Green Talents and Skills Report
PricewaterhouseCoopers (PwC) releases a report on green talents and skills in the financial industry, aiming to analyze the talents allocation required by the financial industry in green finance and net-zero transition, and how to cultivate corresponding green talents and skills.
PwC believes that the demand for green talents in the financial industry is growing rapidly. Whether it is investing in clean technology, providing green loans, or helping companies reduce climate risks, the future strategies, products, and services of the financial industry are related to green skills. Green talents and skills in finance are a driving force in supporting the net zero transition.
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Demand for Green Talents and Skills
The financial industry is playing a greater role in the green economy and net-zero transition. Green bonds and green loans have become new financial tools, and green assets are also growing. Global ESG funds have doubled since 2015, with 30 of the largest asset managers signing net-zero agreements in 2020, with assets under management exceeding $9 trillion. To meet the needs of stakeholders and the requirements of regulatory policies, financial institutions need green talents and skills to participate in these efforts.
PwC finds that the demand for green jobs in the financial industry has increased from 0.26% in 2020 to 2.2% in 2023, which shows that the financial sector has recognized the importance of introducing green talents. However, the proportion of green jobs in the financial industry is only in the middle of the overall economic sector, and the proportion of green jobs in industries such as electricity, water resources management, and technology all exceed 7%. In contrast, the talents demand in the financial industry during the green transformation still has room for improvement.
Green Jobs in the Financial Industry
PwC analyzes the green jobs from three aspects: banking, insurance, and asset management industries. For the banking industry, pressure from regulators, stakeholders and consumers makes it necessary for ESG and sustainable development strategies to be integrated into banks’ business strategies. Both senior managers and employees need to understand green issues and respond to customers’ needs. consult. Green roles in the banking industry include ESG relationship managers, ESG risk analysts, sustainability engineers, etc.
For the insurance industry, assessing environmental and climate risks is increasingly important. The insurance industry may account for one-third of green finance in 2035, and its investments will include renewable projects, green infrastructure, and environmentally friendly enterprises. The insurance industry is recruiting more data science and artificial intelligence talents to study green projects. Their green roles include climate risk analysts, transition actuaries, ESG actuaries, etc.
For the asset management industry, the scale of ESG funds may account for 50% of the total management scale in 2025. Investors’ preference for green assets and the mandatory disclosure requirements of regulatory agencies have led to a growing demand for sustainable asset allocation. The asset management industry needs green talents with a deep understanding of ESG and sustainable development, and to respond to market and regulatory changes. Green roles in the asset management industry include ESG analysts, climate change analysts, etc.
Fill in the Gap for Green Talents and Skills
Although the market demand for green jobs continues to grow, the current supply of green talents and skills is relatively scarce. The global average green skills concentration is 12.3%, and the financial industry is only 7.6%. A study of the world’s 200 largest banks and asset management companies shows that only 14% of employees in sustainability-related positions have ESG-related degrees. Although many financial institutions realize the importance of green skills and talents, they have yet to integrate them into their business operations.
PwC recommends that the financial sector take actions, such as providing sustainability training for employees. The financial industry can also increase the diversity of positions in recruitment and include more job seekers with green-related degrees. Regulators could provide greater subsidies for these training and recruitment.
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