Insights into the Green Skills Landscape in the UK
Key Findings from Our Research
Jonathan Hart Smith, an expert in the field, recently discussed these findings based on data gathered primarily from LinkedIn, offering valuable insights into the green workforce.
1. Green Skills in the UK Workforce
Currently, around 400,000 professionals in the UK identify as possessing green skills on LinkedIn. This figure represents a significant portion of the talent pool for sustainability-driven roles. In the past year alone, 20% of these professionals—roughly 70,000 individuals—changed jobs. Jonathan noted that this indicates a dynamic shift within the green workforce, with many professionals seeking new opportunities in the expanding green economy.
Additionally, there has been a 9% growth in the number of professionals identifying as having green skills over the last 12 months. Jonathan pointed out that this increase could reflect the growing awareness of sustainability issues and the need for environmentally focused roles.
2. Regional Distribution and Job Vacancies
While 25% of professionals with green skills are in and around London, 66% of job vacancies requiring sustainability experience are concentrated in the capital. Jonathan emphasized that this regional imbalance suggests the need for organizations to consider remote or hybrid work options to attract talent from other parts of the country, where a significant portion of the green workforce resides.
3. Gender Representation in Green Skills
A noteworthy finding that Jonathan highlighted is the gender disparity within the green skills workforce. While 44% of the overall LinkedIn workforce is female, only 36% of those identifying as having green skills are women. This gap underscores the need for greater diversity and inclusion initiatives within the sustainability sector.
Addressing the Challenges Ahead
Jonathan Hart Smith’s analysis highlights that as we move towards a greener future, businesses must not only tap into the growing talent pool of professionals with green skills but also address the gender imbalance within the sector. By promoting diversity and encouraging hybrid or remote working arrangements, organizations can access a broader range of talent to meet the growing demand for sustainability-focused roles.
While the data from LinkedIn provides an insightful snapshot, Jonathan also acknowledges its limitations. However, these findings serve as an important starting point for further discussion on how the UK can meet its green skills needs and foster a more inclusive, diverse workforce in the sustainability sector.
For more information or to discuss how ESG REC can help your organization find the green skills it needs, email Jonathan at Jonathan@esgrec.com.
How the Corporate Sustainability Reporting Directive (CSRD) Will Transform Your Business
The Corporate Sustainability Reporting Directive (CSRD) is more than just a regulatory requirement—it’s a game-changer for businesses operating in or with the European Union. This new directive is set to standardize sustainability reporting, impacting over 50,000 companies globally, including non-EU businesses with significant EU operations. For CEOs, CFOs, and Chief Sustainability Officers, the CSRD is both a challenge and an opportunity to integrate sustainability into the core of business strategy and operations.
What is the CSRD?
The CSRD is a European Union regulation that mandates comprehensive reporting on a company’s Environmental, Social, and Governance (ESG) performance. It expands on the previous Non-Financial Reporting Directive (NFRD), requiring companies to provide more detailed and transparent sustainability data.
At its core, the CSRD is built on 12 European Sustainability Reporting Standards (ESRS), covering areas like climate change, biodiversity, resource use, human rights, and business ethics. One of the directive’s key features is the double materiality principle, requiring businesses to assess both the financial impact of sustainability on their business (financial materiality) and their impact on society and the environment (impact materiality).
According to PwC’s Global CSRD Survey, this double materiality assessment—referred to as IRO (Impacts, Risks, and Opportunities)—can be complex, as companies must evaluate which sustainability issues are material to both their business and stakeholders.
How Will the CSRD Impact Your Business?
The CSRD is more than a compliance exercise—it’s an opportunity for companies to realign with long-term sustainability goals and create new avenues for growth, value creation, and cost savings. Here’s a glimpse of what businesses should expect:
1. Broader Reporting Scope and Complexity
The CSRD introduces a much more comprehensive range of disclosures than previous frameworks, covering topics like biodiversity, pollution, and workforce considerations across the entire value chain. Businesses will need to rethink how they collect, manage, and ensure the quality of their sustainability data.
2. Double Materiality and Strategic Integration
Businesses must perform robust double materiality assessments to identify which sustainability issues are financially material and which are relevant to stakeholders. This will directly impact how companies prioritize sustainability initiatives, allocate resources, and engage with their audience.
3. Increased Demand for ESG Expertise
With the CSRD’s implementation, the need for professionals skilled in ESG compliance and sustainability strategy is skyrocketing. At ESG REC, we’ve observed a doubling of ESG-related job vacancies since the start of the year, signaling the growing demand for expertise in this area.
