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ESG fund insights

30 May 2024

Employment and Vocational Training: Reskilling for the Green Economy

By ESGCheck

Employment and Vocational Training: Reskilling for the Green Economy

 

As the global economy transitions towards more sustainable practices, the need for reskilling workers has become paramount. Both companies and governments are actively addressing this challenge to ensure that the workforce is equipped for jobs in sustainable industries. This article explores the strategies and initiatives being implemented to reskill workers, highlighting the importance of vocational training in this green transition.

The Urgency of Reskilling

The shift towards sustainable industries is driven by increasing environmental concerns and the need to meet climate targets set by international agreements like the Paris Accord. Traditional industries, particularly those reliant on fossil fuels, are facing a decline, leading to job losses and economic disruptions. According to the International Labour Organization (ILO), an estimated 24 million new jobs could be created globally by the green economy by 2030, but only if workers are equipped with the necessary skills .

Government Initiatives

Governments worldwide are playing a crucial role in facilitating the transition to sustainable jobs. For instance, the European Union has launched the European Green Deal, which includes significant investments in green technologies and training programs for workers. The Just Transition Mechanism, part of this deal, aims to mobilise at least €55 billion over the period 2021-2027 to support workers and regions most affected by the green transition .

Corporate Strategies

Companies are also taking proactive steps to reskill their employees. Major corporations are investing in training programs that focus on sustainability skills. For example, Siemens has developed a comprehensive reskilling initiative that includes training in renewable energy technologies, smart infrastructure, and sustainable manufacturing processes. This initiative is designed to help employees transition from traditional roles to those that support the company's sustainability goals .

Similarly, Unilever has committed to reskilling and upskilling its workforce to meet its ambitious sustainability targets. The company has launched the Future Fit initiative, which provides employees with access to training in areas such as sustainable sourcing, circular economy practices, and climate resilience .

Vocational Training and Education

Vocational training institutions play a critical role in this transition by providing specialised education that aligns with the needs of sustainable industries. Technical and Further Education (TAFE) institutions in Australia, for instance, offer courses in renewable energy, environmental management, and sustainable agriculture. These courses are designed to equip students with practical skills that are directly applicable to green jobs.

Collaboration and Partnerships

The successful reskilling of workers often involves collaboration between governments, companies, educational institutions, and non-profit organisations. Partnerships such as the Green Jobs for Youth Pact initiative, launched by the United Nations Environment Programme (UNEP), bring together stakeholders to develop comprehensive training programs that address the skills gap in sustainable industries .

Conclusion

The transition to sustainable industries presents both challenges and opportunities. By investing in reskilling and vocational training, companies and governments can ensure that workers are prepared for the jobs of the future. These efforts not only support economic stability but also contribute to the broader goal of achieving a sustainable and resilient global economy.

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Magellan Core ESG Fund

Exclusions Inclusions

Investment Exclusions

TobaccoAlcoholWeaponsFossil fuel exploration, mining and productionGamblingAdult entertainment/pornography

Investment Inclusions

Strategy Equity Long Geography Global
Inception Dec 2020 Investors Retail

Emit Capital Climate Finance Equity Fund

Exclusions Inclusions

Investment Exclusions

TobaccoAlcoholWeaponsFossil fuel exploration, mining and productionHuman rights abusesLabour rights violationsEnvironmental damageCompanies that engage in tax avoidance strategiesGamblingAdult entertainment/pornography

Investment Inclusions

Renewable energy & energy efficiencyClimate action & towards net zeroSustainable water managementCircular economy, reuse & recyclingGreen propertyBiodiversity preservation & conservationHealthy rivers & ocean ecosystemsDiversity & women's empowermentIndigenous business or cultural protectionSocial & community infrastructureSustainable transport
Strategy Equity Long Geography Global
Inception Aug 2022 Investors Wholesale

Magellan Sustainable Fund

Exclusions Inclusions

Investment Exclusions

TobaccoAlcoholWeaponsFossil fuel exploration, mining and productionGamblingAdult entertainment/pornography

Investment Inclusions

Strategy Equity Long Geography Global
Inception Dec 2020 Investors Retail

ESG Check

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