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The way the world does business – from sole trading to global value chains – is changing. Climate change, a rapidly growing population and very real resource scarcity all signpost towards increasing challenges not too far down the line. Because of these reasons, the skills businesses need are also changing and there is a gap between demand and supply. Businesses, employers and Governments all need to do more to give themselves a fighting chance of not only meeting the demands of today, but building a thriving future. IEMA has some solutions to turn threats into opportunity.
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www.iema.net
Skills For A Sustainable Economy- Transformational Change
Tim BalconChief Executive - IEMA
www.iema.net
•IEMA 15,000+ members and growing• 1500 at Chief Level • 1500 international members
•More than 80 per cent of IEMA Members are in industry & large consultancies
•60 per cent of FTSE 100 companies have an IEMA member.
•Strong footprint in Construction, Aerospace, Defence, Security, Energy and Power, Nuclear, Chemicals, Retail, Consultancy and Regulation
•Members in 90- countries – global reach.
IEMA
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Drivers for environmental management
Government reviewing GHG reporting requirement to
include all large companies from 2016.
Environmental & social issues largest proportion of all shareholder proposals in
2010 – expected half of shareholder proposals in
2011.
Requirement for publication of strategic directors’ report on environment and social
issues.
Increase in Carbon Reduction Commitment tax
for the FY2015/16.
Larger fines for non-compliance.
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Change isn’t an option
THE PERFECT STORM
2030
World's population
will rise from 6bn to 8bn
(33%)
Demand for food will
increase by 50%
Demand for energy will increase by
40%
Demand for water will
increase by 30%
Professor Sir John Beddington, UK Government Chief Scientist (2009)
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WHAT’S THE PROBLEM?
OECD Development Centre, Working Paper 285 (Kharas, 2010)gfh
2014
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TRANSITION TO A SUSTAINABLE ECONOMY?
83% of CEOs see government policy
making and regulation as
critical to making progress
Only 33% of CEOs believe that
business is making sufficient efforts to
address global sustainability
challenges
68% of CEOs don’t believe that the
global economy is on track to meet the demands of a
growing population
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THE BUSINESS CASE
Over 1 /3 of UK
economic growth in
2011/12 from green business.
Green business in
the UK has a £5bn trade
surplus.
UK’s overall trade deficit
2014/15 would be double
without green business exports.
Government research
shows £23bn savings for UK
businesses from low cost
resource efficiency.
GREEN BUSINESS
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THE BUSINESS CASE
62% of business will increase spending on env mgt in
2014
83% investors believe e & s factors can significantly impact long-
term shareholder
value
>285,000 companies have ISO 14001 EMS across 167
countries 29% FTSE350
profit warnings
in 2011 attributed to
rising resource
prices
ENVIRONMENT SUSTAINABILITY
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Source - UKCES (2014) The Future of Work: Jobs and Skills in 2030 – Martin Rhisiant, Centre for Research in Futures and Innovation, University of South Wales, Peter Glover, Helen Beck, UK Commission for Employment and Skills, London
Trends Driving UK Skills
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Getting your organisation to understand this stuff is hard and complex
working for organisation that understands this stuff is hard and complex
working together is a far better option
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• Governments and businesses working together is the catalyst for success
• Vocational and academic skills and education system is a critical success factor
• Innovation to be captured in skills solutions• Fast moving profession supported by speedy skills
response• Education and training systems to recognise
economic need for Environment and sustainability
Some actions needed
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SKILLS GAPS & CURRENT PROVISION
LEADERSHIP24.4% have environment & sustainability
integrated at Board level65.5% have not conducted a strategic
evaluation of the skills they will require 13.1% have environment & sustainability
skills to compete in a sustainable economy
SKILLS GAPS24.6% leaders & 8.2% workforce, 17.7%
procurement, 11.0% finance, 25.7% design/ development, 14.6% logistics, 20.8%
operations are capable of addressing the environment & sustainability agenda
80.4% leaders would benefit from further understanding
SKILLS SHORTAGES & INVESTMENT52.6% of organisations are unable to recruit environment and sustainability professionals
with right skills63.2% of organisations spend less than £100 per head on environment and sustainability
training per head
TRAINING19.7% of individuals trained in environment and sustainability in the last two years were
able to make changes as a result of the knowledge and skills gained
43.4% believe that the quality of materials, trainers and training delivery could be
improved
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Setting the standards
Leadership
Manager / Specialist
Operational
Entry
c o r e u n i t s
c o r e u n i t s
c o r e u n i t s
c o r e u n i t s
Asso
ciat
e
HR
Finance
Engineering
Manufacturing
Logistics
FM
Knowledge
Practice Knowledge
SkillsPractice & knowledge
BehaviorsSkills Practice and knowledge
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Sustainability Training Solutions
To deliver commercial training products and services through quality partnerships
Transform understanding of global demand for sustainability skills.Drive up the quality of sustainability training providers & provision.
Grow the training market and build capacity and capability.Broker access to training for sustainability professionals and the
wider workforce. Develop training solutions, including Apprenticeships.
To become the critical learning and development partner for organisations to up-skill their staff
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Summary
• Businesses slow to respond to environmental drivers
• Leadership is critical • Leadership skills are not being taught for a
sustainable economy • Government/s and industry need to work
together• Rapidly changing skills set - Imperative to
keep up to date
