Net Zero Workforce will Generate 300 Million Jobs

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by KnowESG

Companies that move to renewable energy sources will generate a green collar workforce, which Deloitte predicts will create more than 300 million new jobs by 2050.

According to Deloitte's Low-emission Workforce report, green collar workers are a growing group of the workforce whose work or skills are impacted by decarbonisation.

As companies actively switch to renewable energy sources to meet the United Nations' goal of having net zero carbon emissions by 2050, they will create more jobs.

According to estimates, 21 million jobs will be created in Europe, 26 million in the Americas, 75 million in Africa, and 180 million in Asia-Pacific.

To meet demand, the report says, businesses need to focus on upskilling workers instead of retraining them from scratch since about 80% of the skills needed for a new green collar workforce already exist today.

Steve Hatfield, the global leader of the future of work at Deloitte, figured out which industries would be most hurt by the move away from fossil fuels.

He told HR magazine: "Our analysis found that some occupations, like those in construction or farming, would significantly transform because emissions-intensive activities, assets, and processes will need to be replaced by low-emissions alternatives. Others would only slightly change, such as electricians or engineers. We also expect to see new industries and roles emerge, revolving around technologies like green hydrogen.

"The culmination of these impacts will require the public and private sectors to partner on adapting our education and skills development system—from schooling to ongoing training and reshaping career pathways. Only by everyone taking an active role in the transition can we ensure that no worker is left behind."

According to research by law firm Boodle Hatfield, 82 of the UK's 100 largest companies have vowed to cut their emissions by 2050 after the COP26 climate meeting in November 2021.

Workers, according to Sophie Lambin, CEO and Founder of Kite Insights and The Climate School, play the most crucial role in creating a net-zero workforce.

Speaking to HR magazine, she said: "The most important skill workers will need in the green economy is the conviction that they are central to the transformation of their companies. The majority of work that needs to happen will happen outside the boardroom and in the hands of employees who need a mandate to problem solve and innovate. That means companies need to first develop and communicate their net zero transition plans.

"Leaders need to inspire their employees with a vision of what their business could look like by 2050, and how that will impact the bottom line. But workers must be given the knowledge, motivation, and tools to play an active part.

"In my view, employee-led climate action will be the best indicator of long-term success. The green transformation is not a compliance exercise but a new invitation to employees to help shape the future."

Source: HR Magazine

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