4. Cross-Functional Collaboration
CSRD compliance involves more than just the sustainability team—it requires collaboration across multiple business functions such as finance, procurement, legal, and technology. Senior leadership involvement is essential for successful implementation.
5. Emphasis on Technology and Assurance
Long-term compliance with the CSRD will require advanced technology solutions for data management. While many companies still rely on spreadsheets, compliance will demand a move toward specialized disclosure management tools, carbon accounting software, and third-party assurance to verify data accuracy.
Want to Learn the 5 Key Steps to Prepare for CSRD Compliance?
To help your business navigate the complexities of the CSRD, we’ve outlined 5 critical steps you can take right now to get ahead of the curve.
Access the full article by signing up on our website for exclusive content that will guide you through the detailed strategies for CSRD preparation.
September Update: Sustainability Jobs Market in the UK
The sustainability job market in the UK has seen significant growth in September, with roles up 17% since the start of the year and 22% compared to last month. Despite being slightly lower than the peak in July, overall job vacancies are averaging 15% higher over the past three months compared to the first half of the year.
Jonathan Heart Smith, ESG Rec’s lead expert, explains that this increase may be linked to companies gearing up for sustainability reporting requirements and more stability post-election. Additionally, with 20% of the sustainability workforce having moved in the past year, new leadership roles are emerging, and teams are expanding.
If you’re hiring for sustainability roles or looking for new opportunities in the sector, now is a great time to act. Contact us to find out how we can help.
Unlocking ESG Talent; Jonathan Hart Smith’s Key Insights from Sustainability Live 2024
Jonathan Hart Smith, Founder of ESG REC, engaged the attendees at Sustainability Live 2024 with a compelling fireside chat, shedding light on the current state of the ESG and sustainability job market. With a career spanning molecular biology to recruitment, Jonathan shared his unique journey and valuable insights into the evolving landscape of ESG talent.
From Science to Sustainability
Jonathan’s career began in the labs as a Molecular Biologist, but he quickly realized that the lab environment wasn’t his true calling. His transition into the business side of things, starting with a recruitment company specializing in life sciences, set the stage for his eventual foray into sustainability. Jonathan’s experience running a leading life science recruitment firm, which was acquired nearly three years ago, provided him with a robust foundation in understanding data and the importance of impactful business practices. With a passion for making a difference, Jonathan co-founded ESG REC with Michael O’Brien, focusing on recruitment for ESG teams. Their mission is not only to place top talent but also to demonstrate that businesses can be profitable while actively contributing to societal good. ESG REC integrates environmental and social initiatives into their operations, such as donations to charitable causes tied to successful placements and employs people from disadvantaged backgrounds.
The Current Market for ESG Talent Jonathan’s discussion provided a snapshot of the ESG job market, highlighting key trends and demands:
Demand for ESG Roles in the UK: There is noticeable fluidity in the ESG job market, with over 22% of the workforce changing jobs in the past year. London leads in employment numbers, far surpassing other cities.
Senior vs. Operational Roles: While there is a stable demand for senior ESG positions, the most significant growth is in junior to mid-management roles. The need for roles such as Sustainability Analysts, ESG Analysts, and Carbon Accountants is on the rise. Companies are also seeking ESG Managers and consultants for specific projects.
Challenges in ESG Recruitment Jonathan also identified several challenges companies face in sourcing ESG talent:
Skills Gap – There is a shortage of professionals with both technical expertise and the ability to effectively communicate and manage ESG initiatives. Many organizations struggle with pairing technical skills with the necessary communication and project management capabilities.
Overlapping Skill Requirements –Companies often seek candidates with a broad range of skills, leading to unrealistic expectations. Jonathan suggests focusing on essential skills and considering a mix of full-time roles and contract positions to fill gaps.
Strategies for Overcoming ESG Talent Challenges
Jonathan offered practical advice for companies navigating the ESG talent landscape:
Leverage Internal Talent – Consider promoting from within to fill ESG roles, as internal candidates already understand the company’s culture and operations.
Prioritize Influencing Skills – Ensure that ESG leaders have strong support from the Board and the ability to influence others within the organization.
Realistic Skill Requirements – For operational roles, identify core competencies and be prepared to train or develop skills in-house. Partnering with specialized consultants for temporary needs can also be effective.
Trends and Predictions
Jonathan also some future trends that includes:
Steady Leadership Hiring – Expect continued steady hiring for leadership and middle management roles without the previous surge.
