The Green Edge Reports Roundup, Aug-23: Part One - General
Continuing with our selection of reports and other publications from this month’s reading list.
Again this month, we’re splitting our reading list into two posts. This one covers general categories. For Sectors, see Part Two.
As usual, you can find all thes reports and more in our searchable reports list on The Green Edge Data Portal.
Employment and Skills
Skills
Climate Call to Action. Research Report
British Chambers of Commerce supported by Lloyds Bank, August 2023
This is a reality check type of report using a representative survey of nearly 1,000 businesses, and there is one clear message: a high level in inactivity and low levels of understanding. Given that there are 5.5mn SMEs in the UK, this represents a major challenge particularly across the whole installer and construction sectors. On the skills front it’s noted that there are green skills gaps but more importantly there is a huge need to raise awareness, provide advice, and use a series of easy-to-understand definitions of “what is green?”. Hopefully when this survey is repeated there will be significant signs of progress. What wasn’t clear was the number of surveyed businesses delivering net zero products and services.
Green Jobs Delivery Group. Summer 2023 Statement
Green Jobs Delivery Group, August 2023
A brief update on progress and the four task and finish groups covering power and networks; nature; local capacity and capability; resources and waste. Includes a forward look towards producing the Net Zero and Nature Workforce Action Plan 2024. Two observations: it would be good to see design as the focus of a task and finish group; and, the Local Capacity and Capability Task and Finish Group have identified four key themes: developing a national definition of green jobs; mapping of key national and regional projects; creating the local workforce needed to deliver green jobs; and place-based mechanism of delivery. We certainly need a definition of green jobs we can all use across the whole skills value chain. It will also be good to see how this Task and Finish Group suggests handling the LISPs which are now being openly published (several of which are listed below).
Every Job is a Climate Job. Why Corporate Transformation Needs Climate Literacy.
Kite Insights, June 2022
A simple and powerful message: there is huge interest and intent to act but many feel they are not fully equipped to do so. There is a wide range of programmes in place, and they clearly have not managed to meet current demands. It would be good to track the progress and the shift from interest and intent to ability and action.
The Lightcast Open Skills Taxonomy. Understanding a fast-changing labour market
Lightcast, August 2023
A neat little report describing the skills taxonomy which is granular, specific, global, and response. The three main skill types are: common skills, specialised skills, and, certification skills – in all, there 32,000 skills identified by Lightcast. This all fits with its occupation taxonomy of four levels: careers areas (27 in all), occupation groups (180+), occupations (780+), and specialised occupations (1900+). It would be good to see these two taxonomies being used across green, sustainable, and circular economy skills.
Understanding the emerging Skills Tech landscape
Centre for the Future of Higher Education and Talent Strategy, Northeastern University, April 2023
A short report with a lot of important content on skills, their definition, and how they can be grouped to assist employers, education institutions and policy makers. At the simplest level it asks the question: what is a skill? The answer depends on which platform (Tech Skills Company) you use. Empath Skills lists 300; IBM Talent Framework Skills has 2700+; Lightcast Skills Library has 32,000+; Revelio Lab Skills 10,000; Talent Guard Skills 2000+; and Workday Skills Cloud 47,000. Clearly all of these organisations can’t all be “right”, but they are looking at skills across different levels (there are usually 5), and for comparison the Singapore Skills Taxonomy lists 10,610 unique skills; ESCO has 13,500+ knowledge, skills and competence concepts; and the Nesta skills taxonomy has 10,500. For us these platforms are starting to create tools that help shape our ability to manage green skills more effectively to support job entry and transfers between occupations (related and unrelated), and they provide the start of establishing alternative means of skills validation. Well worth a read and feed into your thinking around green skills frameworks.
Mapping the green jobs transition
Future Skills Centre, Canada, September 2022
One major conclusion is that around 15% (3.1mn) of the Canadian workforce will be disrupted and 235,000 (13%) of new and emerging jobs will be found in positions where job descriptions changed significantly by the green transition: 46% of such jobs in natural resources and agriculture; and 40% in trades, transport and equipment requiring enhanced green skills. These numbers are of immediate interest to us and are similar to those in the UK plus three of the key focus areas: support for workers in transition; occupational standards for the blue (ocean) economy; and vulnerable communities. It is well worth making the effort to keep a track on this and related work in Canada as they analyse what is happening, and the various policy interventions they are using.
Gearing up the Indian Workforce for a Green Economy. Mapping Skills Landscape for Green Jobs in India.
Skills Council for Green Jobs supported by J.P. Morgan, May 2023
We are always looking for example of other countries rapidly expanding their green skills workforce, and here we see India with a green pillar to its most recent budget (Feb 2023) which is seeking textiles, waste management, etc. In Europe, for example, there is a clear point as well as regards seeing the active migration of Indian workers to enter and support net zero work in other countries due to the “positive” demographic balance i.e. low dependency ratio.
