Climate change is here. During 2024 we had sufficient evidence to confirm its existence. But are businesses and organisations in a position to deal with it successfully for a sustainable future?
Our experience so far shows that currently many companies and organisations do not have sufficient skills among their teams to deal effectively with climate change issues, particularly in terms of integrating sustainability into their core operations and long-term strategy.
However, this is gradually changing as the business world becomes more aware of the impacts of Climate Change that are now evident and already affecting or imminent for their activities both in physical terms and due to regulatory requirements.
But addressing the issues that arise requires a complex set of skills and managerial disciplines, from technical expertise in sustainability and energy systems, to strategic leadership and communication skills as shown below.
Sustainability and Environmental Science Expertise
o Climate science knowledge: Understanding the fundamentals of climate change, including its causes, impacts, and mitigation strategies, is essential for developing informed policies and practices.
o Carbon accounting and emissions management: Specialists who can measure and manage a company’s carbon footprint are vital. Skills in carbon accounting, lifecycle assessments, and sustainability reporting (e.g., using frameworks like GHG Protocol, TCFD, and CDP) are increasingly in demand.
o Circular economy knowledge: Understanding the principles of the circular economy—designing products and processes to reduce waste and reuse materials—requires both environmental science and business process expertise.
Energy Management and Engineering
o Renewable energy expertise: Companies need engineers and technical experts who understand renewable energy technologies (e.g., solar, wind, geothermal) and how to integrate them into business operations.
o Energy efficiency: Expertise in improving energy efficiency in industrial processes, buildings, and transportation systems is critical for reducing emissions. Skills in conducting energy audits, retrofitting systems, and implementing smart energy solutions are needed.
o Decarbonization of operations: Engineering skills are required to help companies reduce emissions from industrial processes, design low-carbon products, and transition to cleaner fuels.
Data Analysis and Modeling
o Data science and environmental modeling: Skills in data analysis are crucial for tracking emissions, modeling climate risks, and evaluating the effectiveness of sustainability initiatives. Environmental data analysts can interpret large datasets, use predictive modeling to assess climate risks, and help businesses make data-driven decisions.
o Risk analysis and scenario planning: With the uncertainties posed by climate change, companies need professionals who can model different scenarios—such as the impact of regulatory changes, physical risks from extreme weather events, or shifts in consumer behavior.
Financial and Economic Analysis
o Green finance: Financial analysts with expertise in green finance and sustainable investing are key to helping companies secure funding for low-carbon initiatives. This includes knowledge of sustainable finance instruments like green bonds, carbon markets, and ESG (Environmental, Social, and Governance) investment strategies.
o Cost-benefit analysis of sustainability initiatives: Business leaders need to understand the financial implications of adopting sustainable practices, which requires analysts skilled in evaluating the long-term return on investment (ROI) of environmental projects.
Supply Chain Management
o Sustainable supply chain expertise: As supply chains contribute significantly to a company’s carbon footprint, supply chain managers must learn to implement sustainable sourcing strategies, ensure supplier compliance with environmental standards, and reduce waste. This requires skills in supplier engagement, ethical procurement, and lifecycle analysis.
o Resilience planning: With climate change disrupting global supply chains, companies need experts who can make supply chains more resilient by diversifying sourcing strategies, optimizing logistics, and building redundancy into critical parts of their operations.
Policy and Regulatory Expertise
o Understanding of environmental regulations: Legal and compliance teams need deep knowledge of international and local environmental laws, emissions regulations, and industry-specific standards. This includes awareness of evolving climate policies, such as carbon pricing mechanisms or energy transition regulations.
Leadership and Strategic Planning
o Climate risk management: Senior leaders need to integrate climate risks into overall business strategy. This requires the ability to assess how climate change will affect operations, markets, and competitive positioning, and to make strategic decisions that balance sustainability with profitability.
o Sustainability leadership: Effective leaders must inspire change within the organization, driving sustainability initiatives from the top down. This involves setting ambitious targets, fostering a culture of sustainability, and ensuring alignment with long-term business goals.
Change Management and Organizational Development
o Change management skills: Transitioning to sustainable business practices requires significant cultural and operational shifts. Change managers help embed sustainability into the core values of the organization, manage resistance, and guide employees through the transition.
o Employee training and engagement: Human resource specialists are needed to develop training programs that equip employees with the knowledge and skills required for sustainable practices. This can range from educating workers on energy efficiency to teaching executives about climate risks.
Innovation and Research & Development (R&D)
o Sustainable product design: Innovators and product designers with knowledge of eco-friendly materials, green technologies, and sustainable design principles are needed to create products with lower environmental impact.
o Research on low-carbon technologies: Continuous innovation is key to finding solutions to climate challenges. R&D professionals focusing on clean technologies, carbon capture, and energy storage systems are essential to advancing corporate sustainability.
Marketing and Communication
o Sustainability communication: Marketing teams need skills in communicating a company’s sustainability efforts authentically and effectively. Greenwashing concerns mean that clear, transparent messaging is critical to build trust with consumers, investors, and regulators.
In conclusion, a multi-disciplinary approach is needed, combining technical, financial, strategic, and communication skills to drive the transition toward sustainable business models. Upskilling and hiring professionals with climate expertise will be essential for closing these gaps and embedding sustainability into core business practices.
Comments