Increased Demand for Reporting Skill – There will be a growing need for professionals skilled in ESG reporting and analysis, particularly those proficient with machine learning tools.
CSRD Reporting – Companies are building capacity to handle CSRD reporting requirements, leading to an increased demand for related expertise.
Mature Consulting Market – A shift towards using consultants for project-based needs rather than hiring permanent, multi-skilled employees.
Market Stability and Future Outlook
Jonathan has been also asked about his report last month about the stability of the current market and why the stability is beneficial?
Jonathan answered that when there is stability in supply and demand, companies can make informed decisions about hiring. According to recent data, while the number of people working in sustainability-based jobs has increased significantly since the beginning of the year, the number of vacancies has also grown. This indicates stability in job movement, but not necessarily in the overall supply and demand balance. The report highlights that:
Stability – Stability in the market is advantageous as it allows companies to plan better and make more informed hiring decisions.
Growth – The growth in the number of sustainability jobs is encouraging for the sector, showing increased interest and professionalization.
Vacancies – Although the number of vacancies has also risen, this suggests a competitive hiring environment.
Workforce Movement – Over the past 12 months, 20% of the UK sustainability workforce has moved jobs, shrinking the pool of available candidates.
Average Tenure – The average job tenure in sustainability roles is relatively short (1.8 to 2.3 years), which can pose challenges for businesses trying to retain experienced staff.
Hiring Trends – There has been a slight increase in senior-level hiring, though not as intense as previously. The demand for these positions is gradually climbing.
The data shows that while the market is stable, businesses face challenges such as managing job turnover and navigating a competitive hiring landscape. The stability in supply and demand provides an opportunity for companies to address these challenges and refine their hiring strategies.
Shifting Trends
Jonathan was also asked about the changes he has observed in what companies are looking for and who they are seeking. He provided some historical context to explain the current landscape. A few years ago, during the Great Resignation, companies faced significant challenges in filling roles, particularly senior positions such as Chief Sustainability Officers (CSOs) and heads of ESG. Although this trend has eased, there is now a gradual increase in senior-level hiring. The average job tenure of around two years means that employees often gain enough experience and reputation to attract offers from other companies, which adds to the complexity of hiring and retention. Additionally, the growing importance of sustainability reporting has led to a heightened demand for professionals with expertise in this area. Overall, the current market stability provides an opportunity for businesses to address these challenges and make more strategic hiring decisions. Jonathan Hart Smith’s session at Sustainability Live 2024 was both enlightening and inspiring, offering valuable perspectives on the ESG job market and the future of sustainability recruitment
One of the most regular complaints I have heard over 25 years in recruitment is that a candidate has hear nothing back following a job application. They have gone to the time and effort of writing a tailored cover letter and adapting their CV, or even completing a company’s application form. Only to hear radio silence.
It leaves a bad taste in the applicant’s mouth and they are unlikely to apply again in the future. Even if they are the perfect person and the job is perfect for them.
Research by the HCI even indicates that up to 75% of job seekers never hear anything back from applications and that a staggering 72% would share their negative experiences online. This hurts your employer brand.
Rejecting candidates kindly and with empathy is important to help your employer brand and future recruitment. But it doesn’t have to take an age. Obviously detailed constructive feedback is ideal, but most candidates would be happy to know one way or the other.
The Corporate sustainability Reporting Directive came into force to help investors and other stakeholders access to the information they need to assess the impact of companies on people and the environment. This year started to see the first wave of companies reporting against the CSRD and as a result, more and more organisations are starting to realise that they need additional skills in their ESG team to support CSRD reporting obligations.
ESG REC track the trends for different types of roles in different regions within the ESG jobs and Susttainability vacancies market to help companies make informed decision about their recruitment process and job hunters get an idea about the ESG jobs marketplace.
This August saw the continued rise in demand for CSRD skills with the numbers of vacancies in the European Union with CSRD being advertised on the platforms that ESG REC monitor having doubled since we started monitoring this metric in April 2024. Whilst the numbers are still relatively modest in the grand scheme of things. The trend is an obvious one with demand for CSRD expertise rising every month.
If you are hiring for your CSRD reporting requirements. Here are our tips to help you fill your CSRD job:
Start hiring now – Demand is continuing to rise and the longer you leave it, the more competition for talent you will face. Competition for skills normally means that it can get very expensive very quickly or that compromises in terms of skills or working arrangements need to be made
Decide what is essential and what is nice to have – Do you really need people with prior CSRD expertise or can you take people with similar or transferable skills that will be able to pick this up? Decide what skills and experience are essential and what would be a bonus if you can find this in the candidate with other skills and traigts that make them a good fit for your organsation.