Labour Market
Decarbonising the UK’s building stock. Can immigration policy help solve workforce challenges?
Overseas Development Institute Working Paper, August 2023
We have raised many the labour market constraint on the UK’s ability to deliver its net zero targets and develop a modern circular economy. This working paper tackles this issue by looking at the decarbonisation of the UK’s building stock, and concludes that there are several immigration policies that would help. We should know the full scale of the net zero workforce issues when the Green Jobs Delivery Group delivers its plan next year and builds on the various outputs from the Task and Finish Groups and the recent Climate Change Committee work. Full buildings retrofit requires a set of 10 skills and this needs to be kept in mind rather than focus on heat pumps. Many heat pumps will be fitted in new property from 2025 (this will be in around 200-250,000 properties), and the UK already have a workforce of 130,000 qualified to fit gas boilers many of whom will transition to fit heat pumps and will be trained in one of the 60 approved training centres. Well worth a read, the work needs building on across other net zero sectors.
Augmented work for an automated, AI-driven world
IBM Institute for Business Value (with Oxford Economics), August 2023
Makes the main point around impact of AI/automation on the workforce and the requirement for reskilling: 40% of the workforce over the next 3 years. This report builds on previous ones from IBM and the World Economic Forum. Surprising to us are two things: no explicit reference to job design and the principles established many years ago (Hackman and Oldham’s work and their job characteristics model and the job diagnostics survey); and no linkage to net zero and the move to a circular, sustainable economy and society. Digital and AI are integral to net zero and the management of resources and energy.
Future of Professionals Report. How AI is the Catalyst for Transforming Every Aspect of Work.
Thomson Reuters, August 2023
We need to see these types of reports covering AI crossing over with other major changes to the skills and task at work i.e. the net zero transition as there is a major inter-dependency in so many areas. Perhaps next year’s report?
Generative AI and the Future of Work in America.
McKinsey Global Institute, July 2023
This report covers AI but also looks across the whole labour market and covers the net zero shifts too. Several things strike us from reading the report: infrastructure investment is a major challenge (current shortages running at 400,000) and not just because of the Inflation Reduction Act but also the Bipartisan Infrastructure Law and the CHIPS and Science Act; a mass balance approach to the labour market looking at the whole system shows the flows and the rate of occupational change (an additional 12mn occupation shifts by 2030). Net zero investment will result in a net gain of 700,000 jobs (a loss of 3.5mn and a gain of 4.2mn). The transition maps are excellent: see Exhibits 10 (p38) and 16 (p55) are very helpful. The Green Jobs Delivery Group’s net zero workforce plan could learn a lot here, and take a whole economy, whole workforce starting point.
Techies and Firm Level Productivity
CESifo Working Paper No 10468/NBER Working Paper 31341, June 2023
Our interest here is the power of skills to follow and improve a technology to raise productivity, and we are left wondering how green technologies and their full use is achieved. This excellent piece of work looks at ICT in France, and finds that engineers have a greater effect on productivity than technicians. It would be worth repeating this study in a UK context and look at a different set of technologies, ideally green ones.
Jobs of the Future
Universities UK, August 2023
Interesting, high-level piece of work and which does touch on net zero, and asks the question: do we need graduates to do green jobs? (p 15). Given the volume of excellent work to draw upon we feel this section is a little underwhelming, and is an opportunity lost. It would be worth Universities UK to delve into the emerging and growing green/circular economy, and the very significant role played by universities and graduates and to feed this into the development of the Net Zero Workforce Plan.
Empowering the Workforce, Bridging the Skills Gap
EU PES Network Stakeholder Conference, March 2023
Whole focus on public employment services and the challenges ahead with the major automation, digital, and green transitions working their way through the labour market. Useful context piece digging into the individual papers at the conference (they are all summarised here in a series of word maps/infographics).
Working conditions in the time of COVID-19: implications for the future.
Eurofound, November 2022
Much is made here of the quality of work and new, green jobs being good quality jobs. Surveys like this track job and work quality (using an index of job quality) and this set of data show 30% of workers were in ‘strained’ jobs where job demands outweighed the job resources. Will green jobs introduce less strained jobs? Will they shift work intensity, raise the levels of autonomy and participation? Future surveys might provide some insights.
Levelling-up/Regional Development
UK Competitiveness Index 2023. Is the UK economy levelling-up?
Cardiff and Nottingham Trent Universities, August 2023
This index has been running since 2000 and covers most local government areas (all 362 local authorities, combined authorities, LEP areas etc.). It’s a big message: London, the South-East, and the East of England are decoupling from the rest of the UK. There is a “but”, with Manchester, Liverpool, Birmingham, Cardiff and few other cities making progress, saying that devolution has a real impact. For us, the surprising omission was the green economy and net zero, and we’d ask if this could be factored in for the next index update.
