With the spate of talks from governing bodies, such as conferences organised by the United Nations and summits at COP27, the topic of climate change has gained significant prominence in public consciousness. This has led to increased scrutiny of the negative contributors to climate change, particularly large organisations. The spotlight is now on holding these organisations accountable for their environmental impact.
In a report published by the Carbon Disclosure Project (CDP), it was found that only a mere 100 companies were responsible for 71% of the global GHG emissions that cause global warming since 1988 - a shocking statistic that has placed industries in the hot seat as change agents.
This attention pushes businesses to review their processes, but sustainability’s massive scope and complex intricacies can be overwhelming to tackle, even for seasoned experts. In fact, when asked in an IBM survey, 51% of respondents agreed that “environmental sustainability is more important to them today than it was 12 months ago.” However, when it came to practise, it was found that only 35% of the organisations that have an existing sustainability strategy in place, acted on them.
Considering the multitude of factors that a sustainable business must consider, it becomes apparent why there is a substantial gap. A sustainable company, in its most comprehensive form, is not only responsible for minimising its environmental impact but also for operating in a manner that leaves zero negative footprint on the environment while promoting positive values throughout its operations.
Some of the global issues a sustainable business should address include:
- Carbon emissions
- Gender inequality
- Fair wage
- Conscientious use of resources
- Human rights
- Fair working conditions
- Pollution
- Workplace discrimination
Despite its vast scope, early businesses that have showcased positive results in their Environmental, Social, and Governance (ESG) metrics have consistently demonstrated profitability and outperformed the market in both the medium and long term, as reported by McKinsey. Therefore, while integrating and implementing sustainability remains challenging, the prevailing trends suggest that merging the realms of sustainability and business is not only feasible but also leads to favourable outcomes.
A New Generation of Green Talent
Despite the increasing awareness and willingness to foster a sustainable economy, the availability of a skilled workforce in this area remains limited. Companies face the challenge of hiring for green positions or providing training to their existing teams. However, the demand for green talent exceeds the current supply, owing to the rapid pace of the sustainability movement.
A 2022 LinkedIn report discovered that even though the percentage of green talent in the workforce has increased 38.5% from 9.6% in 2015, to 13.3% in 2022 , the growth rate of job postings requiring green skills (8%) still outpaces the pool of emerging green talent (6%).
To address this, development training has gained interest as it aligns with changing job market sentiments. With the shift towards digitisation displacing jobs, workers are seeking green skilling to stay employable, while others explore new career paths aligned with their interests.
Recognising the need to plug the talent gap and aid in national efforts of attaining the Singapore Green Plan 2023 by equipping the workforce with industry-relevant skillsets and capabilities, SMU Academy has introduced programmes to support learners interested in the sustainability sector. For instance, SMU Academy's SCTP Advanced Certificate in Driving Sustainability for the Future: The Future of Work through a Sustainable Lens, offered under the SkillsFuture Career Transition Programme, provides mid-career professionals with the green skills and capabilities needed to increase employability and pivot to job roles in the growing green economy.
Equipped with practical expertise in corporate sustainability concepts and strategies, data analysis and documentation, learners can contribute actively towards the nation’s green goals.
Apart from learning a suite of valuable job-related skills from industry experts, learners will also receive employment facilitation and career advisory services aimed at empowering them to enhance their employability and achieve their professional aspirations. These supportive measures include personalised career consultations, resume critiques, guidance on establishing a compelling personal brand on social media platforms, mock interview sessions, networking advice, and job-matching assistance. Learners collaborate closely with our dedicated career strategists, leveraging diverse frameworks, tools, and consultations to align their professional and personal goals. This provides an invaluable opportunity for working adults who have transitioned from formal education to acquire highly sought-after skill sets. These skills enable them to support organisations in their sustainability initiatives, reshape companies, and contribute to saving the planet.
