Image: Supplied
The Gulf Cooperation Council (GCC) is moving forward towards a more sustainable future as companies focus more on environmental, social, and governance (ESG) factors. However, there is a significant challenge ahead: the widening green skills gap could slow down progress and hinder the region’s ambitious goals.
Organizations in the region are realizing the importance of enhancing their ESG capabilities not just for long-term sustainability but also to drive value creation.
Governments are also implementing national net-zero agendas and new regulatory frameworks to promote ESG adoption. It is widely acknowledged that strong ESG performance is crucial for organizations to remain competitive and attractive to investors, customers, and other stakeholders.
As the GCC countries focus on economic diversification and decarbonization, they are increasingly utilizing AI and automation to accelerate their green transition. This shift has led to a growing demand for sustainability and ESG professionals, especially those with expertise in climate risk management, sustainable finance, and corporate governance.
ESG outlook: Green job growth surpasses workforce readiness
Despite the increasing demand for green skills, the talent pipeline is struggling to keep up. Green job growth is surpassing workforce readiness, with a shortage of skills potentially hindering progress. A report by PwC highlights that one in three business leaders in the GCC see a lack of internal skills and expertise as a major barrier to achieving ESG goals.
The LinkedIn Global Green Skills Report 2024 emphasizes the urgency of the situation. Between 2023 and 2024, global demand for green talent grew twice as fast as the supply, with a 11.6 per cent increase in demand compared to a 5.6 per cent growth in supply. By 2030, one in five jobs worldwide could lack qualified green talent, and by 2050, this gap could widen to one in two roles unless the green talent pool expands.
Candidates with green skills are not only in demand but also have a hiring advantage. According to LinkedIn, individuals with green skills or titles are hired at a rate 54.6 per cent higher than the average workforce.
Despite the high demand for green skills, there is a generational gap emerging, with a mismatch between aspiration and skill possession. While 61 per cent of Gen Z workers globally aim to work in a green job in the next five years, only a small percentage currently have green skills, and access to relevant training programs is limited.
The shortage of green skills spans technical and soft skills, from renewable energy engineering to collaboration and communication. Companies are increasingly viewing green capabilities as essential for attracting investments, complying with regulations, and staying competitive in the evolving global economy.
Another report by PwC notes the structural challenges, with many organizations lacking tailored training programs, and educational institutions struggling to keep up with changing skill requirements. Without the right tools and partnerships to address this capability gap, the gap will only widen further.
Addressing this challenge will require collaboration between governments, businesses, and educational institutions. The GCC countries are ramping up efforts, launching upskilling programs and partnerships to develop the future workforce. Initiatives like fintech hubs and innovation accelerators are also helping attract and retain talent, especially among young people.
National initiatives such as the UAE’s Energy Strategy 2050, which aims to expand clean energy capacity and create green jobs, and Saudi Arabia’s Vision 2030, which prioritizes sustainability in economic diversification, are driving momentum towards a skilled workforce in renewable energy, green technologies, and sustainable tourism.
Essential to embrace new tools for success
With a significant portion of the region’s population under 24 years old and a majority recognizing the need for new tools and technologies to succeed in their roles, the need for green skills training is evident. Gen Z, in particular, lacks green skills, highlighting the importance of prioritizing training for this group.
Online learning platforms offer a scalable and accessible solution for green skills training, providing targeted development in areas like climate risk, renewable energy, and sustainable finance. Educational institutions also have a crucial role to play by integrating ESG into core curricula and offering specialized training aligned with regional needs.
To achieve its ESG goals, the GCC must address the green skills gap. While government policies lay a strong foundation, businesses and educators need to work together to equip the workforce with practical, job-ready skills for implementing sustainability on a larger scale. This will be key to unlocking long-term growth, innovation, and resilience across the region.
The writer is Coursera’s GM for the Middle East and Africa.
Read: Want to enhance your career prospects? Coursera’s CEO shares key tips