Inward Investment Results 2022 to 2023
Department for Business and Trade, June 2023
The usual annual set of results for inward investment projects which shows 1,654 projects generating 80,000 jobs based on £6-7bn invested. London is the prime recipient: 528 projects and 20,647 jobs. When we look at the sector splits we find 67 renewable energy projects with 3,733 associated jobs but the number of protected jobs isn’t disclosed and so no total number of jobs. This is a great shame, and the sectors categories could perhaps be updated to use the ones developed by Data City. It would also be good to see how much the net zero transition is based on inward investment. The dominant sector is software and computer services.
International Round Table – Accelerating Climate Mitigation at City Level.
Centre for Climate Change and Social Transformation, Tyndall Centre, and the Greater Manchester Combined Authority, CAST Report 9, July 2023
What really strikes us on reading this report is the importance of local capacity and capability to create plans and ensure their delivery at local (city) level, the need for co-ordination and collaboration, the full realisation of workforce issues that cut across communities, and the need to share and learn from each other. Online roundtables are fine but there is clearly an emerging educational process which needs finalising here.
Green skills demand in Surrey and North/Mid Hampshire
WPI Economics and Lightcast for Surrey County Council and Surrey Chamber of Commerce, May 2023
As a part of the LSIP process this was a deep dive into the local area and identifies 35,000 green jobs currently in the economy (3.8% of all jobs) spread across 8 main sectors: circular economy (34% of green jobs), power and energy (28%), houses and buildings (10%), climate adaptation (10%). This is an excellent use of the available data extended by using Lightcast and Data City data and information, and it would be a great step forward if every LSIP undertook a similar analysis, and shared this data across a common platform. In every LSIP area there are colleges requiring demand and growth data for green skills in order to focus their investment in new curriculum and facilities.
Lessons from Ireland for Scotland’s Economy
Oxford Economics for The Hunter Foundation, August 2023
A succinct and readable report which highlights the ways that foreign direct investment, corporation tax levels, demographics, EU membership and a focus on key sectors have driven the Irish economy over recent years. For Scotland, three sectors are proposed as potential focus areas: renewable energy and the low carbon economy; life sciences and medical technology; and software, big data, and AI. Scotland has a significant comparative advantage as regards renewable energy generation which lies well beyond meeting local, UK requirements, and an expertise which is tradable worldwide (just see the evidence from the growth of businesses supporting the North Sea oil and gas sectors). In terms of levelling-up we are left wondering how much the renewable energy sector and the wide green economy can support export growth and be a driver for long term levelling up.
Green Jobs and the Green Economy in York
Warwick IER for York City Council, December 2022
A runout for the GreenSOC developed by IER Warwick and Strathclyde Universities and which has been used in Scotland, and the Liverpool and Sheffield Combined Authorities by using O*NET and the UK SOC. It uses the O*NET definitions of green, and finds the bulk of the green jobs will emerge in agriculture, construction, manufacturing, and transport and communications. Useful analyses but it needs extending further to take fully on-board sustainability and the circular economy. Hopefully the LSIPs will make use of GreenSOC.
Talking of which…
Local Skills Improvements Plans (LSIPs)
There are 38 of these - here that immediately caught our eye. We will seek to pull together the LSIPs when they are all approved and have been released.
It would be good to see the collation of the LSIPs by the Department for Education over the coming months and how it will feed into the Net Zero Workforce Plan of the Green Jobs Delivery Group.
York and North Yorkshire LSIP
West and North Yorkshire Chamber of Commerce, August 2023
Net zero and green skills are writ large in this LSIP embedded into the high growth and priority sectors: sustainable energy and bioenergy, agri-food innovation, construction, and transport. Two clear messages for us: upskilling, reskilling, skills for transfer, and retaining staff is one; and, the other is around the form of skills training delivery which needs to be bite sized, progressive, modular and use technology (use mobile technology).
West Yorkshire Local Skills Improvement Plan
West and North Yorkshire Chamber of Commerce and Mid-Yorkshire Chamber of Commerce, August 2023
Apart from the direct sets of priorities and actions, LSIPs are a useful way of gauging wider systems issues e.g. definitions varying of green economy; capacity and capability challenges; apprenticeships not changing fast enough. These are all found in this LSIP. Despite green, net zero, and sustainability being mentioned across the LSIP, the primary focus is on the technical skills to deliver greatly reduced or the removal of CO2 emissions. We didn’t find wider issues around the circular and regenerative economy, nor design being raised.
Local Skills Improvement Plan 2023 Cumbria
Cumbria Chamber of Commerce, August 2023
When we receive LSIPs we are looking for the degree of coverage of the needs for the net zero transition, in particular driven by major projects (e.g. offshore wind and nuclear in the case of Cumbria) and the whole retrofit (construction) and transport, and land management areas. This LSIP covers all of the areas and has done deep dives into a series of critical areas. Now for the hard work: delivery.