Article: Why employees need both AI and green skills

While AI is reshaping various sectors, green skills are becoming just as important, particularly as businesses work towards meeting Environmental, Social, and Governance (ESG) goals. Businesses cannot solely rely on AI and tech-savvy employees; they must also prioritise sustainability and eco-conscious practices.

Green skills refer to knowledge, abilities, and practices that help reduce environmental impact and foster sustainability. These skills encompass everything from renewable energy management to waste reduction and sustainable supply chain practices. As businesses face increased pressure from consumers, investors, and regulatory bodies to adopt greener models, employees who possess green skills are becoming indispensable.

According to LinkedIn’s Global Green Skills Report 2023, only one in eight workers globally has at least one green skill, showing a significant gap in the workforce. Meanwhile, the demand for green talent is growing rapidly, with job postings requiring green skills increasing by 22.4 per cent between 2022 and 2023, far outpacing the growth in available talent. This discrepancy emphasises the urgent need for businesses to integrate green skills into their workforce development programmes.

As businesses navigate the challenges of the green economy, green skills are becoming as crucial as AI and other technical competencies. Companies that prioritise both AI and green skills will be better equipped to meet their ESG goals, foster innovation, and create a sustainable future for both their business and the planet.

In the Middle East, the push for green skills has gained significant momentum as economies like Saudi Arabia, the UAE, and Egypt focus on ambitious green initiatives. The PwC Middle East Workforce Hopes and Fears 2023 report highlighted the heightened awareness of green skills in the region. Notably, 62 per cent of respondents in the Middle East believe that green skills will play a critical role in shaping their careers, which is significantly higher than the global average.

This regional focus aligns with the Middle East’s broader sustainability agenda, as countries strive to balance economic growth with environmental stewardship. For instance, Saudi Arabia’s Vision 2030 and the UAE’s Net Zero 2050 strategy emphasise the need for green-skilled workers to drive energy transitions and sustainable development projects.

The survey also revealed that 57 per cent of respondents felt confident that their employers are committed to providing opportunities for green skill development. This optimism reflects the region’s proactive approach to tackling climate challenges and highlights the importance of equipping the workforce with the necessary tools to support green initiatives.

Green Skills and ESG Goals

The importance of green skills is deeply rooted in their contribution to achieving ESG goals. ESG refers to a business’s environmental, social, and governance responsibilities, and green skills play a vital role in each of these pillars:

Environmental responsibility: Reducing carbon footprints, optimizing resource use, and minimising waste are at the heart of ESG. Green-skilled employees help businesses implement sustainable practices like energy efficiency, renewable energy sourcing, and circular economy models.

Social impact: Employees with green skills not only drive environmental benefits but also contribute to social responsibility by fostering community engagement and ensuring that the business operates in a way that benefits people and the planet. This leads to stronger relationships with stakeholders, including consumers who increasingly prefer brands with sustainable practices.

Governance and compliance: From meeting regulatory requirements to transparent ESG reporting, green skills help businesses manage environmental risks effectively. Employees trained in sustainability can accurately measure, monitor, and report on key sustainability metrics, enabling businesses to be more transparent and accountable to stakeholders.

Green Skills as Drivers of Innovation

Beyond compliance and risk management, green skills serve as catalysts for innovation. Employees with knowledge of renewable energy, sustainable materials, and eco-friendly technologies can help businesses reduce costs and unlock new revenue streams. For example, the adoption of green technologies such as solar power, wind energy, and electric mobility requires skilled workers who can design, implement, and maintain these systems.

Furthermore, businesses that lead in sustainability often attract impact investors and access green financing options. Green bonds and other sustainability-linked financial instruments provide businesses with the opportunity to fund eco-friendly projects, which can enhance their reputation and improve their financial performance.

Despite the growing importance of green skills, there remains a significant gap between supply and demand. The Global Green Skills report highlights that job postings requiring green skills continue to increase, while the talent pool remains limited. In regions like the U.S., for example, green job postings rose by 20 per cent in 2022, but the available talent grew by just 8.4 per cent. This gap is also evident in the Middle East, where a shortage of expertise in specialised roles such as net-zero accounting and sustainability risk management is a major challenge.

Addressing this gap requires a concerted effort from both the public and private sectors. Businesses must invest in training and development programmes that integrate green skills into all job roles, not just those directly related to sustainability. Meanwhile, governments can facilitate partnerships between educational institutions and businesses to ensure that the next generation of workers is equipped with the green skills needed to drive the green transition.

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Balancing AI and Green Skills

Green skills complement AI by ensuring that technology is used in ways that align with ESG goals. For instance, AI can optimise energy use or predict environmental risks, but it takes a workforce with green skills to implement those insights effectively and drive meaningful change.

Five essential green skills that the workforce needs:

Understanding how to implement and manage solar, wind, and other renewable energy systems to reduce reliance on fossil fuels.
Skills to optimize resource use and reduce environmental impact across supply chains.
Knowledge of systems that reduce waste by reusing and recycling materials.
The ability to identify and mitigate environmental risks.
Skills to develop eco-friendly products with minimal environmental impact.