (and possibly future) sustainability criteria.
Strategic Thinking
Again, because the sustainability field is relatively new, old methodologies and thinking won't suffice to balance environmental, social, and economic objectives in implementing sustainable solutions.. Sustainability professionals need to think strategically to implement efficient but sustainable solutions that balance environmental, social, and economic objectives. This requires the ability to anticipate future trends, identify opportunities and risks, and develop innovative solutions.
Often, businesses will be entrenched in a certain work culture and mindset, requiring sustainability professionals to think creatively and offer new solutions to existing teams. This innovation needs to be coupled with forward-thinking to ensure sustainability in the long run.
Whether you are an aspiring sustainability professional or seeking to enhance your existing skills, SMU Academy's sustainability programmes can help you meet the needs of this growing field. Learn the latest trends and developments in the field of sustainability, and gain the knowledge and skills required to drive sustainability initiatives and build a better future for generations to come. Embark on your journey with SMU Academy today!