Plan your recruitment process to be quick and efficient – These candidates are in a market where there is growing demand and limited skills, so you need to make sure your recruitment process find and secures the right people quickly and efficiently. Contact the ESG REC team to help you map out your process and develop one that runs quickly and efficiently to secure the right talent.
Benchmark – Whilst demand might be growing quickly, make sure you Benchmark your offers to ensure you are putting compelling and attractive on the table to secure the right people but not one that is out of scope with the market. This fuels wage inflation and leads to an unsustainable market in the short to medium term. The ESG REC team can help you with this too.
Demand for ESG staff has remained relatively stable in the UK following a spike in demand in 2023. The numbers of ESG vacancies advertised on LinkedIn has fluctuated throughout the year but hovered around the same midpoint of 250 +/- 20 most months this year.
This level of stability is a good thing for the ESG jobs market because Supply and demand can reach a level of equilibrium as more ESG qualified workers enter the workforce in the UK.
If you are hiring for ESG staff, you may want to consider the following tips to help you find the right ESG professional for your team:
If you are hiring for ESG staff, you may want to consider the following tips to help you find the right ESG professional for your team:
Plan your recruitment process so that it is quick and efficient. You want to be in a position to secure your preferred candidate when you find them with minimal delay and fuss
Make sure offers are compelling and attractive. The ESG professional is still a relatively new profession in the grand scheme of things, so skills are still held in high regard and making sure you offer a compelling and attractive package will help secure the talent for your business.
If you would like some help planning your go to market message, training your team on positioning your organisation or need some benchmarking done on salaries and packages for your ESG team, then please get in touch with us at info@esgrec.com.
ESG Spotlight: Navigating Recent Trends in the Sustainability Landscape
In the ever-evolving landscape of Environmental, Social, and Governance (ESG) practices, staying abreast of the latest trends is crucial. As we step into a new era of corporate responsibility, let’s explore some recent trends shaping the ESG sector.
1. Renewed Focus on Social Factors:
The “S” in ESG is gaining prominence as organizations recognize the significance of social responsibility. Diversity and inclusion initiatives, employee well-being programs, and community engagement efforts are taking centre stage. Companies are realizing that a socially conscious approach not only enhances their reputation but also fosters a positive workplace culture.
2. Rising Importance of Stakeholder Engagement:
Stakeholder engagement has transcended mere compliance to become a strategic imperative. Successful ESG strategies now involve actively seeking input from a diverse set of stakeholders, including employees, investors, and local communities. This collaborative approach ensures that ESG initiatives align with expectations and create meaningful impact.
3. Impactful Climate Action:
Climate change remains a critical focus within the ESG sphere. Organizations are not only setting ambitious carbon reduction targets but also investing in innovative solutions to address environmental challenges. The integration of sustainable practices, renewable energy adoption, and circular economy models are becoming key pillars of corporate climate action.
4. Technology as an Enabler:
Advancements in technology are catalysing ESG efforts. From data analytics to artificial intelligence, technology is empowering organizations to track and measure their ESG performance more accurately. ESG-focused platforms and tools are emerging, providing businesses with actionable insights to drive sustainable decision-making.
5. Transparent Reporting and Disclosure:
Transparent reporting is no longer a checkbox but a fundamental aspect of ESG credibility. Investors and consumers alike demand clear, comprehensive, and authentic reporting on ESG initiatives. Integrated reporting frameworks are gaining traction, allowing organizations to showcase their performance across financial and ESG metrics in a unified manner.
6. Evolving Regulatory Landscape:
Governments and regulatory bodies are increasingly recognizing the importance of ESG considerations. The regulatory landscape is evolving, with more stringent requirements and standardized reporting frameworks coming into play. This shift encourages businesses to embed ESG practices into their core operations, ensuring compliance and accountability.
7. Rise of ESG Investing:
ESG investing has surged, reflecting a growing awareness of the financial benefits associated with sustainable practices. Investors are prioritizing companies with robust ESG profiles, viewing them as more resilient in the face of global challenges. The integration of ESG factors into investment decisions is reshaping the financial landscape.
Conclusion:
The ESG sector is undergoing a transformative journey, driven by a collective commitment to a more sustainable and responsible future. Embracing these trends not only positions organizations as leaders in their industries but also contributes to a global movement towards a resilient, inclusive, and environmentally conscious world. As we navigate these trends, the ESG sector stands at the forefront of positive change, inspiring a new era of corporate purpose and societal impact.