With green skilling opportunities widely available, there is an abundance of possibilities for professional growth through sustainability programmes. In fact, these opportunities can often align with one's current role, allowing individuals to expand their skills while staying within their field.
For example, those in Research and Development can become sustainable technology researchers or renewable energy engineers and help produce environmentally friendly technologies and renewable energy solutions. In the field of Human Resources, there are two career paths to consider. As a Green Benefits Specialist, you can incorporate sustainable benefits and wellness programmes into the employee offerings, fostering a greener and healthier workplace environment. On the other hand, as a Sustainability Talent Acquisition Specialist, you can integrate sustainability criteria into the recruitment process and build a diverse, sustainable workforce. Both roles play a crucial role in creating a workplace culture that values sustainability and drives positive change within the organisation.
Every Bit Matters
While large organisations play a significant role in driving change, smaller enterprises also have an equal responsibility to support sustainability initiatives in the market. However, due to limited resources, navigating this topic can be even more daunting for these entities. To address these challenges, SMU Academy offers the Transforming Small and Medium Enterprises: Strategic Sustainable Development programme.
This programme is designed to equip small and medium enterprises (SMEs) with the necessary tools and strategies to effectively embrace sustainability. SMEs can gain valuable insights and practical knowledge to navigate the sustainability landscape and make meaningful contributions to the market's sustainability goals.
In fact, Singapore has recently demonstrated its commitment to climate and overall sustainability efforts by launching the Singapore Green Plan 2030. Given this clear commitment, it would be wise for SMEs to seize the opportunity to access the dedicated budgets allocated for sustainability initiatives and transformative efforts. After all, while larger organisations may seek to maintain their lead and legacy, it is paramount for smaller ones to find leverage with sustainability’s profitable showing - both in terms of its consumers and workforce.
In a study done by IBM, consumers are increasingly making conscientious decisions when shopping, with 64% picking products that are branded as environmentally-sustainable or socially-responsible for at least half of their last purchase. This figure is even higher in India (75%) and China (76%).
And as the green workforce matures, businesses with established sustainability processes tend to be more attractive to work for. In the same research, IBM found that 1 in 3 people who changed jobs last year accepted a job with an employer are considered to be environmentally sustainable (35%) or socially responsible (40%).
So, while the impact on the environment may not show up as clearly for SMEs, the potential positive effects of incorporating sustainability into the business should not be ignored.
Installing New Standards of Growth
A business that combines a sound trajectory, strong growth numbers, and measurable ethical pillars not only represent success in today’s business world, but is also highly desirable for investors.
ESG criteria first emerged in the 2006 United Nations Principles for Responsible Investment (PRI) report. Since then, it has evolved into the industry standard for sustainable businesses, guiding their compliance efforts and shaping strategies to achieve environmental and social goals. Notably, investors have also taken notice of the significance of ESG considerations.
In the earlier-mentioned CDP report, 32% of emissions come from public investor-owned companies, thus involving their investors as important stakeholders and key agents in the process. With their eyes trained on long-term gains, more investors have been scrutinising businesses through the ESG lens. The fallout for those who can’t - such as those in fossil fuel - will be dramatic.
As the ESG framework becomes more globally defined and metrics become standardised, those in finance can also leverage this knowledge to become savvier advisors and improve portfolios. The Certificate in Environmental, Social, and Governance (ESG) for Professionals in Banking and Finance can bolster a finance professional’s arsenal of products to drive sound decisions and discover opportunities.
Change Is Good
In conclusion, the integration of sustainable principles has become essential for the growth and long-term success of businesses. It aligns with the values of a conscientious generation that recognises the importance of protecting our planet and reimagining the fundamentals of ethical business practices.
Whether the goal is to promote biodiversity, or responsibly utilise limited resources to ensure a sustainable future for generations to come, the integration of sustainability and business is crucial. It paves the way for a lasting legacy that benefits not only the present but also future generations, fostering a world where both business and the environment can thrive harmoniously.
Become stewards of change and enter the green workforce with SMU Academy.
